Table of Content

    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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    Executive Summary

    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
    • Manufacturers
    • Wholesalers
    • Retailers

    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.

    Trucking Company Business Plan - 3 Years Profit Forecast

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    Company Summary

    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.

    Trucking Company Business Plan - Startup Cost

    Start-up Expenses  
    Legal $166,400
    Consultants $0
    Insurance $25,100
    Rent $36,100
    Research and Development $10,000
    Expensed Equipment $52,200
    Signs $3,400
    Start-up Assets $251,400
    Cash Required $166,000
    Start-up Inventory $35,100
    Other Current Assets $251,000
    Long-term Assets $217,000
    TOTAL ASSETS $920,500
    Total Requirements $1,213,700
    Start-up Expenses to Fund $293,200
    Start-up Assets to Fund $920,500
    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
    TOTAL ASSETS $1,458,000
    Liabilities and Capital
    Liabilities $18,200
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $61,600
    Other Current Liabilities (interest-free) $0
    Planned Investment $1,213,700
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $164,500
    TOTAL CAPITAL $1,378,200
    Total Funding $1,213,700
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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:

    Trucking Company Business Plan - Marketing Segmentation

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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.

    5.2.2 Manufactures

    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.

    5.2.3 Wholesalers

    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.

    5.2.4 Retailers

    Retailers with several franchises require trucks for the transportation of goods from one place to another. Arrow Transports signs contracts with retailers citywide.

    Market Analysis              
    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%
    Manufacturers 28% 31,700 38,040 45,648 54,778 65,733 10.00%
    Wholesalers 24% 21,100 25,320 30,384 36,461 43,753 10.00%
    Retailers 13% 15,200 18,240 21,888 26,266 31,519 11.00%
    Total 100% 109,800 131,760 158,112 189,734 227,681 10%

    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

    Trucking Company Business Plan - Sales Monthly

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    6.4 Sales Yearly

    Trucking Company Business Plan - Sales Yearly

    6.5 Sales Forecast

    Trucking Company Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Moving Supplies 335 355 376
    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
    Moving Supplies $3,200.00 $3,712.00 $4,305.92
    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
    Moving Supplies $1,072,000.00 $1,318,131.20 $1,620,774.12
    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
    TOTAL SALES $4,132,000.00 $4,306,059.20 $5,294,730.39
    Direct Unit Costs Year 1 Year 2 Year 3
    Moving Supplies $1,200.00 $1,320.00 $1,386.00
    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
    Moving Supplies $402,000.00 $468,732.00 $521,698.72
    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:

    • Manager
    • Administrative Manager
    • Commercial Drivers
    • Marketing Analysts
    • Mechanical Engineers

    7.2  Average Salary of Employees

     Personnel Plan      
      Year 1 Year 2 Year 3
    Manager $30,000 $33,000 $36,300
    Admin Staff $145,000 $159,500 $175,450
    Commercian Drivers $125,000 $137,500 $151,250
    Marketing Analysts $62,500 $68,750 $75,625
    Mechanical Engineers $22,500 $24,750 $27,225
    Total Salaries $385,000 $423,500 $465,850

    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

     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

    Trucking Company 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 $4,132,000 $4,306,059 $5,294,730
    Direct Cost of Sales $1,904,500 $1,879,592 $2,091,986
    Other $0 $0 $0
    TOTAL COST OF SALES $1,904,500 $1,879,592 $2,091,986
    Gross Margin $2,227,500 $2,426,467 $3,202,744
    Gross Margin % 53.91% 56.35% 60.49%
    Payroll $385,000 $423,500 $465,850
    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 $564,200 $606,950 $659,750
    Profit Before Interest and Taxes $1,663,300 $1,819,517 $2,542,994
    EBITDA $1,663,300 $1,819,517 $2,542,994
    Interest Expense $0 $0 $0
    Taxes Incurred $332,660 $363,903 $508,599
    Net Profit $1,330,640 $1,455,614 $2,034,396
    Net Profit/Sales 32.20% 33.80% 38.42%

    8.3.1 Profit Monthly

    Trucking Company Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Trucking Company Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Trucking Company Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Trucking Company Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Trucking Company 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

    8.6 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

    8.7 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.


    • 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.

    Download Trucking Business Plan Sample in PDF