Table of Content

    Logistics business plan for starting your own business

    Starting a logistics company can be a bit tricky if you are new to the logistics domain and don’t know the industry’s trends. Logistics is a kind of business that serves as the unit that stores and delivers products to other companies. The scope of logistics is quite broad, and it is not just limited to the boundaries of a region. You may analyze various logistics business plans to gauge the domain you want to tap with your logistics company. 

    If you are unsure about how to write a business plan for a logistics company, you can hire business plan experts to write you one. Alternatively, you can use this business plan for transportation service used by Secure Shipments as a reference.

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    Executive Summary

    Starting a logistics business is undoubtedly going to be an expensive and time-consuming investment for you. Therefore, you must enter this domain after preparation.

    Our business plan experts will answer your questions regarding how to make a logistics business plan. With years of experience in writing strategic business plans, they will be crafting an economically efficient and revenue-oriented idea for helping you build your own company.

    2.1 The Business

    Secure Shipments is a registered and licensed Freight Packaging & Logistics Services Company based in Dallas, Texas. It has a business continuity plan for logistics company that enlists services such as packing goods for transportation, crating goods for transport, wrapping goods for transportation, freight consolidation, trade document preparation, storing goods before and after freight, physical distribution consulting, and logistics consulting.

    2.2 Management of logistics business

    Secure Shipment’s business plan management system includes inbound and outbound transportation management, warehouse management, order processing, inventory control, supply and demand forecasting, and management of third-party logistics service providers.

    In this sample, we will include the list of staff that will be hired to assist with all these processes.

    2.3 Customers of logistics business

    Irrespective of whether you are following a roadside assistance business plan or thinking of having a logistics business; you need to know your target audience. Secure Shipments will serve the following customer groups as its target market:

    • Retailers
    • Warehouse Operators
    • Manufacturers
    • Corporate Organizations

    Before starting a logistics company pdf on your own, you may refer to this business plan for logistics company used by Secure Shipments.

    Logistics Business Plan - 3 Years Profit Forecast

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

    2.4 Business Target

    Our target is to become one of the preferred choices of individuals and organizations when it comes to the demand for freight packaging and logistics services in the U.S and Canada.

    Company Summary

    3.1 Company Ownership

    Trevor Scott will fully finance the company. Trevor has a diploma in Transport and Logistics Management and over ten years of hands-on experience in the logistics services industry. His educational and professional experiences helped him create this logistic business plan.

    3.2 Why is Secure Shipments being started

    Trevor wanted to start a business in which he could earn profit by tapping on the expertise he already possess. He found that the logistics business is an industry that is open for both big-time investors and aspiring entrepreneurs who may want to start from a shared office space. Trevor wanted to use the friendly industrial environment and came up with this business plan for logistics services to enter the venture.

    3.3 How the logistics will be started

    This logistics business plan sample highlights the steps taken by Secure Shipment to set up its operations:

    Step1: Get the Licenses


    This type of business needs the right skills and to show the people that you possess rightful knowledge, you need to have written proof. Acquire all the licenses by meeting the registration criteria of your area.

    If you plan to expand your business across the boards like Secure Shipments, this logistics company business plan template can prove very useful.

    Step2: Pick a Location

    Secure Shipments will be based near the potential customers and commercial area. The area for business would have enough space to park the trucks.

    Step3: Research your competitors

    Investigate what other service providers are doing. That will help you understand what customers expect and which of the expectations are not still being met. In this way, your business can get an edge. In this logistics business plan pdf, Secure Shipments took note of the current market trends and the existing competitors.

    Step4: Write a business plan

    Before entering the market, you must write a business plan as it provides you with forecasts for the next five years. A truck driving business plan will help you set objectives and set strategies to meet those goals. 

    Step5: Buy or lease a truck

    As is the case with vehicles, you have the option to either purchase or lease equipment. Either way, you must first decide what type of freight you plan to carry. Do you plan on only running day trips, or do you want to have a sleeper cabin? Will your first trailer be a van, a refrigerated trailer, or a flatbed trailer? All these things should be decided before you launch your startup.

    Logistics Business Plan - Startup Cost

    Start-up Expenses  
    Legal $151,300
    Consultants $0
    Insurance $25,100
    Rent $31,300
    Research and Development $10,000
    Expensed Equipment $52,200
    Signs $3,400
    Start-up Assets $213,400
    Cash Required $181,000
    Start-up Inventory $35,100
    Other Current Assets $251,000
    Long-term Assets $213,000
    TOTAL ASSETS $893,500
    Total Requirements $1,166,800
    Start-up Expenses to Fund $273,300
    Start-up Assets to Fund $893,500
    Non-cash Assets from Start-up $1,142,000
    Cash Requirements from Start-up $113,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,340,000
    Liabilities and Capital
    Liabilities $18,200
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $61,140
    Other Current Liabilities (interest-free) $0
    Planned Investment $1,166,800
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $93,860
    TOTAL CAPITAL $1,260,660
    Total Funding $1,166,800


    Any questions? Get in Touch!

    Services of logistics business 

    You should choose a niche in your logistics company business plan so that you can plan all aspects related to it. It can either be related to Food & Beverages, Appliances, or Industrial & Manufacturing. As per this business plan logistics company sample, Secure Shipments will be providing the following services:

    • Packaging of goods for transportation

    Packaging is a coordinated system of preparing goods for safe, secure, efficient, and adequate transportation. Secure Shipment provides customized packaging as per the client’s requirement to transport it securely. 

    • Freight Consolidation

    Freight consolidation combines multiple shipments into a single shipping container. As per this logistics proposal template, Secure Shipment will adopt this strategy to provide the service.

    • Trade documentation

    Trade documentation compiled by Secure Shipment includes the value of the exported/ imported goods, their quantities, detailed contents, delivery conditions, and transport costs. Since Secure Shipment will be expanding its operations in Canada, too, it is essential to complete the trade documentation per transaction. 

    • Logistics consultation 

    As per this transport business plan , Secure Shipment’s team of logistics consultants will usually be contacted when a customer needs to change their logistics arrangements to facilitate the delivery of their latest business plans or sales forecasts.

    If you are confused about how to get into a logistics business and what services to offer, you can download this logistics business plan pdf to get a head start. This logistics business proposal can also be used to get potential investors.

    Marketing Analysis of logistics business

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    You must understand the market thoroughly before starting a logistics business. It will help you know the level of competition, potential untapped markets, pricing trends, and changing consumer preferences. You may go through this logistic business plan to get an overview of the current market trends and understand how to start a transport business. Understanding the market will help you answer most of the questions related to how to start a logistics business.

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    5.1 Market Trends

    The Logistics Services Industry is very thriving in most countries worldwide. Reportedly, it generates over a billion annually from more than 6000 logistics services companies scattered all around the USA. Hence, keeping in view these trends, you must not worry about the scope if you are starting a small transport business. 

    5.2 Marketing Segmentation

    Identifying potential customer groups helps you plan for meeting their expectations. As per this logistics company business plan pdf, Secure Shipments specifies the following groups as its target customers:

    Logistics Business Plan - Marketing Segmentation

    Business Plan for Investors

    5.2.1 Retailers

    Retailers with multiple franchises require trucks to transport goods from one place to another. Secure Shipments will sign contracts with retailers across the city and help transport goods to their destination. 

    5.2.2 Warehouse Operators

    Companies with disintegrated supply chains are expected to sign contracts with logistic companies to transport their goods to the desired destination. Warehouse Operators will be transporting goods and services to the retailers through Secure Shipments. To facilitate them, we plan on offering customized packaging and on-time deliveries.

    5.2.3 Manufacturers

    Like warehouse operators, manufacturers need logistic facilities to transport their goods to retailers in the market. If you are starting a small transport business, manufacturers are the most promising target market.

    5.2.4 Corporate Organizations

    Given the increasing number of logistical choices available to competing companies, organizations look for the cheapest and the most reliable options to transport their goods to the market or the raw materials from the suppliers to themselves. While focusing on starting a small transport business, Secure Shipments promises to offer flexible rates to organizations along with secure transport services.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Retailers 35% 35,100 42,120 50,544 60,653 72,783 10.00%
    Warehouse Operators 23% 26,100 31,320 37,584 45,101 54,121 10.00%
    Manufacturers 25% 21,100 25,320 30,384 36,461 43,753 10.00%
    Cooperate Organizations 17% 16,100 19,320 23,184 27,821 33,385 11.00%
    Total 100% 98,400 118,080 141,696 170,035 204,042 10%

    5.3 Business Target

    • Sign contracts with 35% of the retailers in the city for transportation for their goods.
    • Purchase five new trucks within two years of business operations.
    • Maintain a CSAT score above 90.
    • Hire and train new CDL drivers as the business expands.
    • Capture 33% of market share, concentrating on the wholesalers.

    5.4 Product Pricing

    Secure Shipments will ensure that it leverages on price to win over customers; our prices will be affordable and negotiable. You may use the same pricing strategy if your business plan for logistics company is identical to Secure Shipments.

    Market analysis by Secure Shipments can help you understand how to set up a logistics company.

    Marketing Strategy of logistics business

    The marketing strategy adopted by Secure Shipments will be driven basically by professionalism, excellent customer service, honesty, and quality service delivery. We will ensure that we build a loyal customer base. While thinking about how to start your own logistics company, it is essential to study the existing competition in the market, come up with a unique selling point and have relevant sales strategies.

    6.1 Competitive Analysis

    • We use an advanced, well-integrated system to manage the route data in real time.
    • Secure Shipments will use innovative ways to optimize the operations.
    • We offer flexible freight rates to our long-term clients.
    • Our location is one of our competitive edges.

    6.2 Sales Strategy

    Since sales of the service generate revenue, sales strategies should be the prime focus of logistics in the business plan.

    • Introduce our business by sending introductory letters to stakeholders in the construction industry, manufacturing industry, oil and gas industry, and timber merchants.
    • Create different packages for different categories of clients to work within their budgets.
    • Request referrals.
    • Advertise our business in magazines and newspapers.

    The monthly and yearly expected sales are given below in this guide on how to start a small logistics company.

    6.3 Sales Monthly

    Logistics Business Plan - Sales Monthly

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    6.4 Sales Yearly

    Logistics Business Plan - Sales Yearly

    6.5 Sales Forecast

    Logistics Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Packaging 1,250 1,325 1,405
    Freight Consolidation 1,250 1,325 1,405
    Trade Documentation 1,200 1,272 1,348
    Logistics Consultation 950 1,007 1,067
    TOTAL UNIT SALES 4,650 4,929 5,225
    Unit Prices Year 1 Year 2 Year 3
    Packaging $330.00 $382.80 $444.05
    Freight Consolidation $200.00 $232.00 $269.12
    Trade Documentation $340.00 $394.40 $457.50
    Logistics Consultation $300.00 $348.00 $403.68
    Packaging $412,500.00 $507,210.00 $623,665.42
    Freight Consolidation $250,000.00 $307,400.00 $377,979.04
    Trade Documentation $408,000.00 $501,676.80 $616,861.79
    Logistics Consultation $285,000.00 $350,436.00 $430,896.11
    TOTAL SALES $1,355,500.00 $1,666,722.80 $2,049,402.35
    Direct Unit Costs Year 1 Year 2 Year 3
    Packaging $100.00 $110.00 $115.50
    Freight Consolidation $90.00 $99.00 $103.95
    Trade Documentation $90.00 $99.00 $103.95
    Logistics Consultation $80.00 $88.00 $92.40
    Direct Cost of Sales
    Packaging $125,000.00 $145,750.00 $162,219.75
    Freight Consolidation $112,500.00 $131,175.00 $145,997.78
    Trade Documentation $108,000.00 $125,928.00 $140,157.86
    Logistics Consultation $76,000.00 $88,616.00 $98,629.61
    Subtotal Direct Cost of Sales $421,500.00 $491,469.00 $547,005.00

    Personnel plan of logistics business

    We intend to start the business with a handful of full-time employees. Adequate provision and competitive packages have been prepared for all our employees. Costs attached with salaries and appraisals are mentioned in this logistic business plan. It will give you an idea of the average costs of human resources and insights on how to open a logistic company.

    7.1 Company Staff

    Under this dump truck company business plan, these positions will be hired for:

    • 1 Manager
    • 1 Logistics Manager
    • 5 Truck Drivers
    • 4 Business Developers
    • 6 Technical Assistants

    Read this business plan thoroughly to address your questions regarding how to start a logistics company.

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Manager $40,000 $44,000 $48,400
    Logistics Manager $40,000 $44,000 $48,400
    Truck Drivers $125,000 $137,500 $151,250
    Business Developers $125,000 $137,500 $151,250
    Mechanical Engineers $245,000 $269,500 $296,450
    Total Salaries $575,000 $632,500 $695,750

    Financial Plan of logistics business

    In setting up any business, the amount or cost will depend on the scale of your business. If you intend to go big by renting a place, you will need a good amount of capital as you would need to ensure that your employees are taken care of. The costs for making the facility conducive enough for workers to be creative and productive are also going to be high. Before figuring out how to set up a logistics company, you need to check the availability of your funds.

    Secure Shipments’ logistics business plan reveals that the business is solely owned and financed by Trevor and his immediate family members. The finances required to set up this business will be similar to a business plan for taxi service that is started on a large scale. 

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Logistics Business Plan - Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800
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    8.3 Projected Profit and Loss 

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $1,355,500 $1,666,723 $2,049,402
    Direct Cost of Sales $421,500 $491,469 $547,005
    Other $0 $0 $0
    TOTAL COST OF SALES $421,500 $491,469 $547,005
    Gross Margin $934,000 $1,175,254 $1,502,397
    Gross Margin % 68.90% 70.51% 73.31%
    Payroll $575,000 $632,500 $695,750
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $754,200 $815,950 $889,650
    Profit Before Interest and Taxes $179,800 $359,304 $612,747
    EBITDA $179,800 $359,304 $612,747
    Interest Expense $0 $0 $0
    Taxes Incurred $35,960 $71,861 $122,549
    Net Profit $143,840 $287,443 $490,198
    Net Profit/Sales 10.61% 17.25% 23.92%

    8.3.1 Profit Monthly

    Logistics Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Logistics Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Logistics Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Logistics Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Logistics Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.


    • How do you write a logistics business plan?

    While writing a business plan for a logistics company, you need to take note of the following:

    • Have Reliable and Good Suppliers. 
    • Optimize Inventory Management.
    • Integrate the Company Divisions.
    • Meet Deadlines and Keep your Word.
    • What is logistics in the business plan?

    Logistics is about delivering the products from where they are being made to where they are used. A logistic business plan pdf includes sales and marketing analysis forecasts for the next five years. 

    • Is a logistic business profitable?

    Running a transport and logistics business can be profitable, as reflected by this logistics business plan sample pdf.

    • What are the 7 steps of a business plan?

    A business plan addresses concerns regarding how to start logistics business. The 7 steps to making a business plan include drafting:

    • Step 1: Executive summary
    • Step 2: Business description. 
    • Step 3: Market analysis. 
    • Step 4: Company organization.
    • Step 5: Products or services provided.
    • Step 6: Financial outlook. 
    • Step 7: Operational Summary.

    Download Logistics Business Plan Sample in pdf