One of the most profitable niches among private business has always been cargo transportation. A business plan usually bodes well for business owners, but many are wary of this endeavor. As in any other direction, a lot of pitfalls awaits businessmen in cargo transportation. Therefore, the business plan should be as close as possible to reality. This article will help beginners start their business correctly and tell you how to draw up a detailed business plan for cargo transportation.
Who is this business for?
Most often, people who in the past had nothing to do with this area are engaged in cargo transportation. Without even understanding the nuances of this business, you can build a successful business.
People choose trucking as an investment method for several reasons. The main ones include high potential and good profitability of this business. However, it will be quite difficult for a simple hard worker to survive in this path without a good business plan.
A business plan for cargo transportation allows you to outline a clear path for the implementation and development of the business. In addition, if an entrepreneur lacks his own funds in order to realize his idea, he will have to look for lenders or investors. Neither one nor the other will give out money without reading the business plan.
The conclusion suggests itself that having a good business plan, everyone can open a freight forwarding agency: a person with or without experience, an entrepreneur with and without initial capital.
Goals
The concept of "trucking" is very broad. Therefore, before embarking on a business plan, it’s worth deciding what exactly the company will do. To date, there are several examples of a business plan for cargo transportation, depending on the goals of the company. Common goals for shipping companies include:
- accompaniment of relocation of private and legal entities;
- provision of personnel for loading and unloading;
- movement of international goods;
- transportation of large goods within the country;
- cargo transportation of commercial products;
- storage of goods.
Without an accurate idea of what the company plans to do, it is impossible to draw up a business plan. Cargo transportation in all this direction is distinguished by the staff, cost and dimensions of equipment, initial investments and others.
In addition, it is not necessary to dwell on one of the presented types of cargo transportation. All directions can be combined with each other. Moreover, the more services a freight shipping company can offer, the more customers it can acquire.
Marketing is an important part of a business plan
Since trucking is a very cost-effective enterprise, the level of competition there is just going through the roof. Marketing strategy will allow you to correctly and quickly promote the company and, accordingly, to achieve the company's profitability as soon as possible.
A good freight business plan focuses on the Marketing section. This is especially true for companies that are engaged in private transportation of goods. Without quality and extensive advertising, customers simply cannot find the right company. She just gets lost among competitors.
In advertising, it is worth focusing on the accuracy and speed of movement of goods. Those who have moved at least once know that property damage during transportation of items from point A to point B is not uncommon. Therefore, most potential customers will give their preference to companies that guarantee the safety of the cargo.
Competitive Advantages
It is very difficult to develop your business, especially when a young company is essentially no different from many others. Before drawing up a business plan for a freight company, you should consider what it can offer customers to choose it. The obvious advantages that a young company can attract customers include:
- large fleet of vehicles;
- the ability to service both individuals and legal entities;
- cashless payment;
- the availability of bonuses and discounts;
- the ability to track cargo through special services;
- round-the-clock operation;
- additional services except freight.
If at the initial stage not everyone can boast of an extensive fleet of vehicles, then emphasis should be placed on more affordable ways to attract customers. For example, in a business plan for cargo transportation, you can include several additional staff units that will be engaged in loading and unloading. Such an attitude to customers will make the company a good reputation and will bring additional income.
How to advertise a shipping company?
In order to correctly compose the section "Marketing", you need to represent the real cost of advertising. The advertising budget depends on the ways of placing advertisements and their effectiveness. The more attractive the offer looks, the faster the company will earn its first customers.
In order to correctly draw up an advertising campaign, you need to clearly represent your target audience. For example, for premium transportation, ads in a local newspaper are a waste of money. In order for the advertising campaign to pay off and give good results, you need to work comprehensively in several areas.
Ways to advertise freight services:
- distribution of business cards;
- development of the official website of the company;
- contextual advertising on Yandex, Google platforms;
- targeted advertising on social networks;
- groups and communities on social networks;
- distribution of leaflets, flyers in crowded places.
Word of mouth should also not be excluded from the methods of advertising a freight company. Of course, you cannot add such an item to a business plan. But from the moment a company appears in the services market, one should value its reputation. Notoriety spreads faster than good.
Company Opening Plan
If an entrepreneur wants to get a business plan for freight for free, then he will have to draw it up on his own. To do this, you need to understand what this document is.
The business plan contains two parts: theoretical and practical. In the theoretical part, an analysis of the source data is performed. The theory should smoothly lead to practical calculations. The practical part contains all the necessary calculations, which should answer two main questions: how profitable are investments and what is the payback period for investments.
The person who first opened the business plan should not have questions and doubts as a result of reading it. The fact is that investors and lenders very carefully analyze upcoming expenses. Therefore, the business plan must assure them that they will not lose their investments.
Business Registration
For start-up entrepreneurs, it is most appropriate to provide freight services as individual entrepreneurs. Firstly, for registration of an individual entrepreneur, a minimal package of documents is needed, and secondly, for an individual entrepreneur, the simplest taxation mechanism operates.
To register a private entrepreneur, you need to contact the tax office at the place of residence, write a statement and provide a passport. Moreover, if an entrepreneur cannot independently register his business, he can do this through trusted intermediaries.
Before registering a company, you should pre-select a tax option. For IP today, there are three options available:
- simplified system;
- single tax;
- common system.
If the future entrepreneur cannot make a choice, you can get advice from a tax consultant before registering an IP.
Office room
If you seriously approach business organization, then, of course, you can’t do without a company office. Of course, you can accept applications without leaving your home, but this can put the director of the company in an awkward situation when the client needs to come in person to sign the necessary documents.
A good example of a freight business plan will never include the cost of buying a room. The company’s office can be rented, and the money that would be needed to purchase square meters can be put into a more proper direction.
Equipment costs
Equipment costs are the most expensive part of a business plan. It is worth investing most of the available funds, and saving is inappropriate here. The minimum list of necessary equipment includes:
- car;
- desktop computer or laptop;
- office equipment (printer, scanner, etc.);
- landline and mobile phone.
A car will cost the entrepreneur the most. It is not necessary to take huge loans and buy a foreign car. It is possible to draw up a business plan for cargo transportation at the Gazelle, and over time to supplement and improve the fleet.
Financial plan
A financial plan is a practical part of a business plan. There you can find all the necessary calculations. To make it easier to understand how to independently draw up a business plan, here is a list of all the necessary calculations.
The financial plan contains:
- calculation of capital investments;
- analysis of sources of cash income;
- Estimated revenue calculations
- current cost calculations;
- calculation of profit and profitability.
Without an economic education, drawing up a business plan yourself will be quite difficult. For the calculations to be correct, it is necessary to correctly compare all the estimated costs and revenues. Costs are collected in the table of current costs. It includes: salary and deduction expenses, fuel, depreciation, car maintenance, advertising and so on.
Potential revenue is considered as income based on the production capacity of the company. The number of cars and the number of flights that they can make are taken into account. The business plan does not include possible force majeure circumstances. However, at the end of the business plan, it is imperative to conduct a risk analysis that can give a clear idea of the likely success of the company.