A business plan is the most effective way to explain the stability and goals of your company. Beyond being a roadmap for growth, a business plan outlines your objectives, financial forecasts and operations. All of these are then used to show banks, investors and other potential partners why your company is worth investing in.
Before you start writing your trucking company’s business plan, here’s everything you will need to know.
What Do You Need to Write a Business Plan?
Every business plan is unique, but there is a formula you can follow. There are also several software products available that walk you through creating a business plan and a financial forecast.
Cloud-based software like LivePlan costs as little as $11.66 per month and can help you craft a business plan within a few hours. You can also view sample business plans on the internet, including this gallery of 500 example plans across multiple industries.
According to the U.S. Small Business Administration, most business plans will fall into two categories: a traditional business plan or a lean startup. Both will use a standard structure, but traditional business plans tend to be more detailed while lean startup plans focus on summarizing the most important points. Both are acceptable, but what’s important is that your plan meets your needs while understanding its intended audience.
Why Should You Write a Business Plan?
The process of writing your business plan is valuable because it can help you better understand your industry and your own company. Writing a business plan allows you to step back from day-to-day operations and see the big picture.
Having a business plan and updating it at least once a year can help your company identify and achieve its goals, while answering key questions like:
- What are your company’s strengths in the marketplace?
- How is your company different from competitors?
- Where do you want your company to be in five years?
- How will you grow?
Writing Your Trucking Business Plan
While you can tailor your business plan based on the unique needs of your business, many will share common elements. The following is a simple outline that you can use to build your trucking company’s business plan.
Executive Summary
The executive summary is a one- to two-page overview that introduces your company and its future. It also explains why your company will succeed in meeting its goals. A good executive summary should highlight the following: your company mission, products and services, performance highlights, financial information and long-term plans.
Company Description
This section details the history and background of your business, describes the overall mission of your company and what makes it unique from its competitors. It also contains key facts about your trucking company: the owners, the year it was incorporated, where you conduct business and the states where the company is registered. If you have several employees, this is where you can outline your organizational structure, as well as roles and responsibilities.
Market Analysis
Your market analysis illustrates how well you know your business. It shows your awareness of industry trends, customer needs and how your company plans to capitalize on them. Some topics to include:
- Industry Description and Outlook: How big is your segment of the trucking industry? Who are the major carriers and the biggest shippers?
- Your Target Market: What is your company’s sweet spot? Many companies try to specialize in too many markets. Your company can stand out by narrowing its focus to target markets that generate the greatest returns.
- Distinguishing Characteristics: Explain the critical needs of potential customers and how your company will meet them.
- Size of the Primary Target Market: Provide more detail about your most important market and customers.
- Market Share: How much business does your company expect to gain within a specific time period? Explain your logic behind these projections.
- Pricing and Gross Margin Targets: Define your company’s pricing structure, margins and any possible discounts.
- Competitive Analysis: Show that you have done your homework on your competitors. Describe their strengths and weaknesses.
- Regulatory Restrictions: How have government regulations like Hours of Service and fuel emissions guidelines affected your company? How do you expect future restrictions to have an impact?
Services
Outline the trucking services your company provides and how you are meeting customer needs. For example, a trucking company in Atlanta might explain that it hauls flatbed loads because the southeast has a longer construction season and a large timber industry. Including the customer perspective builds the case that your services are important and in demand.
Sales and Marketing Strategy
Your sales and marketing strategy should explain your tactics for building a loyal customer base and attracting new customers, while also explaining the vision for your sales force and the closing rate of your sales team.
Operational Plan
An operational plan will detail the day-to-day business processes for your company. This should include information about the critical roles within your company and how you’ll handle things like fleet management, logistics, technology and compliance. Use this section to explain how you’ll handle resource management and the execution of daily tasks.
Financial Projections
This section contains financial statements and information that show your company’s ability to meet its goals. Include basic statements like profit and loss, cash flow, your company balance sheet and your sales forecast. You will also need to paint a picture of how your company will perform over the next five years. Make sure that your projections line up with any financing requests you plan to make to help grow your business.