FREIGHT BROKERAGE BUSINESS PLAN

I. Executive Summary

Company Description

RouteLogic (name combines routing and operational logic) is a United States–based digital freight brokerage platform built for the 2026 domestic freight market. We operate in the logistics and transportation sector as a tech-driven marketplace that connects small-to-medium-sized shippers with a vetted network of independent carriers. Our core offerings are a matchmaking marketplace, real-time shipment visibility, and data-backed rate optimization; these combine automated load-matching algorithms, carrier performance scoring, and simple self-service quoting to reduce deadhead and improve on-time performance. We are headquartered in Chicago, a major logistics hub, and launch with a lean operational team of 6.5 FTEs, scaling to 13.0 FTEs within five years. One-line summary: a lean, data-first freight marketplace connecting SMB shippers to vetted carriers for faster, cheaper domestic moves.

We deliver value by sourcing and vetting carriers, automating load matching, handling tendering and settlement, and providing analytics to both shippers and carriers. What sets us apart is transparent pricing, carrier scorecards that are visible to shippers, and an operational model tuned to low fixed costs and rapid onboarding. Target customers are US small-to-medium shippers—manufacturers, distributors, and retailers—looking for predictable pricing and reliable capacity on domestic lanes. Short-term goals are to validate unit economics, secure pilot customers, and reach operational break-even; long-term goals are national coverage, sustained gross margins through improved load density, and a 13.0 FTE team by year five. One-line summary: pragmatic scaling from validated pilots to national marketplace with disciplined hiring and clear unit-economics targets.

Problem

The domestic freight market is fragmented and opaque, forcing shippers and carriers into slow, manual matchmaking that wastes time and drives up costs. Shippers lack real-time visibility and centralized credential verification, carriers suffer high empty backhauls and inefficient routing, and small-to-medium shippers are consistently underserved by brokerages prioritizing large accounts.

This gap—slow discovery, poor transparency, uneven pricing, and missing credential verification—makes it hard to scale reliable, cost-effective freight services for SMBs and independent carriers; a modern, data-driven digital brokerage is therefore necessary. One line: The market is fragmented and opaque, costing time, revenue, and trust.

Solution

The freight market is fragmented: shippers struggle to find reliable carriers fast, carriers lose revenue to empty backhauls, and traditional brokers are slow and opaque, driving high administrative costs and operational uncertainty. Our answer is a dynamic, tech-driven marketplace that instantly connects pre-vetted shippers and carriers with real-time transparent pricing, automated booking and digital documentation, and end-to-end shipment tracking, while using analytics to optimize load matching and reduce empty miles. One-liner: real-time matching, pricing, booking, and tracking in one platform.

Mission Statement

Our mission is to modernize the logistics lifecycle by building a transparent, efficient marketplace that empowers U.S. small-to-medium shippers and independent carriers to grow profitably. We use data and technology to eliminate inefficiencies, reduce waste, and improve margins across the supply chain. We commit to continuous innovation and user success to be the most trusted partner and raise industry standards.

Key Success Factors

Critical operational and financial metrics that must be met to reach 18-month breakeven and enable scalable growth.

• Balanced network reach: Acquire 50% small fleet carriers and 40% small business shippers.
• Low customer acquisition costs: Maintain Buyer CAC = $1,000 and Seller CAC = $1,500 in year 1.
• High repeat rate for e-commerce: Drive 8.00–12.00 annual orders per e-commerce client.
• Technical differentiation: Deliver a superior matching algorithm and pricing engine to displace brokers.
• Strong returns: Sustain a 22.97% Return on Equity to signal financial health for scaling.

Financial Summary

Brief financial snapshot: launch in 2026 with an initial EBITDA loss, break-even in June 2027, and strong scale by Year 5 driven by commissions, subscriptions, and value-added services.

Financial requirements: sufficient funding to cover the minimum cash shortfall of $242,000 (minimum cash month: May‑2027) and upfront capex totaling $298,000; anticipated payback 33 months and breakeven in June‑2027, with an overall project IRR of 7% and ROE of 22.97%.

Outlook: the plan moves from a $699k EBITDA loss in 2026 to profitability in Year 2 and to $13.56M annual EBITDA by Year 5.

Funding Requirements

The company requires a one-time capital raise to cover product development and working capital for a 2026 launch.

Financial snapshot: initial EBITDA loss of $699,000, turning to a $111,000 profit in Year 2 and projected $13,560,000 annual EBITDA by Year 5; IRR 7%, ROE 22.97%, breakeven in June 2027, and a total payback period of 33 months, with revenues across commissions, subscriptions, and value-added services.