Hotshot Trucking Business Plan Template

Written by Dave Lavinsky
hotshot trucking business plan template
Table of Contents
Table of Contents

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.

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

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 when 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 1Year 2Year 3Year 4Year 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 geopolitical 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 sectors7,860,674
Agriculture, forestry, fishing and hunting23,363
Mining, quarrying, and oil and gas extraction25,732
Utilities18,965
Construction715,641
Manufacturing290,936
Wholesale trade409,656
Retail trade1,064,449
Transportation and warehousing237,308
Information153,934
Finance and insurance478,224
Real estate and rental and leasing406,568
Professional, scientific, and technical services914,718
Management of companies and enterprises56,363
Administrative and support and waste management and remediation services419,844
Educational services105,173
Health care and social assistance897,635
Arts, entertainment, and recreation143,396
Accommodation and food services726,167
Other services (except public administration)764,840
Industries not classified7,762

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

You can download our Hotshot Trucking business 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:

  • 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 ongoing 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:

DateMilestone
[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 when 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 contractsAnnually
FY 140
FY 245
FY 355
FY 465
FY 570
Annual Lease (per location)$50,000

5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 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
PRE-TAX 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 1Year 2Year 3Year 4Year 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 1Year 2Year 3Year 4Year 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
Download our Hotshot Trucking Business Plan Template

Other Sector Templates