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)
- Accountant
- 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.
d. Threats
- 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
- B. Hunt
- YRC Worldwide
- Swift Transportation
- Hub Group
- 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
- InXpress
- Intercargo
- 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
- Insurance
- 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.
Exit Plan
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.