In-Depth Industry Analysis Of Delivery Service Company
Overview of the company
LLC Beck & Brothers was established in August 2017. The company is registered as Delivery Service Company. The company has 2 employees, the director and the accountant. There were no operations from August 2017 till August 2018.The company mission is to become one of the leading companies to provide best quality in time delivery service.
Management Perspective
In August 2018 the company changed its location, changed its director, and chose better define business path. The company built web site for to order goods from oversees online store companies with kz domain, signed a contract with US delivery service company (making it as an agent) and assigned itself to be the delivery company of those ordered postal to customers. The former director – existing owner of the entity has big experience in delivery, logistics and freight services. The new director will use his knowledge of brokerage and custom services to be the valuable asset of the company. The organizational structure of the company will change.
Marketing Perspective
Not only delivery services companies but also other startup companies have difficulties in becoming a well-known company. The obstacles and their possible failure are poor industry analysis, marketing plan and high financial forecast expectations. There was media-plan developed that will advertise the companies services through all media channels: Instagram, Facebook, web-pages, radio, flyers, newspapers and others. From now on the Company still constructing its web-site and didn’t ordered the services of any advertising company.
Financial Perspective
There was written a business plan that predicts the payback period to be less than 6 month and increase in orders by more than 200 kg in 2 month. The business plan, the estimations and predictions were made by the team who has a wide familiarity with financing and managing of such businesses. The company uses simplified type of taxation that pays 3% from Sales Revenue and can have no more than 50 employees. The company will be financed from owner’s own pocket – capital. From 2017 till August 2018 the Company didn’t work as a full entity, it spent money from its own capital for employees (2 workers) and taxes. As from August 2018 the expenses grew by more than 100% (versus months before), because the new type of activity of the company needed and still needs cash-flows for start-up costs. The main expenses of the Company for these 2 months were: consulting services, judicial services, registering services, repair and rent services, and etc. As soon as all initial preparing will be done, there will be big costs in marketing and polygraph services.
Overview of the Department
Role of the department
Since the company didn’t had a lot of operations and transactions during first year, there were no need for departments or many employees at all. Besides the director, the company has one accountant who handles all duties of the company, acts according to law on accounting and financial reporting of RK, tax code and IFRS. With the new direction in business, it was decided to acquire the software to record accounting transactions that bring an ease in preparing tax and statistical reports.
Major functions and activities of the department
Ever since there is only one subordinate in the company, the accountant also acts as HR manager, but performs only main and simple tasks of this position: handling HR documentation, recording proper salary, benefit and compensation of the employees. Below there is a table that shows my main duties as an accountant and HR manager, before the company starts its operations in new direction, September 2018. Role of the accountant Role of the HR manager Collecting, recording and analyzing day to day financial operations Track and manage human resources documents Report to stat and tax agencies Develop job descriptions Presentation of financial data Establishing and monitoring control procedures Preparation of financial data Treasurer After September 2018 I will also have duties of a customer relation manager (administration). As the company evolves, there will be new employees whom the duties of HR manager and CRM will be assigned. Afterwards I will only perform my responsibilities as a chief accountant.
Operating policies and procedures
The accounting policy of the company was prepared during first months of its operations which should be revised due to new business direction. The core element of the success of this business, management thinks, is the best customer relations. The company wants to give customers better tariffs, more payment options, best time delivery service, safe and trust statements.
These days’ procedures and policies of agent delivery service company (US) and delivery service in Almaty are being written. The simplest form of it is Internal business processes (US): External business processes (US to KZ)
Conclusion and recommendations
This type of business has many obstacles to overcome. Although the law is on the entrepreneurs’ side, there are so many that not everybody is familiar with all of it. Every day there are new procedures or laws come up, that we need to follow, and they delay the company from starting its work. One of my recommendations for the company is to hire or sign a contract with judicial and tax experts, so to get through bureaucratic procedures. The company predicts a big future for it, and makes a lot of start-up costs to win the position in the market from first appearance. It should be like that, I think. The company is small, and it took too big steps for beginning. Another recommendation would be to make small steps, for example, maybe just Instagram and radio for the beginning, and after becoming known and desirable, make more marketing expenses, clothes, TV commercials, billboard ads.
