Starting a business is always a daunting prospect—and for good reason. Statistics show that many new businesses fail within their first five to six years, often due to cash flow issues or a lack of business acumen. That’s why having a solid truck driving business plan from the beginning is so important. 

If you’re considering becoming an owner-operator in the trucking industry, now may be a promising time. Earlier this year, The American Trucking Associations’ Freight Transportation Forecast estimated current trucking industry revenues at $906 billion, while predicting that by 2035, industry revenue will rise to $1.46 trillion, and account for 76.8% of the freight market in the United States. 

But even in a growing industry, success doesn’t happen by accident. A thorough truck driving business plan will help provide structure, direction, and credibility for your burgeoning business. In this article, we’ll walk you through seven key steps to building an effective truck driving business plan, covering everything you need to make informed choices about your future venture. 

Step One: Define Your Business Objectives and Services

Use your truck driving business plan to establish what your business is, what industry problems it aims to solve, and clearly outline your mission and vision for this venture. Define both short-term and long-term business goals for your business, to help provide guidance for a long-term business strategy. 

Next, outline the contributions your business will make to the larger trucking industry. Consider what specific services you’ll offer—will your business specialize in long-haul trucking? Local work? Freight hauling? Specialty cargo transportation? Describe, based on your company goals and scope of services offered, exactly what customers and industries your company will serve, such as the retail, agriculture, or construction sectors. 

Once you’ve indicated the position your business will occupy in the market, explain how it will stand out in that market. What can your trucking company offer that no one else can provide? 

Step Two: Conduct Market Research and Competitive Analysis

Now it’s time to gain a better understanding of market conditions and competition. Analyze the level of demand for trucking services in your target region or industry niche. Identify major competitors within that target, and assess their strengths and weaknesses. 

Supplement this insight by conducting thorough research of and analyzing all relevant factors that could impact your business. Examine market trends, fuel prices, regulatory shifts, and economic forecasts. Based on your findings, determine pricing benchmarks and service expectations for your target market. The insights gained from careful study and analysis will also help you refine your value proposition and positioning in your truck driving business plan, to suit the specific conditions of the markets you wish to serve. 

Step Three: Choose a Business Structure and Register Your Company

Get down to the nitty-gritty, of actually establishing and registering your organization. Based on liability and tax considerations, select a legal structure that is best for your own personal business needs. For the best outcome, it’s best to consult an attorney for the formation of your business, as well as a Certified Public Accountant (CPA) for tax advice. There are many nuances that can be helpful for—or detrimental to—your business, so you don’t want to make mistakes before you even begin.

Register your business name, and apply for an Employee Identification Number (EIN) from the IRS. You’ll also need to obtain a USDOT number, Form BOC-3, and Operating Authority, also known as an Motor Carrier number, from the Federal Motor Carrier Safety Administration. Businesses engaged in interstate commerce will need Unified Carrier Registration (UCR), as well. 

This is also the time to acquire all necessary licenses, permits, and insurance, taking into consideration cargo, liability, and worker’s compensation. Ensure that your business, if operating across state lines, is compliant with the International Registration Plan (IRP), and with the International Fuel Tax Agreement (IFTA). Finally, open a business bank account for your organization. 

Step Four: Create a Detailed Operations Plan

Next, your truck driving business plan will need a detailed outline for operations management. This operations plan should include your business’s service area, the types of hauls it covers, and how your business will handle logistics. Determine fleet needs for trucks, trailers, and other necessary equipment. 

Develop thorough procedures for regular maintenance for these vehicles and equipment, as well as for safety inspections. Assuming your business won’t be a one-person show, define hiring criteria for drivers and other staff members. From there, establish thorough standard operating procedures for dispatch, invoicing, and compliance.

Step Five: Prepare Financial Projections and Budgeting

Estimate startup costs for getting your business up and running. This will include purchasing or leasing vehicles, insurance costs, and all necessary permits. Outline monthly fixed and variable operating expenses for factors like fuel, employee wages, and equipment repairs. 

Using projected trucking loads and rates per mile, as well as the market and economic analysis you’ve conducted, forecast the projected initial revenue stream for your operation. Create a profit-and-loss statement, a forecast for cash flow, and a balance sheet. Thorough financial projections will help you set business pricing that covers operating costs and allows a sustainable margin for profits. 

Step Six: Outline Your Funding Needs and Growth Plan

Financial considerations for your truck driving business plan don’t stop there, however! You’ll need to source funding and put your business on the right track to sustain its own growth. Start by figuring out how much capital you need to launch your business—and how you’ll allocate those funds. Possible funding solutions for exploration could include loans, grants, leasing options, or investors.

Once you’ve allocated funds for launching your company, create a timeline for significant operational milestones, like break-even and fleet expansion. Promote the growth of your venture by identifying and taking advantage of avenues for scaling, such as adding new routes, hiring more drivers, or contract hauling. Business growth includes increased risk, so be sure that your plan addresses areas of risk, and how your organization will meet and mitigate those dangers as it expands. 

Of course, creating a solid truck driving business plan requires thorough research from credible sources. Don’t hesitate to reach out to experts in the business community or professionals with firsthand experience in the trucking industry. Their insights can help you fill in gaps, avoid common pitfalls, and ensure your business plan is as informed and detailed as possible.

Step Seven: Use i2290.com to File Form 2290 for Heavy Vehicle Use Tax

We’ve reached the final step: When you start your trucking business, don’t neglect to file IRS Form 2290, for the Heavy Vehicle Use Tax (HVUT). The HVUT is vital for all drivers and owner-operators who operate heavy vehicles on public roadways. That’s where i2290 comes in! Our e-filing system allows easy, fast HVUT filing from anywhere with internet access. 

Our user-friendly platform walks you through a series of simple questions about your vehicle(s) then calculates your taxes automatically, making the process quick and easy. But just in case you do run into problems, our world-class support team is always ready to offer help and answer questions—in English and Spanish—at no additional cost. 

Our dedication to customer service also includes free VIN corrections and weight increase amendments. Additionally, once we’ve provided you with your stamped Schedule 1, it remains in our digital systems for the next 7 years, so it’s always accessible should you need it. 

It’s time to enact the best truck driving business plan possible. Make a fast and friendly i2290 filing experience part of that plan by creating an account with i2290 today! 

Special note: This article is for general purposes, and is not intended to provide, and should not be relied on for tax, legal, investment, or accounting advice. The best way to ensure you’re properly filing and paying appropriate taxes is by following IRS regulations and consulting with a tax professional.