Second-hand day cab trucks are seen as a cost-saving alternative to brand new ones. When maintained properly, these vehicles can still be used for several years, with hundreds of thousands of miles left to run—all these you can enjoy while spending less than you would with a brand new model.
Whether you’re starting a new transport business or expanding your fleet, you can find a day cab truck for sale that can match your requirements. But, of course, this is just one aspect of your perfect business plan for your trucking startup.
In this article, we are covering the rest of the things that have to be included in your business plan.
What Should Your Business Plan Include?
Every successful business starts with a detailed plan. This covers details about how you will get financing, what services you will provide, which industries you will serve, how it will be managed and marketed, what expenses will have to be covered, and what financial outlook is expected, to name a few.
This will serve as a roadmap for your business, guiding you through every step to success. You may want to take a look at some online resources like this guide on how to start a trucking business by Authority Express, for some sample business plans, advice, and information. Below are the detailed factors that your business plan should include:
Start-up Costs
While the costs to start a trucking company significantly vary, it will be determined based on the trucks and equipment you will purchase, the state you will register and operate, and the type of goods you will haul, to name a few.
Ongoing Expenses
In addition to that, you will also have to factor in the costs to operate your business—lease payments, salaries, maintenance and repairs, insurance, and licenses and registrations to name a few. Don’t forget to consider the need for essential components like premium filler tubes to ensure your trucks’ fuel systems run efficiently, reducing the risk of costly repairs or fuel wastage.
Sales & Revenue
Just as you have to keep track of your expenses, you will also have to assess your potential earnings to make sure that your business is profitable. In many cases, payments for deliveries take up to at least one month to complete.
So, bookkeeping is essential in projecting how much money you are earning as well as how much you need within a specific timeframe. All this leads to taxation, which is vital for any business to keep going to avoid any legal issues. You would need to address all kinds of accounts, audit, and tax-related concerns also the appraisals like 409a valuation.
Read also: How to Boost Job Satisfaction & Change Careers
Niche
There are many services you can offer with a fleet or even just a single one. It’s up to you to determine where you could offer the most value and maximize returns. Some businesses you could start with trucks include freight and logistics, leasing, dump trucks, construction supply transport, moving, towing services, etc.
Business Entity
In many cases, the issue of personal liability is a factor that leads business owners to operate as an LLC (limited liability company) or corporation. Unlike a sole proprietorship or partnership, these statutory entities recognize businesses as their own entity, meaning legal and financial separation exists between the business and its owners.
Insurance
In most cases, you are required to get insurance to register your business. This should cover your vehicles, personnel, and clients in the event of accidents, bodily injury, and damage to your vehicles and transport goods.
Of course, all these details wouldn’t make sense if you don’t get your trucks on the road. It’s okay to start small—reach out to businesses that need transport service, whether that be the small businesses in your local area or a large shopping site that hires delivery trucks to fulfill their orders.
Below are the final tips to put the ‘perfect’ in your business plan for your trucking company:
- Attend networking events. Participate in social networking groups to reach out to your target audience. With social distancing measures in place at this time of a pandemic, it may also mean joining Zoom meetings, Facebook groups, and more.
- Provide quality service. Be honest as to what you can and cannot do. By law, truck drivers can only drive a maximum of 10 hours a day. So, don’t over-promise and at the same time, don’t under deliver. The key here is to provide reliable service without compromising your brand and employees.
- Build your client base. With quality service, your initial customers are bound to vouch for your skills and abilities, allowing you to gain new prospects. It explains why it’s okay to bid low at first and just charge more until you have proven your worth.
In summary, your business plan should explain the core objective of your business—what it will do, who is its target market, and what services it will offer. It should also detail your projected startup costs, profit, and of course, a step-by-step guide on how you will accomplish your goals.
With the consistent demand for transport services, a trucking company presents a great opportunity to achieve financial success. With these tips, you’re already one step towards that goal!
Did you find this article informative? If you have any other tips to add, feel free to comment below. Make sure to share this with your online friends, too!
