Trucking company business plan for starting your own business
The trucking industry has a vital role in the world’s economy. They are responsible for handling the transportation of raw materials as well as fully developed products across the US. Trucking companies are responsible for most bulk transport carried out across the land in the US, and thus they are a major contributor to the country’s economy.
If you are interested in working in this industry, you should go over multiple business plans for trucking company to get a head start. The completed business plan for dump truck is what you need first to establish your business.
If you don’t know how to write a business plan for a trucking company, hiring business plan writing services will be a good option to choose.
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Arrow Transports will be a trucking company located in South Dakota. Our business plan trucking company will provide regular freight services all across different US states from South Dakota all the way over to Illinois.
We will also provide special services like customized vans services, storage, and warehousing to our customers across all these states. Arrow Transport uses a comprehensive business plan for trucking company which can provide an excellent direction to those who are confused about how to write a business plan for a trucking business.
2.1 The Business
As a trucking business, Arrow Transports will handle the transportation of goods and raw materials across the country. For this purpose, it will require skilled drivers with commercial licenses to drive these freight trucks. Therefore, the owner has started acquiring all of these required resources to put together an initial team for the business.
2.1.1 Streamlining Operations
Time is one of the important resources that a trucking company should strive to manage well to achieve its goals and objectives. Poor time management can result in delivery of goods way past the agreed timeframe, and we all know that such occurrences can lead to loss and bad reputation. Therefore, it is important to have management teams as well as advanced software to ensure that the services are offered in a smooth and professional manner. Nowadays the things we used to do manually have been automated by software.
So, embrace such innovations to improve the manner in which your trucking company operates. While there, make sure that you get into the fine details of how they function to choose the right one. For instance, sophisticated software that will take months to master how to use could set back the reputation of your company as it could hamper its operations.
2.1.2 Leasing and Purchasing of Trucks
If you are on a tight budget, you could start off the business by renting many trucks from leasing companies. However, at a later date, you will need to have your trucks. One of the constraints of leasing is that you will be required to pay a monthly fee even if you do not succeed in getting clients or meeting your profit margin. In addition, you will be needed to foot the repairs and maintenance of the trucks. The only plausible solution to these two challenges is by purchasing the vehicles using the revenue generated over time, or you can apply for financing from a local bank or a private lender.
2.1.3 Registration and Accreditation Processes
A trucking company needs to get legal accreditation just like any other business in the world. The registration process is designed to vet the company’s ability to deliver quality trucking services to the consumers as well as its capacity to conform to the stipulated regulations. In most parts of the world, trucking companies are required to seek new registration after the expiration of the licenses.
All this information has to be put into consideration to ensure that the company is always operating at its best. The guidelines for these processes can be requested from the relevant authorities or government websites.
2.2 Management of trucking business
The organization of the trucking business is linear. The trucker decides to load, and the person at home sends out the invoices and pays the bills. The spare driver gets paid for the loads they haul. Or maybe the at-home member receives the calls from the brokers and arranges the loads. When this organization is done in logistics business plans, it’s easier to start the operations.
2.3 Customers of trucking business
Regardless of whether you are following a business plan for taxi or thinking of a trucking business, you must know who your audience is. Arrow Transports, after analyzing multiple strategic business plans, will cater to the customers as its target audience:
- Raw Material Suppliers
2.4 Business Target
As per this business plan trucking, Arrow transports’ target will acquire the largest market share in the industry within the next 7 years, and maintain its position as a market leader.
3.1 Company Owner
Adam Porter will finance his company through his savings, and he will be the manager of the business. Adam has certification in Business Management and has worked for over half a decade in a transportation company, giving him ample expertise to start his own company. He got his trucking business proposal approved beforehand to implement his ideas.
3.2 Why the trucking business is being started
No doubt, starting and operating a trucking business can be challenging, but the truth is that it can be rewarding at the same time. One of the perks of the industry is that it has opportunities for both, established investors and new entrepreneurs. The business environment is quite friendly. Adam wants to use his resources and experience to have his own business.
3.3 How the trucking will be started
This business plan template for trucking gives you an overview of the steps needed to set up a trucking business.
Step1: Get experience as a driver
In order to start a trucking business, the first thing you’ll require is a commercial driver’s license. For this, you can enroll in special schools or training. You can also take the test directly if you can sponsor yourself.
Adam will be starting his business after serving as a driver for five years and going over numerous sample business plans for trucking company.
Step2: Write your business plan
Another essential step to starting any business is to develop a solid business plan to manage your game plan for handling expenses and revenues. You can also hire agencies and advisors to help you out in this step. Or you can critically analyze this free business plan for trucking company.
Step3: Save money to cover startup expenses
You cannot start a trucking business without a truck which requires significant financial investment. Furthermore, it will incur more expenses for the registration process and license as well. Therefore, Adam set out to obtain enough investment to support these initial activities.
Step4: Get Insurance
Since the business involves the use of vehicles as its major mode of service provision, it is essential for the business to get not only vehicle insurance but also life insurance for its employees as part of this free sample trucking business plan.
Step5: Plan your business operations
The main soul of the business is proper management of its operations. Therefore, Adam decided to plan out crucial aspects of his business operations like maintenance of equipment, client attraction, and logistic planning.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$293,200|
|Other Current Assets||$251,000|
|Start-up Expenses to Fund||$293,200|
|Start-up Assets to Fund||$920,500|
|TOTAL FUNDING REQUIRED||$1,213,700|
|Non-cash Assets from Start-up||$1,207,000|
|Cash Requirements from Start-up||$165,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$36,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$61,600|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,213,700|
|Loss at Start-up (Start-up Expenses)||$164,500|
|TOTAL CAPITAL AND LIABILITIES||$1,458,000|
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Services of trucking company business
Different trucking businesses offer different types of freight services. Before starting trucking company business plan, you must narrow down the services you want to provide. In this trucking company business plan sample, Arrow Transports will be delivering the following services:
- Moving supplies
Moving supplies may seem difficult from one destination to another and requires strategic planning. However, business plan for trucking business acquired by Arrow Transports makes everything easier. The company will help you pack all your supplies with labels and deliver them hassle-free to your destination.
- Heavy-duty equipment movement
Not all business plans for trucking companies deal with the movement of heavy-duty equipment provided the risk and costs. However, Arrow Transports will partner with different industrial clients to move their machinery from one place to another
- Quilt Wrapping for furniture
Arrow transports will make sure that a customer’s goods are safe and secure through quilt wrapping. As part of this service, the company will wrap fragile cargo in blankets before loading them for transportation. This will reduce the chances of the cargo being damaged.
- On-time pickup and delivery
Arrow transports will ensure timely services to its customers because that is the number one requirement nowadays. We will ensure that all our shipments are picked up and dropped off according to schedule so that our customers have to face little to no issues. After analyzing multiple business plans for trucking company, Arrow Transports decided to use quick, on-time delivery as their biggest value contributor.
Marketing Analysis of trucking company business
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It is important that you understand the market’s ins and outs before starting trucking company business plan. It will give you an idea of how the existing companies in the industry are operating and what is something you could offer as a value-added service. You may read this trucking company business plan template to get an overview of the current market trends.
5.1 Market Trends
Trucking is responsible for most of the overland freight movement in the United States, with the market being worth 732.3 billion U.S. dollars in 2020. There were over 902,000 truck drivers employed in the U.S., which is less than the industry requires. Hence, there’s a lot of potential for startups in the trucking industry.
5.2 Marketing Segmentation
It is crucial to identify your target market before launching your services. This helps you understand what exactly your customers are looking for, and then you can customize your services according to their needs. Every <sample>sample trucking company business plan identifies different customer groups. In this trucking company business plan example, Arrow Transports specifies the following as its’ potential customers:
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5.2.1 Raw Material Suppliers
Suppliers of raw materials usually have large shipments that they need to have transported from one location to another. These materials are usually the easiest to transport as they are not normally fragile and don’t require specific environmental conditions for transport. Material suppliers will be recurring customers of this sample business plan for a trucking company for Arrow Transports.
Manufacturers seldom sell the products they create themselves. This is done through retailers and wholesalers to whom manufacturers regularly send large shipments. Such shipment orders will be a dependable source of income for Arrow Transports.
A lot of times wholesalers get their supply of products from multiple sources. They are usually in contact with the manufacturers they’re in partnership with and regularly require transportation services to move products from one location to another. This is where the services of Arrow Transports will come in.
Retailers with several franchises require trucks for the transportation of goods from one place to another. Arrow Transports signs contracts with retailers citywide.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Raw Material Suppliers||35%||41,800||50,160||60,192||72,230||86,676||10.00%|
You can download this startup trucking company business plan to get an idea of how to write a business plan for a trucking company.
5.3 Business Target
- Meet the highest quality shipping standards
- Hire the highest-quality drivers, warehouse personnel, and support staff in the industry
- Gain a competitive edge in shipping rates through economy of scale within 2 years of business operations
- Ensure transportation safety through compliance with Occupational Safety and Health Administration
5.4 Product Pricing
Arrow Transport will charge its customers depending on both the weight of the goods being transported as well as the distance to be covered. As such, the company will charge market competitive rates to our customers to keep them interested in our top quality services. A marketing strategic business plan for transport is ideal for conducting marketing analysis and getting an overview of the industry.
Marketing Strategy of trucking business
In order to ensure that your business is out there, in the eyes of the client base, you will have to work double-time. This means attending all networking events to promote the business. As per this small trucking company business plan, Arrow Transports will look to participate in events from where the company can gain customers or at least industry connections.
6.1 Competitive Analysis
- As per this business plan template trucking company, we will offer high-value discounts to our customers to ensure that they get quality services while being on a budget
- Arrow Transports charges no premium costs for special requests such as same-day delivery from new customers
- Transparent Operations – Customers can have insights into our compliance with the quality standards
- We will have open communication channels with our clients through a two-way feedback system
6.2 Sales Strategy
When you write a startup trucking company business plan, you must include the sales strategies you use.
- Create product awareness by sending introductory offers to managers in different businesses such as manufacturing, construction, oil, and gas.
- Create customized packages for different clients according to their requirements
- Effective referral systems
- Advertise in haulage magazines and newsletters
6.3 Sales Monthly
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6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Heavy Equipment Movement||450||239||253|
|Quilt Wrapping for Furniture||350||371||393|
|Pickup & Delivery||300||318||337|
|TOTAL UNIT SALES||1,435||1,283||1,360|
|Unit Prices||Year 1||Year 2||Year 3|
|Heavy Equipment Movement||$2,800.00||$3,248.00||$3,767.68|
|Quilt Wrapping for Furniture||$3,000.00||$3,480.00||$4,036.80|
|Pickup & Delivery||$2,500.00||$2,900.00||$3,364.00|
|Heavy Equipment Movement||$1,260,000.00||$774,648.00||$952,507.18|
|Quilt Wrapping for Furniture||$1,050,000.00||$1,291,080.00||$1,587,511.97|
|Pickup & Delivery||$750,000.00||$922,200.00||$1,133,937.12|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Heavy Equipment Movement||$1,300.00||$1,430.00||$1,501.50|
|Quilt Wrapping for Furniture||$1,550.00||$1,705.00||$1,790.25|
|Pickup & Delivery||$1,250.00||$1,375.00||$1,443.75|
|Direct Cost of Sales|
|Heavy Equipment Movement||$585,000.00||$341,055.00||$379,594.22|
|Quilt Wrapping for Furniture||$542,500.00||$632,555.00||$704,033.72|
|Pickup & Delivery||$375,000.00||$437,250.00||$486,659.25|
|Subtotal Direct Cost of Sales||$1,904,500.00||$1,879,592.00||$2,091,985.90|
Personnel plan of trucking company business
We intend to start the business with a limited number of full-time employees. Adequate provision and competitive packages have been prepared for all our employees. Costs associated with salaries are mentioned in the start up trucking company business plan.
7.1 Company Staff
Under this free business plan template for trucking company, this personnel will be hired:
- Administrative Manager
- Commercial Drivers
- Marketing Analysts
- Mechanical Engineers
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
Financial Plan of trucking company business
Arrow Transports will be started as a private business that Mr. Adam Porter and his family will solely own. Due to this reason, he will be the primary manager of the business. Unless and until the need arises, the major controlling authority will belong to Mr. Porter. The economic forecasts for the business for the next three years are like that of a towing business plan template.
In order to increase its finances, Arrow transports will look into securing small loans from dependable investors, and if the need arises, look to the bank or personal savings to finance business activities. However, the plan remains to get expansion finance right out of profit through good financial management.
You may read multiple business plans trucking to see how different financial models work. Your business plan transportation logistics will primarily depend on the availability of funds.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 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|
|Direct Cost of Sales||$1,904,500||$1,879,592||$2,091,986|
|TOTAL COST OF SALES||$1,904,500||$1,879,592||$2,091,986|
|Gross Margin %||53.91%||56.35%||60.49%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$564,200||$606,950||$659,750|
|Profit Before Interest and Taxes||$1,663,300||$1,819,517||$2,542,994|
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
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.6 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.7 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- Where can I download a trucking business plan PDF?
You can find trucking company business plans over the internet for free. Or you could hire a writing expert to write you a business plan for trucking as per your business model.
- What is a trucking business plan?
A trucking business plan provides a snapshot of your trucking business as it stands today and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them.
- How do I start a trucking business plan?
To start planning your business in the transportation industry, begin by determining the scope of your trucking company business plan. Once you choose the scope of your own trucking business, you will start to conduct thorough market research and competitive analysis.
Illustrative business plan samples
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