truck company business plan sample

Trucking Business Plan Template

Written by Dave Lavinsky

Trucking Company Business Plan

You’ve come to the right place to create your trucking business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their trucking companies.

Trucking Business Plan Example

Below is a sample trucking business plan template to help you write a trucking business plan for your own company.

Executive Summary

Business overview.

On The Road Trucking (OTRT) is a new trucking company located in Dallas, Texas. The company was founded by Michael Williams, a trucking and logistics professional who has over 20 years of management experience in trucking and logistics. Michael is confident in his ability to effectively negotiate contracts, oversee drivers and employees, and minimize costs as he ventures out to start his own trucking company. Michael plans on recruiting a team of highly qualified drivers, sales representatives, client relationship managers, and dispatchers to carry out the day-to-day operations of the company.  

On The Road Trucking will provide a comprehensive array of trucking and logistics services for any business or individual in need of freight distribution. OTRT will use the latest technology to ensure that every shipment is distributed efficiently and handled with the best of care. On The Road Trucking will be the ultimate choice in the Dallas, Texas area for customized trucking services.

Product Offering

The following are the services that On The Road Trucking will provide:

• Dedicated fleet services
• Flatbed transportation services
• Local distribution services
• Logistics services
• Warehousing services

Customer Focus

On The Road Trucking will target all businesses and individuals in need of freight services. OTRT will begin by targeting small business owners in need of distribution services and individuals in need of shipping services who may not be able to get service from a larger trucking company because their shipment size is too small. No matter the client, On The Road Trucking will deliver a customer-centric experience where they will customize each shipment to match the customer’s specific requirements. 

Management Team

On The Road Trucking will be owned and operated by Michael Williams. He has recruited another experienced trucking professional and former CPA, Steve Brown to be the CFO of the new company and manage the financial oversight of the accounting department. 

Michael Williams is a graduate of the University of Texas with a Bachelor’s degree in Business Management. He has been working at a local trucking company for over two decades as a Transportation Manager, and is well-versed in all aspects of the trucking industry. Micheal’s organizational skills and customer-first approach have garnered his reputation for being a cost-effective logistics manager with high standards for customer service. 

Steve Brown has been the accounting manager for a local trucking company for over ten years. Prior to his experience in trucking, Steve worked as a CPA in a local tax firm. Michael relies strongly on Steve’s attention to detail, diligence, and focus on cost-saving solutions.

Success Factors

On The Road Trucking will be able to achieve success by offering the following competitive advantages:

• Proactive, helpful, and highly qualified team of sales representatives and dispatchers that are able to effectively navigate the journey of both customers and drivers. 
• Customized service that allows for a small business or an individual to have their requirements accommodated. On The Road Trucking takes care of everything from truck inspections and maintenance to scheduling drivers, loading/unloading, and short-and-long range distribution. 
• On The Road Trucking offers the best pricing for customized and small shipments compared to the competition.

Financial Highlights

On The Road Trucking is seeking $300,000 in debt financing to launch its trucking business. The funding will be dedicated towards securing the warehouse and purchasing the trucks. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

• Warehouse build-out: $50,000
• Trucks, equipment, and supplies:  $20,000
• Three months of overhead expenses (payroll, rent, utilities):  $180,000
• Marketing costs: $30,000
• Working capital:  $20,000

The following graph below outlines the pro forma financial projections for On The Road Trucking.

Company Overview

Who is on the road trucking .

On The Road Trucking is a newly established trucking company in Dallas, Texas. On The Road Trucking will be the most reliable, secure, and efficient choice for small business owners and individuals in Dallas and the surrounding communities. OTRT will provide a personalized approach to trucking services for anyone in need of freight transportation. Their full-service approach includes comprehensive truck driver oversight, short-distance distribution, small shipments, and customized service.   

  On The Road Trucking’s team of professionals are highly qualified and experienced in trucking and logistics operations. OTRT removes all headaches that come with dealing with trucking companies and ensures all issues are taken care off expeditiously while delivering the best customer service.

On The Road Trucking History

OTRT is owned and operated by Michael Williams, a long-time trucking and logistics professional who has a Business Management degree. He worked at a local trucking company for over two decades where he served as Lead Transportation Manager for the last five years, and is well-versed in all aspects of the trucking and transportation industry. Micheal used his industry expertise to reach out to potential customers who may need small-size distribution services that are not offered by larger trucking businesses and letting them know about the services OTRT will offer. 

Since incorporation, On The Road Trucking has achieved the following milestones:

• Registered On The Road Trucking, LLC to transact business in the state of Texas. 
• Identified the target location for the warehouse. 
• Contacted numerous small businesses to let them know about the services that will be offered. 
• Began recruiting drivers, sales representatives, and dispatchers. 

On The Road Trucking Services

The following will be the services On The Road Trucking will provide:

Industry Analysis

As the primary source of land freight distribution in the United States, the trucking industry is a $730B industry. 

There are approximately 900,000 available truck drivers across the country. The demand for drivers is much higher than the supply, which means there is a lot of opportunity for new companies to recruit people to become truck drivers by offering them better incentives than currently being offered by larger trucking companies. Additionally, a new trend in trucking is the increasing popularity of shorter or local hauls compared to long-distance. This poses an opportunity for companies to cater to the customers demanding short-distance hauls. 

Some challenges for trucking industry operators include rising fuel costs and an increased use of online booking and monitoring technology, which can leave traditional companies behind if they are using outdated systems. New entrants can benefit from using the latest technology from the outset, providing drivers with incentives to work with them, and implementing cost-effective solutions to reduce their fuel costs. 

Customer Analysis

Demographic profile of target market.

On The Road Trucking will target anyone in need of trucking services in Dallas, Texas and surrounding areas. Primarily, the company will target small businesses and individuals that may need local distribution or have small size hauls.  Below is a snapshot of this market.

Customer Segmentation

OTRT will primarily target the following customer profiles:

• Small business owners
• Small manufacturing companies
• Individuals in need of freight transportation services

Competitive Analysis

Direct and indirect competitors.

On The Road Trucking will face competition from other companies with similar business profiles. A company description of each competitor is below.  

Texas Truck Services

Texas Truck Services provides trucking services, logistics services, freight distribution, and warehousing services. Located in Dallas, Texas Truck Services offers local service to the Dallas area. Texas Truck Services’s team of experienced professionals assures the hauls are run smoothly, freeing the customer from worry over whether their shipments will arrive on time and in good condition.   

US Trucking & Logistics

US Trucking & Logistics is a Dallas-based trucking and logistics company that provides freight distribution services for small businesses across Texas. The management team is composed of former truck drivers and business management professionals who are familiar with the trucking industry in Texas. US Trucking & Logistics uses electric vehicles to reduce its fuel costs, which allows the company to pass these savings on to its customers.   

Best Trucking

Best Trucking is a trusted Dallas-based trucking company that provides superior trucking and logistics service to customers in Dallas and the surrounding areas. Best Trucking provides shipping, receiving, packaging, and disposal services. The Best Trucking team of logistics experts ensures that each shipment is delivered with the highest security standards and that the entire freight process is smooth and seamless for its customers.   

Competitive Advantage

On The Road Trucking will be able to offer the following advantages over their competition:

• Friendly, knowledgeable, and highly qualified team of trucking and logistics experts with extensive experience in the field. 
• Use of the latest trucking and logistics technology to ensure each haul is handled with the best of care and delivered efficiently. 
• On The Road Trucking offers local distribution and takes small hauls that may be denied by larger trucking companies. 

Marketing Plan

Brand & value proposition.

On The Road Trucking will offer the following unique value propositions to its clientele:

• Highly-qualified team of skilled employees that is able to provide a comprehensive set of trucking services (shipping, receiving, monitoring, short-distance, small hauls).
• Customized approach to freight distribution, leveraging technology and flexibility to provide the highest quality of service to its customers. 

Promotions Strategy 

The promotions strategy for On The Road Trucking is as follows:

Word of Mouth/Referrals Michael Williams has built up an extensive list of contacts over the years by providing exceptional service and expertise to his clients. Once Michael advised them he was leaving to open his own trucking business, they committed to follow him to his new company and help spread the word of On The Road Trucking.

Professional Associations and Networking On The Road Trucking will become a member of Texas Trucking Association (TTA), and American Trucking Association (ATA). They will focus their networking efforts on expanding their client network.

Print Advertising On The Road Trucking will invest in professionally designed print ads to include in industry publications.

Website/SEO Marketing On The Road Trucking will utilize their in-house marketing director that designed their print ads to also design their website. The website will be well organized, informative, and list all their services. The website will also list their contact information and provide information for people looking to become drivers. The marketing director will also manage the company’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Dallas trucking company” or “trucking near me”, On The Road Trucking will be listed at the top of the search results.  

The pricing of On The Road Trucking will be moderate and on par with competitors so customers feel they receive value when purchasing their services. 

Operations Plan

The following will be the operations plan for On The Road Trucking.

Operation Functions:

• Michael Williams will be the Co-Owner and President of the company. He will oversee all staff and manage client relations. Michael has spent the past year recruiting the following staff:
• Steve Brown – Co-Owner and CFO who will be responsible for overseeing the accounts payable, accounts receivable, and managing the accounting department. 
• Beth Davis – Staff Accountant will provide all client accounting, tax payments, and monthly financial reporting. She will report directly to Steve Brown. 
• Tim Garcia – Marketing Manager who will provide all marketing, advertising, and PR for OTRT.
• John Anderson – Safety Manager who will provide oversight on all maintenance and safety inspections of the vehicles and drivers. 

Milestones:

On The Road Trucking will have the following milestones complete in the next six months.

7/1/2022 – Finalize lease on warehouse

7/15/2022 – Finalize personnel and staff employment contracts for the management team

8/1/2022 – Finalize contracts for sales representatives, dispatchers, and initial drivers

9/15/2022 – Begin networking at industry events 

10/22/2022 – Begin moving into On The Road Trucking warehouse and securing trucks

11/1/2022 – On The Road Trucking opens for business

Michael Williams is a graduate of the University of Texas with a Bachelor’s degree in Business Management. He has been working at a local trucking company for over two decades, most recently as a Transportation Manager, and is well-versed in all aspects of the trucking industry. Micheal’s organizational skills and customer-first approach have garnered his reputation for being a cost-effective logistics manager with high standards for customer service. 

Financial Plan

Key revenue & costs.

The revenue drivers for On The Road Trucking are the trucking fees they will charge to the customers for their services. Most trucking companies charge a per-mile rate. Average per-mile rates vary, but are typically between $2.30-3.30. 

The cost drivers will be the overhead costs required in order to staff a trucking operation. The expenses will be the payroll cost, rent, utilities, fuel and maintenance for the trucks, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Trucks in Fleet: 10
• Average Fees per Truck per Month: $20,000
• Warehouse Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Trucking Business Plan FAQs

What is a trucking business plan.

A trucking business plan is a plan to start and/or grow your trucking business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your trucking business plan using our Trucking Business Plan Template here .

What are the Main Types of Trucking Companies?

There are a number of different kinds of trucking companies, some examples include: For- Hire Truckload Carriers, Less Than Truckload Carriers, Hotshot Truckers, Household Movers and Inter-Modal trucking.

How Do You Get Funding for Your Trucking Business Plan?

Trucking companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a trucking company and a transportation business plan.

What are the Steps To Start a Trucking Business?

Starting a trucking business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 

1. Develop A Trucking Business Plan - The first step in starting a business is to create a detailed trucking business plan that outlines all aspects of the venture. Starting a trucking company business plan should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your trucking business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your trucking business is in compliance with local laws.

3. Register Your Trucking Business - Once you have chosen a legal structure, the next step is to register your trucking business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your trucking business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Trucking Equipment & Supplies - In order to start your trucking business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your trucking business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful trucking business:

• How to Start a Trucking Business

Where Can I Get a Trucking Business Plan PDF?

You can download our free trucking business plan template PDF here . This is a sample trucking business plan template you can use in PDF format.

Trucking Business Plan Template & PDF Example

• August 27, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful trucking business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your trucking business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a trucking business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your trucking business concept into reality. Let’s dive in!

Our trucking business plan is formulated to encompass all essential aspects required for a thorough and strategic framework. It outlines the company’s operational strategies, marketing plans, industry landscape, competition, management structure, and financial forecasts.

• Executive Summary : Provides a concise overview of the trucking company’s business model, highlighting the key aspects of market analysis , management capabilities, and financial strategy.
• Shipping Routes & Operations: Describes the geographic scope and operational logistics that enable the company to provide efficient transportation solutions.
• Services & Rates: Details the specific transportation services offered by the company, along with a transparent and competitive pricing structure.
• Key Stats: Presents crucial statistics that underscore the size, growth, and dynamics of the trucking industry.
• Key Trends: Highlights the evolving trends within the trucking sector that could influence business operations and opportunities.
• Key Competitors: Provides an assessment of the competitive environment, delineating how the company distinguishes itself from other market players.
• SWOT Analysis : Conducts a comprehensive examination of the internal and external factors that impact the company’s strategic positioning.
• Marketing Plan : Articulates the marketing strategies devised to enhance the company’s market reach and customer engagement.
• Timeline : Establishes critical milestones that the company aims to achieve in its journey towards expansion and market leadership.
• Management: Introduces the experienced management team at the helm, detailing their roles in steering the company towards its objectives.
• Financial Plan: Forecasts the 5-year financial trajectory of the trucking company, detailing expected revenue streams, profit margins, and the overarching financial strategy to ensure fiscal health and growth.

Trucking Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The executive summary introduces your trucking business’s business plan, providing a succinct overview of your company and its logistics and transportation services. It should detail your market positioning, the variety of transport and logistical solutions you offer, its operational base, fleet size, and an outline of daily operations.

This section should also delve into how your trucking business will integrate into the regional or national market, including the number of direct competitors within the sector, identifying who they are, along with your business’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your trucking business’s financial plan.

Trucking Business Plan Executive Summary Example

Business Overview

In your executive summary’s  business overview , present clear and concise information about your trucking company. This should include the company name, headquarters, primary services, and an overview of daily operations.

These details introduce your business and set the stage for discussing its unique qualities. Your  Unique Selling Proposition  ( USP ) is what distinguishes your trucking company from the competition. It could be your commitment to sustainability, advanced tracking and logistics technology, or specialized freight services. Your USP should be the centerpiece of the executive summary, capturing your audience’s interest and highlighting the unique value your business brings to the market.

Example: “GreenWheels Logistics,” based in Atlanta, operates a fleet of 50 advanced trucks, specializing in eco-friendly and efficient transportation solutions across the Southeastern United States. GreenWheels’ USP lies in its integration of Electric Vehicles (EVs) into the fleet and proprietary logistics software, offering clients sustainable and transparent freight services.

Market Overview

This section should outline the trucking industry’s size, growth trends, and dynamics, supported by relevant data like market value and growth rates. Highlighting industry trends, such as the shift towards sustainability or the integration of technology in logistics, provides insight into the market’s direction and your company’s place within it.

The  competitive landscape  is also crucial. Here, identify your main competitors and explain how your company stands out, whether through specialized services, technological advancements, or superior customer service.

Example: GreenWheels Logistics operates within the $940 billion trucking industry, crucial for transporting goods across the nation. Despite the competitive market, GreenWheels sets itself apart by focusing on sustainable transportation solutions and advanced logistics technology, appealing to environmentally conscious businesses and those valuing real-time cargo tracking.

Management Team

The expertise of your management team is a significant asset. Highlight the key qualifications and experiences of your team members, demonstrating the depth of industry knowledge and leadership driving your business.

Example: GreenWheels is led by founders Chris Johnson and Pat Lee. Chris, with over 15 years in logistics management, and Pat, an expert in sustainable business practices, bring a unique combination of skills to the forefront, positioning GreenWheels for success in a rapidly evolving industry.

Financial Plan

Summarize your financial objectives and forecasts, including revenue targets and profit margins, to offer a clear perspective on your company’s financial future.

Example: GreenWheels aims for a yearly revenue of $9.2 million by 2027, with a 12%  EBITDA  margin. The financial strategy is centered on expanding the fleet with more EVs and enhancing our logistics software, driving efficiency and growth while maintaining a commitment to sustainability.

For a trucking business, the Business Overview section can be effectively divided into 2 main areas:

Shipping Routes & Operations

Briefly describe the core operational aspects of your trucking business, focusing on the geographical scope, such as regional, national, or international shipping routes.

Next, highlight the efficiency and reliability of your operations, emphasizing the strategic positioning of your hubs or depots for optimal logistics management. Explain why these routes and operations are advantageous in serving your target market and meeting customer demands.

Services & Rates

Detail the range of transportation and logistics services offered, from standard freight shipping to specialized services such as refrigerated transport, hazardous materials, or oversized loads.

Outline your pricing strategy , ensuring it reflects the value and competitiveness of your services within the industry. Highlight any flexible pricing options, bulk shipping discounts, or loyalty programs that provide added value to your clients, encouraging long-term partnerships and customer retention.

Industry size & growth

In the Market Overview of your trucking business plan, begin by evaluating the size of the transportation and logistics industry and its growth potential. This analysis is essential for understanding the market’s breadth and pinpointing opportunities for expansion.

Key market trends

Continue by discussing recent market trends , such as the growing emphasis on supply chain efficiency, the rise of e-commerce driving demand for shipping services, and advancements in transportation technology like telematics and autonomous vehicles. For instance, highlight the need for versatile shipping solutions that accommodate a range of delivery timelines and product types, along with the increasing interest in eco-friendly and sustainable logistics practices.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your trucking business in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps in identifying your trucking business’s unique selling points, essential for differentiating your business in a competitive market.

In addition, the competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Trucking Industry

The initial step in conducting a competitive analysis for a trucking business involves identifying key players within the transportation and logistics sectors. Local and regional carriers, freight brokers, and national trucking companies should all be considered. Mapping out the distribution of competitors geographically provides insights into potential areas of market saturation or underserved regions.

Online platforms such as industry-specific forums, logistics directories, and customer reviews on platforms like Google or Yelp can provide valuable information. Assessing customer feedback might highlight specific  strengths  or weaknesses of competitors, offering a nuanced view of the competitive landscape.

Trucking Business Competitors’ Strategies

To gain a competitive edge, a thorough analysis of competitors’ strategies is essential. This involves scrutinizing various facets of their operations:

• Fleet Composition:  Evaluate the types of trucks and equipment used by competitors. For instance, if a rival company, “Swift Cargo Solutions,” specializes in refrigerated transport, it indicates a focus on temperature-sensitive cargo.
• Route Optimization:  Analyze the efficiency of competitors’ route planning. Companies like “TransLogistics Express” might prioritize advanced route optimization technologies, potentially offering quicker and more cost-effective solutions.
• Pricing Structures:  Examine the pricing models of competitors. Are they positioned as budget-friendly carriers, or do they market themselves as premium services with added value? Understanding the pricing landscape helps in positioning your trucking business accordingly.
• Technological Integration:  Investigate the extent to which competitors embrace technology. A company like “Innovate Haulers,” employing telematics for real-time tracking and fleet management, might have a technological advantage over others.
• Marketing and Customer Relations:  Study how competitors market their services and engage with customers. Do they leverage digital marketing, have a strong online presence, or focus on personalized customer relations? Understanding these aspects helps refine your  marketing strategy .
• Compliance and Safety:  Observe how competitors adhere to safety regulations and compliance standards. A trucking company with a robust safety record, such as “Secure Haul Logistics,” may appeal to safety-conscious shippers.

What’s Your Trucking Company’s Value Proposition?

Crafting a compelling  value proposition  for your trucking business requires thoughtful reflection on its unique strengths and offerings. Consider aspects such as specialized services that set your company apart, whether it’s expertise in transporting hazardous materials, oversized cargo, or high-value goods. 

Reflect on your company’s reliability, emphasizing on-time deliveries and minimal disruptions as core strengths. Highlight innovative technologies or systems integrated into your operations that enhance efficiency, tracking, and communication. Emphasize a client-centric approach to customer service if competitors fall short in this regard. 

Lastly, in response to the growing emphasis on sustainability, showcase environmentally friendly practices like fuel-efficient vehicles or carbon offset programs, establishing your company as a leader in eco-conscious transportation. Identifying these distinctive features and tailoring your value proposition to resonate with market needs will not only differentiate your trucking business but also align it with the evolving preferences of the industry.

First, conduct a SWOT analysis for the trucking business, highlighting Strengths (such as a diverse fleet and reliable service), Weaknesses (including dependency on fuel prices or regulatory challenges), Opportunities (for instance, the expansion of e-commerce and the need for more shipping solutions), and Threats (such as economic fluctuations that may impact shipping volumes or the rise of digital freight matching platforms).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through strategic partnerships, competitive pricing, a strong online presence, and exceptional customer service. Emphasize the importance of building a reputable brand in the logistics industry, leveraging digital marketing, and participating in industry events to network with potential clients.

Marketing Channels

Selecting appropriate marketing channels is pivotal for effectively reaching potential clients and establishing your brand in the competitive trucking industry.

Digital Marketing

Utilize online platforms:

• Website Optimization:  Develop a user-friendly, informative website showcasing your services, industry expertise, client testimonials, and easy-to-use contact forms.
• Content Marketing:  Create blog posts, case studies, or industry reports focusing on shipping trends, logistics insights, or success stories, demonstrating your expertise and value to potential clients.
• Social Media Presence:  Use platforms like LinkedIn, Twitter, or industry-specific forums to engage with prospects, share industry updates, success stories, and thought leadership content.
• Email Marketing:  Build an email list through website sign-ups or industry events, sending newsletters featuring industry insights, service updates, and special offers to nurture leads and retain clients.

Local Advertising

Connect with local businesses and industry events:

• Trade Shows and Conferences:  Participate in relevant trade shows or logistics conferences to network with potential clients, showcase your services, and stay updated on industry trends.
• Sponsorships and Partnerships:  Collaborate with local businesses, warehouses, or manufacturers to establish mutually beneficial partnerships, promoting your services through joint initiatives or sponsorships.
• Traditional Advertising:  Utilize local print media, industry publications, or radio ads to reach a broader audience, especially within specific geographical areas or industry segments.

Promotional Activities

Engage prospective clients through incentives:

• Special Offers:  Introduce promotional offers tailored to new clients, such as discounts on the first shipment or reduced rates for bulk contracts to encourage trial.
• Referral Programs:  Incentivize existing clients to refer new business by offering discounts, exclusive services, or monetary rewards for successful referrals.
• Client Appreciation Events:  Host client appreciation events, webinars, or training sessions highlighting industry updates, innovations, or exclusive services.

Sales Channels

Efficient  sales channels  are imperative for converting leads and retaining clients within the trucking business.

Client Relationship Management (CRM)

Maintain and strengthen client relationships:

• Personalized Service:  Emphasize personalized customer service, offering tailored shipping solutions, dedicated account management, or 24/7 support to address client-specific needs.
• Follow-up and Feedback:  Regularly follow up with clients after deliveries to gather feedback, ensuring satisfaction and addressing any concerns promptly.

Online Booking and Tracking Systems

Implement user-friendly systems:

• Easy Booking Process:  Develop an efficient online booking platform or integrate a tracking system that provides transparency and convenience for clients.
• Real-time Tracking:  Offer clients access to real-time shipment tracking, demonstrating reliability and ensuring peace of mind throughout the delivery process.

Customer Loyalty Programs

Encourage client retention:

• Frequent Client Benefits:  Implement loyalty programs offering discounts, priority services, or exclusive offers to clients with recurrent shipping needs.
• Referral Rewards:  Reward clients who refer new business with exclusive discounts, additional services, or loyalty points redeemable for future shipments.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the trucking business’s initiation, marketing initiatives, client acquisition, and growth objectives. Ensure the business progresses with clear direction and purpose by setting realistic goals for service expansion, fleet enhancement, and possibly geographic extension of operations

The Management section focuses on the trucking business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the trucking business toward its financial and operational goals.

For your trucking business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your Trucking business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your trucking business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Trucking Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

If you are looking to start a trucking company and need financing, you are likely to be asked to provide a business plan by your potential lender or investor.  If you plan to start as a one-person trucking company this may really seem like overkill, do you really need a full business plan if you simply plan to buy a truck and drive it yourself?  

The reality is that whether it is overkill or not, if your lender requires a business plan, perhaps because it is an SBA loan requirement, then you just have to get it done.  My hope with this blog post is to cover the following questions:

What should a trucking business plan include?

Trucking business plan outline, what kind of trucking business should i get into, where can i find customers for my trucking business, spot freight vs. dedicated routes.

• Should I lease or buy my semi-truck?
• How to create financial projections for a trucking business?
• Trucking example business plan
• Trucking business plan FAQs

With that in mind as the path forward, let’s dive in. 

A trucking business plan should include a market analysis, list of services offered, marketing and sales strategy, operations plan, financial projections, organization and management and risk analysis section. You can see our detailed outline below. 

I. Introduction:

II. Market Analysis:

III. Services Offered:

IV. Marketing and Sales Strategy:

V. Operations Plan

Acquisition and Management of Trucks

Hiring and Training of Drivers

Dispatch and Logistics

Regulatory Requirements and Compliance Measures

VI. Financial Projections

Startup Costs, Funding Sources, and Future Financing Needs:

Financial Summary

Annual Sales, Gross Profit and Net Profit

Key Financial Ratios

Income Statement

Balance Sheet

Cash Flow Statement

VII. Organization and Management

Organizational Structure

Roles and Responsibilities of Key Stakeholders

Legal and Compliance Requirements

VIII. Risk Analysis

Potential Risks

Contingency Plans

IX. Conclusion

Your business plan will differ based on the type of trucking business you plan to get into.  There are several different types of trucking businesses, each with different business and financial models.  For example, we have developed financial models for the following types of trucking businesses: 

• General Freight Trucking
• Moving Truck

Each type of trucking business will have different pros and cons, different startup costs, different work schedules, and ultimately different earning power.  

Finding customers for your trucking business involves proactive networking, marketing, and understanding where your potential clients might be. Here are several strategies to attract more customers:

Networking Events: Attend industry-related networking events, seminars, and trade shows. They can be a great way to meet potential customers as well as partners.

Online Directories and Load Boards: Online freight and load boards can be useful. Some popular options include Truckstop.com, DAT Load Board, and Freightos. Customers needing freight services often use these platforms to find providers.

Use a Freight Broker: Freight brokers act as intermediaries between shippers and carriers. They can bring you new business, but they will take a commission.

Social Media & Online Marketing: Platforms such as LinkedIn, Facebook, Instagram, and Twitter can be useful to connect with potential clients. You can also use Google Ads and SEO to increase your online visibility to potential customers who are looking for trucking services.

Local Businesses: Reach out to local businesses that might need your services. Manufacturers, wholesalers, and companies with distribution needs are all potential customers.

Develop a Website: If you don't already have one, create a professional website outlining your services, rates, and contact information. Having a digital presence can greatly enhance your business visibility.

Referrals: Encourage your current clients to refer your trucking business to other potential customers. You can incentivize this process by offering a referral discount or another type of reward.

Cold Calling and Emailing: Identify potential clients, prepare a solid sales pitch, and reach out directly via phone or email.

Partnerships: Consider creating partnerships with other businesses that complement your trucking services. For instance, a partnership with a storage or warehouse company can be beneficial.

Each approach to running a trucking business has its own advantages and disadvantages. Here are some of the main pros and cons of having a dedicated route versus picking up loads on load boards:

Dedicated Routes

Consistent Work: With a dedicated route, you have a reliable and predictable schedule. You'll know in advance where you're going, when you need to be there, and what you're hauling.

Predictable Revenue: Having a consistent schedule also means you'll have consistent revenue. You'll know what you're earning each week or month, making it easier to plan your business finances

Established Relationships: Over time, you'll build relationships with the businesses along your route. These relationships can lead to more business and better working conditions.

Reduced Wear and Tear: With a dedicated route, you're often driving the same roads and conditions, which can help reduce wear and tear on your equipment.

Less Flexibility: With a dedicated route, your schedule is mostly fixed. You may have less time for other business opportunities or personal matters.

Risk of Dependency: If your dedicated client's business goes down or they decide to change providers, it can significantly impact your income.

Potential for Lower Pay: Depending on the agreement, dedicated routes can sometimes pay less per mile than what you could get from a high-demand load on a load board.

Load Boards

Flexibility: Load boards offer the flexibility to choose your loads and routes. You can decide when to work, where to go, and what to haul.

Potential for Higher Pay: Some loads, especially urgent or last-minute ones, can pay very well. If you're in the right place at the right time, you can earn more than you might on a dedicated route.

Variety: Using load boards provides a variety of work. You're not limited to the same route or cargo, which can make your work more interesting.

Inconsistent Work and Pay: Load boards can be unpredictable. Some days, you might find lots of high-paying loads; other days, there might be very little work available.

Competition: Load boards are open to all truckers, which means you're competing with everyone else for the best loads.

Lack of Personal Relationships: Load boards often don't give you the opportunity to build strong relationships with shippers, which might affect the quality of your working conditions and business opportunities.

Broker Fees: Many load boards work through brokers, who take a commission on the load. This can reduce your overall earnings.

It's worth noting that many trucking businesses use a combination of dedicated routes and load boards to balance out the pros and cons of each approach. This hybrid model can provide both consistency and flexibility.

Should I lease or buy my semi-truck? 

Choosing whether to buy or lease a semi-truck for your trucking business is a significant decision that can have long-term impacts on your business's financial health and flexibility. Here are some pros and cons of each option:

Buying a Semi-Truck

Ownership: Once you've paid off the truck, it's yours. You can modify it to suit your needs and sell it when you want to upgrade or exit the business.

No Mileage Restrictions: Unlike with leasing, there are no penalties for high mileage when you own your truck.

Possible Cost Savings: Depending on the terms of the purchase and the life of the truck, it may be more cost-effective in the long run to buy a truck outright.

High Upfront Costs: Buying a semi-truck requires a significant initial investment, which might be challenging for some businesses, particularly start-ups.

Maintenance and Repair Costs: As the owner, you're responsible for all maintenance and repair costs. These costs can be unpredictable and expensive.

Depreciation: Trucks depreciate over time. When you decide to sell, you might not recoup much of your initial investment, particularly if the truck has high mileage or is in less than excellent condition.

Leasing a Semi-Truck

Lower Initial Costs: Leasing a truck usually requires a smaller initial investment compared to buying.

Flexibility: Leasing can offer more flexibility. You can upgrade to newer models more frequently, and you're not tied down to a long-term commitment if your business needs change.

Less Maintenance Responsibility: Depending on your lease agreement, some or all maintenance and repairs might be covered by the leasing company, reducing unexpected costs and downtime.

No Equity: When you lease, you're essentially renting. You're not building equity in the truck, and at the end of the lease, you don't own anything.

Mileage Restrictions: Leasing contracts often have mileage limits. If you exceed these limits, you could end up paying significant penalties.

Lack of Customization: When you lease, there may be restrictions on how much you can modify or customize the truck.

Potential for Higher Long-Term Costs: Over the long term, the total cost of leasing can end up being more than the cost of buying a truck outright.

When deciding between buying or leasing, it's important to consider the specific needs and financial situation of your business. You should factor in your cash flow, the amount of driving you expect to do, the importance of owning your truck, and the impact of potential repairs and maintenance. Consulting with a financial advisor can be very beneficial in making this decision.

How to Create Financial Projections for a Trucking Business Plan

Just like in any industry, the trucking business has its unique factors that impact financial projections, such as fuel costs, maintenance expenses, and client contracts. Utilizing a trucking financial projection template can simplify the process and enhance your confidence. Creating accurate financial projections goes beyond showcasing your trucking company's ability to cover expenses; it's about illustrating the financial roadmap that leads to profitability and the realization of your transportation goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your trucking business, including vehicle acquisition or leasing, insurance, licenses, and permits
• Forecast revenue based on projected client contracts, rates per mile, and anticipated volume of shipments.
• Project variable driving costs like fuel, vehicle maintenance, repair expenses, as well as driver pay
• Estimate operating expenses like insurance premiums, permits and licenses renewal fees, tolls, salaried employees, and administrative costs.
• Calculate the capital needed to open and operate your trucking business, covering initial expenses and providing working capital for sustained operations.

While financial projections are a critical component of your trucking business plan, seek guidance from experienced professionals in the industry to refine your projections. Adapt your plan based on real-world insights, leverage industry resources, and stay informed about market trends and regulatory changes to ensure your financial projections align with your goals and set the stage for a successful trucking venture.

Example Trucking Business Plan

Below you will find the text of our example trucking business plan. You can also download a Google Doc version of this trucking business plan template here , which allows you to modify it and personalize it to your own needs. You can also follow along in this video walkthrough, designed to help you customize the business plan to suit your specific trucking business model.

Table of Contents

I. executive summary.

The name of our bar and grill is "Cheers & Grub". Cheers & Grub is a casual dining establishment that specializes in American-style cuisine with a focus on juicy burgers, delicious wings, and refreshing beers on tap. Our target market is young professionals and families in the downtown area who are looking for a casual and relaxed atmosphere to enjoy good food and drinks.

We aim to differentiate ourselves from our competitors by offering a unique and enjoyable dining experience. Our menu will feature a variety of classic American dishes, made with fresh and locally-sourced ingredients. Our bar will offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails. We will also host weekly events such as trivia nights and live music performances, to keep our customers engaged and entertained.

Our projected startup costs are $500,000, which includes the cost of leasehold improvements, equipment, and operating capital. Our projected first-year sales are $1.2 million, with a net profit margin of 7%. We anticipate steady growth in sales and profits over the next five years.

II. Business Concept

Cheers & Grub is a casual dining establishment that offers a relaxed and friendly atmosphere, combined with great food and drinks. Our menu will feature classic American dishes, such as burgers, wings, sandwiches, and salads, made with fresh and locally-sourced ingredients. Our bar will offer a variety of domestic and craft beers, as well as a selection of specialty cocktails.

The ambiance of our establishment will be modern and comfortable, with a touch of vintage charm. We will feature a spacious dining area, a full-service bar, and a cozy lounge area for customers to relax and enjoy live music performances. Our target market is young professionals and families in the downtown area who are looking for a casual and relaxed atmosphere to enjoy good food and drinks.

III. Market Analysis

The restaurant industry has been growing steadily in recent years, with an estimated market size of $899 billion in 2020. The demand for casual dining establishments like Cheers & Grub is particularly high, as consumers seek out convenient and affordable options for their dining needs. Our target market consists of young professionals and families in the downtown area who are looking for a casual and relaxed atmosphere to enjoy good food and drinks.

In terms of competition, there are several established bar and grill establishments in the downtown area. However, we believe that we can differentiate ourselves by offering a unique and enjoyable dining experience, made with fresh and locally-sourced ingredients. Our bar will also offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails, to appeal to a wider range of customers.

IV. Competition Analysis

The main competition in the downtown area consists of established bar and grill establishments, such as "The Local" and "Grill Master". The Local is known for its casual atmosphere and selection of domestic beers, while Grill Master is known for its specialty cocktails and live music performances.

We believe that we can differentiate ourselves from our competitors by offering a unique and enjoyable dining experience. Our menu will feature a variety of classic American dishes, made with fresh and locally-sourced ingredients, and our bar will offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails. In addition, we will host weekly events such as trivia nights and live music performances, to keep our customers engaged and entertained.

V. Marketing Strategy

Our marketing strategy will focus on reaching our target market through a variety of channels, including online advertising, social media, and local promotions. We will also leverage our unique selling points, such as our fresh and locally-sourced ingredients, our selection of domestic and craft beers, and our weekly events, to attract and retain customers.

Online Advertising: We will utilize social media platforms, such as Facebook and Instagram, to reach our target audience. This will include paid advertising, such as sponsored posts and ads, as well as organic content, such as pictures and videos of our menu items and events.

Social Media: We will create a strong presence on social media by regularly posting pictures, videos, and updates about our menu items, events, and promotions. This will help to engage our followers and build a loyal customer base.

Local Promotions: We will participate in local events and promotions, such as food festivals and charity events, to increase visibility and build brand awareness. We will also offer special deals and promotions, such as happy hour discounts and loyalty programs, to incentivize customers to visit Cheers & Grub.

VI. Menu and Kitchen Operations

Our menu will feature a variety of classic American dishes, made with fresh and locally-sourced ingredients. This includes juicy burgers, delicious wings, sandwiches, and salads. Our bar will offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails.

In terms of kitchen operations, we will have a fully-equipped kitchen. Our kitchen staff will be trained in food safety protocols, and we will have strict sanitation procedures in place to ensure the safety and quality of our food.

VII. Service and Hospitality

At Cheers & Grub, we will strive to provide exceptional service and hospitality to our customers. Our staff will be trained in customer service and will be equipped with the necessary skills to provide a welcoming and friendly atmosphere.

Our dining area will feature table service, while our bar will offer full-service bar service, including the preparation of specialty cocktails. We will also have a lounge area for customers to relax and enjoy live music performances.

VIII. Financial Plan

Our projected startup costs are $350,000, which includes the cost of leasehold improvements, equipment, and operating capital. Our projected first-year sales are $1 million, with a net profit margin of 26%. We anticipate steady growth in sales and profits over the next five years, with a focus on expanding our menu offerings and hosting more events to attract and retain customers.

All of the unique financial projections you see below were generated using ProjectionHub’s Trucking financial projection template . Use PH20BP to enjoy a 20% discount on the template. 

Startup Costs:

Projected Financial Summary:

Annual Sales, Gross Profit and Net Profit:

Key Financial Ratios:

Watch how to create financial projections for your very own bar and grill:

Income Statement:

Balance Sheet:

Cash Flow Statement:

IX. Organizational Structure

Cheers & Grub will be owned and operated by [Name], an experienced restaurateur with a passion for good food and drinks. [Name] will also serve as the manager, responsible for day-to-day operations, including menu development, kitchen operations, and staffing.

In terms of staffing, we will have a team of highly-skilled and trained employees, including a head chef, kitchen staff, servers, and bartenders. We will also have a human resources manager to handle employee relations and benefits.

X. Conclusion

In conclusion, Cheers & Grub is a casual dining establishment that offers a relaxed and friendly atmosphere, combined with great food and drinks. With a focus on fresh and locally-sourced ingredients, a wide selection of domestic and craft beers, and weekly events, we believe that we have the necessary elements to succeed in the competitive restaurant industry. Our financial projections are positive, and we are confident in our ability to achieve steady growth and profitability in the coming years.

Trucking Business Plan FAQs

How do i start a trucking business.

To start a trucking business, you'll need to obtain the appropriate commercial driver's license (CDL), register your business, secure necessary permits and licenses, acquire or lease trucks, establish relationships with clients or freight brokers, and ensure compliance with safety regulations.

How can I find freight and clients for my trucking business?

To find freight and clients, consider partnering with freight brokers or load boards, networking within the industry, attending trade shows or logistics events, leveraging online freight marketplaces, and building relationships with shippers or manufacturers.

What types of insurance do I need for my trucking business?

Insurance coverage for a trucking business may include primary liability insurance, cargo insurance, physical damage insurance for your vehicles, and general liability insurance. Consult with an insurance professional to determine the specific coverage you need.

How can I optimize fuel efficiency in my trucking operations?

To optimize fuel efficiency, consider maintaining regular truck maintenance, training drivers on fuel-efficient driving techniques, investing in aerodynamic equipment for trucks, monitoring tire pressure, using GPS technology to plan efficient routes, and adopting technologies that help optimize fuel usage.

What are the compliance requirements for the trucking industry?

Compliance requirements for the trucking industry include adhering to hours-of-service regulations, maintaining accurate records and logs, conducting regular vehicle inspections, following weight and size restrictions, and complying with licensing and registration requirements.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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• Business plans

Trucking Business Plan Template

Used 4,872 times

Empower your journey to success with our trucking business plan template, designed as a valuable tool to organize the essentials of your trucking business.

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Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

Prepared for:

​ [Recipient.FirstName] [Recipient.LastName]

​ [Recipient.Company] ​

Company Overview

​ [Sender.Company] is a new trucking firm located in [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] (Location.Name).

​ [Sender.FirstName] [Sender.LastName] (Founder name), a specialist in trucking and logistics with more than (Number of Years_ years of managerial experience, created the business. As he sets out to launch his own trucking company, [Sender.FirstName] [Sender.LastName] is confident in his capacity to successfully negotiate contracts, manage drivers and personnel, and cut costs.

​ [Sender.Company] will offer a full range of trucking and logistics services to any company or individual needing freight distribution. [Sender.Company] will use cutting-edge technology to ensure that each shipment is dispatched efficiently and with the utmost care.

Services Offered

​ [Sender.Company] has a fleet of over (Number of trucks) freight trucks available for local and long-distance trucking services, each of which is frequently maintained to ensure that clients' goods are delivered on time.

The services that [Sender.Company] will offer:

Dedicated fleet services

Flatbed transportation services

Local distribution services

Logistics services

Warehousing services

Management Team

​ [Sender.Company] will be under the ownership and leadership of (Owner.Name), known for his/her exceptional organizational skills and unwavering commitment to putting the customer first.

(Owner.Name) holds a Bachelor's degree in Business Management from (University.Name) and boasts an impressive career spanning over two decades in the local trucking industry.

(Staff.Name) will oversee the financial aspects of the accounting department, ensuring meticulous financial management.

(Staff.Name) brings a wealth of experience to the team, having served as the Accounting Manager for a local trucking company for over a decade. Before his/her tenure in the trucking industry, (Staff.Name) was a Certified Public Accountant (CPA) at a respected local tax firm.

Industry Analysis

​ [Sender.Company] conducted a thorough industry study and identified the following facts, which bode well for the business:

Across the country, there are roughly (Number of Truck Drivers) available truck drivers.

The demand for drivers is far greater than the supply, which implies that there is a lot of room for new organizations to recruit people to become truck drivers by offering better incentives than major trucking companies now provide.

A new trend in trucking is the increasing popularity of shorter or local hauls over long-distance hauls.

This is an opportunity for businesses to cater to customers that require short-distance hauls.

Rising fuel costs and greater use of online booking and monitoring technology, which can leave established enterprises behind if they employ obsolete methods, are two problems for trucking sector operators.

New entrants can gain from using cutting-edge technology from the start, offering incentives to drivers to engage with them, and applying cost-effective ways to minimize fuel expenses.

Customer Analysis

​ [Sender.Company] will primarily target the following customer profiles:

Small Business Owners: Providing tailored logistics solutions to support their operations.

Small Manufacturing Companies: Ensuring efficient supply chain management.

Individuals Requiring Freight Transportation: Reliable and cost-effective shipping solutions for personal or occasional needs.

Competitive Analysis

​ [Sender.Company] will face competition from different companies with comparable company profiles.

(Competitor.Name) offers trucking, logistics, freight distribution, and warehousing services. They are located in (Competitor.Location), where they provide local service. (Competitor.Name)'s professional crew ensures that the hauls operate smoothly, relieving the customer of concern about whether their shipments will reach on schedule and in excellent shape.

Competitive Advantages

​ [Sender.Company] holds a competitive edge through the following advantages:

The team comprises friendly, highly qualified trucking and logistics experts with deep industry experience.

Embrace cutting-edge trucking and logistics technology to guarantee meticulous handling and efficient deliveries for each haul.

Unlike larger trucking companies, [Sender.Company] specializes in local distribution and readily accepts small hauls that others may decline.

Marketing Plan

Brand and value proposition.

​ [Sender.Company] stands out by providing distinctive value propositions to its clients:

A dedicated team of highly qualified professionals proficient in a wide range of trucking services.

​ [Sender.Company] harness cutting-edge technology and maintain flexibility to deliver the utmost quality of service to our valued customers.

Promotions Strategy

​ [Sender.Company] has a well-rounded promotions strategy in place to boost its visibility and reach:

(Owner.Name) has cultivated a substantial network of contacts through years of providing exceptional service and expertise. His/Her clients have pledged to continue their partnership with him/her at [Sender.Company] and actively promote the brand through word of mouth and referrals.

Professional Associations and Networking

To expand its client base, [Sender.Company] will join esteemed organizations such as the Texas Trucking Association (TTA) and the American Trucking Association (ATA). The focus will be on building valuable connections within these associations.

Print Advertising

​ [Sender.Company] recognizes the importance of industry publications and will invest in professionally designed print advertisements. These ads will effectively communicate its services and unique value propositions.

Website/SEO Marketing

​ [Sender.Company] will leverage its in-house marketing director, who designed the print ads, to create an informative, well-organized website. The website will comprehensively present the services offered and provide essential contact details.

Pricing Strategy

​ [Sender.Company] is committed to offering competitive pricing that aligns with industry standards, ensuring that their valued customers always perceive exceptional value in their investment when choosing their services.

They provide a range of flexible payment options to accommodate diverse preferences:

1. Payment in Cash or Coins

2. Payment through Point of Sale (POS) Machines

3. Online Bank Transfers via the designated payment portal

4. Mobile Money Payments

Operations Plan

(Owner.Name) will serve as the Co-Owner and President of the company, assuming responsibility for overseeing all staff members and managing client relations.

This well-structured team will contribute significantly to the efficient functioning and success of [Sender.Company] , enabling the [Sender.Company] to provide top-notch services to their clients while maintaining the highest standards of safety and financial integrity.

​ [Sender.Company] is poised to achieve several critical milestones within the next 12 months:

These milestones signify [Sender.Company] 's steady progression towards establishing a thriving trucking business.

Financial Plan

Revenue and cost drivers.

The majority of [Sender.Company] 's revenue will come from transportation services. The following are the primary cost drivers for the company's operations:

Truck leases and maintenance

Lease on business location

Marketing expenses

Funding Requirements and Use of Funds

​ [Sender.Company] is seeking (Amount) in debt financing to launch its trucking business. The following is a breakdown of how the funds will be used.

Warehouse build-out: (Amount)

Trucks, equipment, and supplies: (Amount)

Three months of overhead costs (payroll, rent, utilities): (Amount)

Marketing expenses: (Amount)

Working capital: (Amount)

Financial Projections

The company's projected income statement, balance sheet, and cash flow statement are shown below.

Attach all financial statements for the company.

​ [Recipient.FirstName] [Recipient.LastName] ​

Care to rate this template?

Your rating will help others.

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Discover the Best Tools for Business Plans

Learn from the business planning experts, resources to help you get ahead, how to write a trucking company business plan, navigate your way to success, the ultimate guide to planning your trucking company.

Elevate your trucking business plan with our expert-curated resources. This guide provides the tools and insights you need to secure funding, gain approval, and build a strong foundation for your company.

Who is this for?

8 key things to do before you begin writing your trucking company business plan.

Listen up, aspiring trucking tycoons. If you want to make it in this cutthroat industry, you need a business plan that’s as solid as a Peterbilt (not that we don’t love Kenworth). The trucking industry is the backbone of the American economy, hauling a whopping 70% of the country’s freight tonnage . But before you start revving your engines, there are eight crucial things you need to consider.

#1 Regulatory Environment and Compliance 

The trucking industry is a minefield of federal and state regulations, with the Federal Motor Carrier Safety Administration (FMCSA) calling the shots on everything from safety standards to driver qualifications. Understand the federal and state licensing requirements, including the Commercial Driver’s License (CDL) for your drivers and any special endorsements needed. You’ll need to apply for and receive motor carrier authority from the FMCSA, including a U.S. Department of Tra n sportation (USDOT) number and, if applicable, an MC number . And don’t forget about each state’s unique set of hoops you’ll need to jump through to get your trucks on the road. It’s a compliance nightmare, but if you don’t play by the rules, you’ll be slapped with fines faster than you can say “DOT inspection.”

#2 Market and Niche 

The trucking industry is like a Vegas buffet – there’s something for everyone. From dry vans and flatbeds to reefers and tankers, you need to identify your niche and stake your claim. Conduct market research like you’re planning a military campaign, and analyze your target customers’ needs and pain points. The more specialized your services, the more money you can charge, but be prepared to navigate the extra red tape that comes with hauling hazardous materials or oversized loads.

#3 Competition 

You can’t dominate the trucking game without knowing your competition. Identify the top dogs in your niche and dissect their strengths, weaknesses, and pricing strategies like a biology student in a frog lab. Look for gaps in the market that you can exploit, and don’t forget about indirect competitors like rail and air freight. They may not be in your rearview mirror, but they can still put the brakes on your growth.

#4 Start-Up Costs and Financial Needs 

Starting a trucking company isn’t for the faint of heart or the light of wallet. You’ll need to drop some serious cash on Startup & Operational Costs (e.g., trucks, trailers, and a place to park them). And don’t forget about the ongoing expenses like fuel, maintenance, and driver salaries. It’s like playing whack-a-mole with your bank account. Crunch the numbers, develop detailed financial projections, and explore financing options like loans, investors, or leasing programs.

#5 Fleet Operations 

To lease or to buy, that is the question. Leasing offers flexibility and lower upfront costs, while buying gives you more control and potential long-term savings. But don’t skimp on maintenance and technology. Invest in fleet management software from companies like Samsara , Verizon Connect , or Omnitracs to keep your trucks running like Swiss watches and your drivers compliant with ELD mandates .

#6 Human Resources Strategy 

The Organizational Structure of your drivers and staff is the heart and soul of your operation. Recruit and retain top talent with competitive pay, benefits, and a company culture that makes them feel like they’re part of something bigger than just a paycheck. And don’t neglect ongoing training and development, especially when it comes to safety and compliance.

#7 Marketing and Sales Strategy 

You can have the best trucks and drivers in the business, but if no one knows about you, you’ll be spinning your wheels. Develop a marketing and sales strategy that targets your ideal customers and showcases your unique value proposition. Network like a politician at industry events, leverage digital marketing, and build a website that’s as impressive as a chrome-plated Kenworth (see, I told you we love Kenworth).

#8 Safety and Risk Management 

In the trucking industry, safety isn’t just a priority – it’s a matter of life and death. Implement a comprehensive safety program that includes regular vehicle inspections, driver training, and accident prevention measures. Stay on top of FMCSA regulations and maintain high safety standards to keep your insurance costs down and your reputation up.

Writing a trucking company business plan is no Sunday drive, but if you address these eight critical areas, you’ll be well on your way to building a fleet empire that would make even the most seasoned road warriors tip their hats. And if you really want to shift your planning into high gear, check out the Model-Based Planning® Worksheet for Logistics and Delivery Service . It’s like having a GPS for your business, guiding you through the specific challenges of the trucking industry and helping you unlock insights that will leave your competition in the dust. So, grab a cup of coffee, roll up your sleeves, and start crafting a business plan that will pave the way to your trucking success. The open road is calling, and it’s time to answer.

The Power of a Killer Trucking Company’s Business Plan

If you want to make a serious dent in this industry, you need a business plan. And I’m not talking about some half-baked document that you threw together between coffee breaks. I’m talking about a comprehensive, no-nonsense plan that showcases your trucking company’s potential and makes financiers sit up and pay attention.

The Must-Haves of Your Trucking Company Business Plan

Here’s what you need to include in your kick-ass trucking company business plan:.

Executive Summary

This is your elevator pitch on steroids. Give investors the CliffsNotes version of your trucking company’s vision, unique value proposition, and why you’re the one to watch in this space.

Market Analysis

Dive into the nitty-gritty of the trucking industry. Who’s your target audience? Who are your competitors, and how are you going to outmaneuver them? Show that you’ve done your homework and have a pulse on the market.

Services & Specialization

What sets your trucking company apart? Are you the go-to for hazardous material transport, the gurus of last-mile delivery, or the sultans of LTL shipping? Spell it out, and don’t be afraid to toot your own horn.

Operational Strategy

Give financiers a peek under the hood of your trucking company’s operations. From your fleet management strategy to your technology stack, prove that you’ve got the chops to run a tight ship.

Marketing & Sales

How are you going to get the word out and keep clients coming back for more? Lay out your marketing and sales game plan, including your social media strategy, content marketing approach, and any partnerships you’ve got up your sleeve.

Management Team

Introduce the rock stars who’ll be leading your trucking company to glory. Highlight their track record, industry connections, and why they’re the dream team you need to succeed.

Financial Projections

Don’t be shy about the numbers. Present your financial projections, including startup costs, revenue targets, and profitability timeline. Prove that your trucking company is a money-making machine waiting to happen.

Include any extra goodies that’ll give your business plan an edge, such as market research, customer case studies, or letters of intent from potential clients.

Sweat the Small Stuff or Get Ready for a Cash Flow Nightmare

When you’re putting together your business plan, it’s easy to get seduced by the sexy stuff, like the rig you’re going to buy or market dominance. But if you don’t sweat the small stuff, you’re setting yourself up for a world of hurt. I’m talking about the nickels and dimes that can bleed your cash flow dry. That busted alternator? That’s a couple grand. New tires? Another few grand. And if you’re rolling the dice on some used clunker with no warranty? You better have a rainy day fund that can cover a new engine or transmission when (not if) they decide to crap out on you in the middle of BFE. Ignore the little things at your own peril.

Ready, Set, Pre-Plan!

If you’re a rookie in the trucking game, chances are you’re feeling like a deer in the headlights. You’ve got a idea but no clue how to make it a reality. Enter Businessplan.com’s Pre-Planning Process . With the Pre-Planning Process, you’ll have a step-by-step plan to take your trucking company from an idea to a money-making machine. Don’t start your engines without it.

The Pre-Planning Process for Trucking Company Founders

Starting a trucking company is not for the faint of heart. It requires grit, determination, and a whole lot of planning. That’s where our Pre-Planning Process comes in. This comprehensive, step-by-step approach is designed specifically for founders who have the inklings of an idea but more questions than answers. Let’s dive in.

Plan Your Financial Future

The Pre-Planning Process is your secret weapon for trucking company success.

Know Your Customer 

Before you hit the gas on your trucking company, you need to know who you’re serving . We’ll teach you how to conduct in-depth interviews with your competitors’ customers to uncover their jobs-to-be-done. By understanding their pain points, goals, and expectations, you’ll be able to tailor your services to meet their needs and stand out in a crowded market. 

Core Cost Analysis 

Trucking is a capital-intensive business. From trucks and trailers to fuel and maintenance, the expenses can add up quickly. Our Core Cost Analysis will help you identify the essential assets and expenses you’ll need to get the job done for your customers. By understanding your costs upfront, you’ll be able to make informed decisions about pricing, financing, and scaling your business. 

Business Model Development 

Most truckers wing their business model, but not you. You’ll use the Business Model Canvas to structure every aspect of your trucking company, from your value proposition to your revenue streams. We’ll guide you through the process of creating a business model that’s built to last, so you can focus on what you do best: hauling freight and serving your customers. 

Operations in Detail 

Lack of an operational plan is the silent killer of trucking companies. In this section, we’ll teach you how to dissect your key activities, resources, and partners to create a well-oiled machine. From dispatch and fleet management to maintenance and compliance, you’ll have a clear plan for every aspect of your operations . 

Startup and Operational Cost Analysis 

Now that you’ve done the hard work of understanding your customers, costs, business model, and operations, it’s time to crunch the numbers. Our Startup and Operational Cost Analysis will help you account for every penny, so you can get started on the right foot and keep your business running smoothly. We’ll provide you with the tools and templates you need to create detailed financial analyses and make informed decisions about your business.

By following these five steps, you’ll be able to create a solid foundation for your business, avoid common pitfalls, and set yourself up for long-term growth. Don’t leave your trucking company’s future to chance. Invest in the Pre-Planning Process today and start building the business of your dreams.

Get Up to Speed FAST!

Unsure where to start.

Actually Writing a Killer Trucking Company Business Plan

Our no-nonsense resources will guide you through the treacherous waters of crafting a business plan that’ll make financiers salivate. 

Learn to Plan and Pitch Like a Pro

Head over to the Plan & Pitch section and start writing your own damn success story.

Know Your Audience or Else 

You can’t just vomit out a generic business plan and expect everyone to love it. Tailor your pitch to make banks, investors, regulators, partners, and landlords weak in the knees. If you can’t customize your message, you’re dead in the water. 

Model-Based Planning®

Your Secret Sauce Model-Based Planning® is like steroids for your trucking company concept. It’ll help you sharpen your edge and crush the competition. If you’re not using it, you’re bringing a knife to a gunfight. 

StorytellingMake ‘Em Beg for More 

Weave your vision, strategy, and USP into a narrative so compelling, people will be throwing cash at you just to hear more. If your story falls flat, your business will too. 

Market Analysis: Know Your Battlefield 

You can’t dominate the trucking industry if you don’t know what you’re up against. Dive deep into market analysis , or risk being blindsided by competitors and trends you never saw coming. 

Scope out the landscape.

Org Structure: Show ‘Em Who’s Boss 

Nobody wants to invest in a team that couldn’t organize a keg party. Chart out your org structure and craft team bios that scream, “We’re the best in the damn business.” 

Financial Projections: Make It Rain 

If your financial projections are a joke, investors will laugh you out of the room. Get your numbers tight if you want to secure funding and keep your trucking empire afloat. 

Strategy & Implementation: Execute or Be Executed 

A business plan without a killer strategy and implementation section is like a truck with no engine. Show ’em how you’ll conquer marketing, sales, and customer delight, or prepare to be roadkill. 

Pitch Deck & Finances: Seal the Deal 

You could have the best damn trucking company in the world, but if your pitch deck stinks and your finances are a mess, you’ll crash and burn. Master the art of the pitch and the science of financial management, or go home.

Unlock Your Trucking Empire's Potential

Your key to trucking industry domination.

Introducing the Expert Business Planning Bundle, a comprehensive toolkit curated specifically for trucking company entrepreneurs. With the Model-Based Planning® Worksheet, financial projection Excel model, trucking company-specific business plan template, and expert guides on leveraging these tools and AI, you’ll have everything you need to create a winning plan. Don’t just dream about your trucking empire – invest in your future and make it a reality.

Outmaneuver the Competition

Your trucking company planning toolkit.

Created by the top business planning team in the U.S. with a proven track record of success, this bundle equips you with expert resources and insider secrets specific to trucking company planning. Leverage these tools to create a standout business plan that sets you apart from the competition and positions your trucking company for long-term success.

With this bundle, you will:

• Gain access to insider knowledge and proven strategies used by the most successful business planning company in the U.S.
• Leverage expert resources tailored specifically to the trucking industry for a competitive edge
• Utilize a trucking-specific template filled with targeted pro tips, insights, and instructions that address unique industry challenges
• Streamline your planning process using the Model-Based Planning® Worksheet for Logistics and Delivery Service
• Create professional financial projections with the included Excel model
• Structure and organize your plan effectively with the curated trucking-focused business plan template
• Learn to develop a compelling and comprehensive plan using expert guides on leveraging these tools and AI
• Increase your chances of securing loans, investments, or approvals needed to bring your trucking vision to life

Use this bundle as your primary toolkit for crafting a trucking company business plan that unlocks the funding and support you need.

When it comes to crafting a successful trucking company business plan, relying on generic templates is a recipe for failure. Instead, invest in the Expert Business Planning Bundle – a toolkit carefully curated by industry experts who have spent their careers helping trucking businesses succeed.

No other resource can match the depth, breadth, and practical wisdom of this bundle. Our team has distilled thousands of hours of experience working with successful trucking companies into a comprehensive toolkit that saves you time, money, and prevents costly mistakes. With targeted, practical knowledge tailored specifically to the trucking industry, you’ll be able to write a business plan that surpasses what even the best consultants could produce, customized to your unique needs and goals.

Whether you’re seeking funding, approvals, or simply want to set your trucking business up for long-term success, the Expert Business Planning Bundle is the ultimate resource to help you achieve your vision. Don’t settle for less when it comes to your business’s future.

Frequently Asked Questions

• How can I tailor my trucking company business plan to attract potential investors?

To appeal to investors, highlight aspects that demonstrate profitability, scalability, and your competitive edge in the trucking industry. Emphasize your management team’s experience and expertise in logistics, fleet management, and business growth. Showcase financial projections, market analysis, and strategic partnerships that position your trucking company for long-term success and returns on investment.

• What information should I include in the business description section of my trucking company business plan?

Provide a comprehensive overview of your trucking company, including your concept, target market, service offerings, and unique selling points. Discuss your location, fleet design, and how your business fits into the current market landscape. Highlight your differentiators, such as specialized equipment, advanced technology, or eco-friendly practices. Articulate your vision for making an impact on the trucking industry.

• How much personal information should I share about my management team in the trucking company business plan?

Include succinct biographies of your key management team members, focusing on their relevant experience in the trucking industry, skills in logistics management, and contributions to the company’s success. Highlight their expertise in areas such as fleet optimization, driver training, and customer service. Avoid excessive personal details and keep the information professional and relevant to your trucking business.

• Should I highlight past success stories in my trucking company business plan?

Absolutely! Including past success stories enhances your credibility and appeals to banks, investors, or other stakeholders. Highlight how your team’s experiences in the trucking industry have equipped you with valuable skills and insights for your current venture. Discuss successful logistics projects, efficient fleet management, or strong client relationships that demonstrate your ability to navigate challenges and drive growth in the trucking sector.

• What are the key elements of a company overview in a trucking business plan?

Your company overview should summarize the essence of your trucking business, including its name, location, and the transportation services you provide. Outline your mission statement, emphasizing your commitment to reliability, safety, and customer satisfaction. Discuss your core values, such as integrity, professionalism, and innovation. Clearly state your long-term objectives, such as expanding your fleet, entering new markets, or implementing cutting-edge logistics technology.

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How To Write a Winning Trucking Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for trucking businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every trucking business owner should include in their business plan.

Download the Ultimate Trucking Business Plan Template

What is a Trucking Business Plan?

A trucking business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Trucking Business Plan?

A trucking business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Trucking Business Plan

The following are the key components of a successful trucking business plan:

Executive Summary

The executive summary of a trucking business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your trucking company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your trucking business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your trucking firm, mention this.

You will also include information about your chosen trucking business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a trucking business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the trucking industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a trucking business’ customers may include:

• Retailers who need goods delivered to their stores
• Manufacturers who need raw materials shipped to them
• Big box stores that require inventory to be delivered to multiple locations

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or trucking services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your trucking business via public relations and pitch your story to reporters.

Operations Plan

This part of your trucking business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a trucking business include reaching $X in sales. Other examples include hiring key personnel, acquiring necessary licenses and permits, and establishing partnerships with vendors.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific trucking industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Trucking Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Trucking Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup trucking business.

Sample Cash Flow Statement for a Startup Trucking Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your trucking company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Now that you know what you should include in a trucking business plan, it’s time to get started on your own. Use the tips and examples provided in this article as a guide, and don’t be afraid to ask for help from an experienced business advisor or mentor. With a well-crafted business plan in hand, you’ll be ready to hit  the ground running and build the trucking company of your dreams.  

Finish Your Trucking Business Plan in 1 Day!

Wish there was a faster, easier way to finish your trucking business plan?

With our Ultimate Trucking Business Plan Template you can finish your plan in just 8 hours or less!

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Trucking Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Transportation Industry » Trucking

Are you about starting a trucking company ? If YES, here’s a complete sample trucking business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a trucking business.

We also took it further by analyzing and drafting a sample trucking company marketing plan template backed up by actionable guerrilla marketing ideas for trucking businesses. So let’s proceed to the business planning section.

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A Sample Trucking Company Business Plan Template

1. industry overview.

The trucking industry plays a very important role in the economy of the world; they provide essential services to the united states economy by transporting large quantities of raw materials, machines, equipment, dirt, rocks, building materials, and finished goods over land—typically from manufacturing plants to retail distribution centers and from warehouses to construction sites.

As matter of fact, heavy duty trucks are indispensable in the construction industry. The trucking industry is responsible for the majority of freight movement over land, and is a major stakeholder in the manufacturing, transportation, and warehousing industries in the United States of America and in other parts of the world.

In the United States, Large trucks and buses drivers require a commercial driver’s license (CDL) before they can be permitted to operate. The activities in the trucking industry is regulated by the United States Department of Transportation (USDOT), the Federal Motor Carrier Safety Administration (FMCSA) and the Federal Highway Administration (FHWA).

They ensure that drivers and trucking companies adhere to safety rules and regulations and also that potential truck drivers undergo special training on how to handle large vehicle before applying and obtaining their commercial driver’s license (CDL).

Statistics has it that food and food products, lumber or wood products, as well as petroleum or coal account for 34.8 percent of truck traffic in the United States and by volume, clay, glass, concrete and stone, farm products, as well as petroleum and coal account for 35.6 percent of truck traffic.

The advancement in technology in areas such as computers, satellite communication, and the internet, have contributed immensely to the growth of the industry. The advancement in technology is responsible for increase of productivity of trucking companies operations, it helps them effectively monitor their trucks and their drivers and it helps driver save time and effort.

The trucking industry is not restricted to trailers or large trucks hauling goods from destination to another via interstate highways, it also involves smaller trucks that helps transport smaller quantity of goods from one destination within a city to another destination within same city.

Trucking business is not only about transporting goods over a long distance. As a matter of fact, in the U.S. about 66 percent of truck tonnage moves distances of 100 miles or less; local and regional hauls account for almost half of all truck revenues and are they are the preferred choice for private carriers.

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 good thing about the industry is that it is open for both big time investors who have the capacity to start the business with fleet of trucks and aspiring entrepreneurs who may one to start with just one truck.

2. Executive Summary

Terry Granville Truck Service Inc. is a trucking company that will be based in 10548 SD Highway 32 Belle Fourche South Dakota.

We will provide daily freight services (trucking services, moving services & supplies, and bulk material sales & supplies) on one skid to full truckloads to and from South Dakota, North Dakota, Southern Illinois; St Louis, Missouri; Southeast Missouri; Evansville, IN; Nashville, Tennessee; Memphis, Tennessee and Chicago land areas et al.

We will also provide cross docking, warehousing, lift gate and specialized van service in South Dakota, North Dakota, Southern Illinois, Southeast Missouri and Western Kentucky.

Terry Granville Truck Service Inc. has been able to secure all relevant licenses and permits to operate throughout the United States and Canada.

We will ensure that we abide by the rules and regulations of the trucking industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL).Our customers and potential customers alike can be rest assured that they will get quality services at competitive rates.

We will go the extra mile to ensure the safety of goods under our care and our customers get value for their money. At Terry Granville Truck Service Inc. our goal is to provide excellent service to our customers and we pride ourselves on the integrity and competence of our company and our employees.

Terry Granville Truck Service Inc. will ensure that all our deliveries are on time and we supersede the expectation of our customers. We will only put trucks that are in top shape on the road, and all our drivers will be trained to be courteous, friendly and to abide by the rules and regulations of the industry.

We will maintain and take proper care of our drivers as well as our trucks and equipment.Terry Granville Truck Service Inc. is a family business; it is owned by Terry Granville and family. Terry Granville is an investor who has an interest in the trucking industry.

The company will be fully financed by Terry Granville and he will be the founding chief operating officer of the company. Terry Granville has a diploma in Transport and Logistics Management and his has over 5 years of experience in the transportation industry.

3. Our Products and Services

Terry Granville Truck Service Inc. is a company that looks forward to deliver excellent services in terms of helping our customers move goods and equipment from one destination to another destination. We want to be known as the trucking company that truly care for her customers. Our business offering are listed below;

• Moving supplies
• All furniture quilt-wrapped for protection
• On-time pickup and delivery
• Home and office movement
• Local and long distance movement
• Heavy duty equipment movement
• Excavators movement
• Bulldozers movement
• Construction equipment movement
• Agricultural equipment movement
• Movement of oil and gas products

4. Our Mission and Vision Statement

• Our Vision is to become one of the preferred choices of individual and organization when it comes to the demand for trucking services in the whole of the United States of America.
• Our mission is to ensure that we build a trucking company that will operate in the whole of the United States of America and Canada; a company that will boast of having some of the best and reliable truck drivers in the whole of the United States of America.

Our Business Structure

Our business structure will be designed in such a way that it can accommodate but full – time employees and part – time / contract staff; those who just want to take some time off to generate additional incomes.

We intend starting the business with a handful of full time employees (drivers and back office staff) and some of the available driving roles fill be handled by qualified contract drivers. Adequate provision and competitive packages has been prepared for all our employees.

For now, we will contract the maintenance of our trucks to service provider. This is because we don’t intend to maintain a very large overhead from the onset. But as soon as the business grow and stabilize, we will assemble our own in – house maintenance team. Below is the business structure and the roles that will be available at Terry Granville Truck Service, Inc.;

• Chief Operating Officer (Owner)

Admin and HR Manager

Transport and Logistics Manager

Business Developer

• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer (Owner):

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for the day to day running of the business
• Responsible for handling high profile clients and deals
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization at regular interval
• Coordinates drivers, vehicles, loads and journeys
• operates IT systems
• negotiates and agrees to contracts
• develops and confirms schedules
• plans for and negotiates technical difficulties
• prepares paperwork for regulatory bodies
• liaises and manages staff
• implements health and safety standards
• Plans routes and load scheduling for multi-drop deliveries.
• Books in deliveries and liaises with customers.
• Allocates and records resources and movements on the transport planning system.
• Ensures all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
• Communicates effectively with clients and responds to their requirements.
• Directs all transportation activities.
• Develops transportation relationships.
• Monitors transport costs.
• Negotiates and bargains transportation prices.
• Deals with the effects of congestion.
• Confronts climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information.
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Commercial Truck Drivers

• Assists in loading and unloading cargo.
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verify delivery instructions
• Reports defects, accidents or violations

Front Desk / Customer’s Service Officer

• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via email and phone calls for the organization
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Going by our vision, our mission and the kind of business we want to set – up, we don’t have any other option than to follow due process. Following due process involves hiring business a consultant to help us conduct SWOT analysis and prepare a trucking company marketing plan for our business.

Terry Granville Truck Service Inc. hired the services of a seasoned business consultant with bias for start – ups in the U.S. to help us conduct a thorough SWOT analysis and to guide us in formulating other business strategies that will help us grow our business and favorable compete in the trucking industry.

As a company, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Terry Granville Truck Services Inc.;

Our areas of strength in U.S include; size advantages, cost advantages, supply chain, customer loyalty and strong reputation amongst domestic industry players.

Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the industry.

• Opportunities:

The opportunities that are available to us as a trucking company in the United States are online market, new services, new technology, and of course the opening of new markets

Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices.

7. MARKET ANALYSIS

• Market Trends

The market trends as it involves the trucking industry especially in the United States and Canada is indeed dynamic and at the same challenging.

But one thing is certain, once a trucking company can gain credibility, it will be much easier for the company to secure permanent deals / contracts with big time merchants and construction companies who are always moving goods and equipment from one part of The United States of America to another part.

No doubt some of the major factors that count positively in this line of business are trust, honesty, good relationship management and of course timely and safe delivery.

8. Our Target Market

Our target market are basically every one (organizations and individual as well who have cause to move things from one location to another location. We cover both short distance (inter states) and long distance (intra states). We are in business to move stuffs and anyone who has stuffs to move within the United States or from the United States to Canada, can contact us.

In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;

• Merchants ( importers, exporters, traders, suppliers, wholesalers, and dealers )
• Manufacturers
• Construction companies
• Corporate organizations
• Small business owners
• The timber industry
• Oil and gas sector

Our competitive advantage

Our major competitive advantage is the vast industry experience and solid reputation of our owner, Terry Granville. Terry Granville Truck Service Inc. no doubt is a new trucking company, which is why we took our time to do a thorough homework before launching the business.

We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good network and excellent relationship management strong management, strong fleet operations, direct access to all Atlantic and Gulf Coast ports, our transportation network serves some of the largest population centers in the U.S., our size advantages, cost advantages, supply chain, customer loyalty and strong reputation amongst domestic industry players.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both individuals who may want to make use of small trucks to transport goods within the city and also big conglomerates who are involved in massive movements of goods and equipment from one part of the U.S. to another part.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Terry Granville Truck Service Inc. will ensure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available sources of income in the trucking industry. Below are the sources we intend exploring to generate income for Terry Granville Truck Service Inc.;

• Movement of timbers

10. Sales Forecast

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet out set target of generating enough income / profits from the first month or operations and grow the business and clientele beyond South Dakota to other states in the U.S. and Canada

We have been able to critically examine the trucking industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in the United States of America.

Below is the sales projection for Terry Granville Truck Service Inc., it is based on the location of our trucking business and our competitive advantage;

• First Fiscal Year-: $300,000
• Second Fiscal Year-: $900,000
• Third Fiscal Year-: $1,500,000

N.B : This projection is done based on what is obtainable in the industry and the nature of services that we will be offering.

• Marketing Strategy and Sales Strategy

Networking is an effective way to begin building your client base and we have plans in place to leverage on all our networks. In view of that, we will look out for gatherings where we can network with captain of industries, entrepreneurs, manufacturers and merchant et al.

As a matter of fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to get our first major deal from them.

At Terry Granville Truck Service Inc. all our employees will be directly or indirectly involved in sales and marketing. We will create provision for our employees to earn commission when they bring in business for the organization. We will also encourage freelancers to work with us; whenever they refer clients to us to will earn a percentage of the deal.

Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. We will work hard to ensure that get repeated business from any business deal we execute and also we will encourage our customers to help us refer their friends to us. Part of our strategy is to reward loyal customers and to leverage on word of mouth marketing from satisfied customers.

Over and above, we have perfected strategies to network with people who are likely to refer business our way. In summary, Terry Granville Truck Service Inc. will adopt the following sales and marketing strategies in sourcing for clients for our business;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the construction industry, manufacturing industry, oil and gas industry, timber merchant et al.
• Promptness in bidding for contracts
• Advertise our business in haulage magazines, newspapers, TV stations, and radio stations et al
• List our business on yellow pages
• Attend expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver quality services
• Leverage on the internet to promote our business
• Direct marketing
• Word of mouth (referral marketing)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street they are operating must be ready and willing to utilize every available means ( conventional and non – conventional means ) to advertise and promote the business. We intend growing our business beyond South Dakota which is why we have perfected plans to build our brand via every available means.

Below are the platforms Terry Granville Truck Service Inc. intend leveraging on to promote and advertise her trucking business;

• Place adverts on both print and electronic media platforms
• Sponsor relevant TV shows
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in targeted areas from time to time
• Attend chambers of commerce meetings with the aim of networking and introducing our business.

12. Our Pricing Strategy

Terry Granville Truck Service Inc. has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of cargo transported. We have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.

We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporations means that we will have different price range for different category of clients. As the business grow, we will continue to review our pricing system to accommodate a wide range of clientele.

• Payment Options

Our payment policy will be inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Here are the payment options that Terry Granville Truck Service Inc. will make available to her clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients pay us without any difficulty. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash.

13. Startup Expenditure (Budget)

• The Total Fee for incorporating the Business in South Dakota – $750 .
• The budget for Liability insurance, permits and license – $2,500
• The Amount needed to acquire a suitable Office facility with enough parking space for our trucks in South Dakota for 6 months (Re – Construction of the facility inclusive) – $40,000 .
• The amount required to finance the purchase of the first set of trucks – $800,000
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The Cost of Launching our official Website: $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500

Going by the report from our market research and feasibility studies , we will need about $1M to set up a trucking business in South Dakota.

Generating Funding / Startup Capital for Terry Granville Truck Service Inc

Terry Granville Truck Service Inc. is set to start as a private business that will be solely owned by Mr. Terry Granville and family. He will be the sole financial of the company but may likely welcome other business partners when need for expansion arises. These are the areas we intend generating our start – up capital for our business;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings – $150,000 and soft loan from family members – $50,000) and we are at the final stages of obtaining a loan facility of $800,000 from our bank. All the papers and document has been signed and submitted.

14. Sustainability and Expansion Strategy

Terry Granville Truck Service Inc. is a business that was established with the aim of covering the whole of the United States of America and Canada, we have invested a whole lot of money in the business and we would not want to see our investment go down the drain which is why we hired a core professional to help us put strategies and structure in place that will keep the business growing.

Part of the sustainability and expansion strategy that we have adopted is the continuous training and empowerment of our workforce (both full-time staff and freelancers working for us) so as to provide them with the capacity to perform effectively in the highly competitive trucking / haulage industry in the United States of America.

In other to be in business for a long time, we will not in any way comprise our integrity and trust and we will continue to surpass the expectation of our customers.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Acquiring of trucks and relevant equipment: In progress
• Renting of Office Facility in South Dakota: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees and drivers: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant organizations and chambers of commerce): Completed

Home » Transportation » Trucking Company

A Sample Trucking Company Business Plan Template

A trucking company is a company that is involved in transporting large quantities of raw materials, and finished goods over land—typically from manufacturing plants to retail distribution centers. The trucking industry hauled 72.5 percent of all freight transported in the United States in 2019, equating to 11.84 billion tons.

The trucking industry was a $791.7 billion industry in that same year, representing 80.4 percent of the nation’s freight bill. Available data shows that the industry is currently (2022) worth over $67.3 billion in the United States of America.

As of May 2015, over 90.0 percent of companies in the United States long-distance freight trucking industry are owner-operators. Therefore, even the top corporate operators only hold a small share of the total market.

According to the industry market research firm IBISWorld, J.B. Hunt Transport Services holds an estimated 2.5 percent market share, YRC Worldwide holds 1.8 percent, FedEx holds 1.6 percent, United Parcel Service of America owns 1.5 percent, and Con-way holds 1.4 percent.

Steps on How to Write a Trucking Company Business Plan

Executive summary.

Benny Blanco© Trucking Company, Inc. is a licensed trucking company that will be based in Springfield, Illinois. They focus on special services that include; oversized, rare, and unusual commercial and military cargo, as well as the planning, coordination, and transportation of hazardous nuclear waste from source to destination.

Benny Blanco© Trucking Company, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States and Canada. We will ensure that we abide by the rules and regulations guiding the trucking industry and we will only hire experienced and qualified drivers with valid commercial driver’s licenses (CDL) to handle our trucks.

Benny Blanco is the founder and CEO of Benny Blanco© Trucking Company, Inc.

Company Profile

A. our products and services.

Benny Blanco© Trucking Company, Inc. will be involved in: Transporting large quantities of raw materials and finished goods over land—typically from manufacturing plants to retail distribution centers and also from seaports to warehouses et al.

b. Nature of the Business

Our trucking company will operate the business-to-consumer and business-to-business model.

c. The Industry

Benny Blanco© Trucking Company, Inc. will operate in the trucking industry.

d. Mission Statement

Our mission is to be at the forefront of our industry and to make sure we build a successful trucking company that will operate in the United States of America and Canada.

e. Vision Statement

Our vision of to be listed among the top ten trucking companies in the whole of North America.

f. Our Tagline (Slogan)

Benny Blanco© Trucking Company, Inc. – Your Trusted, Fast, and Highly Secured Trucking Company!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Benny Blanco© Trucking Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Chief Operating Officer (Owner)
• Admin and HR Manager
• Transport and Logistics Manager
• Marketing and Sales Executive (Business Developer)
• Truck and Van Drivers
• Material Handlers/Yard Spotters/Forklifts Operators
• Customer Services Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

• Benny Blanco (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Moses Selah (Board Member) 18 Percent Shares
• Joe Toddler (Board Member) 10 Percent Shares
• Cain Dickson (Board Member) 10 Percent Shares
• Isabella Winston (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal location for a trucking company
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Large storage facility
• Excellent customer testimonials
• Reliable and efficient trucks and vans
• Access to reliable trucking and logistics software.

b. Weakness

• Financial Constraints
• No structure for our maintenance and servicing team (will be contracting the servicing and maintenance of the trucks and vans for a period of a time)
• A new business that will be competing with well-established trucking companies and also haulage and trucking companies
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• A rise in existing construction, manufacturing, and shipping activities will increase demand for trucking services
• Online market, new services, new technology, and of course the opening of new markets
• Increase in the number of families moving from one apartment to another
• Increase in the movement of goods from one location to another
• Increase in production activities and warehousing.

i. How Big is the Industry?

The trucking industry is very big in the United States of America. The industry is responsible for most of the overland freight movement in the United States, with the market worth 732.3 billion U.S. dollars in 2020. At that time, there were over 902,000 truck drivers employed in the U.S., which is less than the industry requires.

ii. Is the Industry Growing or Declining?

Although the trucking industry declined in 2020, the industry is currently experiencing growth. Available data shows that steady wage expenses and increasing prices of fuel amid the low demand during the pandemic were responsible for reducing industry profitability.

Revenue in the trucking industry dropped 0.7 percent in 2020 as a result of the COVID-19 pandemic. The good news is that as the economy rebounds and moves are rebooked, the industry is expected to grow.

The industry was projected to record 5.4 percent revenue growth in 2023 and this is expected to outweigh the declines experienced earlier in the period, including 2020. Because the industry was deemed an essential service, operators have been able to maintain operations during most of the pandemic.

iii. What are the Future Trends in the Industry

The trucking industry is changing, and players in the industry are improvising. No doubt, technology (software apps, dashboard cameras, and electric trucking) and climate change (people moving either from cooler to hotter regions or hotter to moderate regions) will change the landscape of the trucking industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there are no existing niches when it comes to a trucking company, but a trucking company may decide to specialize in transporting certain types of goods.

v. Can You Sell a Franchise of your Business in the Future?

Benny Blanco© Trucking Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving trucking markets in the United States of America.

• The arrival of new trucking companies within our market space
• Unfavorable government policy and regulations.
• Steady wage expenses and increasing prices of fuel amid the low demand during the pandemic will reduce industry profitability.
• Economic uncertainty
• Liability problems (Financing of trucks and vans that are bound to depreciate)
• The transport department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.

i. Who are the Major Competitors?

• UPS Freight
• FedEx Freight
• YRC Worldwide
• Swift Transportation
• Schneider National
• Landstar System
• XPO Logistics
• Old Dominion Freight Line
• MVSN Trucking
• PLS Logistics Services
• Wynne Transport Service
• DVL Express Inc
• Independent Landstar Agent
• Shelton Trucking
• JetEx Logistics
• ATC Trucking
• Puma Logistics
• Diamond State Trucking.

ii. Is There a Franchise for the Trucking Business? If YES, List them and their cost

Yes, there are franchise opportunities for the trucking business. Here are they;

• Two Men and a Truck Int’l. Inc. (Initial Investment – $100,000 – $585,000)
• Zippy Shell Trucking (Initial Investment – $657,450 – $1,219,830)
• BlueGrace Logistics
• Craters & Freighters
• Worldwide Express
• United Shipping, Inc.
• SUPPLY POINTe
• United Charis Transport LLC
• Unishippers Global Logistics LLC
• AIT Freight Systems.

iii. Are There Policies, Regulations, or Zoning Laws Affecting the Trucking business?

Yes, there are county or state regulations or zoning laws for a trucking company, and players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.

Please note that trucks are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so. Driving large trucks and buses requires a commercial driver’s license (CDL). Obtaining a CDL requires extra education and training on how to handle such a large vehicle.

Drivers of commercial motor vehicles (CMVs) must adhere to the hours of service, which are regulations governing the driving hours of commercial drivers. Drivers must be at least 21 years old to drive on the interstates, with efforts being made to reduce the age to 18.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises of adults above 18 years old who have the finance to do business with us.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we are ready to do business with.

iii. Income Level

There is no cap on the income level of those we will help transport their goods or properties.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will transport their goods or properties.

v. Language

There is no restriction when it comes to the language spoken by the people we will transport their goods or properties.

vi. Geographical Location

Anybody from any geographical location will be welcome to do business with our company.

vii. Lifestyle

Benny Blanco© Trucking Company, Inc. will not restrict any client from doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Deliberately Brand All Our Vans and Trucks.
• Tap Into Text Marketing.
• Make Use of Billboards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the manufacturing, shipping, and construction industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), and referral (also known as word-of-mouth marketing).

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Benny Blanco© Trucking Company, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. All our pricing strategies will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the production sector and the construction industry, and freelancers to help refer clients to us.

Benny Blanco© Trucking Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, so we can have a visible, in-demand service.

b. Inventory Strategy

The fact that we will need loading crates, lubricants, and spare parts means that Benny Blanco© Trucking Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Benny Blanco© Trucking Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At Benny Blanco© Trucking Company, Inc., we transport goods from one location to another hence the nature of our offerings does not accommodate a return policy, but we guarantee our customers of the safe delivery of the goods under our care.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients. We will work with effective CRM software to be able to achieve this. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable the firm to boost our trucking service offerings and support revenue growth.

a. What Happens During a Typical Day at a Trucking Business?

• The business is open for the day’s work
• The vans and trucks are washed, cleaned and ready for transporting goods and properties
• Customer’s requests are taken and they are scheduled or attended to
• Schedule maintenance of trucks and vans is carried out
• Marketing/website upkeep
• Administrative duties
• The business is closed for the day.

b. Production Process

There is no production process when it comes to the trucking business.

c. Service Procedure

The service procedure for a trucking company starts with a customer requesting the transportation of his or her goods or properties from one location to another or from one storage facility, warehouse, or business premises to another. Once the request is gotten, it will be processed and a suitable truck or van and staff are assigned to carry out the job.

d. The Supply Chain

Benny Blanco© Trucking Company, Inc. will rely on key players in the manufacturing and construction industry to refer business deals to us. So also, we have been able to establish a business relationship with wholesale supplies of crates, lubricants, spare parts et al.

e. Sources of Income

Benny Blanco© Trucking Company, Inc. makes money from;

• Transporting large quantities of raw materials, and finished goods over land—typically from manufacturing plants to retail distribution centers and also from seaports to warehouses et al.
• Sale of franchises.

Financial Plan

A. amount needed to start your trucking company.

Benny Blanco© Trucking Company, Inc. would need an estimate of $1.2 million to successfully set up our trucking company in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $200,000.
• Other start-up expenses like commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $100,000
• Start-up Inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $80,000
• Purchase of Trucks and Vans: $500,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Benny Blanco© Trucking Company, Inc. will not build a new facility for our trucking company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Trucking Company?

• Gas and lubricants
• Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
• Salaries of employees
• Trucks and vans maintenance
• Marketing costs

e. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – $68,000 Per Year
• Admin and HR Manager – $48,000 Per Year
• Transport and Logistics Manager $48,000 Per Year
• Marketing and Sales Executive (Business Developer) – $42,000 Per Year
• Accountant $38,000 Per Year
• Truck and Van Drivers – $36,800 Per Year
• Material Handlers / Yard Spotters / Forklifts Operators – $28,000 Per Year
• Customer Service Officer (Receptionist) – $26,100 Per Year
• Security Guard -$24,000 Per Year

f. How Do You Get Funding to Start a Trucking Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your service.

Most trucking businesses charge an hourly rate that generally includes a moving truck, all the equipment, miscellaneous materials, and the movers. The more loaders and offloaders or trucks needed for your specific move, the higher the hourly rate will be. For example, a truck and 2 movers may cost $120 per hour. We will follow the industry’s standard.

b. Sales Forecast?

• First Fiscal Year (FY1): $450,000
• Second Fiscal Year (FY2): $750,000
• Third Fiscal Year (FY3): $1.3 million

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $150,000
• Second Fiscal Year (FY2) (Profit After Tax): $350,000
• Third Fiscal Year (FY3) (Profit After Tax): $600,000

d. Profit Margin of a Trucking company 

The ideal profit margin we hope to make at Benny Blanco© Trucking Company, Inc. will be between 16 and 20 percent on each job carried out irrespective of the distance covered.

Growth Plan

A. how do you intend to grow and expand .

Benny Blanco© Trucking Company, Inc. will grow our trucking company by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

Benny Blanco© Trucking Company, Inc. plans to expand to Boise – Idaho, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Montpelier, Vermont.

We intend to expand to these locations because statistics show that the cities listed above have the most thriving trucking market in the United States.

Of the states that have witnessed the largest net gains in new residents, Idaho ranks near the top at 84.3 percent net gain, followed by Montana at 82.3 percent and Vermont at 64.29 percent. The states with the busiest interstate routes include California to Texas, New York to Florida, and California to Washington.

The founder of Benny Blanco© Trucking Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

More on Trucking Company

How to Write a Trucking Business Plan

Unless you have rich relatives willing to finance your trucking business with no questions asked, it’s in your best interest to write a business plan to aid you when approaching lenders, investors or partners to maximize your chance of getting funding assistance. A comprehensive, detailed and properly structured trucking business plan can help you get the financing you need to purchase trucks, truck equipment and other necessities. But more importantly, it also provides a critical road map of practical and logistical steps you’ll take when starting a trucking business.

What to Include in a Trucking Business Plan

A trucking business plan should contain much of the same information as any other type of business plan, regardless of the product or service the business provides. According to the U.S. Small Business Administration (SBA), a good business plan “guides you through each stage of starting and managing your business … [including] how to structure, run and grow your new business.” For truckers, the business plan should include industry-specific information that displays a thorough knowledge of what it takes to be competitive and profitable, according to the Owner-Operator Independent Drivers Association (OOIDA), a Missouri-based organization that advocates for the rights of professional truck drivers. The first thing you’ll want to do before sitting down to write your business plan is figure out what potential lenders, financiers or investors need to know to ensure your funding requirements are met. You will need to include some customized information in your business plan that is specific to your company’s individual needs. However, just about all business plans should include the following, according to the SBA:

Executive Summary

Company description, market analysis, sales and marketing, funding request, financial projections.

The details in each section will differ depending on whether you want to be an independent owner-operator or company owner with a fleet of trucks. There will also be variations based on the type of freight you’ll be hauling and where your trucks will be travelling. As a general rule, though, each section should contain detailed and accurate information that lets potential investors or partners know you’ve done your due diligence on the trucking industry and have a clear understanding of what it takes to be successful.

Steps to Take Before Writing a Business Plan for Your Trucking Company

As you begin the process of obtaining financing, it’s a good idea to do as much legwork as possible ahead of time so you'll be ready to hit the ground running when your financing comes through. Linda Finch, a compliance specialist with the OOIDA, recommends taking the following steps:

• Register your business as either a sole proprietorship with a DBA, a Limited Liability Company (LLC) or a corporation.
• Obtain an Employee ID Number (EIN).
• Register your business with the U.S. Department of Transportation to get a federal DOT number. You’ll need to provide information on where you’ll be operating, how many trucks you plan to have and the types of trucks, whether you’ll haul hazardous materials, your vehicle weight, the type of cargo and whether you’ll be a freight forwarder.
• Apply for a Motor Carrier (MC) number. This can be done online via the Federal Motor Carrier Safety Administration (FMCSA).
• File a BOC-3 with the FMCSA. This form “gives motor carriers, brokers and freight forwarders a legal presence in any state where they do business,” according to the RTSFinancial website.
• Obtain truck insurance. Finch recommends $750,000 in primary liability insurance, $100,000 in cargo insurance and $1 million in liability insurance. Primary liability covers damages to people or property caused by your truck or trucks.
• Get your apportioned plates and set up an International Registration Plan, or IRP. According to the IRP website, this is a an agreement between the states, District of Columbia and Canadian provinces that recognizes the registration of commercial motor vehicles registered by other jurisdictions. It provides for “payment of apportioned licensing fees based on the total distance operated in all member jurisdictions.”
• Set up an International Fuel Tax Agreement (IFTA) account, which is another agreement between the U.S. and Canada that simplifies fuel use taxes by interstate carriers, according to the California.gov website.
• Get a Unified Carrier Registration (UCR). This requires carriers and other businesses involved in interstate commerce to pay annual fees based on fleet size to supplement funding for state highway motor carrier registration and safety programs, according to UCR.gov.

Information to Gather for Your Trucking Business Plan

The OOIDA also recommends that truckers educate themselves on industry and financial basics before putting their business plans together. To that end, the OOIDA offers business education training seminars designed to help those who are starting a trucking business. The seminars cover everything from obtaining financing and developing the right financial plan to ensuring that all the right boxes are checked in terms of permits, licensing, taxes and compliance. When developing your business plan, the OOIDA offers the following guidelines:

• Determine what your operating assets are in comparison to your liabilities.
• Learn about managing costs to realistically project your financial success.
• Determine your cost of operations, including the fixed and variable costs.
• Determine how much cash flow you will need in order to succeed.
• Develop realistic operating procedures that reflect the freight you will be hauling and the demographics of where the freight originates and where it is delivered.
• Research the different rates required by different freight lanes, and why they differ.
• Learn where to get freight and when to use or avoid load boards. Load boards, also known as freight marketplaces, are online load and truck freight boards used by owner-operators to find their own loads.
• Educate yourself on spot market versus contract rates. Aborn & Co., a Massachusetts-based provider of managed freight solutions, describes a spot rate as “a one-time single-use rate quote that is valid for a short period of time and is issued to a shipper at or near the time of their shipment.” A contract rate is “a fixed price that is valid for a predetermined period of time and is negotiated with a shipper in advance of any freight moves.”
• Research the advantages and disadvantages of adding fuel surcharges to your pricing.

It’s also important to familiarize yourself with the basics of accounting, regardless of whether you plan to handle this function yourself or contract it out to a third party. Courses are offered online and at community colleges that can help you learn about balance sheets, profit-loss statements and how to calculate total assets and total liabilities.

When you’re ready to start writing your business plan, using a template or outline like the one below will ensure your business plan is properly structured and organized. Read: 4 Signs It’s Time to Get a Business Line of Credit

Trucking Business Plan Template

To expedite the trucking business plan process, utilize a basic business plan template and customize it to your needs. Regardless of your industry, all business plans should cover the same key sections. Here are key sections to include when writing a business plan for a trucking company:

This section should provide a short overview of your company and its plans for the future. Include details on your company mission, financial information and performance and growth plans. Ideally, the executive summary will be no more than one or two pages. Because it’s the first thing someone will read, you need to make a strong impression here. Keep the wording crisp, compelling, precise and to the point. If you don’t catch the reader’s attention and make a strong case for why you’re starting a business and why it will succeed, your business plan might get pushed aside before anyone has a chance to read the rest of it. Related: How to Start Your Own Trucking Company in 10 Steps

The next section of your trucking business plan is the company description. This is where you write about the background of your business and your connection to the trucking industry. You can go into a little more detail here about the company mission, how your business will differ from the rest of the playing field and who’ll make up your client base. Use this section to outline the advantages you have over competitors. For example, you might have expertise in a particular type of freight or market, or a strong network of logistics companies, shippers and freight brokers. Provide details on your experience in the business, including everything from starting out as a truck loader to managing a fleet of truckers. This is also where you’ll provide key facts about your trucking business, such as the owners and management team (if applicable), the year of incorporation, where you’ll operate and the states your business is registered in. You will also provide details on employees (if any), their roles and responsibilities and your plans to hire more as your business grows.

In this section, you’ll outline the services you plan to offer, how you’ll go about executing them and how they will meet market demand. If you are licensed to haul hazardous materials, for example, explain how this is a competitive advantage and what kinds of customers will require your services. Provide information on where you’ll be operating and how that will impact your services. A trucker in the Southeast, for example, would probably haul more construction materials than one in the Northeast. Similarly, a trucker in the prairie states would probably have more seasonal business tied to farming. The services section should also include details about your pricing structure, the types of freight you plan to haul and the industries you’ll serve. Read This: 10 Business Plan Tips for Your Startup

In many respects, the market analysis portion is the most important section of your trucking business plan because it’s where you can wow lenders and investors with your market knowledge. The goal here is to provide the kind of data that shows you’re well-versed in industry trends, market demand, what works well and doesn’t work well in winning new business and the techniques you’ll use to gain an edge over rivals. Your market analysis should include the following information:

• Industry Description and Outlook: Provide data on the size of the trucking industry in both dollars and carriers. Include the number of competitors, the biggest players, the biggest shippers and the annual revenue the industry generates. Also, provide data on how the industry is expected to grow and evolve over the next five to 10 years.
• Target Market: This is where you’ll narrow down the data to your specific niche market (e.g. tankers, refrigerated loads, flatbeds, etc.). Use this space to provide information on the market size in dollars, the number of competitors, the biggest shippers and carriers and the market outlook over the next five to 10 years. Explain how you plan to stand out from the crowd in terms of services, expertise, price and reliability.

Also, provide data on how much market share you expect to carve out during a specified time period and how you plan to grab it. Be specific here. Instead of saying, “We plan to gain share by providing exceptional service,” explain what makes your service exceptional, how it differs from the competition and why customers will migrate to your company.

• Pricing and Margins: Provide details on how you intend to price your services, how those stack up against competitors and what kinds of margins you’ll need to operate on to be profitable.
• Competitor Analysis: Potential lenders and investors will want to know that you have a deep knowledge of the carriers and owner-operators you’ll be competing against. Provide detailed information on competitors, who their main customers are, what they do well, where their weaknesses lie and how you plan to exploit those weaknesses.
• Regulatory Environment: The trucking industry is heavily regulated by the federal government (and some state governments) in terms of the number of hours you can drive in a day and a week, the types of material you can haul and where you can haul them, your vehicle’s fuel emissions and the types of permits and licenses required to operate. Explain the regulations you’ll need to operate under and how you plan to comply with them.

You can touch on operational risks here as well, particularly as they pertain to how pending legislation or regulations could impact your business.

Reaching the right people at the right time and in the right way will be a key element of your trucking business’ success. So will convincing prospects to do business with you once you’ve established a relationship. The sales and marketing section of your business plan is where you outline strategies to find potential customers and sell them on your services.

• Marketing Strategy: Use this section to explain what you’ll do to build and grow your client base. Provide details on how you’ll market your business, whether through traditional advertising on industry websites, through social media, by purchasing phone and email lists, by visiting trade shows or some combination of the above or other means. Be specific about the types of clients your marketing will focus on and where they’re located. Also, provide details about the budget you plan to set aside for marketing.
• Sales Strategy: This section will mainly focus on the type of sales operation you plan to set up. If you plan to hire your own sales force, provide details on how many sales agents you expect to have on staff, what their pay structure will look like and what kind of weekly or monthly sale quotas you’ll implement. If you plan to use an outside third party to handle sales, identify companies you might use, why they’re successful and how much you’ll budget. Also, provide details on the process of finding and calling on prospects.

This section provides details on the financing requirements you’ll need to get your trucking business off the ground and keep it operating at full strength in the future. Be very specific in terms of the amount of money needed over the next several years and how it will be used. For example, you might use it to purchase a truck and truck equipment, pay salaries and bills and grow your client base. Also, specify whether you will require debt or equity, for how long and at what terms.

This is where you’ll disclose your company’s financial details and its ability to meet its fiscal targets. Include basic financial documents such as the balance sheet, profit-loss statement, cash flow statement and sales forecast. You can also include a break-even analysis explaining what you need to sell, either monthly or annually, to cover your costs of doing business. Provide an outlook of how the business is expected to perform over the next five years.

How to Get Financing for Your Trucking Business

Now that you have a trucking business plan in place, where do you go for financing? Banks and other traditional lending institutions are an obvious option, but they often won’t finance brand new businesses. Similarly, the Small Business Administration requires three years of business tax returns, which means startups have limited financing options. One option, however, is Seek Business Capital, which specializes in helping startups and early-stage business obtain the funding they need to get their businesses up and running regardless of time in business. To get pre-qualified for trucking business financing or to just learn more about your options, check out the ultimate guide to truck financing . More From Seek

• 10 Tips for Female Entrepreneurs From Women Who Founded Companies
• Cities With the Most Female Entrepreneurs
• What Startups Should Know About Equipment Financing

Business Loan Resources

• Startup Business Loans
• Small Business Loans
• Equipment Loans
• Truck Financing Options

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General Freight Trucking Business Plan

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Mike's Trucking Service

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

The USA has grown to be prosperous with many huge cities over miles of land. The cities need food and supplies. Long-haul trucks are the fastest and most efficient way to get people food before it spoils and other supplies that people need.

Mike’s Trucking Service is a Dallas, TX-based trucking company that aims to be one of the largest trucking companies in the USA.  Mike’s is initially focusing on the food industry with plans to diversify with new industries served. Mike’s has chosen the trucking industry as the growth prospects are encouraging and stable, with trucking dominating the freight industry in this country.

Mike’s will employ three distinct marketing efforts to raise awareness about the company and generate new customers. The first strategy is the use of promotions. This will focus on press releases and advertising using various different media. The second effort will be the use of incentives. The incentives will be offered to existing customers. The last effort will be social media to reach new and existing customers.

Mike’s Trucking Service is a customer-centric organization looking to become one of the premier trucking companies in the USA.  Profitability is forecasted to occur at month three. Mike’s has conservatively projected sales of $100,000 for year one and $400,000 for year three.

Competition

Although there are major players in each of the commercial carrier market segments, the market remains highly fragmented. According to a Google search of Dallas trucking, there are numerous companies providing different kinds of the trucking services. Major competitors for Mike’s Trucking are those companies who have comparable truck fleets and are also targeting the food industry.

Market research shows that customers in the food industry are price sensitive, and they value on-time deliveries, special handling capabilities, and less-than-truckload orders. Customer referrals and carrier’s reputation are believed to strongly influence the buying decision.

Mike’s Trucking enables someone to lease a truck, of any size, for any project that needs hauling. We will provide this service to the whole of the Dallas area, and hope to expand from this base area within the first five years of operation.

Expectations

The company is raising $165,000 for the purpose of financing equipment purchases to meet a growing demand for its services. The company management has reason to believe that an increased truck fleet will assist the company in its effort to widen its market offering and increase sales.

Financial Highlights by Year

Financing needed.

We will be raising $165,000. There will be $105,000 invested in cash for operations and $40,000 in equipment.

Problem & Solution

Problem worth solving.

The USA has grown to be prosperous with many huge cities over miles of land. The cities need food and supplies. Long-haul trucks are the fastest and most efficient way to get people food before it spoils and other supplies that people need. 

Our Solution

Mike’s will offer both for-hire trucking as well as private carriers. Most of their business will be derived from the private carriers.  For the private carrier segment, both truckload (TL) and less than truckload (LTL) will be offered.  Mike’s services will be especially attractive to the food industry, as participants in that industry typically use referrals, reputation, and customer service as purchasing variables. 

Target Market

Market size & segments.

 Market Segmentation

There are several potential customer segments that we will provide our transportation services to. Major customer segments include the food industry, PC, and semiconductor manufacturers, and retailers. The chart and table below outline the current market size and growth estimates for these customer segments in Texas.

Large established companies in the afore-mentioned segments (especially in the food industry) have their own truck fleets, while smaller players outsource the transportation function. The latter vary in the scale of their operations but have a steady demand for reliable transportation solutions. We will actively solicit such customers.

Target Market Segment Strategy

Mike’s Trucking will focus its marketing budget on a selected industry niche. A narrow-served market focus will help strengthen the company’s reputation of a reliable transportation services provider and will generate favorable referrals.

The major customer segment the company is focusing on is the food industry. Companies in this segment have varying needs, and Mike’s Trucking has already gained valuable experience serving such customers. The company management believes that by increasing its truck fleet it can capture additional clients and provide better service to existing clients.

Current Alternatives

Private carriers

Although private carriers comprise the largest component of the motor carrier industry, financial information isn’t available for them. However, the industry is estimated to provide services valued at some $200 billion annually (or 58% of motor carrier revenues in 1998).

The American Trucking Association (ATA) estimates that there are more than three million trucks operated by private fleets transporting 3.5 billion tons of freight annually.

For-hire carriers

The for-hire category generated $144 billion in 1998, or 42% of the industry total. Of that $144 billion, some $105 billion (73% of the sector’s business) came from truckload shipments, and $39 billion (27%) was from less-than-truckload and package/express delivery.

• Truckload (TL).  The national for-hire truckload segment had total revenues of $65 billion in 1998. The TL sector has historically been mostly privately owned, with the exception of the top ten publicly-owned companies (For this reason, we focused on the LTL sector in this survey). Schneider National Carriers was the largest TL operator, with revenues of $2.8 billion in 1998, followed by J.B. Hunt Transport Services ($1.8 billion), and the Landstar family of truckload carriers ($1.3 billion). Of the 50,000 truckload carriers, perhaps 95% had annual revenues of less than $1 million.
• Less-than-truckload (LTL).  The ATA estimates that the less-than-truckload market garnered $20 billion in 1998. Of this amount, the fast-growing regional segment accounted for slightly more than the national market.

Our Advantages

Our major competitive advantage is the vast industry experience and solid reputation of its owner, Mike Smith. His company is also well known among its clients for going that extra mile in the customer-service department.

Marketing & Sales

Marketing plan.

We market our services as solutions to the many companies requiring cargo to be transported promptly and efficiently. The company’s future marketing plans will be nationwide, emphasizing haulage capabilities for any cargo. The overall marketing plan for services is based on the following fundamentals:

• The segment of the market(s) planned to reach.
• Distribution channels planned to reach market segments: television, radio, sales associates, and mailings.
• The share of the market expected to capture over a fixed period of time.

At the time of this writing, Mike’s Trucking has a lease arrangement with various companies. The company’s pricing is based on miles per thousands of pounds of cargo transported. We will be able to charge competitive rates, as we have minimal overhead compared to our competition. The table below sketches out the pricing structure; for a key to this table please see asterisks at the bottom of the page.

Locations & Facilities

Milestones & Metrics

Key metrics.

• Freight cost per unit shipped
• Outbound freight costs
• Inbound freight costs as percentage of purchases
• Transit time
• Claims as % of freight costs
• maintenance
• driver commissions
• repeat clients

Ownership & Structure

Mike’s Trucking has been in business for one year. We have maintained financial stability during the first year of operation due to the extensive industry experience of our management team.

The company’s management is minimal in order to reduce the overhead. Mike Smith, the company owner, and president makes all executive decisions. At the moment, he also generates most of the sales leads. Joan Rose works as an executive secretary who answers phone inquiries and maintains the customer database. A part-time sales representative will be hired to solicit new business once the company acquires new trucks. In year 2 the administrative staff is planned to increase in order to handle the higher sales volume. In the future, a sales manager will be hired to allow Mr. Smith more time to dedicate himself to company management.

Management Team

The management of Mike’s Trucking is highly experienced and qualified. Mike Smith, president and CEO, has been involved in the trucking industry for 15 years. He is well respected by the trucking professionals with whom he has worked. All administrative functions are performed by Joan Rose, who has worked with Mr. Smith for the last seven years. She possesses extraordinary customer service and database management skills.

The company’s management philosophy is based on responsibility and mutual respect. Mike’s Trucking maintains an environment that stimulates productivity and emphasizes respect for customers and fellow employees. The company structure is linear, which leads the staff responsibilities and decision-making power.

Our truckers on salary earn about $50K per year, which is close to the national average. Our two own-operators earn less because we are building a company. 

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Our assumptions:

• Trucks are the best way to get food and supplies 
• The market will pay the prices needed to support the trucks 

Revenue by Month

Expenses by month, net profit (or loss) by year, sources of funds.

This business is owner operated and owner funded. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

• Describe the different purposes of a business plan
• Describe and develop the components of a brief business plan
• Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

• These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
• Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

• You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
• Would you have started the Laughing Man Foundation?
• What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

• What steps should the new restaurant take to create a new business plan?
• Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

• 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
• 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
• 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
• 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
• 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
• 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
• 54 Foodstart. http://foodstart.com
• 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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Monterrey selected as site for Volvo Truck NA heavy-duty truck plant

Part of a comprehensive effort to increase the strength and flexibility of the group's industrial footprint and supply chain in the Americas

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The Volvo Group will build its new Mexican heavy-duty truck manufacturing plant in Monterrey. The new plant will supplement the group’s US production and provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the US and Canadian markets – as well as Mack truck sales in Mexico and Latin America. 

The plant is expected to be operational in 2026.

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Volvo said Monterrey provides significant logistical efficiencies for supporting sales to the southwestern and western regions of the US, and to Mexico and Latin America.  With its proximity to the US border and well-developed infrastructure, the company said it considers Monterrey an ideal location for building a mature supply and production ecosystem.

Growth in North America is a strategic priority for the Volvo Group, and this investment is part of a comprehensive effort to increase the strength and flexibility of the group’s industrial footprint and supply chain in the region.  This includes an agreement to acquire Commercial Vehicle Group ‘s (CVG) production plant in North Carolina, which produces cabs for Mack’s heavy- and medium-duty trucks, for approximately US$40m (SEK410m). That deal is expected to close in the second half of this year.    

The Monterrey plant represents an investment of approximately US$700m (SEK7.2bn) and will focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands.  Volvo says it will be a complete conventional vehicle assembly facility including cab body-in-white production and paint.

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How to do a MoSCoW Analysis and prioritise requirements in a complex environment?

How to do a MoSCoW Analysis and prioritise requirements effectively in a complex environment?

As a Business Analyst, the question of how to prioritise requirements may seem like an easy question to answer but it can also be wrought with a variety of complications and interesting complexities. Once you have overcome these potential complexities which can come with requirements prioritisation, the most relevant Business Analysis technique to apply is what is known as the MoSCoW Analysis.

This blog article will cover both how to apply the MoSCoW Analysis for requirements prioritisation as well as the considerations and complexities for a Business Analyst to understand about their environment before attempting to prioritise requirements.

So let’s start by talking about some of these complexities that can face a Business Analyst when it comes to requirements prioritisation.

#1: Different perspectives on what is important

#2: Lack of leadership

This factor walks hand in hand with the previous factor (and is most likely the cause of it!) where people have different perspectives on what takes priority. A lack of leadership in the project or initiative team causes confusion around what is important and this is when people will end up providing their own perspective around priorities rather than following business priorities or guidelines. This causes problems in various ways and can put the Business Analyst in a very awkward position. Sometimes this lack of leadership can mean that a stronger or more senior stakeholder might get the requirements prioritised according to his/her team’s preferences due to his/her position and level of influence in the organisation rather than it being the true priorities for the good of the organisation. This leads to requirement priorities which is not necessarily being implemented in the most valuable or efficient manner and consequently reflects badly on the project as a whole.

It is imperative for a Business Analyst to receive clear direction from their project manager or project steering committee about what are the clear business objectives (with their relative priorities outlined) that requirements must deliver against so that the Business Analyst can use these business objective priorities to guide the conversations when requirement prioritisation activities take place.

#3: Not prioritising requirements

In some organisations or projects there is simply no formal and explicit effort undertaken to prioritise requirements at all. This doesn’t mean requirements are not in some sort of priority, it simply means that the requirements are not prioritised in a structured and collaborative way. This type of approach can cause problems when expectations are not managed about what will be delivered by when but it can also be that prioritising the requirements are very clear cut in a particular type of project and hence this informal way works in those circumstances. So although the Business Analyst must be very careful when choosing to not formally go through a requirements prioritisation activity, it can be the most logical and suitable approach for certain types of projects.

#4: Priority levels are not well defined

The last complexity or consideration for the Business Analyst to pay careful attention to before embarking on requirements prioritisation activities are simply the definition of the priority levels and what each priority means. Many organisations have adopted a method or set of priority levels which they are used to using without it necessarily being the most effective way to prioritise.

So now that we have discussed some of the common complexities in projects and organisations that make requirements prioritisation somewhat tricky for the Business Analyst lets now look at the MoSCoW Analysis technique and how best it can be applied.

The MoSCoW Analysis Technique

The MoSCoW Analysis is a very common and effective requirements prioritisation technique because it allows not only for three clear priority levels but also covers the requirements that will end up not being included in the currently delivery or project at all. This works very well because it allows people to explicitly agree the different priorities including the requirements, which will be excluded or referred to a future release.

Let’s have a look at how this prioritization technique works:

MoSCoW is an acronym.

M = Must ‘Must’ level requirements are those requirements which will definitely be included to be delivered. There is no negotiation around whether they will be delivered and are considered mandatory requirements.

S = Should ‘Should’ level requirements are those requirements which should be included if at all possible. If the project have capacity and time and it will not jeopardise any of the “Must” requirements, then these requirements should be delivered or included in whatever the prioritisation is done for.

C = Could The ‘Could’ level requirements are the requirements which could be included if it doesn’t have any impact on any of the ‘Should’ or ‘Must’ requirements.

W = Won’t The ‘Won’t’ level requirements tend to be the requirements which will not be included to be delivered or implemented this time but are requirements that would be favoured for a future delivery or implementation.

In Conclusion

As a final point to make, it is important that although the Business Analyst uses a best practice requirements technique , the outlined complexities listed here should be addressed as much as possible prior to embarking on a requirements prioritization activity to ensure a successful and accurate outcome.

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• MoSCoW Method

What is the MoSCoW Method?

The MoSCoW Method is a prioritization tool that helps professionals in managing their time and effort .

To do so, it proposes to classify the importance of the different characteristics of a product (or a Project) according to their importance .

Its name is an acronym of the 4 Prioritization Categories proposed (adding two “o”):

• M ust Have .
• S hould Have .
• C ould Have .
• W on’t Have .

Four Prioritization Categories

Must Have : Essential Requirements that the product or project must have.

• Critical Features without replacement.

Should Have : Important desired Requirements for the product or project.

• They can be substituted if necessary.

Could Have : Improvements to the product or project.

• There are different alternatives.

Won’t have : Characteristics agreed not to be adopted .

• No one will waste time implementing them.

Let’s see the first example:

MoSCoW Method example

Imagine that you have been hired to create a Website for a Law firm.

They want a professional Site where people can Register and, once inside, track their court cases .

Since you want to deliver the best possible Site on time, you decide to follow the MoSCoW method .

How does it look like?

Must Have :

• Solid programming without any bugs.
• A Solid Register System.
• A Safe and Reliable personal directory.

Should Have :

• A Fast Site.
• An outstanding Design.
• Notifications sent by e-mail.

Could Have :

• Custom menus.
• Suggestions.
• A Blog section with latest news.

Won’t Have :

• Paid content.
• A Public Members section.

As we usually say, this Method may seem obvious.

Then… Why is it important?

Why is the MoSCoW Method important?

Many of professionals end up wasting time , effort and resources on useless task s that are ultimately not essential at all.

Surely you have experienced this situation working in a Team:

• Everyone spends hours modifying a minor feature and, ultimately, the important thing is missing .

That is why this Method is so important:

• Because it concentrates your efforts and forces you to think about what is really important .

As you can imagine, this Tool can be employed in practically all kinds of situations.

But when do we especially recommend it?

When should you use the MoSCoW Method?

We highly recommend to use the MoSCoW Method:

• To put order and prioritization.
• To avoid wasting time with non-essential touch-ups.
• In order to meet the Essential Requirements.
• When the product can have very different characteristics.

Now, let’s see more examples:

MoSCoW Method examples

We have chosen different real examples where the MoSCoW Method can be of great help for the development of certain products.

Let’s begin:

A Wallet - MoSCoW Method example

Let’s imagine that you are developing a wallet .

As you know, wallets are very modular products.

They can have:

• Several or few departments for cards.
• Coin purse… or not.
• 1 or 2 bill slots.

There is not a canonical wallet (one that is the benchmark for all the others).

• That is why you decided to use the MoSCoW Method to develop it.

After some thoughts, you decide that your wallet:

• 2 bill slots.
• 8 compartments for credit cards.
• High resistance materials and sewing.
• Leather as its main material.
• A translucid Credit card compartment.
• A transverse horizontal compartment.
• A striking color on the inside of the bill slots.
• Completely black exterior color.
• One translucid compartment for small photos.
• A Coin purse.
• A Passport compartment.

Making a Cake - MoSCoW Method example

In this example, we’ll imagine that you are preparing a wedding Cake .

• You have a very rigid deadline (the wedding day, of course).

In addition, as you also know, Cakes can have lots of variations.

• We could say they are very modular .

That is why you decide to use the MoSCoW Method.

How does it look?

Well, your Cake:

• White coating.
• Two sugar figurines on top.
• 6 layers of sponge cake inside.
• Belgian chocolate between the layers.
• Decorations on the edges
• Sugar flowers.
• Chocolate balls.
• Scattered sugar pearls.
• Multicolor layers.
• An excessive amount of decoration.
• Fruit flavor.

Designing a Poster - MoSCoW Method example

You are now an artist hired to Design a poster for a Rock concert.

Obviously, this is a Design job with infinite variations possible.

• Also, you have a close deadline to finish it.

No need to mention that you will use the MoSCoW Method.

Finally, the Poster:

• The name of the Main rock band, very prominent.
• Images and colors that best suit their style.
• A typeface that best suits the musical style.
• An illustration related to Rock in the middle.
• The name of the rest of the bands that will play.
• Where and when it will take place.
• Where you can buy the tickets.
• Nearby metro and bus stations.
• The name of the city.
• The maximum capacity of the stadium
• At what time each band will play.

Summarizing

The MoSCoW Method is a prioritization tool that helps professionals in managing their time and effort.

It proposes to classify the importance of the different characteristics of a product in 4 Categories :

• M ust Have.
• S hould Have.
• C ould Have.
• W on’t Have.

Although this Method can be used in all kinds of situations, we highly recommend to use it:

• When working in a team .
• In Design tasks .
• When there is a close deadline .
• With modular products or projects .
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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

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