Do you need help starting a haulage company? If YES, here is a sample haulage business plan template.
The services sector of the economy is diverse. This contributes immensely to the growth of every economy. This article will focus on one of the sub-sectors of the services industry; the haulage industry.
Without the transportation of these goods to wholesalers for onward distribution, businesses will eventually close shop.
HAULAGE COMPANY BUSINESS PLAN GUIDE
Haulage Business is very vital to the survival of not just businesses but for any economy that wants to witness growth.
As a result, the Haulage business has become big business in many parts of the world.
Daily, large volumes of industrial raw materials, light and heavy equipment, food items, refined petroleum products, consumer goods as clothing, electronics among a vast array of others, vehicles, and heavy-duty machines valued at billions of dollars are being hauled across continents in the world. This is in a bid to meet up with demand.
The consumers of these hauled goods either live close by or thousands of kilometers away. Whatever the case, hauled goods need to be transported to several cities and towns to retailers for onward distribution to consumers.
Here is a sample business plan for starting a haulage company.
Whether you live close to a factory or not, goods produced elsewhere still need to be hauled to your location for easy distribution. This article provides information on the haulage business sector.
Why is there a Boom in the Haulage Industry?
Asides imported goods at ports, factories and industries have to get their finished products transported from their warehouses to distant locations in cities and rural areas. Although there are other sources of transportation of these finished goods, the haulage of goods is still very popular especially in Africa where the infrastructures are still not enough.
Requirements to Start a Haulage Business
To start a successful haulage business, certain vital elements are required and must be put in place for effectiveness.
To start any successful business, profits alone will and cannot sustain a business. But a key ingredient is very necessary to the success of such a business, and that ingredient is passion.
The passion for that business eventually brings about profitability. Without profits, and especially in the teething phase of the business, only passion will keep the business afloat. This is also true in the haulage business sector.
Although it can be very profitable, yet it is fraught with many risks and challenges. Haulage business will eventually be successful for you when your determination to succeed is backed with consistency.
Step 1: Choosing your Desired Niche
In the haulage business sector, there are several niches involved. There is the oil product niche, the processed food niche, the raw materials niche among several others. Knowing which niche you have passion for is very vital to the success of your intending haulage business sector.
The niche you select will determine the types of trucks or vehicles to purchase.
Some vital questions also need to be asked. Such would include whether you will want your trucks to be leased to a trucking company or to put them on hired purchase. If you are to start haulage, will it be long-distance haulage or short haulage?
Will the products you haul be in a solid-state or liquid state? Or will you go into the haulage of both solid and liquid products? How do you intend to go about marketing your automobile outfit?
These are questions that need to be adequately answered before you commit resources into the haulage business sector.
Step 2: Startup Capital
Startup capital is crucial to the materialization of any business idea. For the Haulage business, lots of this capital is required because it is cost-intensive. Also, you have to determine how much of this startup capital is required to have your desired number of fleets. Hence, a business plan is needed to shed light on financial requirements and the affordability of equipment.
Step 3: Financing
There are several financing options for startups from financial institutions, although they come with varying levels of interests accruable to you. There is a second type of financing which involves leasing. Leasing can be in the form of equipment leasing which involves an agreement between an equipment owner and the lessee where a periodic rental fee is paid to the lesser by the lessee.
There is the finance lease which involves the financial houses. This is the most popular. The financial house leases its automobile finance for a periodic rental known as interests which are paid periodically as agreed by both parties. For this lease to be possible, collateral is always demanded by the financial house (in this case banks and business lending houses).
The third type is called the operating lease, which covers the short term line of required equipment such as motor cars, barges, boats, and trailers. This is the most friendly to the lessee as it gives him/her a long time to pay as compared to the other forms of leasing, allowing him/her to reduce financial commitments in terms of assets.
Step 4: Insurance
In a haulage business, insurance is key and vital to business survival. A haulage business will not and cannot function effectively without this key ingredient, as there are always risks involved not just in haulage business but also in all forms of business.
Especially in haulage business, accidents may occur because it involves the movement of goods and services to long or short distances. Insurances cover most of these risks associated with haulage business operations.
Step 5: Employees
The hiring of good employees is a key ingredient needed for business success. Getting the right people with the right mindset who shares your visions and goals is invaluable to any haulage company’s success.
Step 6: Maintenance
Starting a Haulage business requires very serious maintenance. Due to its nature of moving heavy goods to both long and short distance destinations, wear and tear become a natural reality. Ignoring this vital aspect will do maximum damage to business profitability, effectiveness, and customer satisfaction in the long run.
HAULAGE COMPANY BUSINESS PLAN EXAMPLE
The aim of this is to help people interested in starting a haulage company. This haulage company business plan sample includes the most important sections your plan should have.
We have found out that a lot of people are always lost when writing their plans. This is due to a lack of understanding of what should constitute useful information and what shouldn’t. Understanding how the business is organized is a top priority.
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By founding out through a feasibility study, you are armed with sufficient knowledge to put a solid plan in place.
- Executive Summary
AB Logistics is a freight and haulage company that will operate out of Jackson City, Mississippi. Founded by Carl Harper, we will serve a variety of clients across several states. These are businesses spread across the states of Georgia, Illinois, Louisiana, Maine, and Michigan. We will provide timely and efficient haulage services to all our clients in our philosophy of creating a reputation for excellence.
We are growth-focused. Hence in the long term which is within a decade of our operations, we will have a presence in all states in America. This will involve the purchase of additional delivery trucks and equipment as well as hiring the needed workforce etc.
- Our Services
We will provide purely haulage and freight services to businesses non-profit organizations. We will be handling all sorts of transport for goods and services. Non-commercial or individual clients are not left out of our target market.
Our efficient services will be available to them as well.
- Vision Statement
We see tremendous opportunity where others see gloom. Therefore we are growth-driven. To achieve this, we will be committed to building a reputable brand through our timely delivery services. Within 10 years of our operations, we seek to break into the ranks of the top 10 haulage companies in America.
- Mission Statement
At AB Logistics, we have a mission of not only satisfying our clients but to even surpass their expectations.
Achieving this will endear us to these clients and will make us their preferred haulage services provider. This is the surest route to profitability we are desirous of achieving.
The proprietor has saved up the sum of $150,000.00. We will need to add to this by sourcing extra funding. We have therefore decided to sell up to 30% of the shares of our company to investors. This will enable us to raise the sum of $2,000,000.00. The maximum number of investors we will allow to own part of our business is 5. Ownership of shares will have a designated tenure of 10 years. This is non-renewable.
- SWOT Analysis
We seek to know how well we perform in the haulage industry. Therefore we have allowed an independent appraisal of an important index of the health of our business. The results are revealing as shown below and will be used in making the necessary adjustments that will guarantee increased efficiency and reduced risk exposure;
The management team of AB Logistics Haulage Company is its greatest asset. Its proprietor Carl Harper has been in charge of 3 major haulage brands in America during his illustrious career spanning 3 decades. During this time, he has been able to gather significant experience of how the business works.
Other members of our management team have been carefully chosen and include people with a significant understanding of the workings of the haulage industry.
Weakness for us is in our size. For a time, we will be restricted in the type of clients we do business with. We will be unable to handle major haulage for large corporations for immediately. However, it will be only a matter of time and in no distant future before we’ll be able to do so.
There are several opportunities available to us. These include the important networks formed by the proprietor during his active years in the management of major haulage companies. These would be made available to us. Also, we see an opportunity in our customer service.
By providing highly satisfactory services, we will eventually become the preferred haulage services for businesses and individuals.
We are faced with certain threats such as the effects of an economic recession. This will affect our clients significantly which will also extend to our business as there is little or no credit to fuel business operations. Another is a monopoly of the industry by our competitors.
Although there are some levels of legislation that protects businesses against this, there are also sharp practices among some haulage services.
- Sales Projection
To succeed in the provision of haulage services, there has to be demand. We identify this and have decided to measure our chances as a business. We have discovered a great growth potential in sales within the period under review (3-years).
Find a summary of our findings below;
- First Financial Year $500,000.00
- Second Financial Year $1,500,000.00
- Third Financial Year $3,000,000.00
- Target Market
Almost all types of businesses require the movement of goods and services. These may include the distribution of finished goods, transporting agricultural products to the market, the movement of raw materials to factories, and several other types of services. All of these need reliable haulage businesses like ours. We are prepared to provide our cost-effective services to all types of businesses that need them.
- Marketing Strategies
Our marketing team will prepare several effective marketing strategies to sell our services. This will include the oldest form of marketing which is through the word of mouth. Others will include advertisements on radio and TV as well as reaching out to businesses that will need our services. By offering them a better deal, we will be able to win them over.
This haulage company business plan sample has been written for your use. Although this is an imaginary business that doesn’t exist, it has still succeeded in showing you some of the most relevant sections your plan should contain.
We always advise that you do not rush into a business you know little about. Try to get as much information as you can. This will enable you to put up a better plan.