General Motor Freight Trucking Business Plan


General Motor Freight Trucking Business Plan


Timely Trucking is a new medium- and long-haul dry van trucking business based on Portland, Oregon and founded by veteran entrepreneur Jim Kerrigan. Timely Trucking provides logistics management and freight hauling services for businesses in the Pacific Northwest. Timely Trucking will build a reputation for providing accurate and timely service. The company also has sophisticated Web and Software functionality that allows clients the ability to easily align their business and use Timely Trucking&#8217. The business will be managed by Jim Kerrigan, CEO, and a Chief Operating Officer.

Timely Trucking may be started for approximately $700,000. The investment of Jim Kerrigan as well as some investment by investors partners is significant. The business will be launched with three 18-wheeler trucks and will expand its operations to utilize eight 18-wheelers by the end of its third year, using auto loans to finance this expansion. The business will have a gross margin of 60%. This means that it can make significant profits by the end the third year.

Beyond three years, the business will seek to expand to additional bases of operation in the Northwest and to add trucks with refrigerated and temperature-controlled trailers. This business will be offered for sale to national freight-hauling services that are looking to expand their operations or increase their presence in the Northwest.

Objectives

Timely Trucking aims to provide truck-based distribution services for businesses in the Northwest United States (Washington. Oregon. Idaho. Montana. Wyoming).

Over the first three years of operations, Timely Trucking will seek to meet the following objectives:

  • You can establish bases in Seattle, Spokane and Portland, Cheyenne or Boise, as well as Billings
  • 8 18-wheeler trucks equipped with dry van trailers
  • Hire 10 full-time truck drivers
  • Achieve strong annual revenue based on 1.2 million miles of hauling in the third year

Mission

Timely Trucking is a partner for Northwestern businesses in order to simplify the distribution of goods. Timely Trucking will be able to manage logistics, ensure on-time deliveries, and partner with distribution centers and warehouse businesses in order to reach its goals.

Keys for Success

These are the keys of success in the trucking business:

  1. Robust communication between clients and bases is possible through robust systems
  2. It is important to set delivery times that can be fulfilled (i.e. Setting the right expectations
  3. Hire and retain reliable, safe drivers
  4. Understanding the needs of clients and finding the best distribution solution for them to build long-lasting relationships is key.


General Freight Trucking Business Plan


General Freight Trucking Business Plan


Opportunity

Problem

The USA has become a prosperous country with many large cities spread across miles of land. The cities need food and supplies. Long-haul truck transport is the most efficient and fastest way to get food to people before it spoils.

Solution

Mike&#8217’s Trucking Service, which is located in Dallas TX, is a trucking firm that aims at becoming one of America’s largest trucking companies. Mike&#8217’s will initially focus on the food business, but they plan to expand their services to other industries. Mike&#8217, a trucking company, has chosen this industry due to its stability and encouraging growth. The trucking industry dominates the freight sector in this country.

Market

Mike&#8217s will utilize three distinct marketing strategies to generate new customers and raise awareness of the company. Promoting is the first strategy. This will focus on press releases and advertising using various different media. The second area of effort will be the application of incentives. Existing customers will be eligible for the incentives. The final effort to reach customers will be through social media.

Mike&#8217, Trucking Service is a customer-centric company that aims to be one the most prominent trucking companies within the USA. Profitability is predicted to be achieved in month three. Mike&#8217’s project sales of $100,000 and $400,000 respectively for the next year.

Concurrence

Although there are several major players in each segment of commercial carrier markets, the market is highly fragmented. A Google search for Dallas trucking revealed that there are many companies offering different types of trucking services. Companies with similar truck fleets to Mike’s Trucking are major competitors. They also target the food industry.

Market research has shown that food industry customers are very price-sensitive. They value punctual deliveries, special handling capabilities, and smaller-than-truckload orders. It is believed that customer recommendations and the reputations of carriers can influence buying decisions.

Why Us?

Mike’s Trucking enables someone to lease a truck, of any size, for any project that needs hauling. We offer this service to the entire Dallas area and plan to expand beyond this area within the first five-years of our operation.

Expectations

Forecast

The company raises $165,000 to fund equipment purchases to satisfy growing demand. The company management has reason to believe that an increased truck fleet will assist the company in its effort to widen its market offering and increase sales.

Financial Highlights for the Year

Financing Needed

We will raise $165,000. We will invest $105,000 in cash and $40,000 in equipment.