Are you about starting a box truck company? If YES, here is a detailed sample box truck business plan template & FREE feasibility report.
If you are looking for a unique business that never goes out of season to start in the United States; a business that has to do with moving things from one location to another, then one of the options available to you is to start a box truck business.
The moving and storage industry is a $15 billion industry in the United States. About 42 million families each year use a moving company, or pay in some other way for their relocation. And international moving companies are growing as fast as domestic ones.
The industry promises a good level of success when one diligently seeks to do what is required of them. It is no surprise that there are lots of people already making it big in this business. Below is a sample box truck company business plan template that will help you successfully write yours with little or no stress.
A Sample Box Truck Business Plan Template
- Industry Overview
A box truck which is also known as a box van, cube van, rolling toaster or cube truck—is a chassis cab truck with an enclosed cuboid-shaped cargo area. On most box trucks, the cabin is separate to the cargo area, however some box trucks have a door between the cabin and the cargo area.
The difference between a box truck and a van is that the cargo van is a one-piece (unibody), while a box truck is created by adding a cargo box to a chassis cab. Box trucks are often used by companies transporting home appliances or furniture, or are used as moving trucks which can be rented by individuals.
According to the American Moving and Storage Association (AMSA) – America’s moving and storage industry is one of the most complex and diverse collection of businesses in the country. It consists of large corporate organizations and “mom-and-pop” operations; of chief executive officers working in corporate suites and independent business people working in their trucks; and of van lines, their agency systems and independent movers.
Box truck business is classified under the moving and storage industry in the U.S and this industry is as diverse as the country itself. The industry’s national trade group, AMSA represents all facets of the industry: agents, forwarders, independent carriers, international movers, suppliers and van lines.
Statistics has it that The Moving and Storage industry in the United States of America consists of 7,000 companies operating at 13,900 locations primarily providing moving and storage services for household and office goods. Major names in United States include van lines, van line agents, independent full-service movers, international movers, forwarders, and auto transporters.
The moving and storage industry employs 122,600 people with an annual payroll of $3.6 billion and it is composed of mostly individual van/truck owners operating their businesses on a small scale.
General statistics on the moving and storage industry shows that 47.8 percent of companies in the industry employ fewer than 5 people. Only 8.5 percent of industry companies employ 100 or more people. AMSA members report operating a fleet of 50,000 trucks 32,000 tractor units for pulling semi-trailers and 18,000 straight trucks, regulated by the U.S. Department of Transportation and state motor vehicle agencies.
AMSA consists of more than 4.000 member companies, including: 150 companies in 85 countries outside the US and 200 companies in the industry’s supply chain.
The basic services rendered by the operators in the moving and storage industry include local and long-distance transportation of household and office goods; warehousing and storage services; packing and packaging services; process, distribution, and logistics consulting; merchandise sales and other services.
With the advancement of technology and the sole need for every individual is to live in a comfortable house, the moving industry keeps going high. As home sellers, buyers and renters prepare for 2016, hiring professional movers is likely to be on their moving checklist. It is anticipated that the five trends will be prevalent in the moving industry in 2016
Starting and operating a box truck company can be capital intensive and challenging, but the truth is that it can be rewarding at the same time. One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with a fleet of trucks and aspiring entrepreneurs who may want to start with just one truck.
Table of Content
- 1 Box Truck Business Plan – Executive Summary
- 2 Box Truck Business Plan – SWOT Analysis
- 3 Box Truck Business Plan – MARKET ANALYSIS
- 4 Box Truck Business Plan – SALES AND MARKETING STRATEGY
- 5 Box Truck Business Plan – Publicity and Advertising Strategy
- 6 Box Truck Business Plan – Financial Projections and Costing
- 7 Generating Funds/Startup Capital for Trans Terrestrial® Box Truck Company, Inc.
- 8 BOX TRUCK BUSINESS GROWTH: Sustainability and Expansion Strategy
Box Truck Business Plan – Executive Summary
Trans Terrestrial® Box Truck Company, Inc. is a registered and licensed box truck company that will be based in Brooklyn Park – Minnesota. We will provide local and long-distance transportation of household and office goods; warehousing and storage services; packing and packaging services; distribution, and logistics consulting; merchandise sales and other related services.
We will provide daily services all around Minnesota and across the United States of America. Trans Terrestrial® Box Truck Company, Inc. has been able to secure all relevant license and permits to operate throughout the United States.
We will ensure that we abide by the rules and regulations guiding the Moving and Storage industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL) to handle our vans and trucks.
Our customers can be rest assured that they will get quality services at competitive rates. We will go the extra mile to ensure the safety of goods under our care and our customers get value for their money. At Trans Terrestrial® Box Truck Company, Inc. our goal is to provide excellent service to our customers and we pride ourselves on the integrity and competence of our company and employees.
Trans Terrestrial® Box Truck Company, Inc. will ensure that all our deliveries of goods are on time and we supersede the expectation of our customers. We will only put box trucks and vans that are in top shape on the road, and all our drivers and materials handlers will be trained to be extra careful, pay attention to details, courteous, friendly and to abide by the rules and regulations of the industry.
We are quite optimistic that our values and quality of service offering will help us drive our business to enviable heights and also help us attract the number of clients that will make the business highly profitable. We are a company that will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to hire our services over and over again.
We are open to the use of latest technology in the Moving and Storage industry. No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals both from government agencies and industrial giants.
Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Trans Terrestrial® Box Truck Company, Inc. is a family business; it is owned by Mr. Peter Samuel. The company will be fully financed by Peter Samuel and his immediate family members. Peter has a diploma in Transport and Logistics Management and over 13 years’ experience in the Moving and Storage industry.
- Our Services Offerings
Trans Terrestrial® Box Truck Company, Inc. is established with the aim of maximizing profits in the Moving and Storage industry. We want to compete favorably with the leading box trucks companies in the United States which is why we will ensure that every service carried out meets and even surpasses our customers’ expectations.
Our service offerings are listed below;
- Local and long-distance transportation of household and office goods
- Warehousing and storage services
- Packing and Packaging services
- Process, distribution, and logistics consulting and advisory Services
- Merchandise sales and other related services
Our Vision Statement
Our vision is to become one of the preferred choices of individuals and organizations when it comes to the demand to moving light duty furniture/appliances in the United States of America.
- Our Mission Statement
Our mission is to ensure that we build a successful box truck company that will operate not just in Brooklyn Park, Minnesota but in the whole of the United States of America; a company that will boast of having some of the best and reliable material handlers and transporters in the whole of the United States of America.
- Our Business Structure
Our business structure will be designed in such a way that it can accommodate both full and part-time/contract staff; those who just want to take some time off to generate additional incomes. Adequate provision and competitive packages have been prepared for our employees.
At Trans Terrestrial® Box Truck Company, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. For now, we will contract the maintenance of our box trucks to service provider, we don’t intend to maintain a very large overhead from the onset.
But as soon as the business grow and stabilize, we will assemble our own in-house maintenance team. Below is the business structure and the roles that will be available at Trans Terrestrial® Box Truck Company, Inc.;
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive (Business Developer)
- Box Truck and Van Drivers
- Material Handlers / Yard Spotters / Forklifts Operators
- Customer Services Executive / Front Desk Officer
Roles and Responsibilities
Chief Operating Officer (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Transport and Logistics Manager
- Responsible for coordinating drivers, vehicles, loads and journeys
- In charge of operating IT systems
- Responsible for negotiating and agreeing contracts
- Responsible for developing and confirming schedules
- In charge of planning for and negotiating technical difficulties
- Responsible for preparing paperwork for regulatory bodies
- Responsible in liaising and managing staff
- Ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
- Communicating effectively with clients and responding to their requirements.
- Directing all transportation activities.
- Developing transportation relationships.
- Monitoring transport costs.
- Negotiating and bargaining transportation prices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Marketing and Sales Executives (Business Developers)
- Identify, prioritize, and reach out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent Trans Terrestrial® Box Truck Company, Inc. in strategic meetings
- Help increase sales and growth for Trans Terrestrial® Box Truck Company, Inc.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Box Truck and Van Drivers
- Assist in loading and unloading goods/materials
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations
Material Handlers/Forklift Operators
- Responsible for handling core services such as operating forklifts, loading and unloading materials, packing and packing goods et al
- Handle general services that involves the transportation of goods from one location to another location
- Handle any other duty as assigned by the transport and logistics manager
Customer Service Officer
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Box Truck Business Plan – SWOT Analysis
Going by our vision, our mission and the kind of business we want to set up, we don’t have any other option than to follow due process. Following due process involves hiring a business consultant to help us conduct SWOT analysis for our business.
Trans Terrestrial® Box Truck Company, Inc. hired the services of a seasoned business consultant with bias in startups in the U.S. to help us conduct a thorough SWOT analysis. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Trans Terrestrial® Box Truck Company, Inc.;
Our strengths are strong management, strong fleet operation, our transportation network, size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players. Our business is centrally located in a densely populated industrial and residential estate in and around Brooklyn Park – Minnesota; our location is in fact one of our major strength. Another strength that counts for us is the power of our team; our workforce and management.
Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the industry. As a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to build trust with our clients.
The opportunities that are available to us as a box truck company in the United States are online market, new services, new technology, and of course the opening of new markets. We are centrally located in one of the busiest industrial areas in and around Brooklyn Park – Minnesota and we are open to all the available opportunities that the city has to offer.
Our business concept also positioned as the preferred choice in and around Brooklyn Park- Minnesota. The truth is that there are no standard and well – equipped box trucks company within the area where ours is going to be located; the closest box trucks company to our proposed location is about 15 miles away. In a nutshell, we do not have any direct competition within our target market area.
Some of the threats that we are likely going to face are mature markets, bad economy, stiff competition, volatile costs, and rising fuel prices. Other threats that are likely going to confront Trans Terrestrial® Box Truck Company, Inc. are unfavorable government policies, seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where ours is located.
Box Truck Business Plan – MARKET ANALYSIS
- Market Trends
The market trends as it involves the Moving and Storage industry especially in the United States is indeed dynamic and at the same time challenging. But one thing is certain, once a box trucks company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with big time merchants and warehouse operators who are involved in moving goods on a regular basis.
The demand for the services of box trucks companies is highly correlated with consumer spending. With the advancement of technology and the need for every individuals is to live in a comfortable house, the moving industry keeps souring high.
Some of the major factors that count positively in this line of business are competence, trust, honesty, good relationship management and of course timely and safe pick-ups and deliveries.
- Our Target Market
Our target market is basically everyone who has cause to move light goods and materials from one location to another. In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;
- Merchants and Warehouse Operators
- Retailers who would want to move their goods from one location to another
- Manufacturers (furniture manufacturers, and home appliances manufactures et al)
- Households who would want to move from one apartment to another
- Corporate organizations who would want to move from one office to another
- Government agencies who have cause to move light goods and materials
- Non – Profits and Charity organizations who have cause to move light goods and materials.
Our Competitive Advantage
Our major competitive advantage is the vast industry experience and solid reputation of our owner Mr. Peter Samuel, and of course our management team. Trans Terrestrial® Box Truck Company, Inc. no doubt is a new box trucks company, which is why we took our time to do a thorough homework before launching the business.
We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good network and excellent relationship management strong management, strong fleet operations, our transportation network, our size advantages, cost advantages, supply chain, customer loyalty and strong reputation amongst domestic industry players.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both small and large agencies.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
Box Truck Business Plan – SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for Trans Terrestrial® Box Truck Company, Inc. is going to be driven basically by professionalism, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets. Trans Terrestrial® Box Truck Company, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our box truck business by sending introductory letters alongside our brochure to corporate organizations who into manufacturing, merchants and warehouse operators, households and key stake holders in and around Brooklyn Park, Minnesota
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our business in relevant magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
Sources of Income
Trans Terrestrial® Box Truck Company, Inc. will ensure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. Below are the sources we intend exploring to generate income for Trans Terrestrial® Box Truck Company, Inc.;
- Local and long-distance transportation of household and office goods
- Warehousing and storage services
- Packing and Packaging services
- Process, distribution, and logistics consulting and advisory Services
- Merchandise sales and other related services
We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income/profits from our first month or operation and grow the business and clientele beyond Brooklyn Park, Minnesota to other states in the U.S.
We have been able to examine the Moving and storage industry, we have analyzed our chances in the industry and we were able to come up with the following sales forecast. Below is the sales projection for Trans Terrestrial® Box Truck Company, Inc., it is based on the location of our business and our competitive advantage;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $600,000
- Third Fiscal Year (FY3): $900,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
Trans Terrestrial® Box Truck Company, Inc. has a lease arrangement with various companies and the company’s pricing is based on miles per tons of goods transported. We have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.
Our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporations means that we will have different price range for different category of clients. As the business grow, we will continue to review our pricing system to accommodate a wide range of clientele.
- Payment Options
Our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.
Here are the payment options that Trans Terrestrial® Box Truck Company, Inc. will make available to her clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via POS
Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash.
Box Truck Business Plan – Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street must be ready to utilize every available means to promote the business. We intend growing our business beyond Minnesota which is why we have perfected plans to build our brand via every available means.
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. Below are the platforms Trans Terrestrial® Box Truck Company, Inc. intend leveraging on to promote and advertise her box truck business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our Billboards in strategic locations all around Minnesota
- Distribute our fliers and handbills in target areas
- Contact corporate organizations, households and key stake holders by calling them up and informing them of Trans Terrestrial® Box Truck Company, Inc. and the services we offer
- List our company in local directories/yellow pages
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our box trucks are well branded with our company logo.
Box Truck Business Plan – Financial Projections and Costing
This is what it would cost us to start Trans Terrestrial® Box Truck Company, Inc. in the United of America;
- The Total Fee for incorporating the Business in the United States of America – $750.
- The budget for Liability insurance, permits and license – $5,500
- The amount needed to acquire a suitable Office facility with enough parking space for our trucks in Brooklyn Park – Minnesota for 6 months (Re – Construction of the facility inclusive) – $150,000.
- The amount required to finance the purchase of the first set of box trucks and cube vans – $800,000
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Other start-up expenses including stationery – $1000
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $120,000
- The cost for launching our official Website: $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500
Going by the report from our market research and feasibility studies, we will need about $900,000 to set up our box truck business in Brooklyn Park, Minnesota.
Generating Funds/Startup Capital for Trans Terrestrial® Box Truck Company, Inc.
Trans Terrestrial® Box Truck Company, Inc. is owned by Mr. Peter Samuel. He will be the sole financier of the company but may likely welcome other business partners when need for expansion arises. These are the areas we intend generating our startup capital for our business;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings – $150,000 and soft loan from family members – $50,000) and we are at the final stages of obtaining a loan facility of $700,000 from our bank. All the papers and documents have been signed and submitted.
BOX TRUCK BUSINESS GROWTH: Sustainability and Expansion Strategy
Part of the plans we have to sustain Trans Terrestrial® Box Truck Company, Inc. is to ensure that we continue to make available reliable box trucks, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. Trans Terrestrial® Box Truck Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring of box trucks, cube vans and forklifts: In progress
- Renting of Office Facility (Yard) in Brooklyn, Minnesota: Completed
- Conducting Feasibility Studies: Completed
- Startup Capital Generation: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees and drivers: In Progress
- Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry: Completed
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