Business Plan for a Company Assignment Sample

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Business Plan
Business Plan for Altomi Logistics in Sri Lanka
Type of Documents : Business Plan
No of Words : 14000
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2012
Altomi Logistics
BUSINESS PLAN FOR ALTOMI LOGISTICS IN SRI
LANKA

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ACKNOWLEDGEMENT
I am extremely indebted for the support provided to me by my mentor, family and
friends. In this regard I would like to thank them for giving the required support, motivation
and guidance at each step of the work. Furthermore, I would also like to thank Apsara Hewage
and other local lectures that who helped and given full support to write this dissertation and to
achieve results.

EXECUTIVE SUMMARY
It is basically a business development model created with an intention to establish a new
business venture as an entrepreneur. Every business requires a detailed business proposal. The
business plan has been designed in order to offset the costs. It is thus an expression of the mission
and vision along with description with respect to operations and strategy to be followed. It thus
helps the top management to think about future prospects of business and make decision for the
same.
justification of business idea along with chosen aims and objectives for business. It is basically an
account about background of study. The second chapter deals with business concept and deals with
detailed business picture in terms of innovation or invention. Other than this mission, vision,
positioning and growth anticipation will also be studied. Next chapter deals with Feasibility aspect
related to organization and financing. This will help to formulate a new business model.
In the fourth section business model development will be done to capture essentials in order
to get clarity on various aspects like core strategy, resource requirements and core competencies
of business. In the business development plan there is a blueprint as to how the firm intends to
function. In the last section, viability aspect of proposed plan will be analyzed. This will help to
find out whether to go ahead with the proposed business plan or not.
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Table of Contents
CHAPTER- 1: INTRODUCTION .................................................................................................. 1
1.1 Justification for business idea .......................................................................................... 1
1.2 Chosen scenario................................................................................................................ 2
1.3 Aims and objectives of project ......................................................................................... 2
1.4 Outline of work ................................................................................................................ 2
CHAPTER 2: THE BUSINESS CONCEPT .................................................................................. 4
2.1 Description of the business idea ............................................................................................ 4
2.1.1. Target customers ....................................................................................................... 5
2.1.2. Services at offer ........................................................................................................ 5
2.1.3. Innovation in services ............................................................................................... 6
2.1.4. Business or ownership structure ............................................................................... 7
2.2 Vision .................................................................................................................................... 7
2.3 Mission .................................................................................................................................. 7
2.4 Marketing and Positioning .................................................................................................... 8
2.5 Scale and growth anticipation ............................................................................................... 8
2.6 Start-up summary .................................................................................................................. 9
CHAPTER- 3: FEASIBILITY ANALYSIS ................................................................................. 14
3.1 Primary market research................................................................................................. 14
3.2 Secondary market research ............................................................................................. 16
3.3 Feasibility ....................................................................................................................... 17
3.3.1 Product/service ............................................................................................................. 17
3.3.2 Industry and market ...................................................................................................... 18
3.3.3Organizational feasibility .............................................................................................. 21
CHAPTER 4: BUSINESS MODEL ............................................................................................. 28

4.1 How business venture fits in present scenario .................................................................... 28
4.2 SWOT Analysis of Altomi Logistics .................................................................................. 29
4.4 Core strategy ....................................................................................................................... 31
4.5 Value chain .......................................................................................................................... 32
4.6 The partnership network...................................................................................................... 33
4.7 Value deliverables to consumers ......................................................................................... 35
CHAPTER 5: BUSINESS PLAN ................................................................................................. 37
CHAPTER 6: VIABILITY ........................................................................................................... 40
References ..................................................................................................................................... 42
Appendix ....................................................................................................................................... 46
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List of figures
Figure 1: Economic overview of Sri Lanka .................................................................................. 18
Figure 2 Export of Sri Lanka in 2009 ........................................................................................... 19
Figure 3 Porter five force analysis ................................................................................................ 34
List of Tables
Table 1 Estimation of Scale of Business for Altomi Logistics ....................................................... 9
Table 2 Equipment’s for Altomi Logistics ................................................................................... 11
Table 3 Start up cost structure ...................................................................................................... 11
Table 4 Human resource requirement ........................................................................................... 12
Table 5 Human resource of Altomi Logistics ............................................................................... 21
Table 6 Start-up Funding .............................................................................................................. 22
Table 7 General Assumptions ....................................................................................................... 24
Table 8 Cash flow for project ....................................................................................................... 24
Table 9 Projected P & L................................................................................................................ 25
Table 10 Projected balance sheet .................................................................................................. 26
Table 11 Payback period ............................................................................................................... 26
Table 12 SWOT Analysis ............................................................................................................. 29
Table 13 Value chain .................................................................................................................... 33

Abbreviation
LKR Lankan Rupees
USA United States of America
GDP Gross Domestic Product
IMF International Monetary Fund
VAT Value Added Taxes
EU European Union

CHAPTER- 1: INTRODUCTION
The business development plan is basically designed to establish a new company as an
entrepreneur. In this regard, it is required that a detailed business proposal plan is made to analyze
the possibility in upcoming future. Hence, company plan can be defined as a proper outline of
vision undertaken by businessman followed by narration of operations and strategies that are to be
taken to complete the venture. Thus, creation of a detailed business plan helps to offset the cost
factors. It thus enables the owners and managers of company to give a thought about industry
broadly. It also helps to discuss the business objectives to employees and lays path for future
decision making (Bangs, 2002).
Moreover, it is beneficial if an entrepreneur accepts the making of business plan as there
is a requirement to take advices from professionals, consultants and others to achieve success. The
process helps in considering all the opportunities and risk that are associated with the business
proposal which provides a guideline for fruitful decision making. A good business suggestion also
aids in process of good investment making. Thus the present scheme has been drafted for Altomi
courier services who wish to start its operations in Sri Lanka (Tips to Start a Courier Service, n.d).
1.1 Justification for business idea
There is a company proposal to start a new business in the field of courier services in Sri
Lanka. Any courier service specializes in envelopes, small sized packages or even large shipments
of different shapes and sizes. Starting this service is not a difficult task and can be started in an
office with a telephone and means of transport. The present firm can provide a wide range of
services to its clients in form of messages, mail, packages etc. The main features that differentiate
courier from ordinary mail are on basis of speed, safety, tracking, signature, specialty and
customization of express service (Gilbert, 2004).
The chosen company is a new firm named as Altomi Logistics courier services that wishes
to start its operations in Sri Lanka. The idea of opening this agency came due to the fact that Sri-
Lanka is a port nation and deals in various kinds of export import services. Thus there are many
opportunities for overseas trade (Carter, n.d). According to recent reports there has been an
increase in export and import in Sri Lanka which has provided opportunities for courier related
services in form of logistics, express and mailing. The firm will work on national and international

level. The company will transport large packages via land, water and air connectivity (Sri Lanka’s
exports grow, imports increase and the trade gap widens, 2012).
1.2 Chosen scenario
Sri Lanka is basically an island country and is located to the north of Indian Ocean in south
entrepreneurial approach for the business. All the aspects related to business development and
operations for the establishment of new business venture will be analyzed deeply (Blackwell,
2011).This will help to provide a detailed business proposal by focusing on all the functional
aspects of new business proposal. After accomplishing this proposal following aims could be met:
 To have a detailed description about Sri Lankan economy and current business scenario.
 To analyze courier service network in the nation.
 To identify appropriate methods for developing new business proposal.
 To prepare a business plan for opening courier agency in Sri Lanka.
1.4 Outline of work
This project has been segregated into 6 chapters. These include Introduction, New Business
Concept, Feasibility, Business Model, Business Plan and finally Viability (McKeever, 2012).
Chapter one is of introductory chapter. Justification for the business idea, scenario chosen, aims
and objectives of the work and structure of the work will be defined. This chapter familiarizes

reader with the background of study. Aims and objectives of the study will also be analyzed and a
thorough synopsis of the whole report’s structure will be identified.
The second chapter deals with business concept. Here a detailed picture of the business
concept in terms of innovation or invention will be explained. Other than this idea, mission, vision,
positioning and growth anticipation will be given.
Feasibility Analysis is the third chapter of the work and aims to examine the business
proposal’s viability from different perspectives. They include product/service, industry/market,
organizational and financial feasibility. This will help to draw out a new business model.
In the fourth section business model development will be done to capture essentials of new
business setup. The model will help to achieve clarity on various aspects like core strategy,
resource requirements, and core competencies of business. Other than this partnership network to
connect with key consumer group will be analyzed. This will be followed by assessing the values
that are to be delivered to customers.
The next section deals with business development plan which is derived from the business
model in order to provide a blueprint as to how the firm intends to function. It will explain the
current position of firm and future plans. It will also focus on the best route that can be taken by
firm followed by proposed business outcomes.
In the last section, viability aspect of proposed plan will be analyzed. This will ensure that
business plan is tested, assessed, designed, reviewed and planned for. This will help to find out
whether to go ahead with the proposed business plan or not.

CHAPTER 2: THE BUSINESS CONCEPT
Concept of business is an idea covering basic information like the product or
service specifications, the target customer profile along with a unique selling
proposition delivering competitive advantages to a company. Under business concept, an entirely
new product or services can be defined as an invention in the business line or simply
a novel approach to servicing with some innovations. Innovations can be in the form of novelty in
international courier service provider in Sri Lanka. This section will derive the innovative business
concept in this business line backed by proper secondary research and then articulate the vision
mission, business model, product/service etc for the proposed business concept. The target market,
service specifications or features and the unique business value chain, all will be articulated here
in this section. Definitions of strategies for implementing the business proposal, including pricing,
revenue, and distribution models etc. will also be a part of this (Gilbert, 2004).
2.1 Description of the business idea
The proposed business intends to establish an innovative courier service company. This
firm will be named as Altomi Logistics. The geographical area for business is chosen to be Sri-
Lanka. Sri-Lanka, being an island and major exporter of different products is found to be lucrative
destination for opening up a courier service set up. Altomi Logistics will be having its nodal office
at Colombo, the country capital, which will make the process both technical and managerial quite
easy (Kelegama, 2004). This will lay an opportunity to analyze the overall market and economic
scenario that is present in Sri Lanka. It will also provide a guideline about the cost structure, staff
hiring to be made in the new firm. There will be exposure to economic, social, political and legal

processes that may affect the plan in long run. The features and specifications of the Altomi
Logistics’ target customers and services are defined as below:
2.1.1. Target customers
By definition, market can be segregated into different heterogeneous groups of customer
with homogeneous needs. Here, heterogeneity exists between different groups but inside the group,
the needs of different customers will be same, which will be termed as homogeneity. Identifying
the right customer base and delivering the right service largely depends on the definition of the
services and the target market. Altomi Logistics is going to offer its services to the business
customers. So the target market is the Sri Lankan business entities. In Sri-Lanka, four major
industries are currently in lime light. Tea Exporting, Apparel and textile industry, service industry
and gems and ornament industry are included in this list (Carter, n.d). Among these, Altomi
Logistics is going to concentrate over the all four for both domestic as well as overseas services
for the small players of the respective industries.
2.1.2. Services at offer
Altomi Logistics is targeting all the four key industries in Sri Lanka with different sort of
services for different purposes. The service portfolio will comprise of the following:
Supply chain solution: Under this service, Altomi Logistics will look for business contracts
with different corporate to assist them in domestic as well as international transactions. This
service will aim at offering a flawless supply chain function in the customer organization. Under
this both the physical delivery as well as legal formalities will be taken care by Altomi Logistics
on behalf of the customer. Supply chain solution division will offer an integrated service to
businesses across different industries (Bowersox, 2011). All formats of services including flexible
point-to-point distribution, complex end-to-end integrated logistics or supply chain management
services, Altomi Logistic will offer with great effectiveness and reliability to match the customer
requisites. By solution to critical operational constraints, much better working capital, and
reforming business processes, Altomi Logistics will deliver sustainable competitive advantages.
The inbound process in case of Altomi Logistics will provide for the external procurement
processes that occur when goods are received. On the other hand, the outbound process will take
care of all the necessary activities that are required to prepare and send goods to their destination.

Both the processes in case of Altomi Logistics will cover the execution of business and provide a
complete as well as an integrated solution to monitor the flow of goods.
E-Commerce Solution: E-commerce is the most popular among the end users of the
products and services these days. It has changed the entire game of the way businesses trade,
package and ship the consumer goods. As a result, more pressure has been exerted to assure the
fulfillment of customer orders. The only small link in the process is the last-mile logistics. This
aids in brand value creation for the businesses. Altomi Logistics is going to present a speedy, last
mile home-delivery solution to complement the e-business of different players in Sri-Lanka. This
would be largely done with a specialized division, nominated staff and a nationwide network.
Non-vessel Operator Container Carrier: Under this, services will be offered such as
freight forwarding etc to importers and exporters along with providing them total logistic solutions.
Express Distribution: Altomi Logistics, with an intrinsic network will have a reach of all
the major cities in Sri Lanka. Using a vast fleet of vehicles and assured space, Altomi Logistics
will ensure the shipments delivery in the right time at the right place.
2.1.3. Innovation in services
By innovation, meaning is the development of novel value for the customer by meeting
new requirements, in articulated needs or the existing customer base of courier services and market
needs in a completely new form. Innovation can be incorporated in the services industry through
different or more effective processes, services, technologies as readily available in markets.

Innovation is a different from invention. Innovation means using a better and novel idea whereas
invention describes creation of the new idea or method. Here, Altomi Logistics aims to deliver
the already popular and existing services in logistics market in an innovative way. Here, by
innovation, meaning is the process of enquiry and response along with the online placement of all
the orders, which will reduce the absolution of time and work in accounts of both the customer
and the Altomi Logistics employees. Entire process at Altomi Logistics will be online including
online tracking of consignment, enquiry placement, quotation placing etc.
2.1.4. Business or ownership structure
Any business can be incorporated under many organizational structures. There is a wide
range for choice. Each structure holds specific advantages and disadvantages, which need to be
considered before finalizing the ownership structure. Before the final incorporation of the business,
consulting must be done with an attorney, accountant, financial advisor, banker, or other business
or legal advisors so as to determine the most suitable structure for the proposed business. Here, as
an entrepreneur, the best suitable ownership structure will be of a Private Company, whose
ownership is private. It can issue stock by private placement but, these shares will not be traded
on public exchanges. Such shares are less liquid and difficult to determine values (Gilbert, 2004).
2.2 Vision
The vision statement of Altomi Logistics is as follows:
“Altomi Logistics intends to become the first choice for logistics services among the business as
well as individual customers of the domestic and international consignment delivery, providing
dependable, reliable and honourable international solutions for Air and Sea logistics
internationally.”
2.3 Mission
Mission of Altomi Logistics is to offer innovative and remarkable logistic services to the
business houses as well as e-commerce customers. Business clients will be served by the large size
business agreements both domestic and international trades whereas the individual customers will
be served domestically. The offered services need to be met the standards of superiority of trade
agreement, safe and on time delivery combining both creative and customary styles of logistic
services (Agrawal, 2003). Providing the customers an impeccable service is one of the aims,
Altomi Logistics strives for. A friendly, supportive and gratifying environment will be offered to

the employees so as they feel encouraged for long-term with pleasing, growth oriented work
environment. Altomi Logistics aims to be a benevolent member of the Sri Lankan community and
improve the quality of logistics service and life in the geographical region.
2.4 Marketing and Positioning
Differences between the performances of companies confirm with the central principle of
marketing strategy i.e. to be successful over the long term, a firm’s products and services need to
be well positioned in the marketplace (Brooksbank, 1990). Through positioning, marketers try to
provide an identity to the product or services to retain that in the minds of their target customer
population. Positioning is quite a crucial aspect of any business specifically for the service
industry. It matters a lot for as it is going to decide, how the customers are going to perceive it
rapid expansion of international trade, need for an efficient supply chain solution arises among the
businesses that are involved in export of their goods. Thus a demand for the one stop solution
providers elevated over time. In line to this, the logistics and freight forwarding industry of Sri
Lanka have taken a speed (GDP poised for 7.2% growth next year, 2012).
According to Amal Kumarage (chairman of the National Transport Commission) the
estimated logistics and freight forwarding industry is earning a 200billion rupees annually and
have turned out to be one of the Sri Lankan economy's biggest sectors (Lanka Business Online,
2009). Also, it has been estimated to grow at a similar rate of the GDP growth i.e. 7.2% annual.
On the basis of this estimate, the operating scale and growth of the business of Altomi Logistics

will be derived. The expected scale of the Altomi Logistics can be derived as shown in the below
table, with an assumption to have a ½% market share initially as a result of innovative marketing
and advertising activities:
Table 1 Estimation of Scale of Business for Altomi Logistics
Year Growth factor (7.2% per
year)
Expected Industry
Business (Billion Sri
Lankan Rupees)
Estimated customers
for Altomi Logistics
(Billion Sri Lankan
Rupees)
2013 1.072 214.4 1.072
2014 1.149 229.837 1.149
2015 1.232 246.385 1.232
2016 1.321 264.125 1.321
2017 1.416 283.142 1.416
2018 1.518 303.528 1.518
2019 1.627 325.382 1.627
2020 1.744 348.809 1.744
Source: (GDP poised for 7.2% growth next year, 2012)
Formula used for calculating the estimated value of tourists coming to Mongolia is as
written below:
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= ∗ ℎ ℎ�� ℎ� ��
2.6 Start-up summary
Altomi Logistics needs to specialize in organizing, storing, transporting and delivering
orders on time and specified place to the clients. Today, majority of the manufacturing companies
outsource logistics function in order to decrease the associated costs and increase the efficiency of
respective supply chain process. To start it, the first step is to enter into this exciting industry. In

Sri Lanka, logistics business is quite lucrative. For setting up it, Altomi Logistics has to follow
the below mentioned process:
Settle on the logistics services on offer for the client. A range of specialized services can
be in the portfolio of any logistics firm, including storage, trucking, shipping by sea, air
transportation, shipping through the mail and integrated supply chain technology management etc.
Looking towards the requirements of the market, Altomi Logistics is going to offer online and
one step solution to all the service seekers in the field of logistics and transportation. Services
under the Altomi Logistics’ portfolio are as listed below:
 Supply chain solution
c. Submit all the above mentioned documents along with the registration fee at the
Sheriff counter. Registration fees in total amounts to be Rs 12,880.00 covering the
VAT charges. segregation of this fee is as under:
i. Form 1 - Rs. 10000
ii. Form 18 - Rs. 500
iii. Form 19 – 500
iv. Articles of Association - Rs 500
v. VAT charges – 12% (1380)

d. After registration, the company will need to start functioning within 30 working
days of its incorporation under this Act.
Manage to obtain the start-up capital. In any logistics company, generally long term funds
and credits are required for vehicles, facilities, technology and other equipment installation.
This makes it necessary to gauge the concrete amount of finance and the source of finance
before planning for execution of a business plan. For starting the functions of Altomi
Logistics, following equipment’s and articles will be required:
Table 2 Equipment’s for Altomi Logistics
Article name Quantity
Computer system 4
Supply chain software and E-commerce instrumentation
software
1
Transportation Vehicles 8
Stationary and administrative apparatus -
Connecting media for each transporting unit 8
Miscellaneous equipments such as on-loading and offloading
machinery
1
Warehouse fixtures -
Office furniture -
(Source: Boroade, 2011)
After listing the required instruments and funds, all these need to be procured either by
purchase or leasing or hire purchase. The warehouse floor will also be finalized.
Start up cost structure for Altomi Logistics will be as under:
Table 3 Start up cost structure
S.
No.
Description Quantity Cost (Sri
Lankan Rupees)
1 Ware house floor rent (for 4 months) 1 800,000
2 Office rent (for 4 months) 1 240,000
3 Computer systems 4 240,000
4 Transportation vehicles (4 Truck and 4 tempos) 8 1800000

5 Supply chain management software 1 100000
6 Logistics management software 1 120000
7 On-loading and Off-loading equipments 1 set 220000
8 Warehouse fixture - 120,000
9 Office furniture - 150,000
10 Stationary and other items - 100,000
11 Connecting media instruments 8 sets 80,000
12 Other - 300,000
13 Salary (4 month) (average salary in Sri Lanka is 36,000 per
person)
18
persons
2,592,000
14 Company registration fee - 12,880
Further, after setting up the operations, implementation can into the lime light. First, the
supply-chain-management software and logistics-management software should be installed so as
to track the items and vehicles as well as the tracking media installation for satellite tracking
facility.
The human resource requirement for Altomi Logistics is presented below. For this purpose
well versed staffs with the requisite skill set and expertise is a must.
Table 4 Human resource requirement
Staff name Number of persons required
Manager (owner) 1

Logistic head 1
Marketing professionals 3
Operator 4
Drivers 8
Cleaning staff 2
Total 18 plus the owner
(Source: Piley., n.d)
Thus, the start up capital required for the business set up is nearly LKR 7,000,000. This
fund will be raised from the market through different sources of finance available in the market.
The owner’s capital for the business will be of LKR 3,000,000. Rest finance will come from the
bank loans, hire purchase and leasing.

CHAPTER- 3: FEASIBILITY ANALYSIS
Setting up a business is the result of aspiration of a person to change his or her business
idea into reality. This is possible by careful examination of the prevailing level of threats and
opportunities. But generation of idea is not enough as it is important to make sure if it is feasible
from technical, economic, legal and financial perspective. So after the idea generation and initial
test, it is required to carry out an in depth analysis of issue related to feasibility so that time, money
and energies are exerted in right direction (Evaluating the Feasibility of Business Opportunities,
2009).
successful analysis of business venture. Primary analysis involves research conduction via use of
interviews, surveys and observations. As it is a known fact that for starting any given business
considerable funding and supplementary resources will be a must. Along with this, there is also a
requirement of time and ample manpower. Thus it is a pre requisite to conduct a detailed research
before setting the business plan (George and Bock, 2012).
3.1 Primary market research
Scientific methods are the basis of primary research, which has been developed by John
Stuart Mill in the mid-19 th
century and discussed this in the book “Philosophy of the Scientific
Methods”. Three methods are available for conducting a primary research, known as the
observation method, interview method and survey method (Joseph and Covelo, 2006).
Here an interview method has to be employed for primary data collection. An online
interview method is adopted for collection of responses from the industry experts, whereas
questionnaire interview method is used for data collection from the business representatives from
different industries associated with the commercial departments of the respective firms. For the

expert interview, five industry experts are to be selected as per the availability. As far as the
industry representatives are concerned, they are approached in personally and through a well-
structured interview, their opinions will be collected. A sample of 10 respondents from each
industry has been collected and analyzed for deriving the results. Responses of the participants are
as follows:
1. Expert opinion interviews:
a. Sri Lankan Logistics and freight forwarding industry has a bright future a head
as the current economic conditions are supporting growth of different
industries. All the experts have the same opinion and have suggested making a
doubtless foray into the industry.
b. The most fascinating features according to the experts of this industry are its
long term sustainability, lucrative growth in the near future; improving cross
country trades in the country makes this business line much preferred for a
veteran entrepreneur. For an entrepreneur this is one among the most beautiful
venue to park the efforts and financing.
c. DHL have recently made entry in the country with its logistics services and
Gati, an Indian service provider is also there among the recent new comers in
the industry. According to the experts, their performance has been significantly
good.
d. Licensing and fund raising are the two main entry barriers for the new entrants.
Some of the expert has also advocated that the existing competition is a serious
short coming for the new entrants. A new establishment in the industry has to
cop-up with this situation.
e. Industry is largely regulated by the Industry union and the state ministry
concerning the transportation and freight forwarding businesses.
f. As per the opinions of different industry experts, Franchising is the best way to
make an entry in the market.
g. Although the sector has shown a significant growth over time, still there exist a
gap between the services and demand. New technological enhancements for the
order placing and just in time delivery systems can shorten this gap.
2. Interview response of Individuals from commercial back ground:

a. Majority of respondent were from the apparel and textile industry and some
others from the tea exporting houses.
b. 80% of the representatives from the apparel and textile industry were out
sourcing the supply chain services. No specific software is used by these firms.
c. As per the responses, different local and international brands are currently
3.2 Secondary market research
Secondary market research is defined as the data that exists already and has been collected
by some other researcher for his or her research purpose. It involves evaluation and assessment of
existing data sources. It makes use of sources of information in form of government agencies,
media, labor unions, chambers of commerce, trade and industry and many others. Secondary
sources of information in present case are as follows:
 Commercial sources – These include sources in form of information obtained via study of
media, trade and industry sources etc.
 Online sources – In present case online articles, books and journal articles presented by
different authors have been used.
 Public sources – This involve study of information presented by governmental agencies,
chamber of commerce and the labour unions.

3.3 Feasibility
The term feasibility can be defined as a detailed analysis and evaluation of proposed
business plan to determine if the given idea will fare well in the market on basis of profitability
and market share. This helps to highlight the existence of market for proposed service and the
investments that may be required to move forward (Nykiel, 2007). The analysis helps to answer
questions related to financial and technical aspects in order to convert business idea into reality. It
addresses issues like where and how the business will operate and what are the chances for success.
It thus serves as a valuable tool to develop a winning idea. Under present business plan various
aspects of feasibility in terms of present market attractiveness, product or service, organization and
financial aspect will be analyzed (Evaluating the Feasibility of Business Opportunities, 2009).
3.3.1 Product/service
The most important thing in feasibility analysis is to evaluate the viability of business idea
in terms of proposed product or service that the firm wishes to offer to its clients. In this context,
various questions should be answered to get a refined business idea.
 Is the business plan in tune with specified needs of market place in Sri Lanka?
 Is the present business concept profitable?
 Does the business idea have the capacity to face prevailing competition in market?
The given questions can be answered by observations via primary research. It helps to
provide a brief overview about the competitive scenario and presence of opportunities in the
courier service industry (Tips to Start a Courier Service, n.d).
The primary research has been conducted on industry experts of courier services and target
customer representatives to get an overview about feasibility of business plan. According to
primary research that has been performed on basis of interview, it is clear that there is scope for
the start up of Altomi Logistics in spite of the presence of competitors. According to the primary
research observations, the business concept seems to be prima facie feasible. Also, the future
prospects of growth are bright in the industry for the proposed business concept.

3.3.2 Industry and market
Economy attractiveness
Sri Lankan economy has shown signs of peaceful domestic environment; favorable policies
by government and improved investor confidence have helped to increase GDP growth rate to
8.3%. According to recent statistics, services sector remains the major contributor of national
markets for the export oriented goods are USA, United Kingdom, India and Italy. As Altomi
courier services deals with European nations and United States thus it is important to have a brief
overview about present trade relations with both countries (Sri Lanka Trade, Exports and Imports,
2010).
The trade relations between European Union and Sri Lanka began in 1962 when embassy
of Sri Lanka was set up in Brussels. To strengthen the relationship between two nations ‘The
European Chamber of Commerce Sri Lanka’ was founded in year 1996 with an aim to strengthen
and promote business relations between two nations. This also helped to increase trade with third

world nations. Since then EU is also regarded as Sri Lanka’s first trade partner. The flow of
business between two nations in 2009 was Euro 2.9 billion. The trade surplus for Sri Lanka also
came out to be Euro 1.1 million. Exports grew by 24.4% (US $ 3576 million) in 2011 which are
in form of garments, gems and jewelry, unmanufactured tobacco, leather, travel goods and
footwear. This reflects the importance of courier services between two nations (Sri Lanka - EU
Relations, n.d).
Figure 2 Export of Sri Lanka in 2009
(Source: IMF: Sri Lanka’s exports/GDP falling for years, 2011)
On the other hand, United States remains Sri Lanka’s number one export market and
accounts for nearly 1/3 of the nation’s exports. The major ones from Sri Lanka are in form of
apparels and textile which contribute to around 36% of total in 2009. On the basis of statistics,
value of apparel export from Sri Lanka to US recorded an increase of 2% to 1682.43 million dollar
in year 2006 as compared to 2005 (Trade relations between Sri Lanka and the U.S., 2010). In order
to promote trade, The Trade and Investment Framework Agreement (TIFA) have been signed
between two nations to provide an ideal platform to promote economic growth and maintain trade
relations that are of mutual interest to both the nations (GDP poised for 7.2% growth next year,
2012).
The major sources of connectivity between two nations are through airways. The nation is
on a verge of becoming second international airport in 2013 in a city named Hambantota. It will

build a runway to cater to needs of nonstop flights to/from Europe. Sri Lankan airlines links
Colombo nonstop with Frankfurt, London and Paris but nonstop service to Europe is still a matter
of concern. It is expected that this issue will be solved by the entry of Hambantota international
airport in 2013 (Getting there & away, n.d).
Market and industry attractiveness
The consumers in present industry are in form of export oriented businesses mainly in form
of apparel and textile industry. Textiles and apparel are key exporters in Sri Lanka and account for
over 43% of the country’s total exports and more than 56% of industrial exports. There are 900
industries that deal in apparel and textile segment. Many industries in the area of tea, gems and
jewelry are also involved in export services. Buying behavior is influenced by superior quality,
timely delivery, competitive pricing, distribution network and promotional techniques (Gilbert,
2004). The brand loyalty of consumers is this industry is reflected from innovative packaging that
promotes ease and enhances its functionality. This will be in form of thermo from film to ensure
durability followed by proper sealing along with labels and sticker that bear the shipper and
receiver’s address. In order to induce and sustain purchases by consumers the firms should focus
on introducing cost effective measures and pay attention to innovative packaging along with
operational efficiency so that it increases satisfaction of clients and also drives sales. The couriers

companies also need to focus on have faster service, accuracy together with an improved ability
to their customers for tracking packages. They should also focus on safety aspect of the export
consignment to increase sales (Tips to Start a Courier Service, n.d).
3.3.3 Organizational feasibility
The main objective behind organizational feasibility analysis is to determine if the firm has
got sufficient skills, expertise and resources to ensure successful market entry. This step basically
makes use of analyzing the non-financial factors that are important for current business. In this
scenario, it is important to consider issues like management competence, presence of skills set;
business system; sufficiency of resources; risk appetite, sustained energy and motivation to
succeed. The managerial competence needs to be evaluated on basis of requisite skill set, passion
and an expertise to start the new venture. It is also essential to analyze the presence of non-financial
resources in form of availability of technical expertise, possible of government support, workforce
quality, familiarity with key suppliers, contacts with business customers, competitor strategy etc.
It is important to focus on presence of resource sufficiency particularly nonfinancial resources
(Baron and Shane, 2008). The human resource requirement for present firm is presented below.
For this purpose well versed staffs with the requisite skill is a must.
Table 5 Human resource of Altomi Logistics
Staff name Number of persons required
Manager 1
Logistic head 1
Marketing professionals 3
Operator 4
Drivers 8
Cleaning staff 2
Founder of the company i.e. Mr. A, and two other i.e. Mr. X and Mr.Y are the ones that
represent Altomi Logistics. As the firm is starting for the first time therefore a good start up team
will play a key role in overall development of firm. It will depend on managerial experience and
core competencies of company. Management responsibilities will be focused on three main areas
i.e. administration, finance and marketing followed by logistics section. If future growth of Altomi

Logistics takes place then additional consultant assistance may be required to solve issues related
to sales, logistics and marketing issues.
In such a scenario, the firm should have expertise staffs who is fluent in local language i.e.
Sinhala as it is the major language of documentation. Proficiency in English language is also very
essential. Various kinds of resources are required that are classified into human, physical and
financial resources.
3.3.4 Financial feasibility
Financial feasibility analysis is a very important tool to find out the ability of proposal to
seek fund. This step is among the last and most important step for feasibility analysis. This gives
a glimpse of financial merits for the proposed business (Kumar, 2008). The initial capital
requirement will be up to 6400000 to 7400000 Sri Lankan rupees. Profitability depends on the
nature of growth.
Table 6 Start-up Funding
Start-up Funds Funds
Start-up Expenses to Fund 4044880
Start-up Assets to Fund 2830000
Total Funding Required 6874880

Assets
Non-cash Assets from Start-up 2830000
Cash Requirements from Start-up 4,032,000
Additional Cash Raised 125120
Cash Balance on Starting Date 12,880
Total Assets 7000000
Liabilities and Capital
Liabilities
Current Borrowing 1440000
Long-term Liabilities 2560000
Accounts Payable (Outstanding Bills) -
Other Current Liabilities (interest-free) -
Total Liabilities 4000000
Capital
Owner Equity 3000000
Total Capital 3000000
Total Capital and Liabilities 7000000
Total Funding
Key Assumptions
Every financial plan is dependent on some important assumptions which are mentioned in
table below.
 Sri Lanka is a high growth economy with good chances for export and import. It has shown
a GDP rate of 6.5 percent in the year 2012 and is expected to increase by 7.2 percent in the
year 2013 (GDP poised for 7.2% growth next year, 2012).
 It is assumed that the opening of Altomi Logistics will take place in mid of March 2013.
 No unforeseen changes are anticipated with respect to popularity of Altomi Logistics.

 There is complete access to both investment and financial sources with certainty.
 Gross profit margin of Logistics industry of Sri Lanka is 30%.
Table 7 General Assumptions
General Assumptions
2013 2014 2015 2016 2017
Current Interest Rate 18% 18% 18% 18% 18%
TOTAL CASH INFLOW 1.14 1.21 1.29 1.38 1.47
CASH OUTFLOWS
Operating expenses 0.54 0.57 0.62 0.66 0.71
Premises (rent, rates) 0.03 0.03 0.03 0.03 0.03
Wages and salaries 0.08 0.08 0.09 0.09 0.10
General expenses 0.00 0.00 0.00 0.00 0.00
Interest and loan repayments 0.01 0.01 0.01 0.01 0.01
Capital expenditure 0.03 0.03 0.03 0.03 0.03
Corporation Tax 0.12 0.13 0.14 0.15 0.16

TOTAL CASH OUTFLOWS 0.80 0.85 0.91 0.97 1.04
Net cash flow 0.34 0.36 0.38 0.40 0.43
Projected Profit and Loss
This is also called as profit and loss statement, income statement, or income expense
statement. It is that statement which provides a brief summary about sales, cost of goods, and
expenses incurred in the business during specified period of time which is a quarter or year. It
helps to provide information about business ability to increase profit by improving over revenue
and reducing costs (Titley and Moynihan, 2001).
It is usually prepared by following a conservative approach and projections are based on
past performance of some courier and logistics firm running in Sri Lanka. By innovative
approaches, service positioning and development of good customer relationship is required to
achieve popularity which results in increased sales.
Projected P & L for Altomi Logistics
Table 9 Projected P & L
(4) PROFIT AND LOSS
FORECAST In billion LKR
Year 2013 2014 2015 2016 2017
Revenue 1.07 1.15 1.23 1.32 1.42
operating expenses 0.54 0.57 0.62 0.66 0.71
Premises (rent, rates) 0.03 0.03 0.03 0.03 0.03
Wages and salaries 0.08 0.08 0.09 0.09 0.10
General expenses 0.00 0.00 0.00 0.00 0.00
Interest and bank charges payable 0.01 0.01 0.01 0.01 0.01
Total expenses 0.66 0.70 0.75 0.80 0.85
Profit before tax 0.41 0.45 0.49 0.52 0.57
Tax @28% 0.12 0.13 0.14 0.15 0.16
Profit after tax 0.30 0.32 0.35 0.38 0.41
Projected Balance Sheet

Table 10 Projected balance sheet
Assets 2013 2014 2015 2016 2017
Non-cash Assets 2830000 2547000 2292300 2063070 1856763
Cash Requirements for operations 4,032,00
0
4,435,20
0
4,878,72
0
5,366,59
2
5,903,25
1
Additional Cash 138000 138000 138000 138000 138000
Total Assets 7000000 7120200 7309020 7567662 7898014
Pay Back Period
It is a technique of financial evaluation which reflects the time period that is required to
complete any given project in order to pay back the initial investment. It can also be called as a
non-discounted technique (Powell and Baker, 2009). Here in our proposed plan, 6874880 LKR is
required as the start-up fund. This amount will be recovered via net profit of business. Calculation
of the pay-back period for the logistics firm is shown in the below table:
Table 11 Payback period
Year Net profit Cumulative net profit
2013 0.298212 0.298212
2014 0.322833 0.621045
2015 0.349361 0.970406

From the above table it is shown that repayment of initial investment will begin in the 2 nd
year of business after it commences operation. The exact pay-back period will be calculated on
basis of formula;
Payback period = Initial investment/ Periodic cash flow
2+ (0.6874880-0.621045)/0.349361= 2.1 years
On basis of formula, the payback period is found out to be 2 years and 1 month. This implies that
it is relatively low. It is an indicator of attractiveness of the given business venture among
investors.

CHAPTER 4: BUSINESS MODEL
Business model for any company is designed to find out the factors that influence business
process of any firm. It helps to implement business processes to add value to clients and users and
give assurance to stakeholders for profitability and stability of capital (Neubauer, 2011). It helps
to answer questions like;
 What will be the effect of external environment on happenings of business?
 What should be the best response of the business to the probable changes?
Altomi Logistics is starting from scratch and hence it is required that things must be
designed and managed according to requirement of owner. There may be difficulties with respect
to brand establishment and positioning in market. The present industry in Sri Lanka is dominated
by presence of competitors like Blue Dart, DHL courier services etc. Therefore entry of a new firm
in the present industry is not an easy one. There is a requirement to have a thorough knowledge
and understanding about competitive business scenario followed by the requirements of
consumers. There is an obligation to carry out an extensive market research to make a successful
entry in this field in order to assess the acceptability of the business model by targeted business
clients. According to many reports most of the courier companies find it difficult to survive thereby
resulting in closure of businesses. Hence enough time must be taken in order to increase chances
for success (Trade relations between Sri Lanka and the U.S., 2010).

4.2 SWOT Analysis of Altomi Logistics
It is very essential to focus on specific strengths, weaknesses along with external
opportunities and threats from the outer circumstances so as to achieve competitive advantage.
SWOT analysis of Altomi Logistics is given below:
Table 12 SWOT Analysis
Strengths
 Innovative business services.
 Proper market research and
planning.
 Viable in financial terms.
 Increase in Sri Lankan
exports.
 Sound and peaceful domestic
environment.
 Sound governmental policies.
Weaknesses
 Highly dependent of the acceptability of
the company among the customers.
 High dependence on the growth of export
in the country.
 Sensitive to the government laws and
regulations in form of tariff duties.
 Lack of nonstop air connectivity to Europe.
Threats
 Competition from global
firms like Blue Dart and DHL
courier services.
 Substitute products like
governmental postal services
and telecommunication.
 Require heavy investment in
technology.
 Issues related to licensing and
permit.
Opportunities
 Innovative packaging options in form of
thermoform film so as to provide durability
to the contents. All packages are sealed
with clear writing of shipper and receiver
address on labels and sticker.
 Timely delivery of service to ensure an
edge over competitor firms like GATI who
have a well established base.
 Safety of package.
 Proper access to suppliers.
 Good networking with prospective clients.

4.3 Business model
Business model for Altomi Logistics will focus on the basic principles in order to capture,
deliver and create value to clients in form of economic, social and financial terms. The construction
of a well-defined model is thus a part of business strategy. The process helps to describe key
requirements of business and also helps to explore on the future possibilities (Hill and Jones, 2009).
The business model for Altomi Logistics is given below:
safety of
package
- Provision of
growth
opportunities
to the
employees
- Financial
sources
comes from
the owner or
through short-
term loans
- Human
resource and
other
channels:
Online
banking, use
of smart
phones and
pre paid cards.
Distribution
channels:
Provider of

operational
requirements
will be
obtained from
Sri Lanka.
- Setting up an
equality
policy.
courier
service,
representative
of courier
agency and
consumers
those who
wish to export
the goods.
Communicati
on channels:
Use of mobile
phone and
internet.
Competitive advantage
-Timely delivery of package at lowest prices
-Innovative packaging options.
-Safety of consignment.
-Customization of services
- Maintaining standards in superiority.
Revenue streams and cash flow
-Through logistics and operations
Cost and cost budgets
-Fixed costs will be covered by Altomi
logistics through operations.
-Marginal costs covered by revenue schemes.
4.4 Core strategy
For survival and prosperity of any business in a particular industry the companies must be
able to set a core strategy to attain differentiation. They must deliver customer value for money
services and also endure in competition (George and Bock, 2012).
According to mission Altomi Logistics, is to offer innovative logistics services to clients
and meet standards of superiority, safety, timely delivery and customization of services. There is
enough scope in market and in the area of online services. Hence the firm needs to design a core
strategy to achieve competitive advantage. This can be achieved by creating difference between
value offered to clients and cost of creating the value in comparison to rival firms. This can be

achieved by formulating differentiation and cost advantage strategy. For differentiation, superior
services must be provided to clients and cost advantage can be attained via economies of scale.
As the present firm i.e. Altomi Logistics is a completely new start up hence achieving cost

Table 13 Value chain
4.6 The partnership network
Whenever any new venture starts its operations then it usually does not have access to
resource base in order to perform all key business activities. In such a scenario, a proficient
partnership base is required so as to make new businesses work.
The partnerships are the key alliances which are necessary to start a business. In present
Altomi Logistics include partners, suppliers, channel members, stakeholders, shareholders, trade
alliances, professional bodies and governmental agencies (Culpan, 2002). The suppliers of Altomi
Logistics will be in form of local vendors that would provide packaging items and other tools and
techniques to help in process of offloading and on loading of export consignments. Stakeholders
will be human resource staff of firm, retailers, distributors, suppliers etc. The clients in form of
apparel, textile, gems and tea business unit will be major customers along with the local

community of Colombo city that are affected by the operations of firm indirectly. The main
stakeholders are the governmental authority of Sri Lanka mainly the customs and regulatory
agencies. They try to put a better control on overall operations in order to increase revenue and
enhance transparency and cost of operation (History, n.d).
Other than this, the local port authorities, shipping agents, airlines and freight forwarders
are involved in export of courier consignment via waterways and airways. The bankers are the
major source of short and long term loan providers. There are a number of local and foreign banks
that can provide loans to Altomi Logistics. These include Bank of Ceylon, Peoples bank,
Commercial Bank of Ceylon and foreign players like HSBC, Standard Chartered, ICICI bank etc.

In this scenario it is important to have a look on Porter’s five force analysis for present
firm. Bargaining power of suppliers for Altomi Logistics is characterized by the fact that it is easier
to switch suppliers due to fewer bargains. This can be beneficial for the logistics firm in long run.
Customers have a huge bargaining power and expect provision of facilities like innovative
packaging and proper sealing of containments, safety and timely delivery of consignments. They
also expect low pricing due to presence of global competitors in form of DHL, Fed Express and
other local rivals. But this may get positive for Altomi Logistics in long term future as the large
industrial set up allows for multiple firms to flourish without allowing the rival partners to steal
market share. Substitutes for Altomi Logistics are in form of local postal services and advent of
telecommunication. This means that customers will find it difficult to have access to other
substitutes in order to fulfill the needs. This can play a positive part for present firm (Abrahms,
2003).
4.7 Value deliverables to consumers
The present clientele of Altomi Logistics are in form of business ventures belonging to
textile, apparel, gems, ornaments and tea industry. Thus the customers who approach the newly
established firm expect a series of superior value propositions that must be delivered to business
units (Hardy, 2005). These are in form of functional, emotional, competitive, pricing, ethical and
legal aspects. All of them must be managed by Logistics firm at the interface of clients. This would
help to build trust worthiness and loyalty with future customers. Thus the value proposition acts
as a key ingredient to success of upcoming business venture. With the help of given value
proposition, Altomi Logistics can provide a fulfilling client experience and also ensure that value
can be and will be delivered on a consistent basis (Tips to Start a Courier Service, n.d).
 Functional proposition – This aspect for Altomi Logistics is related to performance and
quality of services. In present case, there should be quick and timely delivery of export
packages. Safety aspect is very essential in present scenario so as to garner trust and loyalty
of clients. Introduction of innovative methods of packaging that are environmental friendly
and provide an added feature of safety. This are in form of thermo form films to ensure
durability followed by adequate sealing. The labels and stickers can also be attached to
reflect the address of sender and bearer (Ulrich and Brockbank, 2005).
 Emotional proposition – This segment includes the brand identity that is communicated to
customers via services. In present scenario, Altomi logistics can focus on maintaining its

brand identity in form of personal commitment by adapting the services according to needs
of consumers and provide ease in processes. The firm can also focus on providing proactive
solutions to services and keep up with promises. It can make the supply chain more efficient
and reliable by offering flexibility according to demand (Hill and Jones, 2009).
 Competitive proposition – In order to have a competitive edge over rival firms, Altomi
logistics should offer the lowest possible rates in order to beat the competition. It must also
focus on providing the best online services to clients and innovative packaging solutions
so as to get the best output.

CHAPTER 5: BUSINESS PLAN
The current business set up is headed by the decision to have a rewarding entrepreneurial
career and recognition for a promising business idea. This is backed by careful investigation of the
presence of entrepreneurial opportunities in the selected market. In context of market and industry
attractiveness, both are found to be profitable. The logistics sector of Sri Lankan economy is
earning 200 billion every year. It is estimated to grow at 7.2% on an annual basis. This will provide
enough room for survival, growth and profitability of newly proposed firm in Sri Lanka (GDP
poised for 7.2% growth next year, 2012). Altomi Logistics Company is located in Colombo. It
wishes to make a mark in the area of courier services providers in Sri Lanka. A large number of
activities are also segregated in form of arrangement of funds, obtaining licenses for courier
services, equipments and transportation vehicles, finalization of office and warehouse space,
interiors, fixtures and other installations. This will be followed by organizing a complete plan to
ensure successful launch of business followed by inauguration. All these activities are to be
completed in two months time as the proposed opening of the courier service agency is by middle
of March in the year 2013.
The firm has decided to base its operations on innovative packaging in form of
thermoform film as well as sealing to ensure durability of package. It will also seal the parcel with
use of labels and stickers for writing the address. This will be followed by timely delivery and
safety of consignment through proper supply chain running. It will involve both inbound and
outbound supply chain management. The inbound process in case of Altomi Logistics will help to
maintain for the external procurement processes. On the other hand, the outbound process will take
care of all the essential activities that are required to send goods at their respective destination.
Both the processes in case of Altomi Logistics will cover successful execution of business and
provide for an integrated solution to monitor the flow of goods.
These are considered as key success factors which are clear on basis of primary research
which also shows that there is a huge potential for success. This will provide a competitive
advantage to present firm in a well established market that is governed by global players like Gati,
Blue Dart among a few. Currently Sri Lanka has emerged as an export oriented destination which
provides good going prospects for Altomi Logistics (Hanna, 2011). It is being assumed that Sri
Lankan economy will grow on at a rate of 7.2% on an annual basis. No unforeseen factors are

considered that may disrupt the normal flow of operations undertaken by firm (Tips to Start a
Courier Service, n.d).
The market for logistics industry is very huge due to presence of a large number of
competitors in form of Gati, DHL, Blue Dart and other established firms. The customer base
includes businesses dealing in textile, apparel, gems and tea for the purpose of export. Buying
behavior is influenced by quality, timely delivery, competitive pricing, distribution network and
promotional activities. These features can also provide competitive advantage to firm (History,
operations. Financial feasibility analysis has indicated that the firm has the potential to pay back
the initial investment in a very short span of time. It is found to be 2 years and one month. Also
the profit margin is considered to be 30% which is profitable.
From the analysis it is clear that firm can undertake competitive pricing strategy to cover
up initial costs and attract consumers. It must also promote its services via internet which is also
one of the core areas of its business. Online promotion will help the firm in long run and also tap
the long distance clients. Focussing on communication channels and distribution can also be made
a part of its marketing tactics.
In the operations segment it will require good supply chain management followed by on
loading and offloading equipments, transportation vehicles. It will also require facilities like
warehouse flooring and office. The information technology requirements will be in form of
computers, laptops and required software. This is advantageous as the company has focussed on

providing online services to its consumers so as to tap the consumers who are at long distance from
the offices.
It will also have to make good relationships with consumers and other business partners to
ensure success of newly established venture. Proper recruitment of staff members in form of
operators, lorry and truck drivers, marketing personnel etc. is a key requirement. Training of all
the human resource personnel is also a must along with proper supervision of the operations. It is
also working on the principle of single ware house in Colombo which will help the company to
take into account multiple taxes levied by government. The future sustainability of present firm
can be affected by increased competition. Thus it must bring constant innovation in its offerings
along with competitive pricing to have a competitive edge (Culpan, 2002).
The entire analysis is an indicator of positive responses that makes the business set up
viable and worthy of investment. It will prove to be beneficial in the long run thereby making it
easier to get loans from banks as a source of initial start up fund.

CHAPTER 6: VIABILITY
The term viability of business plan refers to likelihood of success with respect to the
proposed business venture. The viability of a given business plan can be assessed by looking at
financial, organizational and other aspects of business both in general terms as well as in context
of client’s ability (Butler, 2012). Viability in a given business is only possible when there is a clear
cut understanding about given business conditions and market behaviour with respect to
consumers, government norms and policy and other aspects. This is irrespective of the amount of
capital that has been used to build the company. There is a requirement to be aware about needs
and aspirations of target market.
200 billion dollar ever year (GDP poised for 7.2% growth next year, 2012). There has also been
an increase in exports with respect to gems, jewellery, tea, apparels and textile among other
businesses. This can provide enough room for new players like Altomi Logistics. Presence of
global players like Blue Dart, Gati etc. is a cause of concern but can be counteracted by use of
innovative service option in form of packaging and proper sealing so as to ensure durability of
package and safety of contents (Postal, Freight & Courier Services, n.d).
Viability in terms of competitive advantages over rival firms can be ensured by timely
delivery of consignment. This should also accompany by following all the safety related
precautions in form of security guards etc. The company is also planning to insure all its operations
from theft, robbery and natural disasters in form of fire, earthquake etc. It is also to provide
insurance to all transporting vehicles in event of accidents (Tips to Start a Courier Service, n.d).

The business plan also seems to be viable on financial terms. This viability helps to find
out whether the firm has sufficient income sources as well a capital to meet its operating expenses
and financial obligations so as to provide the potential for future growth (Titley and Moynihan,
2001). The start up capital requirements can be met easily by loans from banks etc. There is also
a huge potential to attract investors in long run towards the firm. (History, n.d). This is reflected
from the payback period of initial investment which is found out to be very low and is 2 years 1
month.
The firm also possesses organizational feasibility in terms of human and physical
resources. The firm has planned to recruit professionals who possess the requisite skills and
expertise that is needed in their respective area. Further improvements are planned to be made via
provision of proper training and development. The logistics company has the requisite skills and
capabilities in form of innovative business idea, good networking with prospective clients, proper
access to suppliers etc. It wishes to increase its supply chain network via well developed
communication and distribution channels (Baron and Shane, 2008). Online payment options,
communication flow via use of mobile and emails will ensure faster flow of information to have
an advantage. This will help to attract business groups who wish to export their consignment.
Online servicing will help to tap the need of long distance consumers as well. Presence of sound
business environment as well as governmental policies is also beneficial for present firm. The
government of Sri Lanka is taking steps in this direction. Hence the prospective business is viable
and can be move forward in order to ensure success (Evaluating the Feasibility of Business
Opportunities, 2009).

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Appendix
Questionnaire 1- For Industry Experts
For making the Logistics and freight forwarding sector more vibrant and efficient by
offering tailor made services to the clients as per their specifications, our genesis for establishing
Altomi Logistics look for your assistance. To offer the best services in the industry to satisfy our
customers, we need your comments on the questions below, kindly aid in by providing the same.
Your help in answering these questions will be highly appreciated.
Demographic information:
Name
Current designation
Experience in the industry
E-mail
Contact
Q. 5. What regulatory framework is there in the industry?

Q. 6. Where should we start from? What is the most fascinating way to enter into the industry?
Q. 7. What sort of gap exists between the present services at offer and the market demand?
Q. 8. Do you have any other comments? If so, please state here:
Thanks for consideration!

Questionnaire 1- For Commercial individuals from the target customer group
For making the Logistics and freight forwarding sector more vibrant and efficient by
offering tailor made services to the clients as per their specifications, our genesis for establishing
Altomi Logistics look for your assistance. To offer the best services in the industry to satisfy our
customers, we need your comments on the questions below, kindly aid in by providing the same.
Your help in answering these questions will be highly appreciated.
Demographic information:
Name
Current designation
Experience in the industry
Company Name
E-mail
Contact
Subject related questions:
A. LKR 50,000 to 75,000
B. LKR 75,000 to 100,000
C. LKR 100,000 to 150,000

D. LKR 150,000 to 175,000
Q. 7. Do they assist in your supply chain function?
Q. 8. What medium of order placing you follow?
Q. 9. Do they provide any time consignment tracking facility?
Q. 9. Do you have any other comments? If so, please state here:
Thanks for consideration!

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