Trucking Business Plan should lay Emphasis on Fleet Size, Nature of Goods

Rapid advances in engineering which has led to construction of modern highways and spectacular bridges, has made traveling by road much less time consuming and convenient. Add to this, the emphasis by respective governments to facilitate trade and commerce, and a business plan for a trucking business starts making a lot of sense.

 

You should have no ambiguity regarding the cost involved in starting such a business. Trucks do not come cheap and purchasing one can set you back by thousands of dollars. You should be very clear right from the start about the road infrastructure in your state, the nature of consignment and the distance your trucks will travel. The weight and volume of shipment and the types of goods transported, also needs due consideration. All these factors will weigh on many other decisions that you will have to make while writing a business plan for a trucking business.

 

Let us look at some of the important details your trucking business plan will have to pay special attention to. They are:

 

Fleet Size
 

Running a trucking business can stretch your finances considerably. Your fleet size will depend upon the capital you have at your command. Nature of goods carried and distance to be traversed are also important factors that will determine your fleet size. A van or a pick-up truck may suffice for short distance and light consignments. However, you will need bigger trucks for longer distances and bigger consignments. It must be born in mind though, that distance and load of goods is dependent on the money available with you.

 

While writing a business plan for a capital intensive business like trucking, you need to pay special attention to your finances. Your proposal should exude a lot of financial confidence. Realistic revenue and rate of return projection should be made. Remember that investors will be looking for a rate of return that is in line with similar industries. You will have to convince them about the soundness of your business model and how it will beat return expectations.

 

Legal Aspects

 

This is a business where you have to follow myriad numbers of rules and procedures. First and foremost, is the issue of licensing - both for your business and your drivers. You need to ensure that your drivers have valid and up to-date licenses. Experience matters a lot in this business; a little background check of the drivers will greatly add to your cause. It will allow you to reject drivers who have been rash, negligent or had a brush with law in the past. 

 

The nature of goods your trucks are willing to carry will also require some other licenses. Trucks carrying inflammable material like oil or hazardous chemicals are required by law, to obtain special permits and driver's license. Some countries also follow strict rules regarding the working hours of drivers and accompanying rest period. To make sure you are not on the wrong side of law, your trucks need to have two drivers for long distance haul. Also, your trucking business plan should make provisions for additional expenditures to be incurred by way of toll tax and registration fees. 

 

This is a business that requires attention to even minutest of details. Also, a proper analysis of the market and the number of players in it will be of great help. Knowing your rivals’ strengths and weaknesses will allow you to plan better and help you in analyzing your own situation.