Freight Brokerage Business Plan

Silicon Freight Brokers

Executive Summary

Silicon Freight Brokers (SFB) is a specialized freight broker service located in Hood River, OR. The company has been set up as an Oregon C Corporation by the owner, Steve Tookarefol. SFB's objective is to become the premier silicon chip freight broker, increasing their client base by 20% a year.

Freight Brokers and Silicon Chips

The freight broker industry is the middle man of the shipping industry. They are also known as third party transportation providers. Freight brokers provide a service by linking customers with shippers and trucking companies. Their service is indispensable when moving goods throughout this country as there are literally hundreds of different shippers offering thousands of different services. The freight brokers make the process of securing a shipper quite easy with one-stop shopping.

The silicon chip industry is a growing industry that to a large degree has fueled the incredible growth of the late 90's Internet boom. Silicon chips are the basis of all types of computers as well as hand held devices such as cell phones, PDAs, even watches and some household appliances.

SFB will be occupying a niche within the general freight brokerage market by specializing in the shipment of silicon chips. Silicon chips are very specific, unusual cargo that requires special attention. The chips have a very narrow range of temperature and humidity parameters that must be maintained. In addition to these unusual requirements, there are other specific needs that silicon chip companies have. By specializing on silicon chips as their only cargo, SFB will quickly gain market share and be known as the premier broker for chips.

The industry of chips is comprised of two distinct customers, manufacturers of chips and purchasers of chips. The manufacturers are based in the USA, however some of them produce in the States while others farm out production overseas and them import them. The chip purchasers are primarily Intel, IBM, and Motorola.

Management

SFB is led by a seasoned management team of Steve and Wendy Tookarefol. Steve has over 10 years of freight experience, working for several different companies. This work experience has been instrumental in allowing Steve to accurately determine the market need and meet it. SFB has coupled Steve's in-depth trucking/ freight brokerage knowledge and insight with his wife's expertise in the silicon chip industry. For the last seven years Wendy has been an industry consultant, working quite close with companies such as Intel.

SFB's solid business model is forecasted to reach profitability by month six. SFB will achieve market penetration by remaining laser focused on their market niche, while fully utilizing their strong management team.

1.1 Objectives

Silicon Freight Brokers objectives from the first three years of operation include:

• To create a service-based company whose #1 ambition is to continually exceed the customer's expectations.
• The utilization of Silicon Freight Brokers in at least four of the top 10 silicon chip producers, as listed in Silicon Industry Journal.
• To increase our number of served clients by 20% per year through superior performance and word of mouth referrals.
• To develop a sustainable, profitable, start-up business.

1.2 Mission

The Silicon Freight Brokers' mission is to provide the customer with the most satisfying shipping experience that they have ever experienced. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.