Dump Truck Business Plan

Executive Summary

2.1 The Business

Roth Trucking will be a registered and licensed dump truck business based in Indianapolis, US. The business will be based on providing hauling and transport services for raw materials and dumps. To run the business, the owner will be purchasing standard dump trucks, side dump trucks, transfer dump trucks, and winter services vehicles from Kenworth.

For anyone looking for how to start a dump truck business, we’re providing all details of Roth Trucking in this sample dump truck company business plan.

2.2 Management of Dump Truck Company

You might have confusion on your mind like is a dump truck business profitable? Well, as dump trucks have found their services in various fields one needs to be exceptionally bad at planning things to suffer a loss in this domain.

To generate maximum profits, it is required to create a thorough management plan, including details of how to direct the team and resources to do with the ongoing projects. Roth Trucking will be employing CDL certified drivers, general assistants, technicians, IT experts and experienced supervisors to manage the company.

2.3 Customers of Dump Truck Company

The customers of Roth Trucking will be construction companies, mining and quarrying industries, property maintenance service providers, chemical and materials manufacturing companies, and organizations responsible for snow removal or dump removal after natural disasters.

2.4 Target of the Company

Our target is to provide exclusive services to our customers. Some of our monetary goals are summarized in the following chart.

Bank/SBA Business Plan

Document for raising debt funding from financial institutions to meet the expectations of the banks, SBA, and government agencies.

Company Summary

3.1 Company Owner

Roth Hugh belongs to Indianapolis and has gained his bachelor’s degree in management from there. After working on a management position for seven years in Chrysler, Roth has gained experience and knowledge to start his own business.

3.2 Why the dump truck company is being started

Ever since the start of his career, Roth is famous in the workplace for his methods of managing the team efficiently. It was just his emotional intelligence and talent to lead people, which enabled him of securing a top position in one of the top American companies.

Despite that he hadn’t any problems in his job, Roth had always wished to run his own business. This desire of being his own boss led him to start dump truck business. After researching in the domain and exploring several dump truck business plans Roth found that running a dump truck business would be interesting and profitable for him.

3.3 How the dump truck company will be started

Roth decided to purchase standard dump trucks, transfer dump trucks, side dump trucks, and winter services vehicles from Kenworth. Before taking the actual startup, he will contact his target group of customers so that the company will have some projects to do from the beginning. He’s decided to make use of both his reputation and discount strategy to compel big names in the market to try his services.

All the equipment will be bought one week before the launch. Staff will also be employed one week before, after strict testing and checking. A place for an office and a big parking lot for trucks will be taken on rent in Indy. Moreover, the company will ensure a strong web presence from the very start to attract more customers and will establish an online system for customers through which they can book the trucks and make payments remotely.

The detailed start-up requirements of Roth Trucking are given here in this sample business plan for dump truck company.

Services for Customers

Before starting a dumper business, you must decide the services you want to provide your customers so that you can buy relevant vehicles and acquire relevant licenses and permits. This decision of yours will be based on your market place and trends and will be affecting your business in the long run.

Roth Trucking has mentioned the following services in their tipper truck business plan.

• Hauling & Transporting Dumps: We’ll provide our trucking services to haul and transport heavy objects or rocks, coals, and dumps such as sand, gravel, grit, etc. from mining and quarrying sites, construction sites and earthwork project sites.
• Transporting Raw Materials: Since several companies require raw materials such as asphalt, coal, limestone, calcium chloride salts in large amounts so we’ll be providing our trucks and efficient crew to meet their demands too.
• Demolition Waste Removal: We’ll provide debris and damaged building material removal services by our trucks. This service is largely required to recover an area from a natural disaster as after such events there is so much mess that can only be taken away by large trucks.
• Maintenance & Winter Services: Another service provided by us includes carrying away or transporting heavy loads for maintenance of public places and properties. Moreover, we also have winter vehicles that are specially made to plow and remove snow in chilly winters.

Marketing Analysis of Dump Truck Company

Here comes the part without which you can’t have a completed dump truck business plan. No matter how talented a business owner is, they can’t make a big name without understanding the high and lows, trends and current demands of a market.

5.1 Market Trends

According to the IBISWorld report, more than 27 thousand dump truck businesses are running in the United States and revenue generated by them is expected to increase over the next five years. The businesses collectively have generated a revenue of $19 billion in 2019 so it’s really satisfying to hear an increase in even that amount.

Well, the source has also reported a 0.1 annual growth rate for the business. So, if you are stepping in this venture don’t worry about the market statistics, just start exploring dump truck business ideas and info about how to start dump truck business.

5.2 Marketing Segmentation

Identifying target customers is crucial to determine their needs and the ways to meet their demands. In this dump truck company business plan sample, we’re listing the target groups identified by Roth Trucking.

The detailed analysis of our target audience is as follows:

5.2.1 Chemical & Construction Material Manufacturing Companies: The first group comprises of the companies who need transport services by trucks to get raw materials delivered in large amounts. We’ll transport dry bulk materials such as iron, gravel, coal, silicon, metals and other heavy objects for them.

5.2.2 Mining Industries: Our second target group will be the companies that carry out mining and quarrying operations. As there is a need to plow and remove huge stones, and earthly particles from the sites where such operations are to be performed, our heavy-duty trucks capable of lifting mighty weights will be needed to help them out.

5.2.3 Earthwork Companies: The third category includes construction companies that’ll need our services to get sand, gravel, soil, asphalt and other materials for infrastructure development. This group will also comprise of earthwork industries who’ll need our hauling and dumping services.

5.2.4 Maintenance Authorities: The last group of our target customers will be the authorities responsible for maintaining city sites. From them, we’re expected to get projects like snow removal in winters and removal of damaged building materials following a demolition process or natural disaster.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

SMART business targets as set by Roth Trucking are given here:

• To achieve the net profit margin of $10k per month by the end of the first year
• To obtain an average of 62 projects per month by the end of the first year
• To maintain a customer churn rate of less than 1% by the end of the first three years
• To balance startup costs with profits by the end of the first six months
• To extend our business to a nearby city by buying 10 more trucks by the end of the second year

5.4 Product Pricing

Roth Trucking will have its prices in almost similar ranges as of its competitors.

Marketing Strategy

If you are thinking about starting dump truck business in a market place where you can encounter many already-settled competitors, then the only thing that can make you successful is the sales strategy.

In this dump truck business plan template we are providing the sales strategy plan devised by Roth Trucking to gain more and more customers.

6.1 Competitive Analysis

To take a lead upon our competitors, we’ll be coming with several competitive aspects. Firstly, our services will be highly managed and organized so that our customers may never feel any inconvenience while working with us. Secondly, we are highly customer service oriented and will amend our strategies according to customer’s feedback. Lastly, the personal contacts of Roth with some of the companies included in our target groups will also help us in gaining more projects as well as popularity.

6.2 Sales Strategy

• We will provide a 60% percent discount to chemical & construction material manufacturing companies for the first week of our launch.
• We will send brochures, letters and our representatives to our target customers to make them try our services.
• We will provide a 30% discount on all our services for the first three months of our launch.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

If you are exploring how to run a dump truck business, you might also want to know that how many persons you can require to ensure the successful running of your business.

We’re providing here the job title and job responsibilities of staff, Roth Trucking will be employing, along with their salaries.

7.1 Company Staff

• 1 Manager to sit in the office, schedule workers and equipment according to projects taken
• 1 Accountant to record finances and transactions
• 4 Supervisors to monitor workers while operations
• 2 Sales Executives to reach out customers and carry out sales strategy plan
• 8 Truck Drivers to operate heavy-duty vehicles
• 3 Technicians to maintain the company’s machinery and equipment
• 2 Customer Representatives to receive orders and attend customers
• 1 IT Expert to manage the company’s online system, website, and social sites

7.2 Average Salary of Employees

Financial Plan

The final step before starting any business is to develop a financial plan. A financial plan can help you in efficiently using the available resources while meeting your financial and other goals.

If you want to estimate dump truck business profit before even starting it, the only way you can follow is to develop a financial plan enlisting all the details of your money flow. Roth Trucking got its financial plan developed by an expert financial advisor who besides, forecasting profit and losses for the company also shed light on the ways to maximize earning within the available means.

The sample financial plan of the company is given here for a general idea.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Dump Truck Business Plan Sample in PDF