Hotshot Trucking Business Plan
If you want to start a hotshot trucking business or expand your current hotshot trucking business, you need a business plan.
The following hotshot trucking business plan template gives you the key elements to include in a successful hotshot trucking business plan.
Hotshot Trucking Business Plan Example
I. Executive Summary
Business Overview
[Company Name] specializes in delivering time-sensitive loads throughout the region. With a total of [x] trucks ranging from light to heavy, [Company Name] can transport a range of loads, 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 time-sensitive freight transportation services:
- Equipment
- Construction Materials
- Machinery
- Miscellaneous Goods
Customer Focus
[Company Name] will primarily serve construction companies, and oil and gas companies throughout the Western US states. The demographics of these customers are as follows:
- 655,078 construction businesses
- 5,199 mining businesses
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 freight logistics company [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 specific market niche in the mining and construction industries.
- 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 U.S. West 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 hot shot trucking services business.
Financial Highlights
[Company Name] is seeking a total funding of $430,000 of debt capital to open its hot shot trucking business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Headquarters design/build: $90,000
- Equipment: $200,000
- Working capital: $140,000 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 time-sensitive transportation services throughout the Western U.S. With a total of [x] trucks and [x] trailers capable of transporting loads up to 15 tons, [Company Name] can meet most 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 trucks to provide hot shot 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 over [x] vans, [x] heavy pickup trucks, and [x] gooseneck trailers in its fleet available for hot shot trucking services. Each truck and trailer is regularly maintained to ensure the clients that their goods will be delivered expediently and in top condition.
[Company Name] will offer these hot shot transportation services:
- Equipment
- Construction Materials
- Machinery
- Miscellaneous Goods
III. Industry Analysis
The Hot Shot Trucking industry’s performance mostly follows the United States economy, so increases in construction activity, oil production, and trade volumes have created high demand for industry services over the past five years. Further, increases in fuel prices positively affect the industry as revenue typically increases in line with fuel costs, as operators are dependent on fuel surcharge revenue. Higher construction and commodity prices have also presented another opportunity for operators.
Over the next five years, increased construction activity is expected to ensure higher demand for the Hot Shot Trucking industry, as these companies seek to avoid delays and shut-downs amid booming demand. Further, as geo-political pressures require increased domestic oil production, demand for hot shot trucking will increase in kind.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will primarily serve businesses within the U.S. that may need local and long distance transportation services for their products or supplies.
The business breakdown in the U.S. 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:
- Construction businesses are currently experiencing high demand, due to pent-up demand that has resulted from supply chain disruptions. The current high construction backlog means that construction companies cannot afford delays caused by a lack of equipment and/or materials, so the need for hot shot trucking services has increased.
- Mining Businesses- With the increase in oil production, mining businesses cannot afford delays caused by equipment failure. Hot shot trucking services ensure that necessary parts and equipment are delivered rapidly, so that production may continue with minimal disruption.
- Other businesses- Hot shot trucking services are necessary for businesses in a variety of industries, from medical facilities to utilities to government.
V. Competitive Analysis
Direct & Indirect Competitors
Patriot Group
Patriot Group is an intermediary and asset-based trucking company offering cost-effective supply chain solutions. Patriot Group delivers nonstop throughout the continental United States, Alaska, Canada, and Mexico, serving customers in oil and gas, manufacturing, construction, and agriculture.
Patriot Group operates a fleet of Flatbeds, Vans, Reefers, and Removable Goosenecks (RGN) to provide Hot Shot, Less Than Truckload (LTL), Over Dimensional/Heavy Haul, Hazmat, and Full Truckload services.
US Haulers
US Haulers is a family-owned business that offers shipping for specialized freight, including heavy machinery, industrial, construction, farming, and agriculture equipment. With locations all over the country, the company serves all 50 states. US Haulers is insured and capable of servicing every load in need of transportation, including Heavy Hauling, Freight Shipping, Heavy Equipment Transport, Oversize & Overweight, Crane Rigging, Trailer Transport, and Superload and Break Bulk Transport.
Beeline Hotshot & Transportation, LLC
Beeline Hotshot & Transportation is a hotshot trucking and transportation company that offers cost efficient and dependable hotshot services throughout the Southwest. Established in 2013, the company provides trucks 24/7 that are all equipped with GPS tracking to ensure faster dispatching and customer communication.
Beeline Hotshot & Transportation specializes in hotshot and transporter services for the oil and gas industry. The company’s equipment includes a hotshot truck (bobtail), mini floats, tandem trucks, and a forklift loader.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s business is not limited to its location because it transports goods and services across the region.
- 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 hot shot 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 individuals working and/or living within [state]. [The Company’s] promotions strategy to reach these individuals includes:
Publications
[Company name] will announce its product launching 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, client meetings and bookings. 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 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
- Customer service representatives
- 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 hot shot trucking company in the U.S. 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 freight logistics company [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 travel locally or long-distance, on a moment’s notice
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from 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 $430,000 of debt capital to open its hot shot trucking business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Headquarters design/build: $90,000
- Equipment: $200,000
- Working capital: $140,000 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 |
