Starting a freight or trucking enterprise can be an incredibly rewarding and highly lucrative experience. Over the past twenty years, we have worked extensively with owner-operators, fleet operators, freight brokerage entrepreneurs, freight dispatch companies, hot shot truck operators, and box truck operators. In regards to financing, we have developed these business plans so that they are completely appropriate for all types of financing. Each trucking business plan or freight business plan we develop is created specifically for the needs of each client.
The Process
We take a market research first approach for each business plan. Unlike other industries that generally operate within a specific town or city, trucking and freight enterprise often operate across a wide geographic area or throughout the entirety of the United States. This requires a unique approach to creating a business plan. Most importantly, we focus heavily on the prevailing per-mile trucking fees which are set by the free market. Based on the types of trucks or vans operated, we then apply this per-mile fee to the anticipated number of miles traveled each week.
As part of our comprehensive business plans, we keep track of the underlying costs of energy (diesel and gasoline) when estimating fuel costs on a per mile basis. This provides a clear and accurate picture of the anticipated expenses and profits of your trucking or freight-based enterprise.
Forward Looking
It is no secret that electric vehicles will ultimately become the primary method of transporting freight within the near future. At Human Intelligence Busniess Plans, we remain at the forefront of trends that shape the trucking industry. As electric trucks become more affordable and as the infrastructure necessary to support these types of vehicles becomes more prevalent, we are fully prepared to address the tectonic shift that will occur within the industry. Over the past two years, we have begun to work with enterprises that operate smaller-scale transportation vans that are fully electric. We are fully aware of the necessary calculations that are required to determine the cost of recharging a high-capacity battery and its ability to transport freight over a specific distance.
Beyond this development, we have continually monitor new technologies that assist owner-operators, fleet operators, freight brokerages, and other freight-focused enterprises with better managing their operations which ultimately increases profits.
Financial Modeling
All trucking business plans and freight business plans that we complete include a profit and loss statement, common size income statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios. As noted, we focused heavily on the underlying fuel and payroll costs as these are the two largest expenses.
Marketing
Unique to trucking and freight companies, the necessary marketing is relatively straightforward. Most owner-operators and fleet operators focus on establishing relationships with freight brokerages, using load boards, and conducting direct outreach with companies that have ongoing freight needs to establish dedicated lane relationships. For each trucking business plan that we complete, we focus heavily on these methods for generating revenue.
Other Considerations
From a driver management standpoint, there are numerous considerations that must be taken into account. We are fully aware that freight and trucking companies keep safety as their foremost priority. Most importantly, we are well versed on the regulations that guide the 70-hour driving cycle including the daily maximum of 11 hours of on road truck use accompanied by a 10-hour break for every 14 hours worked (including breaks). In each plan that we complete for long-haul trucking services, we showcase full compliance with FMCSA (Federal Motor Carrier Safety Administration) regulations. The costs of compliance are fully integrated into each business plan that we complete. This includes the costs of onboarding new drivers into your ecosystem through such expenses encompassing verification of CDLs, background checks, and reviews of MVRs (motor vehicle records).
Frequently Asked Questions Regarding Trucking Business Plans
How much does it typically cost to start a trucking business?
This can vary widely depending on a number of factors. For an owner-operator that is acquiring one truck that they will drive, these costs typically range from $50,000 to $125,000 depending on whether or not the truck is brand new. For companies that intend to hire a CDL driver, then these costs can increase to $75,000 to $175,000 per vehicle depending on the underlying working capital needs of the business.
How much does it cost to start a freight brokerage?
Similar to trucking businesses, these costs can vary based on geographic location, the number of freight brokers hired at the onset of operations, and the amount of capital required to onboard clients. Generally, a freight brokerage has startup costs of $30,000 to $100,000 although these costs can be higher in certain instances.
How much does it cost to start a box truck business?
Unlike tractor-trailers, box truck enterprises can be started for $25,000 to $75,000 depending on the underlying cost of the vehicle. We have worked with numerous freight entrepreneurs that have started their companies with box trucks given the lower barriers to entry for establishing these types of businesses.
How much does it cost to start a truck dispatch service?
Truck dispatching services typically have a startup cost range of $10,000 to $50,000 depending on the initial scale and scope of these operations. The startup costs are typically lower as most jurisdictions do not require any specific licensure to operate in this capacity. However, truck dispatch services are fully required to adhere to all FMCSA rules.
How much does it cost to start a hot shot trucking business?
Hot shot trucking companies typically have a startup cost of $50,000 to $125,000 depending on the type of heavy-duty truck that is acquired. Gooseneck trailers typically have a cost of $6,000 to $13,000.
Do I need a CDL to operate a box truck?
In most instances, you do not need a commercial drivers license provided that the GVWR is under 26,000 pounds. As these vehicles are under 26 feet, this is typically not an issue.
What is hot shot trucking?
Hot shot trucking is the use of a heavy-duty pickup truck that is used for transporting freight. Typically, a gooseneck trailer is used to haul merchandise.
Is a CDL required for hot shot trucking?
Generally, a CDL is not required provided that the combined truck and trailer weight does not exceed 26,000 pounds.
Is it better to buy or lease a truck?
There are numerous benefits and downsides to both methods of acquiring a truck. By purchasing a truck, you will benefit from the fact that you will build equity in the vehicle as the underlying financing is paid down. Furthermore, you will benefit from the depreciation that you will be able to deduct on a yearly basis. This will further improve cash flow as this is a non-cash expense. It should be noted that in most instances, you will be required to make a capital injection of 20% of the purchase price. For brand new trucks that range from $100,000 to $200,000 in cost, this can be a significant capital expense.
For leasing, the primary benefit is that the costs of acquiring the truck or transportation van are much lower. While most entrepreneurs will make a capital cost reduction payment, this amount is substantially less than a capital contribution for the acquisition of a new truck. The other downside is that you do not build equity in the vehicle during the time that it is leased. However, the monthly costs are less.
Our Commitment
We are committed to providing you with a comprehensive trucking busniess plan that meets your needs. All of the work that we do is done specifically for the needs of each client with a focus on showcasing the viability and growth of your enterprise.
Please feel free to reach us at any time if you have any questions!