Table of Content

    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.

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    Executive Summary

    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
    • 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 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?

    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
    Any questions? Get in Touch!

    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:

    Trucking Company Business Plan - Marketing Segmentation

    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.

    5.2.2 Manufactures

    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.

    5.2.3 Wholesalers

    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.

    5.2.4 Retailers

    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.

    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%

    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

    Trucking Company Business Plan - Sales Monthly

    Any questions? Get in Touch

    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 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

     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 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

     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
    Any questions? Get in Touch

    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

    8.5 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.


    • 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.

    Download Trucking Business Plan Sample in PDF