taxi-business-plan-example

Taxi Company
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Business
Plan
[YEAR]
 John Doe
 10200 Bolsa Ave, Westminster, CA, 92683
 (650) 359-3153
 info@example.com
 http://www.example.com
CONFIDENTIAL
Table of Contents
Executive Summary 5
Introduction 6
Mission Statement 6
Vision Statement 6
Objectives 7
Financial Highlights 7
3 Year profit forecast 7
Highlights 8
Business Summary 9
Company Strategy 10
Startup - Summary 10
Past Performance 11
Risks 12
Value Proposition 13
Products and Services 14
Service Description 15
Taxi Cab Services 15
Maintenance/Repair Services 15
Technology 16
Future Services 16
Market Analysis 18
Market Segmentation 19
Customers and Target Markets 19
Customer Buying Criteria 19
Market Analysis 20
Service Business Analysis 20

Competition and Buying Patterns 21
Taxi Company | Business Plan [YEAR] 2/38

Strategy 22
Sales Strategy 23
Sales Yearly 23
Detailed Sales Forecast 23
Marketing Strategy 24
Marketing Programs 24
Strategic Alliances 25
Management Plan 26
Organization 27
Officers and Key Employees 27
Financial Plan 28
Important Assumptions 29
Brake-even Analysis 29
Projected Profit and Loss 30
Projected Cash Flow 32
Projected Balance Sheet 34
Business Ratios 35

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1.
Executive Summary
Introduction
Mission Statement
Vision Statement
Objectives
Financial Highlights
Highlights
Before you think about how to start a Taxi business, you must create a
detailed Taxi business plan. It will not only guide you in the initial phases of
your startup but will also help you later on.
To unlock help try Upmetrics! 
Introduction
 Metro Cabs
Metro Cabs specializes in providing customers with chauffeuring/taxi services within 50 miles
of its office location. The Company is registered as a corporation and located in the State of
New York. The Company charges its customers on a per-mile basis, or for longer trips on a flat
fee basis. Additionally, Metro Cabs directly employs its staff of drivers, and the business will be
able to accommodate any pickup or delivery of a person to and from their destination at any
Start writing
time. here..
Metro Cabs comply with all local, state, and federal laws regarding the rendering of taxiing
services. The third section of the business plan will further describe the services offered by
Metro Cabs.
Mission Statement
We are well trained and equipped with some of the finest taxi cab drivers and comfortable cars
to service our clients irrespective of their social and financial status. As an added safety
measure for both drivers and passengers, Metro Cabs cabs are fitted with Global Positioning
Metro Cabs
Systems (GPS), which enable the cabs to be tracked or located in an emergency. All-Metro
Cabs cabs will
Our mission asbe clean,
a cab well maintained,
services company isand inspected
to develop regularly
a highly for safetyprofitable
successful, and comfort.
business
The
which provides quality automobile transportation services in our city and to become abusiness
company's strategy is to build a reputation and market share by establishing our standard
offering
for an ideal taxi services business not only in the State of New York but also throughoutgoal
as a viable alternative to existing taxi cab services in the area. The company's the in
the nextStates
United year isoftoAmerica
pursue and
an aggressive marketing
Canada where campaign
we intend launchingand our
from that, penetrate
business at least
and selling our
65% of the
franchise. market share. The company's long-term goal is to be the top-rated ground
transportation
Start writing here.. company in New York.
The company's emphasis is on the dispatch, mobile data, and credit/debit card markets of the
taxi industry. In aggregate, these markets are believed to represent potential sales in excess of
Vision Statement
$119 million as of March 2020. Within these markets, Metro Cabs will focus on the more
lucrative credit card/debit card segment. This segment, when introduced into any area, has
started out slow but over a three-year period has increased by 20% each year in Maryland and
 Metro Cabs
Virginia, and by 25-35% in New York each year.
Our vision iswith
Companies to become the number
whom Metro one taxi cab
Cabs competes areservices company
Transportation, in the
Inc., whole
Capital of New
Cab, York
Yellow Cab,
with an active presence in key cities all around the State of New York.
and Diamond Cab. Their weaknesses are that they do not have the credit/debit card payment
option, and some still use the radio dispatch system. The company has aTocompetitive
unlock help try Upmetrics! 
advantage, however, because our technology is unique to the taxi industry in New York. The
GPS will enable the company to provide timely service by giving an accurate estimated time of
Start writing here..
arrival (ETA). The credit/debit card feature will give customers convenience and privacy during
the transaction period.
Reliable communications are essential under all circumstances in this business. As such,
Metro Cabs will use the KDT 5000 system. The KDT 5000 system design provides multiple

Objectives
 Metro Cabs
The company's goal in the next year is to pursue an aggressive marketing campaign and from
that, penetrate at least 65% of the market share. The company's goal in the next two to five
years is to be the top-rated ground transportation company in the New York Metro Area by
continuously monitoring, evaluating, and following up on customer call-ins.
The
Start key components
writing here.. of Metro Cabs' initial strategy can be summarized as follows.
Establish a relationship with Rockwell International. The company is currently working to

establish and develop a working relationship with Rockwell International. This will enable Metro
Financial Highlights
Cabs to lock into the many services that they offer including, but not limited to:
• Managerial
 Metro Cabs
• Call center and customer service efficiency
• Management
The company consulting
is seeking $2.5 million of financing to fund the acquisition of the Mighty Cab
Association and itsconsulting
• Technology initial operations. This funding will cover the purchase of Mighty Cab,
marketing, purchase
• Product of extra vehicles, software, and hardware. Projected revenues for 2020 to
management To unlock help try Upmetrics! 
2022 are $200,000, $1.5 million, and $2.2 million, respectively.
• Continuous improvement
3 Year profit forecast
Financial Year Sales Gross Margin Net Profit
Year1 10,000 500 6,000
Year2 12,000 800 8,000

Financial Year Sales Gross Margin Net Profit
Year3 14,000 1,200 10,000
Highlights
 Metro Cabs
Highlights of Metro Cabs
Technology. Metro Cabs has a unique Global Positioning System (GPS) that pinpoints the
nearest driver, thus allowing the driver to give an accurate ETA.
Credit/debit card system. This system is the first of its kind in New York and is convenient for
both the passenger and driver because approval is given instantly. The swipe machine is
located in the back seat, giving passenger privacy.
Trademarks. The company is in the process of registering the name Patriot as a trademark.
Advertising. Metro Cabs is already in advanced discussions with TCI Media Services to provide
advertising services and market research.
Seasoned management. The company's management is highly experienced and qualified and
has extensive experience in the industry.
Strategic relationships. The company has and will continue to establish, relationships with
organizations that will enhance professional growth. These alliances are valuable to Metro
Cabs because they allow us to get updates on technology, added tech support, and a strong
presence in the market.
Exclusive rights to the software. Metro Cabs has the exclusive rights to the latest taxi cab
software in New York.

2.
Business Summary
Company Strategy
Startup - Summary
Risks
Value Proposition
 Metro Cabs
Metro Cabs is a standard, licensed and registered Taxi cab Services Company that will be
based in New York – United States of America and we will have an active presence in other
cities such as Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North
Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay, and Panama City et al. We
chose to operate in these cities because we know that our services will be in high demand due
Start
to writing here..
the demographic composition of New York.
Metro Cabs was founded in 2018 by Mr. Kennedy Williams. The company is a C-Corporation
Company Strategy
under the name Patriot, Inc. d.b.a. Metro Cabs.
 Metro Cabs
Metro Cabs' 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. Metro Cabs will dominate the market because no other
company has this unique feature.
The
Start company's
writing here.. strategy is to build a reputation and market share in our target market by
establishing our business offering as a viable alternative to existing taxi cab services. Metro
Cabs intends to get the confidence of customers and establish itself as a company that
Startup
provides -superior
Summary customer service by using up to date technology to provide timely and
reliable services.
 Metro Cabs
As can be seen in the chart and table below, the company performed well in 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
Financial Year Sales Gross Net
Year1 0 0 0
Year2 78,451 35,452 35,468
Year3 754,121 542,151 254,785
PAST PERFORMANCE 2017 2018 2019
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
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

PAST PERFORMANCE 2017 2018 2019
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
Risks
 Metro Cabs
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:

Lockout in the industry for new cab companies. Metro Cabs is aware that this is an extremely
difficult industry to get into. To mitigate this risk, Metro Cabs has established an alliance with
thewriting
Start leading cab company in the New York area, Transportation, Inc. The alliance will allow
here..
Metro Cabs 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. Metro Cabs will have to acquire extensive insurance to cover all aspects
of operations but will be faced with high rates. To lessen this risk, Metro Cabs plans to use the
relationship with Transportation, Inc. to run under their insurance companies, First Insurance of
New York 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.

Value Proposition
 Metro Cabs
Metro Cabs' products and services offer the following advantages to customers:
Convenience. Metro Cabs' products and services provide the driver and the customer with the
convenience of a credit/debit card system that gives instant approval. To unlock help try Upmetrics! 
State-of-the-art Call Center. Metro Cabs' 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 the dispatcher, the system then tags the closest
vehicle in the zone, neighboring zone, on the way to the zone, or the dispatcher can call.

3.
Products and Services

Service Description
Technology
Future Services

Before starting a Taxi company, you must take many things into
consideration such as you must consider what types of taxi services will you
be providing to your passengers. Deciding your services is extremely
important since it helps you plan other components of your business so
make sure to consider it before you think about how to start a Taxi business.
 Metro Cabs
Metro Cabs provides taxi services utilizing computer dispatch to help with timely pickup and
quality customer care. The software and hardware systems used by Metro Cabs give
customers convenience by allowing them to use credit and debit cards in the taxi.
Service Description
 Metro Cabs
The taxi driver is often the first contact that a visitor has with New York and as such, Metro
Cabs realizes the importance of first impressions and customer care. The company's customer-
oriented philosophy and its commitment to service are reflected in the careful selection of
drivers and the comprehensive training program. Customers can expect the following high
standards when they travel with Metro Cabs:
Taxi Cab Services
• Clean and tidy taxis
Start writing here..and polite drivers
• Friendly
• Careful driving
 • The
Metro most practical route took
Cabs
This division of Metro Cabs deals with the pure maintenance of vehicles. Drivers will be
charged at discounted rates for tune-ups, wheel alignments, and other repairs.
Maintenance/Repair Services

Technology
 Metro Cabs
Global Positioning System. Metro Cabs has a unique Global Positioning System (GPS) that
pinpoints the nearing driver thus allowing the driver to give an accurate estimated time of
arrival.
Radio System. Reliable communications are essential under all circumstances. Metro Cabs will
use
Start the KDT
writing 5000 system design because it provides multiple levels of reliability to assure
here..
communications will be maintained under the most rigorous condition.
Credit/Debit Card System. Metro Cabs will use the in-car credit/debit card system, which is a
Future Services
new market segment for the taxi industry in New York. This involves customers using their
debit cards in any Metro Cabs cab with approval being given instantly, eliminating the need to
dial in to head office for approval numbers. By using this system, the company will be
 Metro Cabs
addressing the need for convenience and reliability. Metro Cabs also features a computer-aided
dispatch system that will be represented under the Patriot name. The company is currently in
Metro Cabs plans to respond to market needs by following up with taxi plus (wheelchair
the process of making Patriot a trademark. The company has also applied for a license to run a
accessible taxi vans with credit card access inside) with the next 5 years. Metro Cabs believes
490 narrow band frequency and voice data transmission. From the perspective of customers,
it can capture this niche and again in overall market share. Additional plans for next-generation
the advantage of Metro Cabs' products and services is the high level of technology,
To unlock helpwhich leads 
try Upmetrics!
products and services include rent to own options for our drivers. The introduction of the
to superior customer service. In contrast to competitors, Metro Cabs' products and services
company's next-generation product and services is expected to be within 12 months.
offer
Start convenience.
writing here.. The keypad and swipe machine are built into the back seat, thus giving the
customer privacy. Whereas competitors have to call in a credit/debit card transaction for
approval, our customers will be able to get on-the-spot approval before the driver even pulls
over.

4.
Market Analysis
Market Segmentation
Service Business Analysis

The most important component of an effective Taxi business plan is its
accurate market analysis. If you are starting on a smaller scale, you can do
the market analysis yourself by taking help from this Taxi business plan
sample or other Taxi business plans available online.
 Metro Cabs
The company's emphasis is on the dispatch, mobile data, and credit/debit card markets of the
taxi industry. In aggregate, these markets are believed to represent potential sales in excess of
$119 million as of March 2020. Within these markets, Metro Cabs will focus on the more
lucrative credit/debit card segment. This segment, when introduced into any area has started
out slow, but over a three-year period has increased by 20% each year in Maryland and Virginia,
Start
andwriting here.. in New York each year.
by 25-35%
The company believes that the major future trend in the industry will be complete credit card
Market Segmentation
access for consumers. The International Taxi Livery Association (ITLA) forecasts very steady
growth for the taxi industry in the next four years.
Market Size Statistics:

 Metro Cabs
Metro Cabs'number
Estimated focus will
of be onestablishments
U.S. the credit card market with target customers6,431
in the low to mid-
income range in the Metropolitan New York area. The target customers are motivated to use
our services over that of competitors because of the convenience and quality associated with
our services.
Number of people employed in this industry 49,005
Customers and Target Markets
StartTotal annual
writing here..sales in this industry $1.34 million
Average employees per establishment

Metro Cabs 12
We believe our customers choose our cab service based on the following criteria:
Average sales per establishment $.3 million
Performance. We work with one goal in mind: to get customers where they want to go, when
they want to go, promptly, efficiently, comfortably, and safely.
Superior Service.
Customer BuyingTimely pickup, private usage, and customer care.
Criteria
Quality. This involves providing courteous service in clean, well-maintained cars.
Convenience. This involves the credit/debit card feature.

Market Analysis
Financial Year Units Sold
Credit Card Market 60
Cash Customers 40
Other 0
Potential
Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Customers
Credit Card Market 25% 200,000 250,000 312,500 390,625 488,281 25.00%
Cash Customers 10% 100,000 110,000 121,000 133,100 146,410 10.00%
Other 0% 0 0 0 0 0 0.00%
Total 20.60% 300,000 360,000 433,500 523,725 634,691 20.60%
Service Business Analysis
 Metro Cabs
Market 1-Taxi Cabs
This category covers establishments engaged primarily in furnishing passenger transportation

by automobiles not operated on regular schedules or between fixed terminals. Taxicab fleet
owners and organizations are included, regardless of whether drivers are hired, rent their cabs,
orwriting
Start are otherwise
here.. compensated.
Industry Snapshot

 Metro Cabs
Competitive threats come from existing taxi cab companies in the New York area. Their
weaknesses are, however, that they do not have the credit/debit card payment option, and
some still use the radio dispatch system. Transportation, Inc. has computer-aided dispatch but
no credit card processing capabilities. Capital Cab, Yellow Cab, and Diamond Cab all have radio
dispatch with selected drivers accepting credit cards. However, these drivers do not offer in-car
Competition and Buying
processing, approval must bePatterns
given at the home office.
Start writing
Taxi Cabs.here..
Metro Cabs' competitors include existing taxi cab companies that have been
operating in the New York area. Specifically, competitors include:
• Transportation, Inc. is a family-owned company that has been in business for 20 years.
The company, run by Mr. John Brown, is considered an industry leader in the field of taxi
cab services. The company also owns a real estate agency and 2 insurance companies
that work hand in hand with the taxi business. They lease facilities to other cab
companies as well. The company has a fleet of 1,200 cars, with half under the driver-
owner program and the other half company-owned.
• Yellow Cab was founded 25 years ago, its president is Mr. Michael White. Yellow Cab has
a fleet of 2,200 cabs, most of which are driver-owned. The company still uses the radio
dispatch system and one-third of its fleet is equipped with the credit/debit card feature.
The drawback to their system is that approval for any transaction takes place in their
home office.
• Diamond Cab is owned and operated by Mr. Jay Newman. The company uses the radio
dispatch system and has a fleet of approximately 800 cabs.
• Town Cab is an organization run by Mr. Pete Whitehead. The company uses the radio
dispatch system and has a fleet of 800 cabs.
Metro Cabs' competitive advantage is our cutting edge technology which is unique to the taxi
industry in New York. The GPS will enable Metro Cabs to provide timely service by giving an
accurate ETA. The credit/debit card feature will give our customers convenience and privacy
during the transaction period.
Maintenance and Repair Services. Metro Cabs' competitors include the above-mentioned
companies and general maintenance and repair shops in the area. Some of these operations do
not have the capacity to handle a large number of vehicles. While others may have the capacity,
their operations are run in a primitive manner, and Metro Cabs intends to capitalize on that.
Metro Cabs' competitive advantages include the availability of space, operations management,
and skilled employees.

5.
Strategy
Sales Strategy
Marketing Strategy
Strategic Alliances

After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to define an effective strategy for
attracting those clients. Like marketing analysis, sales strategy is also an
important component of a Taxi business startup and must be properly
planned before you think about starting your own Taxi Business.
Sales Strategy
 Metro Cabs
At Metro Cabs, the sales process is the same for each of Metro Cabs' two areas: taxi cab
services and maintenance and repair services. The company intends to establish its presence
online by developing a website from which sales will be generated. The District of Columbia
Cab Commission regulates pricing for taxi cab services.
Sales Yearly
Financial Year All Services Other
Year1 895,665 0
Year2 1,004,512 0
Year3 1,245,587 0
Detailed Sales Forecast
Detailed sales forecast data is provided in below table:

Sales Year 1 Year 2 Year 3
All services $200,000 $1,500,000 $2,200,000
Other $0 $0 $0
TOTAL SALES $200,000 $1,500,000 $2,200,000
Direct Cost of Sales
All services $65,000 $125,000 $100,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $65,000 $125,000 $100,000
Marketing Strategy
 Metro Cabs
Marketing Strategy
Metro Cabs markets its products and services as solutions to transportation needs in the city
of New York. Other target markets include customers in the low to the mid-income range. Direct
mailings and television advertising will be the company's main marketing channels. These
channels
Start ensure that target customers are reached repeatedly and effectively. The company
writing here..
will monitor its market position through constant tracking by Value Pack and TCI Media, Inc.
TCIMetro
 Media Services - The proposed advertising package, titled "The Championship," will yield:
Cabs
• One commercial in every regular-season NBA game on TNT for the 2020-2021 season
Metro Cabs plans to communicate through direct mail and television advertising to generate
• One
sales. commercial
TCI MEDIA in 2021;
Services 2020-2021
and Val-Pak regular
Direct season
Marketing Wizard
will gamesthe
spearhead onmarketing
HTS
campaign.
• 900 06
TheAM
key
- 12
message
AM commercials
associatedon
with
a minimum
our products
of 4 and
networks
services is cleaner, efficient,
flexible, and convenient taxi cabs.
• Ads on the TV guide channel
Marketing
AdditionalPrograms
Plans: The company also has additional promotional plans which are diverse and
include a range of marketing communications described below:
• Trade shows: company representatives will attend and participate in several trade shows
to keep up with changes in the industry.
• Print advertising and article publishing: the company's print advertising program will
include advertisements in local newspapers and local journal publications like the New
York Magazine. Metro Cabs will feature articles on services provided in the above-
mentioned publications.
• Val-Pak Direct Marketing: the challenge of any direct marketer is to take a massive
amount of amorphous data and create tailored messages to targeted market segments.
Perhaps no company is more familiar with that challenge than Florida-based Val-Pak

Strategic Alliances
 Metro Cabs
The company has strategic alliances with King Communications, Surfside Systems, and
Commercial Electronic Services. These alliances are valuable to Metro Cabs because they
allow the company to get updates on technology and added tech support, and they are valuable
to the ally firms because Metro Cabs is a growing customer. All agreements come with a
stipulation that if new technology becomes available, Metro Cabs will be notified and provided
Start writing
with here..
the technology to expand on current technology, helping us maintain a competitive edge.
Details of the strategic relationships that Metro Cabs has are given below.
International Taxicab and Livery Association (ITLA). ITLA is a non-profit association that
represents the private, for-profit ground transpiration industry. Metro Cabs will use the
resources made available by ITLA to get the latest industry trends and trade show information.
ITLA conducts a variety of research projects on industry issues and the results of these studies
are summarized in ITLA publications and made available to association members at a reduced
fee.
Rockwell International. Rockwell International has been brought in to help develop the call
center and aid with the development of superior customer service techniques. Metro Cabs will
work with Rockwell International in the setup of a cost-efficient but productive call center.
TCI Media, Inc. Currently, Metro Cabs is under a verbal agreement with TCI Media, Inc. to
market its product and services through various cable networks.
Surfside Systems. Surfside Systems will be the company's supplier of dispatch software and
CAD software.
King Communications. King Communications will be the company's supplier of mobile data
and in-car credit/debit card processing equipment hardware. King Communications has made
a commitment and guarantee that they will provide an interface to Surfside Systems.
Transportation, Inc. This alliance is a business relationship between Jerry Schafer

(Transportation, Inc.) and Kennedy Williams (Metro Cabs). Transportation, Inc. is a competitor,
but the relationship allows Metro Cabs to learn from their 20-year experience in the business
and to overcome the shortfalls they have experienced.
Barwood, Inc. Barwood will be the company's source of used taxis when the need to add to our
fleet arises.
Val-Pak Direct Marketing. Val-Pak is a full-service marketing company that offers a simple,
cost-effective way of increasing business. Val-Pak pioneered local cooperative direct mail in
1968 and has been the industry leader for over 30 years. The relationship gives us access to
their powerful, cost-effective variety of advertising formats allowing us to develop a direct mail
program that is right for our business.
Commercial Electronics Services (CES). CES is a supplier of advanced technology systems

used in taxi cabs. The relationship will allow Metro Cabs to get the latest technology and the

6.
Management Plan
Organization
Officers and Key Employees

The management plan is also an important component of a Taxi business
plan since it gives you an estimate of the staff required for your startup as
well as the costs incurred on their salaries. So, make sure to duly consider it
before thinking about how to start a Taxi Business. The management plan of
the Taxi business is as follows.
Organization
 Metro Cabs
The company's management philosophy is based on responsibility and mutual respect. Metro
Cabs has an environment and structure that encourages productivity and respect for customers
and fellow employees.
The Metro Cabs team is organized into two groups:
Taxi
Start Cabs.
writing The taxi cabs division will consist of the fleet of taxis, driver owned and company-
here..
owned, the call center, and administration. Overall, Metro Cabs will have approximately 20
employees in this division. The management of all daily operations within Metro Cabs will be
Officers
handled inand Key Employees
this division. Mr. Williams, the CEO, will be responsible for the purchase of vehicles
and dealing with vendors and suppliers. There will be 10 to 20 employees in the call center,
three
Metro supervisors,
Cabs' threeisdispatchers,
management an officeand
highly experienced manager, a data
qualified. Key entry
membersclerk,of
and an employee
Metro Cabs'
responsible for accounts receivables/payables.
management teams, their backgrounds, and responsibilities are as follows.
Maintenance
• Mr. Kennedy and Repair Services.
Williams, President,This
and division
CEO. will deal with the maintenance of vehicles.
Drivers will be charged at discounted rates for tune-ups, wheel alignments, and other repairs.
• Mr. Peter Jackson, Senior Vice President - Operations.
This division will be staffed with seven employees, to begin with.
• Ms. Glenda Jones, Call Center Supervisor.
PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3
Taxi Cabs & Administrative $108,696 $365,217 $395,652
Maintenance & Repair $108,695 $156,522 $169,565
Total People 8 17 20
Total Payroll $217,391 $521,739 $565,217

7.
Financial Plan
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
The last component of a Taxi Business plan is an in-depth financial plan. The
financial plan crafts a detailed map of all the expenses needed for the startup
and how these expenses will be met by the earned profits. It is recommended
that you use our financial planning tool for guiding you through all financial
aspects needed to be considered for starting a Taxi business.
 Metro Cabs
The company is seeking $2.5 million of financing to fund the acquisition of the Mighty Cab
Association and its initial operations. This funding will cover the purchase of Mighty Cab,
marketing, purchase of extra vehicles, software, and hardware.
Important Assumptions
The financial projections of the company are forecast on the basis of the following assumptions.
These assumptions are quite conservative and are expected to show deviation but to a limited level
such that the company’s major financial strategy will not be affected.
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0
Brake-even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89
Estimated Monthly Fixed Cost $196 410

Projected Profit and Loss
2024 2025 2026
Revenue $404,742.25 $797,500.25 $1,232,739
City Taxi Service $192,000 $201,600 $220,500
Unit Sales 9,600 10,080 11,025
Unit Price $20 $20 $20
Airport Transfers $17,742.25 $25,300.25 $36,069
Unit Sales 710 1,012 1,443
Unit Price $25 $25 $25
Corporate Accounts $195,000 $570,600 $976,170
Users 60 125 195
Recurring Charges $500 $500 $500
Cost Of Sales $19,094.88 $27,264.03 $36,292.36
General Costs $19,094.88 $27,264.03 $36,292.36
Vehicle Maintenance and

$9,000 $9,234 $9,474.36
Fuel Costs
Vehicle Maintenance $3,600 $3,672 $3,745.44
Fuel Costs $5,400 $5,562 $5,728.92
Licensing and Insurance $10,094.88 $18,030.03 $26,818
Vehicle Insurance $2,000 $2,080 $2,163.20
Licensing Fees $8,094.88 $15,950.03 $24,654.80
Revenue Specific Costs $0 $0 $0
Personnel Costs (Direct

$0 $0 $0
Labor)
Gross Margin $385,647.37 $770,236.22 $1,196,446.64

2024 2025 2026
Gross Margin (%) 95.28% 96.58% 97.06%
Operating Expense $437,931 $451,992.80 $466,602.32
Payroll Expense (Indirect

$386,700 $399,700.80 $413,191.32
Labor)
General Manager $131,040 $135,432 $140,000.40
General Manager $72,000 $73,440 $74,908.80
Operations Manager $59,040 $61,992 $65,091.60
Drivers $160,080 $164,440.80 $168,923.76
Full-Time Driver $115,920 $119,397.60 $122,979.60
Part-Time Driver $44,160 $45,043.20 $45,944.16
Support Staff $95,580 $99,828 $104,267.16
Customer Service
$42,480 $44,604 $46,834.20
Representative
Maintenance Technician $53,100 $55,224 $57,432.96
General Expense $51,231 $52,292 $53,411
Facility Costs $30,015 $30,660 $31,335
Rent $24,000 $24,480 $24,969.60
Utilities $6,015 $6,180 $6,365.40
Operational Costs $14,416 $14,640 $14,884.32
Dog Food and Supplies $9,616 $9,792 $9,987.84
Cleaning Services $4,800 $4,848 $4,896.48
Marketing and Advertising $6,800 $6,992 $7,191.68
Online Advertising $4,800 $4,992 $5,191.68
Promotional Events $2,000 $2,000 $2,000
Bad Debt $0 $0 $0

2024 2025 2026
Amortization of Current
$0 $0 $0
Assets
EBITDA ($52,283.63) $318,243.42 $729,844.31
Additional Expense $9,284.97 $8,823.11 $8,337.59
Long Term Depreciation $6,990 $6,990 $6,990
Gain or loss from Sale of

$0 $0 $0
Assets
EBIT ($59,273.63) $311,253.42 $722,854.31
Interest Expense $2,294.98 $1,833.10 $1,347.59
EBT ($61,568.60) $309,420.31 $721,506.72
Income Tax Expense /

$0 $0 $0
Benefit
Total Expense $466,310.85 $488,079.94 $511,232.28
Net Income ($61,568.60) $309,420.31 $721,506.72
Net Income (%) (15.21%) 38.80% 58.53%
Retained Earning Opening $0 ($71,368.60) $233,251.71
Owner's Distribution $9,800 $4,800 $4,800
Retained Earning Closing ($71,368.60) $233,251.71 $949,958.43
Projected Cash Flow
2024 2025 2026
Cash Received $404,742.25 $797,500.25 $1,232,739

2024 2025 2026
Cash Paid $459,320.85 $481,089.94 $504,242.28
COS & General Expenses $70,325.88 $79,556.03 $89,703.37
Salary & Wages $386,700 $399,700.80 $413,191.32
Interest $2,294.98 $1,833.10 $1,347.59
Sales Tax $0 $0 $0
Income Tax $0 $0 $0
Net Cash From

($54,578.60) $316,410.31 $728,496.72
Operations
Assets Sell $0 $0 $0
Assets Purchase $35,000 $0 $0
Net Cash From

($35,000) $0 $0
Investments
Amount Received $150,000 $0 $0
Loan Received $50,000 $0 $0
Common Stock $100,000 $0 $0
Preferred Stock $0 $0 $0
Owner's Contribution $0 $0 $0
Amount Paid $18,827.75 $14,289.61 $14,775.13
Loan Capital $9,027.74 $9,489.62 $9,975.13
Dividends & Distributions $9,800 $4,800 $4,800
Net Cash From

$131,172.25 ($14,289.61) ($14,775.13)
Financing
Summary
Starting Cash $0 $41,593.65 $343,714.35

2024 2025 2026
Cash In $554,742.25 $797,500.25 $1,232,739
Cash Out $513,148.60 $495,379.55 $519,017.41
Change in Cash $41,593.65 $302,120.70 $713,721.59
Ending Cash $41,593.65 $343,714.35 $1,057,435.94
Projected Balance Sheet
2024 2025 2026
Assets $69,603.65 $364,734.35 $1,071,465.94
Current Assets $41,593.65 $343,714.35 $1,057,435.94
Cash $41,593.65 $343,714.35 $1,057,435.94
Accounts Receivable $0 $0 $0
Inventory $0 $0 $0
Other Current Assets $0 $0 $0
Long Term Assets $28,010 $21,020 $14,030
Gross Long Term Assets $35,000 $35,000 $35,000
Accumulated Depreciation ($6,990) ($13,980) ($20,970)
Liabilities & Equity $69,603.66 $364,734.35 $1,071,465.94
Liabilities $40,972.26 $31,482.64 $21,507.51
Current Liabilities $9,489.62 $9,975.13 $0
Accounts Payable $0 $0 $0
Income Tax Payable $0 $0 $0
Sales Tax Payable $0 $0 $0
Short Term Debt $9,489.62 $9,975.13 $0
Long Term Liabilities $31,482.64 $21,507.51 $21,507.51

2024 2025 2026
Long Term Debt $31,482.64 $21,507.51 $21,507.51
Equity $28,631.40 $333,251.71 $1,049,958.43
Paid-in Capital $0 $0 $0
Common Stock $100,000 $100,000 $100,000
Preferred Stock $0 $0 $0
Owner's Contribution $0 $0 $0
Retained Earnings ($71,368.60) $233,251.71 $949,958.43
Check $0 $0 $0
Business Ratios
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%

Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios
Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios
Net Profit Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0,45 0,48 0,51 N.A.

Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23,66 27,01 30,36 N.A.
Sales/Net Worth 1,68 1,29 0,9 N.A.
Dividend Payout 0 0 0 N.A.

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Taxi Company

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Products and Services 14

Customer Buying Criteria 19

Service Business Analysis 20

Taxi Company | Business Plan [YEAR] 2/38

Detailed Sales Forecast 23

Officers and Key Employees 27

Projected Profit and Loss 30

Projected Cash Flow 32

Projected Balance Sheet 34

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Establish a relationship with Rockwell International. The company is currently working to

3 Year profit forecast

Financial Year Sales Gross Margin Net Profit

Year1 10,000 500 6,000

Year2 12,000 800 8,000

Taxi Company | Business Plan [YEAR] 7/38

Year3 14,000 1,200 10,000

Highlights of Metro Cabs

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Financial Year Sales Gross Net

Year2 78,451 35,452 35,468

Year3 754,121 542,151 254,785

PAST PERFORMANCE 2017 2018 2019

Gross Margin $0 $0 $60,000

Gross Margin % 0.00% 0.00% 60.00%

Operating Expenses $0 $0 $20,000

Other Current Assets $0 $0 $13,400

TOTAL CURRENT ASSETS $0 $0 $58,400

Long-term Assets $0 $0 $75,000

Accumulated Depreciation $0 $0 $10,000

TOTAL LONG-TERM ASSETS $0 $0 $65,000

Taxi Company | Business Plan [YEAR] 11/38

Total Assets $0 $0 $123,400

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

TOTAL CAPITAL $0 $0 $39,400

Total Capital and Liabilities $0 $0 $123,400

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Products and Services

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