Trucking Business Plan Template

Trucking 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.

Below is a template to help you create each section of your Trucking business plan.

 

Executive Summary

Business Overview

On The Road Trucking (OTRT) is a startup 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 freighting 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 accomodated. 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 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 companies 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:

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

 

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.

 Number of businesses
Total for all sectors205,592
Agriculture, forestry, fishing and hunting27
Utilities73
Construction15,098
Manufacturing5,040
Wholesale trade15,005
Retail trade30,582
Transportation and warehousing5,462
Information5,041
Finance and insurance6,659
Real estate and rental and leasing19,308
Professional, scientific, and technical services27,555
Management of companies and enterprises1,044
Administrative and support and waste management and remediation services8,083
Educational services3,698
Health care and social assistance20,461
Arts, entertainment, and recreation6,196
Accommodation and food services22,132
Other services (except public administration)15,593
Industries not classified233

 

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 description of each competitor company 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 unique value proposition 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.


Pricing

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

 

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, 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. 

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.


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

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


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

 

Trucking Business Plan FAQs

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.

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.

Trucking companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

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