Interstate Travel Center is a start-up company whose management perceives a growing demand for commercial vehicle services within the Dallas area. The company's management staff includes Steven Smith, who has extensive experience within the automotive repair industry, and Janet Smith, who has provided budgeting and bookkeeping services to small companies for twenty years, who will provide the logistical support for the business. It is Interstate Travel Center's long-term goal to create multiple service centers within the southwest area to service the NAFTA commercial traffic and create a brand awareness that transcends state borders.
Interstate Travel Center will be located between I-45 and I-635 in Dallas, Texas. Access to the travel center will be through these major highways. The advantages of this site are listed below and should be evaluated accordingly when investments for site developments (or improvements) are being considered.
Interstate Travel Center is solely owned by Steven and Janet Smith. It is not anticipated that the company will seek additional shareholders for the foreseeable future.
Funding Requirements and Uses
The initial start-up costs will amount to $2.75 million. This will be used to purchase land, develop it, and construct a 6,000 sq./ft travel center, complete with gas/diesel islands, scales, and a restaurant. The initial capital injection will be $250,000. The remaining will be funds in the form of a $2.5 million loan. Figure 1 provides a breakdown of how the funding will be used and Figure 2 provides the Expenditure Outline for Phase I.
Figure 1. Use of Funds
|Inventories (Travel Ctr.)||$65,000|
|Equipment (Travel Ctr.)||$100,000|
|Other fixed Assets||$50,000|
Figure 2. Phase I Expenditure Outline
|Building (6,000 sq. ft.)||$500,000|
|Gasoline Facility (includes all equipment)||$200,000|
|Diesel Facility (includes all equipment)||$150,000|
|TOTAL ALLOWABLE BUDGET FOR PHASE ONE||$1.55 million|
*Texas Department of Transportation – 50/50 split with state.