The trucking industry in Canada is continuing to see an increase in revenue which is expected to grow at a CAGR of 1.0% to $32.1 billion through the end of 2028 due to growth in population, increase in consumer spending, and trend in online shipping. It’s an industry that has a low barrier to entry and is manageable to establish. Due to the increase in trade between the US and Canada, 90% of consumer products and foodstuffs in Canada are transported by trucks. According to the Canadian Trucking Alliance, there is a shortage of 20,000 truck drivers, and one-third of current drivers are nearing retirement, with Ontario alone seeing a shortage of 6,100 truck drivers. If you are planning to start your trucking company, you will need a trucking business plan to help you as a guide during start-up as well as apply for funding from banks and government institutions.
Types of trucking companies include.
- Less Than Truckload (LTL) where the owner transports goods that do not require a full truckload hence, you’ll have different customers transport in one truck with each charged according to how much space is occupied which is ideal when starting your trucking company.
- FTL or Full Truckload is ideal for larger companies that have one customer that needs products shipped to their customer and the items occupy all the space in the truck.
- Flatbed Trucking is ideal for large items that do not fit a standard trailer and are difficult to load on and off.
- Tanker trucking that often-transport gasses and liquids
- Refrigerated trucks are used in the food industry.
At Vaisus, we can help you draft a fund-ready business plan that is customized to your business needs.
Below is a guide on the essential sections of a trucking business plan:
Executive Summary
Briefly introduce the Canadian trucking industry and highlight its significance and growth trends.
Outline your trucking company’s mission, vision, and unique selling propositions. Summarize the market demand and growth potential in the Canadian context for your trucking company.
Industry and Market Analysis
Provide data on the size and projected growth of the Canadian trucking industry, and identify the current trends in the industry, such as the adoption of technology, sustainability efforts, or changes in regulations. Analyze major players in the Canadian trucking sector, their market share, and strategies. Identify both local and national competitors, examples of national competitors include TFI International, Bison Transport, TransX Group, and Mullen Group, these companies take almost 10% of the market. Highlight in your trucking business plan how you plan to set yourself apart in the market.
Define your specific target market within the Canadian trucking industry, considering factors like geographical location, industry segments, and customer profiles. The target market can include the food industry, retailers, construction companies, manufacturing, oil and gas etc. Understand the needs and preferences of your target customers and how you plan to meet the needs.
Licenses and Permits
The transportation industry has become highly regulated in recent years. Ensure you detail the relevant regulations and compliance requirements for the Canadian trucking industry and how you plan to be compliant. The federal government through its arm Transport Canada is responsible for reducing injuries and fatalities caused by commercial trucks. The provincial and municipal governments also enforce their own roadway and traffic safety laws. List the necessary licenses and permits for operating a trucking business in your location.
Marketing Strategy
Discuss the strategy you will use to promote your business including online marketing, traditional marketing channels, and networking with potential customers and other players in your industry. Some marketing ideas include a website, social media, trade shows, attending industry events, google ads, and getting listed on directories.
Operational Plan
Provide details about your business location and facilities, including parking and maintenance facilities. Detail how you plan to manage your fleet and how you will adopt technology solutions to ensure smooth operations of your business. Fleet management can include purchasing, maintenance, parts inventory, managing driving routes, and analyzing driver performance. If you plan to hire a truck driver from the start, list down your recruitment plan.
Financial Projections
Detail the initial investment required to start your trucking company and provide 3 to 5-year realistic financial projections including a balance sheet, cash flow projection, income statement, sales forecast, and profit and loss statement considering industry trends and market conditions.
Specify if you are seeking funding and how the funds will be utilized.
Risk Analysis
Identify potential risks related to market conditions, competition, or regulatory changes. Assess risks associated with fleet management, maintenance, and unforeseen events and propose strategies to mitigate identified risks. Some of the risks include driver shortage, finding parking, supply chain crisis during the recession, scheduling, and driver safety.
Conclusion
Remember to stay updated on the latest industry trends and market dynamics in the Canadian trucking sector, as this information is crucial for the success and adaptability of your trucking business plan. Get in touch with us and we’ll support you with developing a funding ready business plan. your business plan consultants who will work with you to draft a trucking company business plan that can be presented to investors and bank. We have partnered with market-reach companies who have the latest data and trends in the industry.
