How to Write a Truck/Freight Broker and Dispatch Business Plan
The freight broker, more commonly known as a truck broker, industry has been growing at an impressive pace over the last several years, which has, in turn, generated impressive demands for truck broker business plans, freight broker business plan templates, and truck broker pro forma financial projections.
There is a multitude of reasons for the wonderful demand for business plans in this industry. For example, right now, there are approximately 60,000 truck driving jobs vacant. The vacancies in the truck driving industry lead to difficulty for manufacturers and shippers to find reliable freight transportation. With the help of freight brokers or truck brokers, this issue is all too often alleviated from the manufacturers’ to-do list. This is just one of many reasons why the freight broker/truck broker industry is growing.
However, competitive pressures in the industry, as well as the need for financing, have driven more organizations to seek out freight broker or truck broker business plans. Because of this elevated demand, our truck broker business plan writer has come up with some tips and tricks to use when writing your own freight broker business plan or pro forma financial projections.
Executive Summary for a Truck (Freight) Broker and Dispatcher Business Plan or Template.
The freight broker/truck broker executive summary of a business plan should start off like a typical business plan summary which means the business plan writer should discuss the organization’s name, a business legal structure such as limited liability company or sole proprietor, and location. Further, our freight broker business plan writer strongly recommends specifically stating niche services that will set the freight broker business apart from other competitors. A common and growing trend for niche services in this industry would be embracing a dispatching aspect for the business. Dispatching is an important complementary service that freight brokers may provide truckers. Not only does the service save truckers time and aggravation for planning out routes, but it also allows freight brokers to charge additional funds for the services.
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Truck (Freight) Broker and Dispatcher
The company information section of a freight/truck broker business plan should again embrace similar structures of other business plans, which would include discussing products and services, location, as well as niche aspects of the organization. However, our freight broker business plan writer strongly recommends that business owners provide in-depth discussions related to the organization’s target market. For some freight brokers, the company may work with a select few importers to provide outstanding services. In other situations, freight brokers may scour load boards and provide jobs to truckers based on logistics or other characteristics. Discussions on this topic will help the reader moderately understand the organization’s strategic maneuvering and positioning.
Popular Services offered by a Truck (Freight) Broker and Dispatcher Company.
Popular services provided by a freight broker/truck broker would include finding truckers for transporting freight for shippers or manufacturers. Other important services may include examining load boards and providing logistics work for owner-operator truckers. Still more, freight brokers/truck brokers are continually trying to provide differentiated services to help set themselves apart from other competitors as well as meet the growing demands for shippers as well as owner-operator drivers. From this, differentiated services provided may include dispatching opportunities, accounting activities, and even arranging health benefits for truckers. When constructing this business plan segment for a freight broker business plan, definitely touch on complementary services as well as the core competencies of the firm.
Marketing Section for a Freight Broker Business Plan or Freight Broker Business Plan Template
Freight brokers all too often utilize traditional marketing strategies that are documented in their business plans. For example, traditional freight broker marketing activities may include advertising in trucking magazines, exploiting word-of-mouth opportunities, and website listings. However, our freight broker business plan writer has found that more and more freight brokers have become innovative in their marketing strategy and have embraced social media marketing. For example, several freight broker companies utilize Facebook community boards for advertising purposes. On these mediums, business owners will post freights that need to be hauled, direct message truckers with freight hauling opportunities, and even post availabilities they have based on their load board access. Regardless of your innovative marketing strategy, make sure to document it, in general, and your well-written business plan, specifically the marketing section (8/22).
The truck broker pro forma financial projection model that our freight broker business plan writer uses is moderately customized from other types of business plans. The reasoning for this is that revenues generated by freight brokers are typically based on per job distribution of freight. Because of this revenue structure, our freight broker business plan writer structures pro forma financial projections based on daily jobs assigned as well as the average rate charge per job. Further, our financial model often includes the broker pay in the financial model variable cost. This all too often drives up the variable cost significantly. In doing the structure, the business owner is able to better align revenues with costs accumulated and still keep a relatively simple financial model.
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