If you have been frantically searching the phrase “business plan for trucking company” in hopes of starting your own freight business, this guide is for you!
Below, our experts will provide you with a business plan creation roadmap so detailed that it would make Rand McNally jealous. We’ll break down the entire process into manageable steps so that you can successfully launch your new venture.
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What Is a Trucking Business Plan?
Before we outline how to create your trucking business plan, let’s recap what this detailed strategy entails.
Your trucking business plan should outline all of the major components of your company. It should include information about what you plan to haul, where you would like to operate, and how much revenue you seek to generate.
In addition, your plan should outline how you intend to hire and manage support staff, drivers, and other employees.
As you can see, a lot goes into creating a trucking business plan. After all, this information lays the foundation for your entire company!
Why Is It Important to Write a Business Plan?
Writing a business plan is important for a variety of reasons. For starters, it helps you turn your dream into a viable revenue-generating strategy. In it, you’ll need to hash out all of the fine details about your business, including your operational plan and the services you intend to offer.
Creating a trucking company business plan is also essential when it comes time to seek funding. Potential investors, financial institutions, and other interested parties will want to see how you plan to generate revenue.
An incohesive or disjointed plan just might scare off prospective investors. On the other hand, a thoroughly crafted strategy can make seeking out funding much easier.
9 Steps: How to Create a Trucking Business Plan
Now that you know the “what” and “why” of creating a trucking business plan, let’s dive into the how:
Step 1: Executive Summary
During the first part of the creation process, you will need to write an executive summary. This brief summary should provide a general overview of your company: what state you will operate out of, your mission statement, and what prompted you to start your own business.
Step 2: Company Description
Your company description should read much like the “About Us” section on a corporate website. The description should expound upon your mission statement, explain your personal connection to the trucking industry, and provide additional background about the business.
This would be a good time to list out your relevant career experience as a truck driver, operations manager, fleet manager, etc.
Step 3: Operational Plan
In this step, you’ll need to generate a highly technical operational plan. This plan should describe how you intend to manage processes such as driver dispatching. It should also outline the hierarchy and supervisory structure of the business.
Step 4: Services Offered
The services offered section is one of the most important components of your trucking business plan. This segment should detail what types of freight you intend to haul (i.e., LTL, truckload, refrigerated). You should also outline your pricing structure and demonstrate how your suite of services fills a need in the current market.
Step 5: Market Analysis
When you’re seeking investors, they will be particularly interested in your marketing analysis. This section of your plan should define your target market and should include both competitive analysis and industry analysis.
Target Market: Your target market or target audience refers to the customer base that might need your services.
Competitive Analysis: As the name suggests, a competitive analysis refers to an assessment of competitors within your market. You should conduct research in order to identify which companies are offering the same services within the region that you intend to operate within.
This analysis should also include information on their revenue (if publicly available), how many trucks they have, and their pricing model.
Industry Analysis: Whereas a competitive analysis includes information on other trucking companies, industry analysis is focused on the market as a whole.
This analysis should include information on current trends so that you can predict how the market will change in the future. For instance, the industry analysis should help you determine whether there is projected to be an increase in demand for trucking services in the next 12 months.
Step 6: Management and Personnel
In this section of your trucking business plan, you should outline your company’s approach to hiring and managing employees. This section can detail onboarding processes, when staff will be paid (weekly, bi-weekly, etc.), and how many employees you need to launch your business.
Step 7: Marketing and Sales Strategy
How will prospective clients learn about your services? What mediums will you use to advertise your trucking company? Will you rely on an in-house marketing team? Do you plan to outsource these responsibilities? All of these questions must be answered in this section of your trucking business plan.
Step 8: Funding Request
One of the most challenging parts of creating a trucking business plan is writing out your funding request. This request should not only state how much funding you need to launch your business, but it must also provide a line-by-line breakdown of projected expenses.
Some of the costs that you should detail in this section include general operating and overhead expenses, equipment purchases, payroll, and insurance premiums.
Step 9: Financial Projections
Your trucking business plan should also include financial projections that outline your estimated earnings during your first year in operation.
These projections should be highly specific and include quarterly or monthly breakdowns of estimated revenue.
If you’re already working as an owner-operator, include your current revenue, as this will help potential investors better understand your earning potential.
Step 10: Reassess and Adjust
Lastly, be willing to revisit your trucking business plan periodically. Reassess your plan at least once a quarter so that you can gauge how your business is performing in comparison to your previous projections. This approach will help you make informed decisions about the direction of your business so that you can maximize profitability.
Ready to Start a Trucking Company?
Once you have created your plan, it is time to find a financial partner that will invest in trucking businesses. Look for a company that offers multiple cash flow solutions including small business loans, credit lines designed specifically for trucking companies, and cash advances.
As the owner of a trucking business, your earnings will vary depending on the number of drivers you employ, what type of freight you haul, and several other factors.
However, owners can expect to gross approximately $2,000 to $5,000 weekly if they are operating their own vehicle and may earn an additional weekly profit of $500-$2,000 for every truck they have in their fleet.
Owning a trucking company can be quite profitable. However, crafting a great trucking company business plan is key to your success.
Many small trucking businesses are LLCs or limited liability companies, as this approach insulates the owner and their assets from civil liability. While it may be possible to open your company without becoming an LLC, it is not recommended.