Project implementation stages
Implementation of the business so it can start operations will take a duration of 6 months with tasks parallel to each other’s and other dependent one as shown in the table below.
Budget Distribution
The financial overview presented highlights the distribution of a total budget of $2,465,684.4. A significant portion, 66%, is dedicated to foundational or initial setup costs. The remaining 34% is allocated to annual operating expenses, essential for establishing operations. This breakdown provides a clear understanding of the company's financial focus, with a heavier investment in long-term operational sustainability.
Financial Projections
The financial projections for Drone Drop Cargo over the forecasted four years showcase significant growth beside a high economic factor (Return On Investment, Profit Margin, Market size). In the first year, the company generates revenues of $1,267,200, with a net profit of $807,232.80, showing a strong financial start. By the second year, both revenues and net profit surge to $7,603,200 and $5,040,796.80 respectively, indicating rapid business expansion and profitability. These projections remain stable through years three and four, highlighting a sustained, high-performance level across their operational forecast. This reflects the company's capability to tap into a lucrative logistics market using innovative drone technology​.
Targeted market
The targeted market is Saudi Arabia since Saudi Arabia is one of the largest countries that depend highly on airfreight domestically and internationally, 701 domestical airfreight weekly.
Operational Area
The operational area will include cargo and transportation movements between two major cities in Saudi Arabia, namely Jeddah and Medina. These operations will be carried out as detailed in the attached image below, reflecting a comprehensive plan to enhance transportation and logistics services between these two important cities.
Future Expansion Plan
At Drone Drop Cargo, we are excited to expand our domestic shipping business through enhanced strategies and strategic investments. Our expansion plan includes increasing our fleet by adding more cargo drones, which will boost our transportation capabilities and allow us to serve a broader customer base.
We will open new delivery routes and establish regional offices and distribution centers in high-demand areas, enhancing our service coverage in new markets. Additionally, we will focus on improving service quality by accelerating delivery times through optimized logistics operations.
We will leverage lessons learned from our initial operations to reduce errors and increase efficiency, contributing to overall performance improvement. Supported by a strong financial plan, these initiatives aim to expand our geographical reach and deliver exceptional value to our customers in new markets.
