New owner-operators with one to ten trucks and trailers need to create a transportation business plan that reflects their future vision and goals.
Trucking business plan
Your trucking business plan must answer the following questions:
- Where will you operate from?
- Which products will you deliver?
- Do you know the names and addresses of your major competitors?
- Will the competitors compete for certain products?
- How does your business differ from the competitors’?
- How will you compare your services with competition?
This will provide you a detailed evaluation of your competition so that you have a clear picture about how the outlined trucking plan will work. If necessary, you can make adjustments to your plan.
Accurate financial plan
Certain mistakes in your business plan are very likely to limit its effectiveness. Investors or lenders could reject a poorly devised plan. Remember that lenders will scrutinize your financial predictions to the minutest detail. Therefore, it is vital to present straightforward and accurate information. In short, the financial projections need to be realistic. Find more about semi truck financing sample spread sheet on the internet.
Now that you have created a draft of your trucking and financial plan, it becomes necessary to review it from an investors’ or bankers’ point of view. If necessary, you can then make appropriate alterations.
Insurance permits & licenses
You cannot just declare a trucking company opened. There are several legal matters to be addressed beforehand. Besides the general state and federal requirements, there are licenses, tax, and permit regulations applied specifically to different trucking sectors. The requirements will depend on the kind of the trucking company you will run. In addition, a commercial driver license will need to be obtained to operate your vehicle legally.
Commercial vehicles must be purchased and the number of trucks will depend on your starting capital. When selecting commercial vehicles, bear in mind the kind of freight you have planned to carry. For example, transportation of food requires a refrigerated truck, whereas a flatbed truck is appropriate to carry oversized cargo.
How to compete with big guys?
Provide best service
You are small, versatile and have a few clients. Remember to make client feel important and be available and easily approachable for them. Providing extra services is something where huge transportation companies cannot compete with small fleets. You can take advantage of this and create a good relationship with your clients.
Truck load boards
Truck load boards match freight services that help you to find shippers. You can find the kind of shipper you prefer to work with.
Stabilize cash flow
The freight bill payments are done within two months after load deliver. To make a delivery, there are plenty of expenses involved. This does not bother huge transportation companies, but for a small start-up company, instant cash is necessary for fuel and driver charges. If you fail to take this into account, your cash flow is interrupted and you are unable to take on more delivery tasks.
To solve your freight issue, you can consider truck factoring company A freight factoring firm purchases invoices for a small fee. That way you can get your payment immediately without any delays. With your cash flow released, you get a quick access to working capital, which provides you with an opportunity to develop faster.