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Plan Outline
Taxi Business Plan
City Taxi
Company Summary
Legal Business Description:
City Taxi was founded in 1997 in San Francisco, California, by Mr. Johnson Taylor. The company is a California C-Corporation under the name Patriot, Inc. d.b.a. City Taxi.
2.1 Company Strategy
The City Taxi's strategy is to saturate the market with television ads depicting the company as a premier taxi service. The company will leverage the newest in car technology to dominate the credit card segment of the market. City Taxi will dominate the market because no other company has this unique feature.
The company's strategy is to build reputation and market share in our target market by establishing our business offering as a viable alternative to existing taxi cab services. City Taxi intends to get the confidence of customers and establish itself as a company that provides superior customer service by using up to date technology to provide timely and reliable services.
2.2 Company History
As can be seen in the chart and table below, the company performed well its first year, but sales have not been fully actualized. That is the intent of this plan: to increase sales by utilizing our competitive advantages and by the acquisition of a rival taxi company.
| Past Performance | |||
| 1996 | 1997 | 1998 | |
| Sales | £0 | £0 | £100,000 |
| Gross Margin | £0 | £0 | £60,000 |
| Gross Margin % | 0.00% | 0.00% | 60.00% |
| Operating Expenses | £0 | £0 | £20,000 |
| Balance Sheet | |||
| 1996 | 1997 | 1998 | |
| Current Assets | |||
| Cash | £0 | £0 | £45,000 |
| Other Current Assets | £0 | £0 | £13,400 |
| Total Current Assets | £0 | £0 | £58,400 |
| Long-term Assets | |||
| Long-term Assets | £0 | £0 | £75,000 |
| Accumulated Depreciation | £0 | £0 | £10,000 |
| Total Long-term Assets | £0 | £0 | £65,000 |
| Total Assets | £0 | £0 | £123,400 |
| Current Liabilities | |||
| Accounts Payable | £0 | £0 | £23,600 |
| Current Borrowing | £0 | £0 | £10,000 |
| Other Current Liabilities (interest free) | £0 | £0 | £25,400 |
| Total Current Liabilities | £0 | £0 | £59,000 |
| Long-term Liabilities | £0 | £0 | £25,000 |
| Total Liabilities | £0 | £0 | £84,000 |
| Paid-in Capital | £0 | £0 | £37,000 |
| Retained Earnings | £0 | £0 | £2,400 |
| Earnings | £0 | £0 | £0 |
| Total Capital | £0 | £0 | £39,400 |
| Total Capital and Liabilities | £0 | £0 | £123,400 |
| Other Inputs | |||
| Payment Days | 0 | 0 | 30 |
2.3 Risks
The company recognizes that it is subject to both market and technological risks. The company's view of its risks, as well as how each is being addressed, is as follows:
- Lock out in industry for new cab companies. City Taxi is aware that this is an extremely difficult industry to get into. To mitigate this risk, City Taxi has established an alliance with the leading cab company in the San Francisco area, Transportation, Inc. The alliance will allow City Taxi to run under their color scheme. Another way in which the company plans to mitigate this risk is by acquiring an existing cab company, Mighty Cab.
- Acquiring insurance. City Taxi will have to acquire extensive insurance to cover all aspects of operations, but will be faced with high rates. To lessen this risk, City Taxi plans to use the relationship with Transportation, Inc. to run under their insurance companies, First Insurance of San Francisco and Columbia Insurance. Alternatively, the company plans to purchase insurance from Newark Insurance and Amalgamated Insurance, which offer lower rates. This will also bring leverage in negotiating with Transportation, Inc.
- Adequate facility. City Taxi realizes that it is difficult to locate a facility with the space required for all operations. City Taxi has found a facility with ample space for all operations. There is enough room to set up repair facilities, and there is adjacent space to store vehicles.
2.4 Value Proposition
City Taxi's products and services offer the following advantages to customers:
- Convenience. City Taxi's products and services provide the driver and the customer with the convenience of a credit/debit card system that gives instant approval.
- State-of-the-art Call Center. City Taxi's call center allows us to provide a timely service by picking up the closest vehicle when a call comes in. When a call comes in, it is put into the system, the system sends a message to dispatcher, the system then tags the closest vehicle in the zone, neighboring zone, on the way to the zone, or the dispatcher can call.