Cargo Van Business Plan Template

Cargo Van Business Plan Template

If you want to start a cargo van business or expand your current cargo van business, you need a business plan.

The following Cargo Van business plan template gives you the key elements to include in a winning Cargo Van business plan. In addition to this template, a solid plan will also include market research to help you better understand industry trends, your competitive advantage and your target customers. It will also help you craft your marketing plan and financial projections.

You can download our cargo van plan template (including a full, customizable financial model) to your computer here.

 

Cargo Van Business Plan Example

Below is a cargo van business plan example with each of the key sections to help you write a cargo van business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] is a new cargo van delivery service located in [Location]. The company provides convenient and affordable delivery services for local businesses that do not have the means to deliver their products themselves. [Company Name] will primarily serve local retail establishments but will occasionally partner with other industries such as the medical or food and beverage industries.

[Company Name] offers several services including two-day delivery, same-day delivery, multi-stop deliveries, last-mile delivery, and special handling requests. With speedy service and a dedication to client satisfaction, [Company Name] is bound to become the top cargo van delivery service in the area.

Products Served

[Company Name] will deliver packages, supplies, and other cargo from local companies to their nearby destinations. Packages can be of any size and weight, as long as they fit safely into the cargo van. The company can transport nearly any product except food products and chemicals.

[Company Name] offers a variety of shipping methods, from economy to same-day delivery. The company also handles special requests such as collecting signatures or delivering at a particular time of day. Clients who use [Company Name]’s services on a frequent basis may be eligible for monthly rates and volume discounts.

Customer Focus

[Company Name] will primarily serve businesses and industries in or near [Location]. The company expects to primarily work with retail establishments that need to ship their products to local customers. However, [Company Name] is open to serving other industries such as the medical and food and beverage industries. Due to the limited scale of the current business, both the clients and their destinations/customers must be located near [Location].

Management Team

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer throughout his career. He has found the work highly rewarding but noticed that national chains are often too expensive for many clients and lack the personal detail a local delivery company can provide. After conducting his market research, [Founder’s Name] is ready to launch his local delivery service that will meet the high demand for transporting goods for an affordable rate.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• The company will provide valuable delivery services to local businesses and organizations.
• The management team has a track record of success and experience in the delivery service market.
• [Company Name] will provide a variety of quality delivery services that are catered to every business that partners with us.

Financial Highlights

[Company Name] is currently seeking $150,000 to launch. Specifically, these funds will be used as follows:

• Office design/build: $50,000
• Cargo van purchase and maintenance: $50,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name] is a new cargo van delivery business located in [Location]. The company provides convenient and affordable delivery services to local establishments that do not have the means to deliver themselves. [Company Name] will primarily serve local retail establishments but will occasionally partner with other industries such as the medical or food and beverage industries.

[Company Name]’s services include two-day delivery, same-day delivery, multi-stop deliveries, last-mile delivery, and special handling requests. Nearly any item can be delivered by [Company Name] as long as the items are safe to handle and can fit easily in a cargo van. Some of the few items [Company Name] cannot deliver include perishable food items and chemicals.

As of now, [Company Name] only plans to operate one cargo van and have a single driver, [Founder’s Name]. Therefore, [Company Name] can only deliver items for businesses and destinations located near [Location]. As demand for [Company Name]’s services increases, the company will purchase more vehicles, hire additional drivers, and expand its services and delivery range. Recently, [Founder’s Name] conducted a market analysis of the area and found affordable delivery services were in high demand. Therefore, he expects that the company will grow quickly over the next five years.

[Company Name]’s History

[Company Name] is run by its founder, [Founder’s Name], who has worked for the delivery service market for [X] years. He worked for national delivery chains during that time but knew his clients would prefer working with a company that offered moderate pricing and focused on building lasting professional relationships. He surveyed many local businesses and residents to see if they would be interested in a more localized delivery service. The survey had overwhelmingly positive responses, so [Founder’s Name] immediately began to research all the necessary elements to build his delivery service.

[Founder’s Name] incorporated [Company Name] on [Date of Incorporation]. He has been primarily running the business from his home and personal vehicle but has found a potential commercial office space to lease. Once the lease is approved, all operations will be run from there. He will also purchase a cargo van that will be specifically used for delivery services.

Since incorporation, the company has achieved the following milestones:

• Located a commercial office space and wrote a Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Began recruiting key employees and drivers
• Began partnering with local businesses and stores

[Company Name]’s Products/Services

[Company Name] will deliver packages, supplies, and other cargo from local companies to their nearby destinations. Packages can be of any size and weight, as long as they fit safely into the cargo van. [Company Name] can transport nearly any product except perishable food products and chemicals.

[Company Name] offers a variety of shipping methods from economy to same-day. Below are a few of the services that potential clients can expect from [Company Name]:

• Same-day delivery
• Two-day delivery
• Last mile delivery
• On-call services
• Monthly rates and volume discounts
• Special handling services and requests

 

III. Industry Analysis

The cargo van delivery industry is booming. With the increasing demand for the fast delivery of online goods, online retailers are stretched thin trying to get their products to their customers in time. This has led to a high demand for last-mile delivery services, which allows entrepreneurs and independent contractors to deliver these packages and goods from local warehouses to customers’ homes. Many of these contractors utilize cargo vans for this work and establish cargo van delivery businesses to help meet this demand.

However, cargo van delivery businesses provide several other delivery services for local businesses. This can include same-day delivery, special handling and processing, and delivering important or specialized items (such as medical equipment). The versatility of this industry makes them essential for businesses that need to ship products but don’t have the logistics or means to transport their products on their own.

According to FinModelsLab, the cargo van delivery market is expected to grow at a compound annual growth rate of 7.6% from now until 2026. This shows that this is a booming industry that is not expected to slow down anytime soon. However, the profit potential for cargo van businesses is dependent on several factors, including vehicle maintenance costs, demand for services, location, competition, and fees charged for services. Businesses that do a thorough market analysis and can satisfy local delivery and transportation demands will have the best chance of being successful.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve local businesses located in [Location]. [Founder’s Name] expects to primarily work with local retail establishments that need their products delivered to nearby customers. However, he is open to partnering with other industries that need delivery services, such as the medical or food and beverage industries.

Customer Segmentation

[Company Name] will primarily target the following customer segments:

• Local retail establishments businesses: The primary customer segment will include local retail establishments that need to ship their goods to customers. These establishments often don’t have the means to deliver the goods themselves nor the money to spend on expensive delivery services. [Founder’s Name] expects that the majority of the company’s revenue will come from these businesses.
• Medical organizations: Small, local medical organizations have a great demand for delivery services that will transport medical supplies quickly and safely. [Company Name] can deliver safe, non-toxic supplies and equipment to local medical establishments quickly and for a moderate price.
• Food and beverage companies: Local restaurants have a range of delivery needs, including delivering food, catering supplies, and food preparation equipment. [Company Name] can help this local sector by delivering non-perishable food supplies and equipment.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following delivery service companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Amazon Cargo Solutions
Amazon Cargo Solutions has been a successful cargo van delivery service in downtown [Location] for several years. The company provides speedy delivery of products sold on Amazon and produced in local warehouses. They primarily deliver bulk items to local businesses and offer same-day delivery and special requests. Amazon Cargo Solutions is not expected to be a large competitor since the company focuses specifically on delivering last-mile delivery services from Amazon warehouses.

Final Mile Services
Operating 10 vehicles, Final Mile Services is a prominent competitor in the local cargo van delivery market. They exclusively provide last-mile delivery services to and from various establishments throughout [Location]. Their fleet size and years of great service have made them a difficult competitor in the local market. However, since the scope of their services is narrow, [Founder’s Name] expects that they will only be a minor competitor.

Billy’s Medical Van
Billy’s Medical Van has provided an essential service for medical offices and health professionals since 2017. The company operates a large fleet of delivery vehicles that all specialize in the delivery of medical products. They also offer on-call services, same-day delivery, and fixed-route deliveries. While Billy’s Medical Van will continue to thrive, the company only delivers medical products and does not partner with other industries. Therefore, [Company Name] will only see competition from them in this particular sector.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Client-oriented service: [Company Name] will put a focus on customer service and maintaining long-term relationships. The company aims to be the best cargo van delivery service in the area by catering to its clients’ needs and developing a strong connection with them.
• 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 delivery and customer service experiences. 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

You can download our cargo van plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the company’s unique value proposition:

• Speedy, quality delivery of any package type, size, or weight
• Service built on long-term relationships and personal attention
• Premium services at affordable prices

Promotions Strategy

[Company Name] will target retail businesses located within a 20-mile radius of [Location]. The company’s promotions strategy to reach these businesses includes:

Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its offerings in popular local magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content and post customer reviews to increase audience awareness and loyalty.

Website
[Company Name] will develop a professional website where people can learn about the company’s services and the industries it delivers for. The website will utilize SEO to increase traffic and to ensure that the company’s website will appear at the top of search engine results.

Billboards
[Company Name] will secure a billboard in the area that captures the attention of residents and local businesses. The billboard will draw attention to the new business and its service offerings.

Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced.

Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat deliveries, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so clients feel they receive great value for the professional delivery services received. Each client can expect to receive quality services at a more affordable price than what they pay at pricey national delivery services.

 

VII. Operations Plan

Functional Roles

To execute [Company Name]’s business model, the company needs to perform several functions, including the following:

Service Functions

• Schedule deliveries
• Pick up packages and cargo
• Deliver packages to their destination in a timely manner
• Get signatures when required
• Provide excellent customer service

Administrative Functions

• Bookkeeping
• Marketing
• General customer service
• Hiring and training staff

Milestones

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:

 

VIII. Management Team

Management Team Members

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer throughout his career. He has found the work highly rewarding but noticed that national chains are often too expensive for many clients and lack the personal detail a local delivery company can provide. After conducting his market research, [Founder’s Name] is ready to launch his local delivery service that will meet the high demand for transporting goods for an affordable rate.

Though he has never run a cargo van delivery service himself, he has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Hiring Plan

[Founder’s Name] will serve as the Owner of [Company Name]. Currently, he is the only driver and will handle all the deliveries and logistics. Once the business is launched, he will hire a part-time administrative assistant to help him with basic administrative tasks. As demand for the company’s services increases, [Founder’s Name] will hire several more drivers and purchase more cargo vans.

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenue will primarily come from delivery fees that the company will charge for its services.

The major cost drivers for the company will consist of salaries, marketing costs, vehicle purchases and maintenance, and lease expenses.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $150,000 to launch. Specifically, these funds will be used as follows:

• Office design/build: $50,000
• Cargo van purchase and maintenance: $50,000
• Working capital: $50,000 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:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement