Box Truck Business Plan Template
If you want to start a box truck business or expand your current truck company, you need a business plan.
The following box truck business plan template gives you the key elements to include in a successful box truck business plan. It can be used to create a business plan for a full-service box truck company, moving business, local deliveries business, or any other type of trucking business.
Box Truck Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a box truck company that specializes in delivering goods within the [location] metro area. With a total of [x] box trucks, [Company Name] can transport a range of goods, and works with small to large sized businesses. Timeliness, security, and cost-efficiency are the main driving factors for the success of [Company Name]. Through advanced technology, all transactions and deliveries are monitored to make sure that there are no delays or damages on the goods that are being transported. Every delivery is handled with the highest form of professionalism by a responsible and well-trained crew that strives to provide the best service and experience to every client.
Products Served
[Company Name] will provide local transportation services:
- Last-mile package delivery
- Moving services
- Furniture delivery
- Same-day local delivery
- Miscellaneous Goods
Customer Focus
[Company Name] will primarily serve wholesalers, retailers, and logistics companies throughout the [location] metro area. It will also serve households in the area. The demographics of these customers are as follows:
- 376,596 Households
- 20 Freight Transportation Arrangement businesses
- 807 Wholesale businesses
- 344 Auto and Auto Parts Retailers
- 101 Furniture and Home Furnishing Stores
- 69 Electronics and Appliance Stores
- 143 Building Material and Garden Equipment Stores
- 198 Food and Beverage Stores
- 203 Health and Personal Care Stores
- 284 Clothing Stores
- 109 Sporting Goods, Hobby, and Musical Instruments Stores
- 124 General Merchandise Stores
- 281 Miscellaneous Store Retailers
- 164 Nonstore Retailers
Management Team
[Company Name] is headed by its founder, [Founder’s Name] who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a last-mile delivery company for [x] years, where he was able to learn the ins and outs of the transportation industry. This experience will be the company’s most valuable asset.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- [Company Name] will fill a gap in the transportation industry. Strong growth in online shopping has created a strain on transportation services. Third-party logistics companies need reliable last-mile delivery service providers to help ease the burden.
- In addition, we have surveyed the target market and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- The [location] metro area has a robust business environment with a large number of businesses needing transportation services like ours
- The management team has a track record of success in the box trucking services business.
Financial Highlights
[Company Name] is seeking a total funding of $220,500 of debt capital to open its box trucking business. The capital will be used for funding capital expenditures, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Warehouse lease: $20,500
- Equipment: $100,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $738,000 | $1,716,272 | $2,007,297 | $2,331,125 | $2,694,524 |
| Total Expenses | $639,595 | $1,021,515 | $1,110,127 | $1,190,308 | $1,273,715 |
| EBITDA | $98,405 | $694,757 | $897,169 | $1,140,817 | $1,420,809 |
| Depreciation | $16,560 | $16,560 | $16,560 | $16,560 | $16,560 |
| EBIT | $81,845 | $678,197 | $880,609 | $1,124,257 | $1,404,249 |
| Interest | $18,554 | $16,235 | $13,916 | $11,596 | $9,277 |
| Pre Tax Income | $63,291 | $661,962 | $866,694 | $1,112,661 | $1,394,972 |
| Income Tax Expense | $22,152 | $231,687 | $303,343 | $389,431 | $488,240 |
| Net Income | $41,139 | $430,276 | $563,351 | $723,230 | $906,732 |
II. Company Overview
Who is [Company Name]?
[Company Name] offers last-mile transportation services throughout the [location] metro area. With a total of [x] box trucks, [Company Name] can meet a range of goods transportation needs, and works with small to large sized businesses. Timeliness, security, and cost-efficiency are the main driving factors for the success of [Company Name]. Through advanced technology, all transactions and deliveries are monitored to make sure that there are no delays or damages on the goods that are being transported. Every delivery is handled with the highest form of professionalism by a responsible and well-trained crew that strives to provide the best service and experience to every client.
[Company Name]’s History
As the number of businesses grow in the U.S., the need for speedy transportation also increases. In [year], [Founder’s Name] decided to meet this market need by investing in a small fleet of box trucks to provide last-mile transportation services. In [x] years, [Founder] has grown the business to a fleet of [x] trucks.
Once incorporated, [Company Name] achieved the following milestones:
- Found a business location and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Determined equipment requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] has [x] box trucks available for delivery services. We maintain a fleet of trucks in a range of sizes, suitable for loads up to 10,000 pounds. Each truck is regularly maintained to ensure the clients that their goods will be delivered expediently and in top condition.
[Company Name] will offer these local transportation services:
- Last-mile package delivery
- Moving services
- Furniture delivery
- Same-day local delivery
- Miscellaneous Goods
III. Industry Analysis
The Box Truck industry’s performance is tied to ecommerce, corporate profit and the number of businesses, so increases in online shopping and trade volumes have created high demand for industry services over the past five years. Further, advancements in tracking technology has helped with efficiency and route optimization. High demand for last-mile delivery services also presents another opportunity for operators.
Over the next five years, growth in consumer confidence and greater access to credit is expected to ensure higher demand for the Box Trucking industry, as logistics companies seek to avoid delays amid booming demand.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will primarily serve wholesalers, retailers, and logistics companies throughout the [location] metro area that may need local transportation services for their products or supplies. It will also serve households in the area.
The business breakdown in the [location] metro area is as follows:
| All establishments | |
|---|---|
| Total for all sectors | 7,860,674 |
| Agriculture, forestry, fishing and hunting | 23,363 |
| Mining, quarrying, and oil and gas extraction | 25,732 |
| Utilities | 18,965 |
| Construction | 715,641 |
| Manufacturing | 290,936 |
| Wholesale trade | 409,656 |
| Retail trade | 1,064,449 |
| Transportation and warehousing | 237,308 |
| Information | 153,934 |
| Finance and insurance | 478,224 |
| Real estate and rental and leasing | 406,568 |
| Professional, scientific, and technical services | 914,718 |
| Management of companies and enterprises | 56,363 |
| Administrative and support and waste management and remediation services | 419,844 |
| Educational services | 105,173 |
| Health care and social assistance | 897,635 |
| Arts, entertainment, and recreation | 143,396 |
| Accommodation and food services | 726,167 |
| Other services (except public administration) | 764,840 |
| Industries not classified | 7,762 |
Customer Segmentation
We will primarily target the following customer segments:
- The business-to-consumers segment consists of retail trade, e-commerce trade and other household delivery services such as restaurant delivery. Retailers use industry participants for delivery between stores, suppliers and customers.
- The business-to-business segment consists of the delivery of time-sensitive or confidential materials to clients, counterparties or prospective customers. Demand from this market segment has slowed over as many financial transactions and correspondence are now conducted electronically. Participants in this industry deliver medical records, medical equipment and medical specimens to hospitals, doctors and patients.
- The households segment consists of transportation and delivery of goods between households. Services to this segment include moving house, junk removal, and the like.
V. Competitive Analysis
Direct & Indirect Competitors
Rapid Delivery
Established in 1976, Rapid Delivery is a local, family-owned company specializing in local deliveries. It maintains a fleet of lift-gate straight trucks, box trucks, parcel vans, and cars that can accommodate a range of pickups and deliveries, including airport pickups.
In addition, Rapid Delivery operates a 10,000 square foot warehouse for short term storage, sorting, and distribution.
It serves food distributors (no refrigeration), auto suppliers, and households. Services include receiving, sorting and shipping freight; general freight delivery; and quick special deliveries (i.e. time-sensitive documents).
HeaveHo
Established in 2006, HeaveHo is a last-mile delivery service that specializes in ecommerce deliveries to households. The company contracts with ecommerce companies to sort and deliver packages from its nationwide network of sorting facilities.
HeaveHo optimizes package sorting to ensure on-time delivery, and it allows customers to choose a delivery time slot and/or make changes to destination, time, or delivery specifics. Once a package is delivered, HeaveHo drivers send proof of the delivery to the contracted ecommerce company.
In addition, HeaveHo offers returns. Customers may select a preferred pickup date and time, and HeaveHo will collect the return, without the need for boxes or labels. The company then takes the item(s) back to the sorting center, where it consolidates returns by originating retailer.
Cheetah Transportation
Cheetah Transportation is a delivery service and courier providing fast, reliable and affordable services. The company operates a large network of professional drivers, who are dispatched within minutes of a customer’s request. Cheetah’s driver tracking system offers transparency to its customers, providing real-time route tracking, photo and signature capture, and alerts and notifications.
Services include: 4-hour messenger service; 2-hour delivery rush; nonstop messenger service; and medical / dental routes.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s business is not limited to the city, because it transports goods throughout the metro area.
- Client-oriented service: [Company Name] will have a full-time customer service and sales manager to keep in contact with clients and answer their everyday questions.
- Management: [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: [Founder’s Name] knows many of the local leaders, business managers and other influencers within [location]. With his [x] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Client-focused box trucking services, that treat each client individually and get the job done right the first time
- Service built on long-term relationships
- Thorough knowledge of our clients and their varying needs
Promotions Strategy
[Company Name] expects its target market to be wholesalers, retailers, and logistics companies, as well as households throughout the [location] metro area. [The Company’s] promotions strategy to reach these individuals includes:
Publications
[Company name] will announce its launch several weeks in advance through publicity pieces in multiple newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets.
Client Referral Programs
[Company name] will create an aggressive client referral program that gives discounts to existing clients for every successful referral.
Direct Mail
[Company Name] will blanket relevant businesses with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other enticements for people to use our services.
Online Marketing
[Company Name] will maintain a website and publish on-going promotions, discounts and new feature upgrades on its fleet of trucks. It will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website.
VII. Operations Plan
Functional Roles
[Company Name] will carry out its operations at its headquarters in [Location]. The business location will be used for sales, customer service, and distribution activities. It will house [x] full-time staff.
[Founder’s Name] will work as the primary salesperson for the company’s services, although the assistant manager and administrative assistant may be trained in sales activities over time.
The Company intends to employ [x] admin staff, [x] mechanics for the trucks’ maintenance, [x] drivers, [x] warehouse employees, and [x] security personnel. In order to execute on [Company Name]’s business model, the Company’s employees divide the following roles:
Service Functions
- Assistant Manager
- Mechanics
- Drivers
- Warehouse personnel
- Security personnel
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Delivery scheduling
Milestones
[Company name]’s long term goal is to become the most reliable and cost-efficient box trucking company in the metro area. We seek to be the standard by which other providers are judged.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is headed by its founder, [Founder’s Name] who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a last-mile transportation company for [x] years, where he was able to learn the ins and outs of the transportation industry. This experience will be the company’s most valuable asset.
Hiring Plan
[Founder] will serve as the Manager of [Company Name]. In order to launch, it needs to hire the following personnel:
- Sales and customer service: 3 full-time employees to manage the day to day operations and customer service
- Truck mechanics: 2 on-call experienced mechanics
- Drivers: Skilled, responsible drivers who are willing to work on a moment’s notice
- Warehouse personnel: Detail-oriented picker/packers who are comfortable in a fast-paced environment
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from last-mile transportation services.
The lease and maintenance of the fleet of trucks and labor expenses are the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:
- Salaries
- Truck leases and maintenance
- Lease on business location
Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $220,500 of debt capital to open its box trucking business. The capital will be used for funding capital expenditures, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Warehouse lease: $20,500
- Equipment: $100,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of client contracts | Annually |
|---|---|
| FY 1 | 40 |
| FY 2 | 45 |
| FY 3 | 55 |
| FY 4 | 65 |
| FY 5 | 70 |
| Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
