How to Write a Box Truck Business Plan
The box truck industry has grown at an above-average pace over the last several years. There are several reasons for the growth rate in the box truck industry. To illustrate, box trucks, whether they are 18-foot box trucks or 26-foot box trucks, may be used for over-the-road travel, regional travel, or local deliveries. This versatility is appealing not only for box truck business owners but also for shippers and receivers. In addition, driving a box truck is significantly easier as compared to a 53-foot tractor-trailer. The ease of drive is a popular reason why some truckers want to drive a box truck as compared to a big rig. Regardless of why the box truck industry has grown, the fact of the matter is that the box truck industry is on the rise now and possibly for the foreseeable future.
As the popularity of this industry grows, new entrant competitors, as well as established businesses, may need a well-prepared box truck business plan. From this need, our box truck business plan writer has come up with some tips and tricks that box truck owners may use when preparing their business plans.
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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 transported, advertising strategies, and financial projections. Also, in the executive summary section, the business plan writer should also 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.
The company information section of the box truck company business plan should follow the structure of most business plans, which is to introduce the organization, discuss freight hauled, and outline the benefits of the home office location. However, what is different with the company information section of a box truck company business plan would be the need for examining your proximity to major thoroughfares in the area. Our box truck business plan writer has found that when box truck home offices are in close proximity to major thoroughfares, operating costs tend to be lower, and routing drivers becomes increasingly easier.
Service Description and Competitive Advantages
The service description section for a box truck business plan should focus on freight hauled. For example, if your box truck is refrigerated, then make sure to discuss your niche refrigeration product transportation benefits. Further, if your box truck is a flatbed, make sure to outline how you may transport freight or equipment. Both of these examples would be showing how your organization specializes in niche services. However, a popular box truck strategy is utilizing the truck as a dry van. Dry van box trucks are able to transport a wide array of products. Regardless of whether you are a niche holler or generalist, make sure to describe the type of freight hauled and how your organization will exploit the opportunities aligned.
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.
The owner and management section of the box truck business plan 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 for 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.
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 cost as well as a variable cost. 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