Trucking company business plan for starting your own business
The trucking industry plays a vital role in the world’s economy; they provide essential services to the U.S. economy by transporting large quantities of raw materials, machines, equipment, dirt, rocks, building materials, and finished goods.
The trucking industry is responsible for most of the freight movement over land. It is a significant stakeholder in the U.S. manufacturing, transportation, and warehousing industries. 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 trucks 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.
Arrow Transports is a trucking company that will be based in South Dakota. Our business plan trucking company will provide daily freight service on one skid and full truckloads to and from South Dakota, North Dakota, and Southern Illinois.
We will also provide cross-docking, warehousing, liftgate, and specialized van service in South Dakota. 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
Arrow Transports has secured all relevant licenses and permits to operate throughout the United States. We will ensure that we abide by the rules and regulations of the trucking industry. We will only hire experienced and qualified drivers with valid commercial driver’s licenses (CDL).
2.2 Management of trucking business
The organization of the trucking business is linear. The trucker decides to load, and the person at home pays the bills. The spare driver gets paid for the loads they haul. If you want to manage your trucking business operations in another way, you will be needed to devise a proper plan.
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 following 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 founding chief operating officer of the company. Adam has certification in Logistics Management and has over five years of experience in the transportation industry. 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. Keeping in view these factors and the resources and experience Adam had, he decided to step into this 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 and knowledge
First, you’ll need to obtain a commercial driver’s license (CDL). You can attend a private truck driving school or seminars of some trucking companies. At times, people who serve as company drivers for a few years eventually become entrepreneurs.
Adam will be starting his business after serving as a driver for five years and going through numerous sample business plans for trucking company.
Step2: Write your business plan
Before you start your business, make sure you have a business plan. It should clearly show what your revenue and expenses will be. You may want to hire a business advisor to help you determine the plan that makes the most sense for you. Or you may critically analyze this free business plan for a trucking company.
Step3: Save money to cover startup expenses
Starting a trucking business requires a significant upfront investment as you will be purchasing expensive tractors and trailers. Setting up the arena and meeting licensing and registration requirements will also cost you a lot. To manage these expenses, you must come into this business after amassing a good amount.
Step4: Obtain Insurance
Insurance is a significant expense for trucking businesses. Types of insurance required for transporting freight include primary liability and physical damage. As per this free sample trucking business plan, nearly $750k in primary liability coverage is required to cover damages or probable injuries.
Step5: Plan your business operations
Plan out each aspect of your business, and decide the factors to manage operations like:
- Where will you park the trucks?
- How frequently will you get them maintained?
- How will you find loads?
- How will invoicing, payroll, and taxes be handled within your resources?
|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|
Services of trucking company business
Different trucking businesses offer different types of freight services. Before starting a trucking company business plan, you must narrow down the services you want to provide. As per 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. But still, this service is much used. Arrow Transports will partner with different industrial clients to move their machinery from one place to another.
- Quilt Wrapping for furniture
Blanket wrapping is a service where transporters wrap unpacked freight in blankets before securing them in a truck. This is a fantastic way for suppliers to transport their sensitive cargo across states.
- On-time pickup and delivery
Whenever it is about home shifting or new furniture procuring, the trucking business comes to the front again. After analyzing multiple business plans for trucking company, Arrow Transports decided to use provide quick pickup and delivery options to its customers.
Marketing Analysis of trucking company business
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You must understand the market’s ins and outs before starting a 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. In 2020, according to Statista, the market was worth $732.3 billion. The industry was responsible for employing more than 902k truck drivers in the U.S., which is still less than the industry requires. Hence, there’s a lot of potential for startups in the trucking industry. If you launch this business with a proper plan and strategy, you cannot be at loss.
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:
Business Plan for Investors
5.2.1 Raw Material Suppliers
Raw Material Suppliers ship large quantities of materials to large manufacturers. The products are often in bulk and they do not require refrigeration or temperature control. Raw material suppliers will be recurring customers of this sample business plan for a trucking company for Arrow Transports.
Manufacturers often outsource the distribution of their products to trucking businesses so that they don’t have to focus on entirely diverse areas. Usually, the destination to which their packaged goods are shipped remains the same. Therefore, they are expected to come into contact with us as a regular trade partner.
Wholesalers that serve large retailers procure truckloads of goods from the manufacturing units. They are expected to come into long-term agreements with us for both taking the freight to and from them.
Retailers with several franchises require trucks for the transportation of goods from one place to another. Arrow Transports expects to sign contracts with retailers citywide.
While customer groups for your startup may vary as per your location and services, they are likely to lie within the same groups given above. After knowing your customers, you can easily get developed a compelling sales strategy. Moreover, you can set the prices and targets accordingly.
You can download this startup trucking company business plan to get an idea of how to write a business plan for a trucking company.
|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%|
5.3 Business Target
Our monetary business goals and customer-centric targets are listed below.
- Meet the highest quality shipping standards.
- Hire the most competent drivers, warehouse personnel, and support staff.
- Gain a competitive edge in shipping rates within 2 years of business operations.
- Hold 20% of the market shares within 10 years of the launch.
- Ensure transportation safety through compliance with Occupational Safety and Health Administration.
5.4 Product Pricing
Arrow Transports has a lease arrangement with various companies, and the company’s pricing is based on miles per thousands of tons of cargo transported. We plan on charging competitive rates since we have low overhead costs compared to our competitors in the industry.
Developing a marketing strategic business plan for transport is an ideal way to conduct marketing analysis and get an overview of the industry.
Marketing Strategy of trucking business
Networking is an effective way to build your client base, and we have plans to leverage all our contacts for that. As per this small trucking company business plan, Arrow Transports will look out for gatherings where we can network with the captain of industries, entrepreneurs, manufacturers, and merchants.
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 will charge no premium costs for special requests such as same-day delivery from new customers.
- Customers can have insights into our compliance with the quality standards by visiting us and inquiring about us at any time.
- 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 awareness about our services and competitive advantages by sending introductory letters to stakeholders in the construction industry, oil and gas industry, manufacturing industry, and timber merchants.
- Create customized packages for different categories of clients in accordance with their budgets.
- Establish effective referral systems.
- Advertise us in magazines and newsletters.
6.3 Sales Monthly
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 startup trucking company business plan.
7.1 Company Staff
Under this free business plan template for trucking company, the following staff will be hired:
- 1 Manager
- 7 Administrative Staff Members
- 5 Commercial Drivers
- 2 Marketing Analysts
- 1 Mechanical Engineer
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
Financial Plan of trucking company business
Arrow Transports is set to start as a private business that Mr. Adam Porter and his family will solely own. He will be the sole financial of the company but may likely welcome other business partners when the need for expansion arises. The economic forecasts for the business for the next three years are like that of a towing business plan template.
As per this trucking companies business plan, these are the areas through which Adam gathered capital.
- Generate part of the startup capital from personal savings.
- Acquire soft loans from family members and friends.
- Apply for a loan from the bank.
- Request investment when the service area needs to be expanded.
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|
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|
8.5 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|
8.6 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. Once you choose the scope of your own trucking business, you will have to conduct thorough market research and competitive analysis. Then, you need to document the details in a precise way as can be seen in this sample.
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