Cargo transportation business plan: sample with calculations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

One of the most profitable niches among private businesses has always been trucking. A business plan usually promises good profits for entrepreneurs, but many people approach this undertaking with caution. As in any other direction, many pitfalls await entrepreneurs in cargo transportation. Therefore, the business plan should be as close to reality as possible. This article will help beginners get started right and show you how to write a detailed trucking business plan.

Who is this business for?

Most often, cargo transportation is carried out by people who in the past had nothing to do with this area. Even without understanding the nuances of this business, you can build a successful business.

People choose trucking as an investment for several reasons. to the main onesattribute the high potential and good profitability of this business. However, it will be quite difficult for a simple hard worker to survive in this path without a good business plan.

The business plan for cargo transportation allows you to outline a clear path for the implementation and development of the business. In addition, if an entrepreneur does not have enough own funds in order to bring his idea to life, he will have to look for creditors or investors. Neither one nor the other will issue money without reading the business plan.

The conclusion suggests itself that with a good business plan, everyone can open an IP for cargo transportation: a person with and without experience, an entrepreneur with and without initial capital.

Goals

The concept of "cargo transportation" is very broad. Therefore, before embarking on a business plan, it is worth deciding what exactly the company will do. To date, there are several samples of a business plan for cargo transportation, depending on the goals of the company. Common targets for trucking companies include:

• accompanying the relocation of individuals and legal entities;
• provision of personnel for loading and unloading operations;
• movement of international cargo;
• transportation of large cargoes within the country;
• shipping commercial products;
• cargo storage.

Without an accurate idea of what the company plans to do, it is impossible to write a business plan. Cargo transportation in all these directions differs in stateemployees, cost and dimensions of equipment, initial investment and others.

In addition, it is not necessary to stop at one of the presented types of cargo transportation. All directions can be combined with each other. Moreover, the more services a trucking company can offer, the more customers it can acquire.

Marketing is an important part of a business plan

Because trucking is a very profitable business, the level of competition there is just off the charts. A marketing strategy will allow you to promote the company correctly and quickly and, accordingly, achieve the company's profitability as soon as possible.

A good trucking business plan pays special attention to the Marketing section. This is especially true for firms that are engaged in private transportation of goods. Without high-quality and extensive advertising, customers simply will not be able to find the right company. She will simply get lost among the competition.

In advertising, it is worth emphasizing the accuracy and speed of moving goods. Those who have moved at least once know that damage to property during the transportation of things from point A to point B is not uncommon. Therefore, most potential customers will give their preference to companies that guarantee the safety of the cargo.

Advantages over competitors

It is very difficult to develop your own business, especially when a young company is essentially no different from many others. Before writing a business plan for a trucking company, you should consider what itwill be able to suggest to customers that they choose it. The clear benefits that a young firm will be able to attract customers include:

• large car park;
• possibility of serving both individuals and legal entities;
• payment by bank transfer;
• availability of bonuses and discounts;
• possibility of tracking cargo through special services;
• 24/7 operation;
• Additional services other than freight.

If at the initial stage not everyone can boast of an extensive fleet of vehicles, then you should focus on more affordable ways to attract customers. For example, in a business plan for cargo transportation, you can include several additional staff positions that will be engaged in loading and unloading operations. Such an attitude towards customers will make the company a good reputation and bring additional income.

How to advertise a trucking company?

To correctly compose the "Marketing" section, you need to represent the real cost of advertising. The advertising budget depends on the ways in which advertisements are placed and their effectiveness. The more attractive the offer looks, the faster the company will gain first customers.

In order to correctly compose an advertising campaign, you need to clearly represent your target audience. For example, for premium-class transportation, ads in the local newspaper are money thrown away. In order for an advertising campaign to pay off and give good results, you need to work comprehensively on severaldirections.

Methods of advertising freight services:

• distribution of business cards;
• development of the official website of the company;
• contextual advertising on Yandex, Google platforms;
• targeted advertising on social networks;
• groups and communities in social networks;
• Distribution of leaflets, flyers in crowded places.

Word of mouth should also not be excluded from the advertising of a trucking company. Of course, you cannot make such an item in a business plan. But from the moment the company appears on the service market, you should value your reputation. Bad publicity spreads faster than good publicity.

Plan to start a business

If an entrepreneur wants to get a trucking business plan for free, then he will have to write it himself. To do this, you need to understand what this document is.

The business plan contains two parts: theoretical and practical. In the theoretical part, the analysis of the initial data is carried out. Theory should smoothly lead to practical calculations. The practical part contains all the necessary calculations, which, as a result, should answer two main questions: how profitable are investments and what is the payback period for investments.

A person who first opened a business plan should have no questions or doubts after reading it. The matter is that investors and creditors very carefully analyze forthcoming expenses. Therefore, the business plan mustreassure them that they will not lose their investment.

Business registration

For start-up entrepreneurs, it is most appropriate to carry out cargo transportation services as individual entrepreneurs. Firstly, to register an individual entrepreneur, a minimum package of documents is needed, and secondly, the simplest taxation mechanism operates for an individual entrepreneur.

To register an individual entrepreneur, you need to contact the tax office at the place of residence, write an application and provide a passport. Moreover, if an entrepreneur cannot register his business on his own, he can do it through trusted intermediaries.

Before registering a company, you must select the taxation option in advance. There are three available options for sole proprietors today:

• simplified system;
• single tax;
• general system.

If a future entrepreneur cannot make a choice, you can get advice from a tax consultant before registering an individual entrepreneur.

Office space

If you are serious about organizing a business, then, of course, you cannot do without a company office. Of course, you can accept applications without leaving your home, but this can put the director of the company in an awkward situation when the client needs to come in person to sign the necessary documents.

A good example of a trucking business plan will never include the cost of buying a space. The company's office can be rented, and the money that would be needed to purchasesquare meters, you can put in a better direction.

Equipment costs

Equipment costs are the most expensive part of a business plan. It is worth investing most of the available funds here, and savings are inappropriate here. The minimum list of required equipment includes:

• car;
• desktop or laptop;
• office equipment (printer, scanner, etc.);
• landline and mobile phone.

The car will cost the entrepreneur the most. It is not necessary to take huge loans and buy a foreign car. You can draw up a business plan for cargo transportation on the Gazelle, and over time, supplement and improve the fleet.

Financial plan

The financial plan is the practical part of the business plan. There you can find all the necessary calculations. To make it easier to understand how to write a business plan yourself, here is a list of all the necessary calculations.

The financial plan contains:

• calculation of capital investments;
• analysis of cash flow sources;
• estimated revenue calculations;
• current cost calculations;
• calculation of profit and profitability.

Without an economic education, it will be quite difficult to draw up a business plan on your own. In order for the calculations to be correct, you need to correctly compare all the estimated expenses and incomes. The costs are collected in the current cost table. This includes: payroll and deductions, fuel,depreciation, car maintenance, advertising, etc.

Potential revenue is considered as income, based on the production capacity of the company. The number of cars and the number of flights that they can make are taken into account. The business plan does not include possible force majeure circumstances. However, at the end of the business plan, a risk analysis must be carried out, which can give a clear picture of the likely success of the company.