General Freight Trucking Business Plan
The USA has many large cities over miles of land. Long-haul trucks are the fastest and most efficient way to deliver food and other supplies to these cities.
Solution
Mike’s Trucking Service is a Dallas, TX-based trucking company aiming to be one of the largest in the USA. Initially focusing on the food industry, Mike’s plans to diversify with new industries served. The trucking industry in the USA offers encouraging and stable growth prospects.
Market
Mike’s will employ three marketing efforts to raise awareness and generate new customers. The first strategy is promotions through press releases and advertising. The second effort is offering incentives to existing customers. The last effort is using social media to reach new and existing customers.
Mike’s Trucking Service is a customer-centric organization aiming to become one of the premier trucking companies in the USA. Profitability is forecasted at month three. Sales projections are $100,000 for year one and $400,000 for year three.
Competition
The market remains highly fragmented despite major players in each commercial carrier segment. There are numerous trucking companies in Dallas providing different services. Major competitors for Mike’s Trucking are companies with comparable truck fleets targeting the food industry.
Customers in the food industry value on-time deliveries, special handling capabilities, and less-than-truckload orders. Customer referrals and carrier reputation strongly influence purchasing decisions.
Why Us?
Mike’s Trucking enables leasing trucks of any size for any project in the Dallas area. Expansion beyond this area is planned within the first five years of operation.
Expectations
Forecast
The company is raising $165,000 to finance equipment purchases. Increased truck fleet will help widen market offering and increase sales.
Financial Highlights by Year
Financing Needed
$165,000 will be raised for $105,000 cash operations investment and $40,000 equipment investment.
Opportunity
Problem & Solution
Long-haul trucks are the fastest and most efficient way to deliver food and supplies in the USA.
Mike’s will offer for-hire trucking and private carriers, with a focus on the food industry. Referrals, reputation, and customer service are important purchasing variables for this industry.
Market Size & Segments
Major customer segments include the food industry, PC and semiconductor manufacturers, and retailers. Large established companies have their own truck fleets, while smaller players outsource transportation. Targeting the food industry will help strengthen reputation and generate referrals.
Competition
Current Alternatives
Private carriers comprise the largest component of the motor carrier industry. The for-hire category generated $144 billion in 1998. The truckload segment had total revenues of $65 billion in 1998.
Our Advantages
Our major competitive advantage is the industry experience and solid reputation of our owner, Mike Smith.
Execution
Marketing & Sales
Our services are marketed as solutions for companies requiring prompt and efficient transportation. Future marketing plans will be nationwide, emphasizing haulage capabilities for any cargo.
Our pricing is based on miles per thousands of pounds of cargo transported. We have minimal overhead compared to our competition and can charge competitive rates.
Operations
Locations & Facilities
Private carriers and truckload and less than truckload offerings will be provided. Mike’s services will be especially attractive to the food industry.
Milestones & Metrics
Key Metrics
Measuring freight costs, transit time, and sales, among other factors.
Company
Overview
Ownership & Structure
Mike’s Trucking has been in business for one year. Management is minimal to reduce overhead. The company’s owner, Mike Smith, makes all executive decisions.
Team
Management Team
Mike Smith, president and CEO, has 15 years of trucking industry experience. Joan Rose works as an executive secretary with valuable customer service and database management skills.
Personnel Table
See table for personnel and salary details.
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