How to Write a Box Truck Business Plan or Template
The box truck industry has grown at an above-average pace over the last several years, which has continually increased demand for box truck business plans, box truck business plan templates, and box truck proforma financial projections.
There are several reasons for the growth rate in the box truck industry. First, the trucking driving industry, especially the box truck driving industry, has been growing exponentially in terms of drivers needed over the last several years. This demand has convinced more and more box truck drivers to enter the marketplace. Further, over-the-road truckers often get burned out relatively quickly due to time away from family and friends. However, truckers do enjoy the paycheck received from driving freight. From this, more and more over-the-road truckers are gravitating toward the box truck driving industry. Regardless of the reason why the box truck industry is growing, entrepreneurs have found it an excellent practice to have an up-to-date box truck business plan ready for usage. From this, our box truck business plan writer has come up with some tips and tricks to use when writing a box truck business plan, business plan template, and pro forma financial projections.
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Executive Summary for a Box Truck Business Plan.
In the executive summary section of a box truck business plan, the business plan writer should briefly discuss important features related to the box truck company, such as the company’s home office, freight transport, advertising strategies, and financial projections. Also, in the executive summary section, the business plan writer should touch on the owner’s experience in the trucking industry as well as logistics software that may be used for dispatch and freight tracking. By touching on the owner's trucking experience, the business plan writer is able to briefly show why the owner is qualified to start or expand operations.
Also, the executive summary section, based on our business plan writer’s experiences, should conclude by stating specifically how much funding is needed to start or expand your box truck fleet. The dollar amount needed should then be followed by a brief explanation as to how the funding will be repaid. For example, if you need $150,000 to purchase a box truck and working capital, then make sure to state the dollar amount explicitly and then describe how the funding will be repaid. A common repayment strategy is to use business cash flows as a source of repayment. This structure, when documented properly, tells a reader how much funding is needed and how the funding will be repaid. The strategy is short, to the point, and effective.
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Company Information and Location
The company information section for a box truck business plan or box truck business plan template should include important general information about the company, such as the name of the company, office location if there is one, and how many box trucks will be in operations. Further, our box truck business plan writer also recommends discussing the geographic location of where the company will offer freight transportation services. For example, some box truck companies specialize in local deliveries, whereas other box truck companies will provide regional or even long-distance freight transportation. By addressing the service area covered in the information section, the business owner is able to provide the reader with a broad understanding of how the organization will be operating (6/22).
Service Description and Competitive Advantages
The competitive advantage section for a box truck business plan template or a box truck business plan should first start with brainstorming what competitive advantages are best aligned with the organization. For example, our box truck business plan writer has found that some organizations specialize in niche services such as transporting refrigerator goods or running dedicated routes. Other box truck companies may only hire highly qualified drivers. Regardless of your niche or competitive advantages, only list two or three in your competitive advantage section for the business plan. More details on this often lead to a disproportionate weight to the section as compared to other segments of the company information section (6/22).
Target Market for a Box Truck Business Plan or Template
For the most part, the target market for a box truck company is often aligned with the goods or freight transported. To illustrate, a generalist box truck company may consider their target market as small to midsize manufacturers needing regional freight delivered. Further, a specialist box truck operator, such as a refrigerator box truck, may target food wholesalers who need deliveries in a regional area. From this, before writing your target market segments for this business plan, make sure to first fully document and understand the services and freight provided. Once this is done, then an aligned target market may be easily identified.
Industry research for a Box Truck Business Plan
If your organization will use your box trucks for local deliveries, then your industry research section should focus on local freight-hauling statistics. An example of this would include discussions about revenues generated for local deliveries, which in the last 12 months was approximately $63 billion. Also, profit margins for local freight trucking companies are slightly lower as compared to long-distance add approximately 6.7% profit margins. Finally, there are over 265,000 local freight trucking companies providing services throughout the US. These are just some strategies for researching box truck industry statistics.
Owner and Management Section
The owner and management section of the box truck business plan or template should first start with the owner’s experience in truck driving. Experience may include truck driving schools, training for logistics software, hands-on work experience, and so forth. By showing significant experience with truck driving, especially box truck driving, the business owner is able to set a foundation to justify starting or expanding their company. Once this foundation is set, then potential or current box truck business owners should then discuss supporting educational accolades such as business degrees, software certifications, and so on. From the support, box truck business owners are able to further round out their experiences in managing and operating this type of business.
Funding Request for a Box Truck Business Plan
The funding request section 4 box truck business plan should first start with explicitly stating the dollar amount needed to expand box trucking operations or the dollar amount needed to start a box truck company. Once the dollar amount for starting the organization is identified, then break out specific categories as to how your funding will be spent. Popular box truck categories may include box truck purchase, additional equipment needed for the box truck such as a liftgate, hand tools for box truck maintenance, and 2 to 4 months of working capital to ensure financial viability. By following this structure for a funding request, the business owner is able to show a specific dollar amount needed to start or expand operations. Further, the structure offers flexibility in how to spend the specific dollar amount needed. In other words, the structure shows decisiveness yet allows for flexibility in startup activities.
Financials and Financial Projections for a Box Truck Business Plan
The financial projections segment for the box truck business plan should start with identifying how many miles will be driven on average daily. In most instances, miles driven may range from 200 to over 500 miles per day. Next, box truck business owners need to then determine what to anticipate the average per-mile rate charged to customers. With this done, box truck business plan writers should then determine how many days will the box truck be operated. Once this information is compiled, then finding out the daily revenues is quite straightforward. Just multiply the average number of miles driven by the expected per mile rate charge. Further, in some instances, box truck operators will also charge a delivery fee. If this is the case, then the number of deliveries should be estimated and the average delivery price calculated. Once the revenues are calculated, then box truck business owners can then determine their fixed costs as well as a variable costs. Once the fixed and variable costs are estimated, just deduct these costs from your revenues and create a financial model that allows for changing the variables. Once these processes are complete, the business owner can then utilize growth rates to determine their financial projections for the next 12 months as well as the next five years.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author
Owner of: Quality Business Plan, and Quality Business Consultant.