Do you want to start a skid steer business and need to write to plan? If YES, here is a sample skid steer business plan template & feasibility report. If you are interested in the construction industry and you are looking toward launching a business as an aspiring entrepreneur, one of your best bets is to launch a skid steer business.
The right time to start such a business is now simply because this business concept is presently in high demand in the construction industry value chain. No doubt starting a skid steer business could be a fun, profitable, and interesting business for someone who is a contractor and with business perseverance and smartness.
With the right location, reliable skid steer loaders, and good marketing skills, you can attract loads of clients who would want to rent your skid steer loader and your services. It is important to point out that starting a skid steer business requires moderate start-up capital because skid steer loaders are usually expensive.
The bottom line is that if you are determined to explore the entrepreneurial world by starting a skid steer business, then you should consider going through the business plan below. Below is a sample skid steer business plan template that can help you successfully write your own with little or no difficulty;
A Sample Skid Steer Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The Pallet & Skid Steer industry is made up of businesses that engage primarily in the renting of pallets and skids to downstream markets for the storage and transport of goods. Following use, pallets and skids are returned to industry operators for cleaning and repairs. Though pallets and skids differ slightly in their construction and purposes, the terms are largely interchangeable.
It is important to note that a skid-steer loader can sometimes be used in place of a large excavator by digging a hole from the inside. The skid loader first digs a ramp leading to the edge of the desired excavation. It then uses the ramp to carry material out of the hole. The skid loader reshapes the ramp making it steeper and longer as the excavation deepens.
This method is particularly useful for digging under a structure where overhead clearance does not allow for the boom of a large excavator, such as digging a basement under an existing house. Several companies make backhoe attachments for skid-steers.
These are more effective for digging in a small area than the method above and can work in the same environments. Other applications may consist of transporting raw material around a job site or assisting in the rough grading process.
The Pallet & Skid Steer industry is indeed a large and vibrant industry. Statistics have it that the Pallet & Skid Steer industry in the United States of America, is worth about $3 billion, with an estimated growth rate of 2.6 percent between 2015 and 2020. There are about 816 registered and licensed pallet and skid steer businesses in the United States and they are responsible for employing about 10,308 people.
In the United States, the companies holding the largest market share in the industry are Brambles Limited, PECO Pallet, PALNET LLC, and iGPS Logistics LLC, but even at that, the industry is still very much open to competition from aspiring investors who would want to launch their own skid steer business.
A recent report published by IBISWorld shows that the Pallet and Skid Rental industry has experienced substantial growth over the five years to 2020, benefiting from a rising number of businesses opting to rent third-party pallets rather than maintain their own fleets.
Government regulations and company safety requirements have also forced many downstream clients to use certain types of pallets. In turn, rather than invest capital in the purchase of new pallets, many companies have turned to operators in the Pallet and Skid Rental industry.
Demand for this industry’s services is also largely driven by the volume of freight being transported within the US economy. As a result, the industry has benefited from improving US economic conditions, which have encouraged consumers to spend.
Going forward, the Pallet and Skid Rental industry are expected to fully benefit from positive conditions in downstream markets. To sum up, it is a fact that the Pallet & Skid Steer industry is indeed a profitable industry to venture into despite the fact that the entry bar for starting the business is not too difficult to scale through.
The truth is that if a skid steer business is well–stocked with a wide array of pallets and skid steer loaders and also well positioned in an environment with the right demography, they will surely attract regular clients and their skid steer loaders will be hired on a regular basis.
2. Executive Summary
Jon Hensen® Skid Steer Loader Company, LLC is a standard and licensed skid steer loader company that will be based in New York City, but with an active presence in other cities such as Chicago, Los Angeles, Washington, D.C, and San Francisco. We choose to operate in these cities because much of the attention generated by the current U.S. construction and commercial building boom has been focused on these major metro areas.
We are a standard skid steer loader company that will be involved in operating, leasing, and renting a wide range of skid steer loaders that will be used in place of a large excavator for services such as transporting raw material around a job site, or assisting in the rough grading process in construction sites et al. We are well equipped to services a wide range of clientele in and around New York City – New York.
Jon Hensen® Skid Steer Loader Company, LLC is a client-focused and result-driven skid steer loader rental outfit that provides standard and reliable skid steer loaders at an affordable fee. We will offer standard and professional services to all our individual and corporate clients. We will ensure that we work hard to meet and surpass our client’s expectations whenever they hire our service.
Jon Hensen® Skid Steer Loader Company, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Our plan is to position Jon Hensen® Skid Steer Loader Company, LLC to become the leading brand in the Pallet & Skid Steer industry in the whole of New York, and also to be amongst the top 3 skid steer loader rental outfits in the United States of America within the first 12 years of operation.
Jon Hensen® Skid Steer Loader Company, LLC is owned by Mr. Jon Hensen and his immediate family members. The organization will be managed by Mr. Jon Hensen who has over 12 years of hands-on experience working in various capacities within the Pallet & Skid Steer industry in the United States. Jon Hensen has a BSc. Degree in Mechanical Engineering from the Illinois Institute of Technology, Chicago, IL.
3. Our Products and Services
Jon Hensen® Skid Steer Loader Company, LLC is going to offer varieties of services within the scope of the Pallet & Skid Steer industry in the United States of America. Our intention in starting our skid steer loader company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.
Our business offerings are listed below;
- Digging holes and trenches in construction sites
- Transporting buildings and raw materials around construction sites and production factories
- Assisting in the rough grading process in construction sites et al
- Pallet and skid steer rental
4. Our Mission and Vision Statement
Our vision is to build a skid steer rental business that will become the number one choice for both construction companies and production factories. Our mission as a skid steer company is to service a wide range of clientele in the construction and production sectors in the United States of America.
We are going to position the business to become the leading brand in the Pallet & Skid Steer industry in the whole of New York City – New York, and also to be amongst the top 3 skid steer loader rental companies in the United States of America within the first 12 years of fully launching the business.
Our Business Structure
Jon Hensen® Skid Steer Loader Company, LLC is a skid steer loader company that intends to start small in New York City – New York but looks to grow big in order to compete favorably with leading skid steer rental companies in the United States. We are aware of the importance of building a solid business structure that can support the picture of the kind of business we want to own.
At Jon Hensen® Skid Steer Loader Company, LLC, we will make sure that we employ people that are qualified, hardworking, creative, customer-centric, and ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, a 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. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions in our organization;
- Chief Executive Officer (Owner)
- Skid Steer Loader Rental Manager
- Admin and HR Manager
- Marketing and Sales Executive
- Customer Services Executive
- Skid Steer Operators
5. Job Roles and Responsibilities
Chief Executive Office:
- 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
- Responsible for fixing prices and signing business deals
- Accountable for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Skid Steer Loader Rental Manager
- Manages the rental of skid steer loaders and virtually any other related equipment and trailers under our list
- Achieves maximum profitability and overall success by controlling costs and quality of equipment and services.
- Follows proper purchasing and requisitioning procedures.
- Coordinates the general assembling and dismantling of skid steer loaders from trailers and ensures that they are safely transported to and from our storage facilities.
Admin and HR Manager
- Accountable for overseeing the smooth running of HR and administrative tasks for the organization
- 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.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation, and assessment of employees
- Responsible for arranging travel, meetings, and appointments.
- Oversees the smooth running of daily office activities.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of the purchase of skid loaders and trailers
- Writes winning proposal documents, negotiates fees and rates in line with company policy
- Responsible for handling business research, market surveys, and feasibility studies for clients
- Responsible for supervising implementation, advocating for the customer’s needs, and communicating with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides management with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risk analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Accountable for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as an internal auditor for the company
Client Service Executive
- Welcomes guests and clients 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) provide 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 company’s products, promotional campaigns, etc. to ensure accurate and helpful information is supplied to clients when they make inquiries
Skid Steer Loader Operators and Drivers
- Responsible for digging holes, moving large objects around a construction site, digging trenches, moving dirt or earth, assisting with laying pavement, and plowing snow.
- Accountable for transporting skid steer loaders rented by our clients from our storage facility to the construction sites and back to our warehouse
- Runs errands for the organization
- Handles any other duty as assigned by the skid steer loaders rental manager.
6. SWOT Analysis
Because of our drive for excellence when it comes to running a standard company, we were able to engage some of the finest business consultants in New York City to look through our business concept, and together we were able to examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard and world-class skid steer loader rental business.
In view of that, we were able to take stock of our strengths, our weaknesses, our opportunities, and also the threats that we are likely going to be exposed to in New York City – New York. Here is a preview of what we got from the critically conducted SWOT Analysis for Jon Hensen® Skid Steer Loader Company, LLC;
Notwithstanding the fact that all our skid steer loaders are of world-class standard and the business is well positioned and well–equipped to meet the 21st-century demand of both high and low-profile construction companies, we have a team that can go all the way to give our clients value for their money; a team that is trained and equipped to pay attention to details as regards carrying out their job functions. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.
A close study of our business models shows that we will have to work pretty hard to be able to order customized skid steer loaders and trailers from a manufacturer to be able to service a niche market in the construction industry; that is perhaps what we consider as a weakness for our new business.
The opportunities in the Pallet & Skid Steer industry are huge considering the number of construction projects going on in New York City and every location where we are going to be actively present. As a matter of fact, positive conditions in the construction value chains are expected to foster industry revenue growth. As a standard and well–equipped skid steer loader company, we are ready to take advantage of any opportunity that comes our way.
If you are conversant with the construction industry and of course the rapid advancement of technology, you will notice that construction equipment can become obsolete within a short period of time. Besides, since the service life of a skid steer loader is 5,000 hours, many legacy machines will be due for replacement soon and that is perhaps one of our major threats.
Some other threats that we may likely face as a skid steer loader company operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations, and of course a sharp drop in the prices of the skid steer loaders that we put out for leasing and rental.
7. MARKET ANALYSIS
- Market Trends
Close observation of notable trends in the Pallet & Skid Steer industry shows that more skid steer loader innovations are focusing on operator comfort, garnering these newer skid steers the nickname “luxury loaders”. The goal isn’t to pamper the operators, however – it is to increase productivity. Operators that are more comfortable sitting for long periods of time in the cab tend to be more productive.
These improvements are also designed to help operators remain more alert and focused on the task at hand. In addition, an investment in comfort and ease of use can boost morale and help improve employee retention in an increasingly competitive job market.
Another growing trend when it comes to skid steer is the use of solid tires instead of traditional pneumatic tires. Solid tires are really nothing new, but they are being used on more and more skid steer loaders that have to work in environments that can destroy a regular tire. While they may be more expensive upfront, many SSL owners claim that they save a significant amount of money over the long haul.
Lastly, aside from excellent customer services, skid steer loader rental companies ensure that they have some of the best and latest skid steer loaders, equipment and tools they can get even if it means importing them or customizing them. This will enable them to continue to welcome repeat customers on a regular basis.
8. Our Target Market
Even though Jon Hensen® Skid Steer Loader Company, LLC will initially serve small to medium-sized construction companies, but that does not in any way stop us from growing to be able to compete with the leading skid steer loader rental companies in the United States.
As a world–class skid steer loader company, Jon Hensen® Skid Steer Loader Company, LLC offers a wide range of skid steer loaders and trucks for rent hence we are well trained and equipped to service a wide range of clientele base. Our target market cuts across players in different niche areas in the construction industry.
Below are some of our target customers;
- Construction companies
- General Contractors
- Shipping and Logistics companies
- Production Factories
- Mechanized Farmers
Our Competitive Advantage
We know that to be highly competitive in the Pallet & Skid Steer industry means that your skid steer loaders, pallets, and trucks put out for lease and rentals must be of a high standard and your business must be well–positioned and well–equipped, you should be able to deliver consistent quality service, your clients should be able to experience remarkable difference cum improvement and you should be able to meet the expectations of your clients
Jon Hensen® Skid Steer Loader Company, LLC might be a new entrant into the Pallet & Skid Steer industry in the United States of America, but our wide range of skid steer loaders and related equipment is top notch and of course the management staff and owners of the business are considered gurus. They are licensed and highly qualified to run such a business.
Other competitive advantages that we are bringing to the market are our ability to quickly adopt new technology, economies of scale, and the fact that all our skid steer loaders are of world–class standard and the business is well positioned and well–equipped to meet the 21st-century demand of the construction industry and related industries that needs our services. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups skid steer loader rental companies) in the industry meaning that they will be more than willing to build a business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
We are mindful of the fact that there are fast-growing competition amongst skid steer loader rental companies in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing concerns.
Our sales and marketing team will be recruited based on their vast experience in the Pallet & Skid Steer industry and the construction value chain and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.
Jon Hensen® Skid Steer Loader Company, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to construction companies, production factories, and other key stakeholders in New York City and in other cities such as Chicago, Los Angeles, Washington, D.C, and San Francisco where we will have an active presence.
- Advertise our business in relevant construction magazines, newspapers, TV, and radio station.
- List our business on yellow pages’ ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different categories of clients in order to work with their budgets and still deliver quality services to them
- Leverage the internet to promote our business
- Engage direct marketing approach
- Encourage word-of-mouth marketing from loyal and satisfied clients
- Make use of attractive handbills to create awareness and also to give direction to our facility
- Adopt a direct mailing coupon marketing approach
- Position our signage/Flexi banners at strategic places in and around New York City – New York
- Create a loyalty plan that will enable us to reward our consistent clients, especially those that refer clients to us.
Sources of Income
Jon Hensen® Skid Steer Loader Company, LLC is established with the aim of maximizing profits in the Pallet & Skid Steer industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Jon Hensen® Skid Steer Loader Company, LLC will generate income by offering the following services;
- Digging holes and trenches in construction sites
- Transporting buildings and raw materials around construction sites and production factories
- Assisting in the rough grading process in construction sites et al
- Pallet and skid steer loaders rental
10. Sales Forecast
One thing is certain, there would always be a need for construction companies and production factories to rent skid steer loaders and pallets in the United States of America and as such the services of skid steer loader rental companies will always be needed. This, we have at the back of our minds always.
We are well positioned to take on the available market in New York City – New York and in other cities such as Chicago, Los Angeles, Washington, D.C, and San Francisco and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond New York City to other states in the U.S.
We have been able to critically examine the skid steer loader rental market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered in the field and some assumptions that are peculiar to startups in New York City – New York.
Below are the sales projection for Jon Hensen® Skid Steer Loader Company, LLC, it is based on the location of our business and the wide range of skid steer loaders that we will be offering;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $650,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdowns and natural disasters within the period stated above. There won’t be any major competitors offering the same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.
- Payment Options
The payment policy adopted by Jon Hensen® Skid Steer Loader Company, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Jon Hensen® Skid Steer Loader Company, LLC will make available to her clients;
- Payment via bank transfer
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients to make payments for our services and rentals without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
11. Publicity and Advertising Strategy
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. We are set to take the Pallet & Skid Steer industry by storm which is why we have made provisions for effective publicity and advertisement of our skid steer loader company.
Below are the platforms we intend to leverage to promote and advertise Jon Hensen® Skid Steer Loader Company, LLC;
- Place adverts on both print (community-based newspapers and construction magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around New York City – New York
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our skid steer loaders and trucks are well branded with our company’s logo et al.
12. Our Pricing Strategy
Just like in the rental and construction support services business, hourly billing for rental services is also a long–time tradition in the industry. However, for some types of rental services, flat fees make more sense because they allow clients to better predict the overall service charges.
As a result of this, Jon Hensen® Skid Steer Loader Company, LLC will charge our clients both flat fees and hourly billing as long as it favors both parties. At Jon Hensen® Skid Steer Loader Company, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payments in advance.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard and one-stop skid steer loader company in New York City, and here are the key areas where we will spend our startup capital;
- The total fee for incorporating the Business in the United States of America- $750.
- The budget for the basic insurance policy covers, permits and business licenses – $2,500
- The amount needed to acquire a suitable facility that will accommodate our skid steer loaders, tools and equipment, trucks, and small office facility (Re-Construction of the facility inclusive) – $150,000.
- The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets, and electronics et al) – $ 5,000
- The cost of launching an official website – $600
- The cost for the purchase of a wide range of skid steer loaders, pallets and trucks et al – $500,000
- The cost for the purchase of a truck – $10,000
- Budget for paying at least 4 employees for 2 months plus utility bills – $70,000
- Additional Expenditure (Business cards, Signage, Adverts, and Promotions et al) – $2,500
- Miscellaneous: $5,000
Going by the report from the market research and feasibility studies conducted, we will need about seven hundred and fifty thousand (750,000) U.S. dollars to successfully set – up a medium-scale but standard and well–equipped skid steer loader rental business in the United States of America.
Generating Funds/Startup Capital for Jon Hensen® Skid Steer Loader Company, LLC
Jon Hensen® Skid Steer Loader Company, LLC is a family business that will be owned by Mr. Jon Hensen and his immediate family members. They are the only financiers of the business, but may likely welcome partners later which is why they decided to restrict the sourcing of the start-up capital for the business to just three major sources.
These are the areas we intend to generate our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for a loan from the Bank
N.B: We have been able to generate about $250,000 (Personal savings $150,000 and a soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of its employees, its investment strategy, and its business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Jon Hensen® Skid Steer Loader Company, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to rent out our wide range of skid steer loaders a little bit lower than what is obtainable in the market and we are well prepared to survive on a lower profit margin for a while.
Jon Hensen® Skid Steer Loader Company, LLC will make sure that the right foundation, structures, and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re-training 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 helping 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 All forms of Insurance for the Business: Completed
- Securing a standard parking facility and reconstruction inclusive: In Progress
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- 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 Packaging Marketing/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances, and facility facelift: In progress
- Purchase of various sizes of standard skid steer loaders, pallets, and trucks: Completed
- 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 relationships with vendors and key players in the industry: In Progress