Hotshot Trucking Business Plan
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Below is a template to help you create each section of your Hotshot Trucking business plan.
Executive Summary
Business Overview
Denver Hotshot Logistics specializes in delivering time-sensitive loads throughout Colorado and beyond. With a total of 40 trucks ranging from light to heavy, Denver Hotshot Logistics can transport a range of loads for small to mid-sized businesses in several industries. Through advanced technology, all transactions and deliveries are monitored to make sure that there are no delays or damages to the goods that are being transported. Every delivery is handled with the highest form of professionalism by a responsible and well-trained crew that strives to provide the best service and experience to every client.
Denver Hotshot Logistics is run by David Henson. David has worked in the transportation industry for 20 years as an operations manager. His experience and in-depth knowledge of the industry and client needs will be invaluable to the company.
Product Offering
Denver Hotshot Logistics has a large fleet of trucks ranging in size and haul capacity. Our diverse fleet can deliver a variety of products and cater to businesses in several industries. Some of the products we can haul include:
- Equipment
- Construction materials
- Machinery
- Farm materials
- Medical equipment
- Miscellaneous goods
Clients can book their delivery online or by calling our business line. For clients who are in a hurry to receive/deliver their equipment, we offer expedited and overnight delivery, depending on the distance.
Customer Focus
Denver Hotshot Logistics will serve small to mid-sized businesses located in Colorado and neighboring states. While we are open to working with several industries, we expect to primarily work with companies in the construction and oil and gas industries.
Management Team
Denver Hotshot Logistics is headed by its founder, David Henson, who graduated from Colorado State University with a degree in Business Administration. Before starting Denver Hotshot Logistics, David Henson worked as an operations manager at a freight logistics company for 20 years, where he learned the ins and outs of the transportation industry. This experience will be the company’s most valuable asset.
David is joined by Jacob Byrne, who worked with him at his previous job. Jacob will serve as the operations manager and oversee the drivers and general operations.
David will also hire an administrative assistant and several drivers to help him launch the business.
Success Factors
Denver Hotshot Logistics is uniquely qualified to succeed for the following reasons:
- Location: Denver Hotshot Logistics’s business is not limited to its location because it transports goods and services across the region. We deliver goods throughout Colorado and its neighboring states.
- Client-oriented service: The company’s priority will be to provide excellent customer service every step of the way. From booking the delivery to receiving the haul, our clients will enjoy the best customer service in the industry from all of our employees.
- Management: David Henson has been extremely successful working in the industry and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers much more sophisticatedly than Denver Hotshot Logistics’ competitors.
- Relationships: David Henson knows many of the local leaders, business managers, and other influencers within the Denver area. With his 20 years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
Download the Hotshot Trucking business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Denver Hotshot Logistics is seeking total funding of $2,000,000 in debt capital to launch. The capital will be used for funding capital expenditures and location build-out, purchasing trucks and equipment, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Headquarters design/build: $200,000
- Equipment: $200,000
- Truck/fleet purchases: $1,000,000
- Six months of overhead expenses (payroll, rent, utilities): $400,000
- Marketing costs: $100,000
- Working capital: $100,000
The following graph below outlines the pro forma financial projections for Denver Hotshot Logistics.
Company Overview
Who is Denver Hotshot Logistics?
Denver Hotshot Logistics specializes in delivering time-sensitive loads throughout Colorado and beyond. With a total of 40 trucks ranging from light to heavy, Denver Hotshot Logistics can transport a range of loads for small to mid-sized businesses in several industries. Through advanced technology, all transactions and deliveries are monitored to make sure that there are no delays or damages to the goods that are being transported. Every delivery is handled with the highest form of professionalism by a responsible and well-trained crew that strives to provide the best service and experience to every client.
Denver Hotshot Logistics is run by David Henson. David has worked in the transportation industry for 20 years as an operations manager. His experience and in-depth knowledge of the industry and client needs will be invaluable to the company.
Denver Hotshot Logistics History
As the number of businesses grows in the U.S., the need for speedy transportation also increases. David Henson recognized this growing demand and decided to start a hotshot trucking business to supply it. After doing considerable market research and planning, David incorporated Denver Hotshot Logistics on January 15th, 2023.
Once incorporated, Denver Hotshot Logistics achieved the following milestones:
- Found a business location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Determined equipment requirements
- Began recruiting key employees
Denver Hotshot Logistics Services
Denver Hotshot Logistics has a large fleet of trucks ranging in size and haul capacity. Our diverse fleet can deliver a variety of products and cater to businesses in several industries. Some of the products we can haul include:
- Equipment
- Construction materials
- Machinery
- Farm materials
- Medical equipment
- Miscellaneous goods
Clients can book their delivery online or by calling our business line. For clients who are in a hurry to receive/deliver their equipment, we offer expedited and overnight delivery, depending on the distance.
Industry Analysis
The hotshot trucking industry’s performance mostly follows the United States economy, so increases in construction activity, oil production, and trade volumes have created high demand for industry services over the past several years. Furthermore, increases in fuel prices positively affect the industry as revenue typically increases in line with fuel costs, as operators are dependent on fuel surcharge revenue. Higher construction and commodity prices have also presented another opportunity for operators.
Denver Hotshot Logistics expects much of its business to come from the construction and oil and gas companies. Therefore, one challenge that may hurt our business is the decreasing demand for oil and gas. Since we expect much of our business to come from this industry, we may lose some business if this industry begins to lose money. However, there is no indication of this occurring in the near future, as many oil companies recorded record profits just last year. Furthermore, as geo-political pressures require increased domestic oil production, demand for hot shot trucking will increase in kind. Still, we aim to diversify our client base in the future to avoid an impact on our profits.
Fortunately, over the next five years, increased construction activity is expected to ensure higher demand for the Hot Shot Trucking industry, as these companies seek to avoid delays and shut-downs amid booming demand.
Since the demand for speeding trucking and delivery is only increasing with time, we expect the hotshot trucking industry to continue to boom for the foreseeable future.
Download the Hotshot Trucking business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Denver Hotshot Logistics will primarily serve businesses within the U.S. that may need local and long-distance transportation services for their products or supplies. We expect most of our clients to be businesses in the construction and oil and gas industries.
The business breakdown in the U.S. is as follows:
Customer Segmentation
We will primarily target the following customer segments:
- Construction businesses
- Mining businesses
- Other small to mid-sized businesses
Competitive Analysis
Direct and Indirect Competitors
Denver Hotshot Logistics will face competition from other companies with similar business profiles. A description of each competitor company is below.
Patriot Group
Patriot Group is an intermediary and asset-based trucking company offering cost-effective supply chain solutions. Patriot Group delivers nonstop throughout the continental United States, serving customers in oil and gas, manufacturing, construction, and agriculture.
Patriot Group operates a fleet of flatbeds, vans, reefers, and removable goosenecks (RGN) to provide hotshot transportation, less than truckload (LTL), over-dimensional/heavy haul, hazmat, and full truckload services.
US Haulers
Established in 2006, US Haulers is a family-owned business that offers shipping for specialized freight, including heavy machinery, industrial, construction, farming, and agriculture equipment. With locations all over the country, the company serves all contiguous 48 states. US Haulers is insured and capable of servicing every load in need of transportation, including heavy hauling, freight shipping, heavy equipment transport, oversize & overweight, crane rigging, trailer transport, and superload and break bulk transport.
Beeline Hotshot & Transportation, LLC
Beeline Hotshot & Transportation is a hotshot trucking and transportation company that offers cost-efficient and dependable hotshot services throughout the Southwest. Established in 2013, the company provides trucks 24/7 that are all equipped with GPS tracking to ensure faster dispatching and customer communication.
Beeline Hotshot & Transportation specializes in hotshot and transporter services for the oil and gas industry. The company’s equipment includes a hotshot truck (bobtail), mini floats, tandem trucks, and a forklift loader.
Download the Hotshot Trucking business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Denver Hotshot Logistics enjoys several advantages over its competitors. These advantages include:
- Location: Denver Hotshot Logistics’s business is not limited to its location because it transports goods and services across the region. We deliver goods throughout Colorado and its neighboring states.
- Client-oriented service: The company’s priority will be to provide excellent customer service every step of the way. From booking the delivery to receiving the haul, our clients will enjoy the best customer service in the industry from all of our employees.
- Management: David Henson has been extremely successful working in the industry and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers much more sophisticatedly than Denver Hotshot Logistics’ competitors.
- Relationships: David Henson knows many of the local leaders, business managers, and other influencers within the Denver area. With his 20 years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
Marketing Plan
Brand & Value Proposition
Denver Hotshot Logistics will offer the following unique value proposition to its clientele:
- Client-focused hot shot trucking services that treat each client individually and get the job done right the first time
- Service built on long-term relationships
- Thorough knowledge of our clients, their industries, and their varying needs
Promotions Strategy
The promotions strategy for Denver Hotshot Logistics is as follows:
Website/SEO
Denver Hotshot Logistics will invest heavily in developing a professional website that displays all of the features and benefits of the company. It will also invest heavily in SEO so the brand’s website will appear at the top of search engine results.
Social Media
Denver Hotshot Logistics will invest heavily in a social media advertising campaign. The marketing manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Publications
Denver Hotshot Logistics will announce its company launch several weeks in advance through publicity pieces in multiple newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets.
Client Referral Programs
Denver Hotshot Logistics will create an aggressive client referral program that gives discounts to existing clients for every successful referral.
Pricing
Denver Hotshot Logistics’s pricing will be moderate, so consumers feel they receive great value when requesting our hotshot trucking services.
Operations Plan
The following will be the operations plan for Denver Hotshot Logistics.
Operation Functions:
- David Henson will be the CEO of Denver Hotshot Logistics. He will oversee all staff and manage client relations. He will also oversee all the executive aspects of the business.
- David is joined by Jacob Byrne. Jacob will serve as the Operations Manager. He will supervise the drivers and manage much of the operations and customer service aspects of the business.
- David will hire an administrative assistant to help with general administration tasks and marketing functions.
- David will also hire multiple drivers and mechanics to deliver clients’ goods, provide customer service, and maintain the fleet.
Download the Hotshot Trucking business plan template (including a customizable financial model) to your computer here <–
Milestones:
The following are a series of steps that lead to our vision of long-term success. Denver Hotshot Logistics expects to achieve the following milestones in the following six months:
3/202X Â Â Â Â Â Â Â Â Â Â Finalize lease agreement
4/202X Â Â Â Â Â Â Â Â Â Â Design and build out Denver Hotshot Logistics
5/202X Â Â Â Â Â Â Â Â Â Â Hire and train initial staff
6/202X Â Â Â Â Â Â Â Â Â Â Kickoff of promotional campaign
7/202X Â Â Â Â Â Â Â Â Â Â Launch Denver Hotshot Logistics
8/202X Â Â Â Â Â Â Â Â Â Â Reach break-even
Management Team
Denver Hotshot Logistics is headed by its founder, David Henson, who graduated from Colorado State University with a degree in Business Administration. Prior to starting Denver Hotshot Logistics, David Henson worked as an operations manager at a freight logistics company for 20 years, where he learned the ins and outs of the transportation industry. This experience will be the company’s most valuable asset.
David is joined by Jacob Byrne, who worked with him at his previous job. Jacob will serve as the operations manager and will oversee the drivers and general operations.
David will also hire an administrative assistant and several drivers to help him launch the business.
Financial Plan
Key Revenue & Costs
Denver Hotshot Logistics’s revenues will come primarily from providing transportation services.
The major costs for the company include fleet maintenance, labor expenses, the lease on the business location, and ongoing marketing expenses.
Funding Requirements and Use of Funds
Denver Hotshot Logistics is seeking total funding of $2,000,000 in debt capital to launch. The capital will be used for funding capital expenditures and location build-out, purchasing trucks and equipment, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Headquarters design/build: $200,000
- Equipment: $200,000
- Truck/fleet purchases: $1,000,000
- Six months of overhead expenses (payroll, rent, utilities): $400,000
- Marketing costs: $100,000
- Working capital: $100,000
Download the Hotshot Trucking business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
Below are the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.
- Number of annual client contracts
- FY 1: 40
- FY 2: 45
- FY 3: 55
- FY 4: 65
- FY 5: 70
- Annual Lease: $50,000
- Number of vehicles in fleet: 40
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Hotshot Trucking Business Plan FAQs
What Is a Hotshot Trucking Business Plan?
A hotshot trucking business plan is a plan to start and/or grow your hotshot trucking business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Hotshot Trucking Businesses?
There are a number of different kinds of hotshot trucking businesses, some examples include: Class 3, Class 4, or Class 5 hotshot trucking business.
How Do You Get Funding for Your Hotshot Trucking Business Plan?
Hotshot Trucking businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Hotshot Trucking Business?
Starting a hotshot 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 Hotshot Trucking Business Plan - The first step in starting a business is to create a detailed hotshot trucking business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hotshot 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 hotshot trucking business is in compliance with local laws.
3. Register Your Hotshot Trucking Business - Once you have chosen a legal structure, the next step is to register your hotshot 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 hotshot 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 Hotshot Trucking Equipment & Supplies - In order to start your hotshot 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 hotshot 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 hotshot trucking business: