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The Shipping Centre

Management Summary

Steve Freighter is the founder and owner of The Shipping Centre, an Oregon Corporation. Steve is forming The Shipping Centre as a corporation to eliminate any personal liability issues. Steve has a degree in political science from Oregon State University. While at OSU, Steve worked part time at UPS as a driver. This part-time job gave Steve valuable insight into the shipping business.

While at OSU, Steve took a business consulting course and Steve’s semester project was to do a full business consultation for a company of his choice. Recognizing that he would like to have his own company some day, he studied a company called Mailboxes Etc. From this project, Steve got valuable insight into the business.

The main conclusion that Steve presented to the company was that the services provided were too commodity like and the business space was quite competitive. He suggested some sort of meaningful differentiation. The company ultimately did not heed Steve’s advice, partly because of ties with the corporate parent, partly because of cost issues, their margins were not enough to be able to institute the changes Steve suggested. Steve has walked away from this project with the insight and industry knowledge needed to allow his store to succeed.

These experiences as a whole, provide Steve with a wealth of practical and analytical knowledge needed to nurture The Shipping Centre into a profit making venture.

6.1 Personnel Plan

The staff will consist of Steve working full time for The Shipping Centre. In addition, by month two Steve will be bringing on a part-time employee. That employee will be turned into full time by month three and Steve will bring on board a second full-time employee by the fourth month. By month seven Steve will bring on board a third part-time employee.

Personnel Plan
Year 1 Year 2 Year 3
Steve $30,000 $30,000 $30,000
Employee 1 $15,120 $19,200 $20,500
Employee 2 $12,960 $19,200 $20,500
Employee 3 $8,640 $9,000 $9,700
Total People 4 4 4
Total Payroll $66,720 $77,400 $80,700