The trucking market is arguably one of the most important sectors of the transportation industry. It’s crowded and competitive but has major upside and huge profit potential. That’s why you must understand the market you’re entering. The market analysis section should include information about the trucking industry, your target market (where and what you will haul), your competition (how crowded is that specific market), and how you intend to make a place for your service (how will you benefit the market).
What Should I Include In My Market Analysis Section?
- Target market: Where do you want to haul? What kind of hauling will you do? The information from the services section of your business plan will answer this for you.
- Your competition: Who are your competitors? Who are their customers? What are their strengths and weaknesses? How will you fill a gap they currently aren’t targeting?
- Regulations: Federal and state laws can sink a trucking company if you don’t fully understand them and develop a compliance plan. Detail such regulations as hours of service limits, fuel emissions requirements, and the various permits and licenses you will need. Then explain how you will ensure that your company complies.
- Revenue: What is your rate structure? How do your rates compare to those of your competition? What margins do you need to turn a profit? What are your profit and loss projections?
How Do I Write One?
- Hire a temporary business consultant.
- Research. Research. Research.
- Think about what needs you meet and how well you understand them.
- Make sure you include data and statistics.
- Create an outline of how you will structure this section.
- Follow DAT & ATBS.
- Use our Owner-Operator Calculator.
When writing the market analysis section of your business plan, you must be diligent in your research. This section must be thorough and concise. Get to the point quickly and avoid repetition that may hinder your overall objective. Remember, once you write your first market analysis, you’ll have to continue improving and evolving it with the market. Do not stop following and researching the market – you’re not just a truck driver but also a business owner.