REV UP Business Plan 2022

REV_UP is a world-class provider of last mile logistics services. Read our business plan for 2022 to know more about our services, market analysis, marketing and sales plan, and financial plan.

2022
REV_UP
BUSINESS PLAN

PAGE
Executive Summary 1
Company Overview 2
Vision 2
Mission 2
Core Values 3
Milestones 3
Key Success Factors 3
Our Product and Services 4
Market Analysis 5
Marketing and Sales Plan 6
Management and Organization Summary 8
Personnel plan 10
Startup Expenses and Capitalization 11
Financial Plan 12
References 14
Table of Contents
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Executive Summary
REV_UP is a world-class provider of last mile logistics services. REV_UP operates with the
sole aim of helping businesses and individuals to deliver their products, goods, or items in
Lagos and beyond, while offering creative courier solutions that take the complexity out of
doing business.
At REV_UP, our product and services offering include efficient last mile, door to door
delivery using super-fast motor bikes and a professionally developed mobile and web
application to enable seamless transactions for our wide range of customers.
REV_UP will be set up in Lagos, the commercial heart of Nigeria and seek to navigate the
highly demanded last mile logistics industry. The company intends to target SMEs and
households for delivering its products and services, while adopting industry’s best practices
and customer centric marketing strategies and pricing plan.
To fully operationalise the business, the management of REV_UP would require a sum of
N86,750,000, which would be used in procuring the required assets for the running of the
business and also utilised as operating expenses for the business’ first year of operation. To
provide for unforeseen expenditures, the management has included in the startup expenses
20% contingency fund. When fully operational, the business, running at the worst case
possible, would be able to cover its variable costs of sales. However, going by industry trend
and marketing effort by the REV_UP team, year on year growth is projected at 10% and
could even be higher given the right management energy.
This business plan document represents our plans for the organization to enter the Nigerian
Logistics Industry by not just providing a delivery service but also to create a hub of
convenience and top-notch reliance to our customers It captures our current growth and plans
for the future; it also serves as the guidelines for investors and staff alike.
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Company Overview
REV_UP is a world-class provider of last mile logistics services. REV_UP operates with the
sole aim of helping businesses and individuals to deliver their products, goods, or items in
Lagos and beyond, whileoffering creative courier solutions that take the complexity out of
doing business.
Vision
To be a world-class last-mile delivery company that caters for the delivery needs of every
Nigerian, while facilitating and enabling a prosperous economy.
Mission
To provide our customers reliable, effective, and flexible logistics solutions that will meet
and exceed their needs, through the utilization of advanced information technology systems
and bespoke customer service.
Core Values
At REV_UP, we place preferences on and are committed to the following attributes:
 Speed
We understand the importance of time, whether you want your documents delivered same
day or the next day, we are just a click away to meet your time-sensitivedelivery needs. Our
customer service is at your disposal and ready to answer the questions unique to your
business.
 Reliability
We would sustain a consistent brand image that delivers on its promises to its stakeholders,
investors, customers, and team members alike. Our services are designed to meet and exceed
our customers’ needs.
 Technology
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We place premium on technology. We use the latest technological advances to serve our
customers. With our advanced tracking system, you will always be up to date on the status of
your parcels or goods, with an email confirmation sent directly to your mailbox and mobile
device upon receipt of your package.
 Integrity
We are committed to creating lasting relationships with our customers, generating loyalty and
trust. When you give us your goods to be delivered, be rest assured that they will never be
tampered with.
Milestones
REV_UPhas the following tasks to work on and milestones to reach towards the structuring
and development of the business.
 Profiling and business plan (business, ownership, operations, marketing, and structure
for capitalization)
 Recruitments and HR Planning (Operational staffs and Motorbike Riders)
 Target Definition (Growth metrics and targets to include number of transactions daily,
number of bikes, number of clients, etc.)
Key Success Factors
 Developing an effective and efficient last mile logistics service system and model
with a great focus on meeting clientele satisfaction.
 Having a great team with an identifiable brand backed with innovation and
technology
 Developing a powerful brand and supporting it with top-notch corporate
communications and marketing strategies
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Our Product and Services
At REV_UP, our product and services offering include efficient last mile, door to door
delivery using super-fast motor bikes and a professionally developed application to enable
seamless transactions for our wide range of customers.
Our value proposition is three-sided as we deliver our services, focusing on investors,
customers, and staff.
To our investors, we give an assurance for return on investment as we will employ every
relevant skill, expertise, experience, and resources to ensure consistent business growth for
businesses and us that uses our services.
We employ and work with people who embody the values and vision of the founder, ensuring
customer-focused result, resourceful nature, excellent service delivery, continuous
improvements on techniques and a professional approach to business. At REV_UP, we offer
our employees the opportunity for growth and development as individuals.
Efficient Delivery Service
We ensure that our bikes and riders are dedicated to ensuring that your delivery needs are
met, not just to meet the needs but to be efficient and timely in the delivery.
 Door-to-door delivery
We promise to uphold the end of our deals with our client by providing a door-to-door
delivery service.
 Online Tracking
We provide an online service by which all customers can track their parcel or items to enable
a seamless delivery process
Market Analysis
With the booming E-commerce in Nigeria, the delivery providers in the country like DHL,
FedEx, EMS, UPS, Gokada, Kwik, Red Star Express, GIG Logistics etc. have seen steady
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growth in their revenues (PM News, 2020). As the population is rising, the future of the
logistics market in Nigeria looks promising. The Nigerian E-Commerce market has been
projected to grow at a compound annual growth rate (CAGR) of 17% from 2020 to 2024.
One key indicator of market saturation is the online penetration of 51% in Nigeria (Statista,
2021); in other words, 51% of the Nigerian population bought at least one product online in
2021. Owing to the fast pace of eCommerce activities in the country, the demand for last-
mile delivery services is increasing rapidly. The Nigerian last-mile logistics market is
currently valued at approximately $2.5bn (Thread, 2020), accounting for 50% of the entire
third-party logistics market value of $5.1bn (Statista, 2021). The market projects a growth
rate of 11% over the next three years..
Competition
Below is a list of similar brands that serve as direct competition to REV_UP in the industry
 RedStar Express
 Gokada
 Kwik Delivery
.
Target Market
The target markets of REV_UP are segmented below:
 SMEs (Retail Stores and E-commerce vendors)
 Households
To reach our target market, we will consistently get better at focusing on the specific market
segments whose needs match our offerings. Focusing on targeted segments is the key to our
future.
Marketing and Sales Plan
REV_UPwill be set up in the commercial capital of Nigeria, Lagos. Lagos is currently the
fastest growing economy in Nigeria with a population of over fourteen million people
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growing at an annual rate of 2.8%. Lagos currently accounts for approximately 77% of the
entire last mile logistics market and the tendency for more growth is high.
These are the tactics we will utilize to reach our audiences:
 Branding
Our branding is the first point of our marketing as expressed from our logo, colors, slogan
etc. Our brand essence and brand promise not being neglected will be a selling point for us at
any point.
 Quality Association and Strategic Partnership
We would be engaged in quality partnership with top brands and influencers within industries
who would aid promotion of the brand. Our association would also help to validate the brand
as a premium yet friendly brand.
 Website Marketing
Creation of a website and carry out search engine optimization (SEO) to increase the ranking
of the website. We will also integrate a blog into the website for updated information about
the industry. Use the website to showcase the company’s work and promote the business.
.
Pricing Strategy
Our pricing strategy is hinged on ensuring customers get the best services at the lowest price
possible. Hence, we have conducted our study of the market and have developed a pricing
strategy that beats that of our competitors. Our pricing plan is designed as such: A base fare
plus a fixed price per kilometer + a fixed price per minute spent delivering.
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Management and Organisation Summary
To ensure effective administration and proper running of the business, the management of
REV_UP will comprise of:
 The Managing Director
He will concentrate on strategy, strategic partnerships, and client relationship management
along with overall management of the company.
 Chief Technical Officer
The CTO will concentrate on the development and maintenance of a user friendly
web/application for seamless customer transactions.
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ManagingDirector(C.E.O)ChiefTechnicalOfficer(C.T.O.)WebandapplicationdevelopersBusinessDevelopmentManagerMarketingTeamFinancemanagerAccountantsHumanResourceManagerHumanResourceTeamOperationsManagerTeamofDispatchRidersAdvisoryBoard

Personnel Plan
Staff will be hired according to recommendations, experience and education in their field.
The high standard will be kept through the orientation and inclusion period for new
employees.
Table: Personnel Plan
STAFF STRENGTH
MD/CEO 1
Chief Technical Officer 1
Human Resource Manager 1
Finance Manager 1
Business Development manager 1
Operations Manager 1
Bike Riders 10
Customer Service
Representatives/Marketers
5
Web/App Developers 2
Accountant 2
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Start-Up Expenses and Capitalisation
To commence operation, the business requires the sum of N86,750,000. This sum shall be
sourced from two sources, which include equity financing and debt financing, to be split in
the proportion 30% and 70% respectively.
Source of Capital Percentage (%) Amount (N)
Equity ~30 26,025,000
Debt (Bank Loan) ~70 60,725,000
Startup Expenses
Capital Expenditures 15,825,000
Cargo Bikes 4,000,000
Mobile Application & Website 2,500,000
Riders’ Kits 500,000
Boxes 400,000
Furniture & Fittings 3,000,000
IT Equipment 5,425,000
License and Registration 3,000,000
Rent 3,500,000
Advertising/promotional expenses 3,000,000
Other expenses 41,075,000
Salaries 33,000,000
Utilities and Internet Subscription 1,800,000
Fuelling 3,960,000
Office Supplies and Stationeries 815,000
Insurance 1,500,000
Maintenance 2,000,000
Contingency fund (@20% of Total Startup Expenses) 17,350,000
Total Startup Expenses 86,750,000
Details of funds appropriation include:
Financial assumption- It is assumed that all the expense that are done will fetch good
amount of results in the near future and thus it can further help in the growth and
development of the firm as a whole. Apart from that it is also analyzed that the expenses that
are done are very relevant and precise as well so that it can directly relate to the company and
can add to its growth in the longer term.
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Cash budget
Particulars Jan Feb March April May June July August Sept Oct Nov Dec
Revenues generated
(a)
100000
0
150000
0
259000
0
312000
0
99000
0
90000
0
112000
0
118000
0
105000
0
125000
0
150000
0
145000
0
Expenses:
Salary 356000 606600
116710
0
137300
0
33700
0
28660
0 303000 445500 421000 507000 548200 477400
Office expenses 226000 312400 578900 749000
34100
0
31200
0 289000 215000 209000 267000 343000 352000
Variable cost 218000 356000 489000 589000
24700
0
23890
0 225000 247000 251000 267000 379000 381000
Fixed cost 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Total expenses (b) 850000
132500
0
228500
0
276100
0
97500
0
88750
0 867000 957500 931000
109100
0
132020
0
126040
0
Net Profit (a-b) 150000 175000 305000 359000 15000 12500 253000 222500 119000 159000 179800 189600
Financial Plan
In the very first year of operation, REV_UP’s projected income statement and financial
position will be as follows:
Projected Income Statement** for the first year of operation
Revenue 57,600,000.00
Cost of Sales 5,160,000.00
Gross Profit 52,440,000.00
Operating Expenses 44,415,000.00
EBITDA 8,025,000.00
Depreciation/Amortisation 1,582,500.00
EBIT 6,442,500.00
Interest Expense 9,108,750.00
EBT (2,666,250.00)
Tax -
Profit After Tax (2,666,250.00)
Projected Balance Sheet** as at the end of the first year of operation
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Assets
Non-Current Assets
Plants, Property &Equipments 17,242,500.00
Total Non-Current Assets 17,242,500.00
Current Assets
Cash 54,696,250.00
Total Current Assets 54,696,250.00
Total Assets 71,938,750.00
Liabilities
Non-Current Liabilities
Term Loans 48,580,000.00
Total Non-Current Liabilities 48,580,000.00
Total Liabilities 48,580,000.00
Equity
Share Capital 26,025,000.00
Retained Earnings (2,666,250.00)
Total Equity/Shareholders' Funds 23,358,750.00
Total Liabilities & Equity 71,938,750.00
Budgeted Monthly Cash flow** for the first year of operation is as follows:
** Kindly find details of assumptions behind reported figures in the appendix section
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1 2 3 4 5 6 7 8 9 1 0 1 1 1 2
NGN 9 1 ,5 5 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 4 ,8 0 0 ,0 0 0 .0 0
NGN 2 6 ,1 6 4 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 3 ,8 3 9 ,5 8 3 .3 3
NGN 2 5 ,0 9 3 ,3 3 3 .3 3
NGN 6 5 ,3 8 5 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN 9 6 0 ,4 1 6 .6 7
NGN (2 0 ,2 9 3 ,3 3 3 .3 3 )
Monthly Cash Flow Budget
Cash inflow Cash outflow Net Cash flow

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References
Oriade, A. (2020).How E-commerce drives Logistics Growth in Nigeria. Available at: How
E-commerce drives Logistics Growth in Nigeria - P.M. News (pmnewsnigeria.com)
(Accessed: 4 January 2022).
Mazareanu, E. (2021). Third-party logistics (3PL) revenue in Nigeria 2010-2020. Available
at: https://www.statista.com/statistics/1068486/third-party-logistics-revenue-nigeria/ (Accessed: 28
December 2021).
Uche, E. (2020). A Look into Nigeria's Third-Party Logistics Industry (Part 1 of 2). Available
at: https://thethreadgroup.com/thread-insights/look-into-nigerian-logistic-industry(Accessed:
28 December 2021)
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