Sample Business Plan on Transportation and Trucking Business Plan

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EXECUTIVE SUMMARY                                                             

 

The Business Concept

 

YourName Enterprises (YourName Enterprises or the Company) is … a company that specializes in transporting various commodities including perishable and non-perishable goods as well as hazardous materials throughout the Continental US. The Company is located in Jacksonville, North Carolina.

 

YourName Enterprises will be providing an accepted service that already has a widespread market. The founder/owner has over twenty-one years of experience and is cleared through Homeland Security to transport hazardous materials. Therefore, the Company will have the experience to transport cargo with excellent service and at a lower price. YourName Enterprises will offer reliable transportation solutions and the ability to do whatever it takes to satisfy its customers.

 

Prime Location

The Company’s location is in an ideal area. It is within easy distance of several large military bases. In addition, the North Carolina and South Carolina manufacturing base is also very large.

 

Good Market Potential

YourName Enterprises will take advantage of several factors to drive its growth. The Company believes there is a growing demand for reliable transportation solutions in the market. The growing demands of the US military are creating opportunities for safe, reliable and trusted cargo transportation providers.

 

The market needs the Company’s services because more reliable and better service is what the majority of competitive companies are lacking. YourName Enterprises will utilize its experience in customer and client service by making timely deliveries, hiring the best drivers and having a competitive pricing structure.  Over time, the Company plans to acquire the best equipment for the job. It currently has three other reliable owner/operators ready to join the team.

 

Profitable Growth

 

YourName Enterprises expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.

 

Projections call for the Company to generate revenues of $95,000 in its first twelve months. YourName Enterprises will achieve strong growth over the next several years, reaching $217,000 in revenues and more than $23,000 of net income by the fifth year.

 

The Opportunity

 

Trucking Industry Growth

 

Through the end of the next decade, the trucking industry is predicted to increase its share of the nation’s freight pool, according to American Trucking Association’s (ATA) new report, “U.S. Freight Transportation Forecast to 2018”. Trucking is expected to continue to dominate the domestic freight movement. 

 

The report stated, “Despite the rough economic times for the freight transportation industry in late 2006 and 2007, the forecast, which reports on the present and future of the entire U.S. freight transportation industry, predicts growth for all modes - but an even greater role for trucking in moving the nation's economy.” ⁸

 

Bill Graves, President and CEO of ATA, told the press “We're an important part of the quality of life in this country. The United States achieved economic greatness with the help of a state-of-the-art transportation system. And trucks will continue to lead the freight landscape."

 

In 2012, ATA projects the trucking industry’s share of total tonnage to rise to 69.7%, and 70% by 2018, as compared to 69% in 2006. Currently, industry growth is being driven by an increase in key truck commodities inherent flexibility and on-time delivery associated with trucking. Overall tonnage in the United States will continue to increase with trucks as the largest mode of freight transport. ¹

 

It goes without saying that America’s economy relies heavily on the trucking industry.  Holly Matheson, staff writer for Ezine, an online business magazine, says, “In fact, the industry is expected to see a 22% increase in jobs by the time 2010 rolls around, yet an estimated 50% increase in freight volume over the next 20 years.” ²

 

U. S. Population and Social Characteristics’ Impact on Trucking

 

The Nation’s 114.8 million households, nearly 8 million business establishments, and 88,000 government units are part of an enormous economy that demands the movement of freight.

 

The U.S. Real Gross Domestic Product (GDP) grew 3.1% in 2006; however, GDP is expected to slow in 2008, particularly in construction, insurance, and finance. Mike O’Connell, executive director of the Commercial Vehicle Training Association (CVTA), says, “Trucking accounts for 7% of the gross national product.”

 

Of all freight tonnage, the trucking industry moves approximately 70%. Chief economist for the American Trucking Association (ATA), Bob Costello said, “We are the dominant mode of transportation for moving goods.”

 

The ATA predicts that 111,000 more drivers will be needed by 2014. Todd Jadin, senior vice president and general manager of Schneider National, the largest truckload carrier in the industry, agrees, telling the press, “The industry will definitely need drivers in the future.” Jim Tower, regional manager for Werner Enterprises, Georgia, a global transportation and logistics company said, “Trucking offers enormous job security. Both my grandfather and father were in the industry, and they knew that they would always be able to put food on the table.”  ^{8, 9}

 

Population is expected, in part, to drive the trucking industry; growth is expected to increase from over 305 million people in mid 2008 to 380 million in 2035, resulting in even greater demands in the future for freight transportation. ⁶