Box trucks, whether they are 18-footers or 26-footers, can be used for a vast range of services, including over-the-road travel, regional travel, or local deliveries. This versatility has made these vehicles alluring not only for box truck business owners but also for shippers.
Also, driving a box truck is quite easier when compared to a 53-foot tractor-trailer, and this remains one of the vital reasons why some truckers prefer to drive box trucks than a big rig. According to reports, the box truck industry has grown at an above-average pace within the last few years. There are numerous reasons for this growth.
However, irrespective of the reasons, the fact remains that the box truck industry is on the rise and will continue doing so in the foreseeable future. Note that as the popularity of this industry heightens, new businesses and even more established businesses will surely need business plans.
Steps on How to Write a Box Truck Business Plan
1. Executive Summary
Speed Movers LLC is a box truck company situated in Seattle, Washington State, offering long and short-distance transportation of domestic and commercial goods. At Speed Movers LLC, our services will also include warehousing and storage, packing and packaging, distribution, and transport logistics.
Company Profile
a. Our Services
The services we intend to offer at Speed Movers LLC include;
- Transport: Local and long-distance transportation of household and office goods
- Storage: Warehousing and storage services for clients who intend to keep their appliances or furniture for a longer term
- Packing: Safe and scratch-proof packing of furniture
- Consulting and advisory services
b. Nature of the Business
At Speed Movers LLC, we intend to leverage a unique model where operator-owned box trucks are used to meet and fulfill moving contracts. Have it in mind that any individual who owns a box truck can register with Speed Movers LLC to monetize their vehicle. Note that after they get registered, we will inculcate the owner-operator into our roster schedule.
c. The Industry
The company’s services are classified under the United States Moving and Storage industry.
d. Mission Statement
Our mission is to establish a successful box truck business that operates not just in Washington State but in and around the United States. Our intention is to achieve this by becoming the preferred choice for moving light-duty furniture/appliances through a reliable network of material handlers and transporters across the USA.
e. Vision Statement
At Speed Movers, our vision is to become one of the preferred choices for individuals and organizations seeking to move light-duty furniture/appliances in the United States of America.
f. Tagline or Slogan
Speed Movers LLC – Reliably Delivered
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Speed Movers LLC will be formed as a limited liability entity. We intend to build a moving company that will grow to become the primary provider of packing, moving, and storing light-duty furniture and appliances in Washington State. Since our services will also extend to warehousing, distribution, and logistics consulting, the LLC provides us with adequate cover and protection.
h. Organizational Structure
We intend to employ and contract with the following to start and grow Speed Movers LLC;
- Chief Executive Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive
- Accountant
- Box Truck Drivers
- Customer Services Executive/Front Desk Officer
i. Ownership/Shareholder Structure and Board Members (If Any)
Just like it was noted above, Speed Movers LLC will be registered as a limited liability entity with the Washington Department of State. Since we intend to set up business operations in Seattle, we also intend to register with the local county. However, the business will be solely owned and run by Founder Mr. Thomas Flinch, who will also be the principal investor of Speed Movers LLC.
SWOT Analysis
a. Strength
- Speed Movers LLC will benefit from the extensive insight and market expertise.
- Flexible and vast range of services
- We will be located in Seattle, a place that boasts of the right talent, infrastructure, support services, and capital availability.
- Our Founder’s success portfolio and global clientele offer credibility and increase trust among our potential clients.
- Well-tailored collaborations
b. Weakness
- A growing number of competitors within the industry lead to market share erosion.
- Speed Movers LLC is relatively new to the US market
- The massive rate of competition within the industry and the fragmented nature of the market makes the sector price-sensitive
c. Opportunities
- We intend to partner with leading logistics providers to boost our market offering
- Note that the expertise of our founder in tactfully combining customer relationship management and supply networks opens up numerous opportunities within challenging and risk intensive markets
- Speed Movers LLC boasts of the capabilities to extend its offerings globally
i. How Big is the Industry?
With 31 million people in the United States moving each year and with an estimated $86 Billion in revenue, the moving industry is quite larger than most people know. According to reports, the Moving industry in the US is the 17th ranked Transportation and Warehousing industry by market size and the 401st largest in the US.
ii. Is the Industry Growing or Declining?
According to data, the market size of the Moving Services industry in the US has grown 0.8% per year on average between 2016 and 2022. Note that the industry is also expected to increase 5.4% in 2023.
iii. What are the Future Trends in the Industry
High-tech innovations are improving service quality and efficiency for moving companies and customers alike. Have it in mind that these trends are not only for big multinational movers, a good number of smaller domestic movers are also implementing AI within their workspaces.
Have it in mind that the main trends in the industry involve empowering the moving client from initial cost inquiry to booking, tracking of the physical move, and also reviewing their experience online after the contract. Well-established businesses in the industry understand this and are always searching for ways to leverage available opportunities afforded by this process automation.
iv. Are There Existing Niches in the Industry? If YES, List them
- Logistics
- Storage
- Packing
- Over-the-road travel
- Regional travel
- Local deliveries.
v. Can You Sell a Franchise of your Business in the Future?
At Speed Movers LLC, we do not intend to sell a franchise in the future. Although we intend to expand to other urban areas in the United States, all our locations will be fully company-owned and operated.
d. Threats
- Competitors eroding the market
- Low barriers to entry
- Competitors poaching B2B clients
- Changes in the trading regulations in the United States will impact our operations at Speed Movers LLC.
i. Who are the Major Competitors?
- American Van Lines
- Xtreme Movers
- International Van Lines
- Long Distance Van Lines
- Rolls Van Lines
- Affordable Movers
- Colonial Van Lines
- Moving Squad
- Molloy Brothers Moving
- Adept Moving & Storage.
ii. Is There a Franchise for Box Truck Moving Business?
- Two Men and a Truck Int’l. Inc.
- Go Mini’s Franchising LLC
- Units Franchise Group Inc.
- Crowning Touch Senior Moving Services Inc.
- Box Galaxy
- Zippy Shell Moving and Storage
- Strong College Students
- You Move Me
- Metropolitan Movers Inc.
- BumbleJunk LLC
- NorthStar Moving Co.
- 1-800-Packouts
- Junk King
- BringPro
- Navis Pack and Ship Centers
- A.S.S. Packaging And Shipping Specialists
- Our Town America
- Pak Mail
- InXpress Logistics
- Unishippers Global Logistics
iii. Are There Policies, Regulations, or Zoning Laws Affecting Box Truck Business?
Yes, depending on the state you intend to start your box truck business, you may be expected to obtain a special license from the Department of Transportation. Note that each state has its own set of requirements; therefore, entrepreneurs are advised to contact their state’s DOT to learn more.
Marketing Plan
a. Who is your target audience?
i. Age range
At Speed Movers LLC, our target clients are people within the age range of 18 and 64 years
ii. Level of Educational
At Speed Movers LLC, our target market is basically everyone (organizations and individuals as well anyone with a cause to move goods from one location to another)
iii. Income Level
The income level of our target market will be individuals that earn $12,000 annually and above.
iv. Ethnicity
We will not discriminate based on ethnicity.
v. Language
There are no language restrictions at Speed Movers LLC.
vi. Geographical Location
Presently, our clients are within Seattle, Washington State. We intend to expand into other cities in Washington and also around the country.
vii. Lifestyle
Our target market at Speed Movers involves anyone who has cause to move light goods and materials from one location to another
b. Advertising and Promotion Strategies
- Network With Realtors & Those Involved In The Home Buying Process
- Email Marketing To Previous Customers & Referral Contacts
- Using our Trucks as Mobile Billboards
i. Traditional Marketing Strategies
- Handing out flyers or brochure
- Billboards at strategic places
- Direct mail
- Print ads
- Event marketing
- Referral
- Broadcasting
- Cold-calling
ii. Digital Marketing Strategies
- Advertise your moving company on Google.
- Rank locally in Google searches with Google My Business.
- Use Search Engine Optimization
- Chatbot Advertising
- Network with real estate agents.
- Create a referral program.
- Geo-Fencing Ads
- Retargeted Ads
iii. Social Media Marketing Plan
- Pay Per Click
- Use Facebook Advertising.
- Show Your Team At Work On Instagram
- Encourage Engagement
- Post Consistently
- Make Posts Visual and Add Relevant Hashtags
- Engage with Customers and Followers
- Post About Moving and Storage Topics
c. Pricing Strategy
The company’s pricing is solely based on miles per thousands of tons of goods and materials transported. At Speed Movers LLC, we have perfected plans to charge competitive rates since we have minimal overhead compared to our competition.
Sales and Distribution Plan
a. Sales Channels
Americans moving houses and offices form our primary target Market at Speed Movers LLC. Although push marketing efforts will be deployed to reach these individuals and businesses, we also intend to leverage pull marketing efforts to drive engagement for the company’s services. These efforts will have an interlinked impact on our business revenue and success.
b. Inventory Strategy
At Speed Movers LLC, we intend to use moving software that helps automate all business functions of our company. After extensive research, we intend to use Movegistics®, which is the only moving CRM with real mobile apps for onsite estimates & electronic BOLs.
This software comes loaded with features that include 2-way texting, email campaigns, live chat, sales follow-up automation, wireless dispatch, storage, payments, QuickBooks, Google Cal integration & more!
c. Payment Options for Customers
Below are the payment options we intend to make available to our clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Return Policy, Incentives, and Guarantees
At Speed Movers LLC, we intend to advise our clients on the possible risk of damage before the move begins. We also reserve the right to decline any claims for furniture and appliance damages if we are not allowed to inspect customers’ furniture or appliances before moving them or if we are not allowed to protect furniture properly with moving blankets and plastic wrap.
We will also deny a claim for damages of any items inside boxes or containers that were improperly packed by the customer unless the boxes or containers were physically damaged by the movers.
e. Customer Support Strategy
We understand that the most vital skills for a successful moving business are personnel management and delegation of tasks. Whether on the phone or in person, interacting with customers and the moving team is very necessary, therefore interpersonal skills are very crucial to our customer support strategy.
Operational Plan
a. What Happens During a Typical Day at a Box Truck Business?
As the owner of a box truck business, your everyday tasks will require both physical and mental strength. However, depending on the services you offer your clients, you’ll be carefully packing items and transporting them from one location to another.
Agreeably, demand in this industry can be quite high, it’s also highly competitive. Also note that you will spend part of every day on a marketing strategy, which can include social media posting, bidding on local contracts, following up with client inquiries, and following up with clients.
b. Production Process (If Any)
There is no production process when it comes to the moving business.
c. Service Procedure (If Any)
At Speed Movers LLC, we intend to operate an 8-hour workday from 9 am to 5 pm. Note that all our moving contracts will be facilitated during the 8-hour workday. Contracts received after the workday shift will be moved to the next day. This is to guarantee that all drivers of the company have a healthy work-life balance as moving is highly labor-intensive.
d. The Supply Chain
At Speed Movers LLC, we intend to predominantly rely on online advertising and lead generation strategies since most people seeking logistic services tend to first search online for information. Owing to that, a full-fledged online marketing campaign will be launched inclusive of paid social media, and website campaigns. We intend to approach potential commercial clients directly, either through cold calling or e-mail to arrange pitch meetings.
e. Sources of Income
- Transport charges
- Storage fees
- Packing charges
- Logistics and consultation fees
Financial Plan
a. Amount Needed to Start your Box Truck Business?
We need around $50,000 to $100,000 to start up Speed Movers LLC
b. What are the Cost Involved?
Since we intend to leverage a unique model where operator-owned box trucks are used to meet and fulfill moving contracts, our plan is to infuse the sum of $50,000 into the company. Approximately $13,200 will be spent on start-up expenses like marketing, advertising, and professional fees. In addition, another $6,400 will be earmarked for sales tax payment and the acquisition of computers and other office equipment.
c. Do You Need to Build a Facility?
At Speed Movers LLC, we intend to start operations from a rented office space in a commercial area in Seattle. Additions to space will be made as the company expands operations.
d. What are the Ongoing Expenses for Running a Box Truck Business?
- Payroll and payroll taxes
- Vehicle maintenance
- Insurance
- Fuel costs
- Utility
- Website support
- Marketing strategy.
e. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner): $110,275/year
- Admin and HR Manager: $89,422/Year
- Transport and Logistics Manager: $74,560/Year
- Marketing and Sales Executive: $71,990/Year
- Accountant: $62,810/Year
- Customer Services Executive/Front Desk Officer: $52,000/Year
f. How Do You Get Funding to Start a Box Truck Business
- Source money from personal savings and sale of personal stocks and properties
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
Financial Projection
a. How Much Should You Charge for your Service?
Speed Movers LLC has a lease arrangement with various companies and the company’s pricing is based on materials transported. We have put plans in place to charge competitive rates since we have minimal overhead compared to our competition in the industry. Our standard costs are $25-$30 per hour per mover.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $700,000
- Third Fiscal Year (FY3): $1.3 million
c. Estimated Profit You Will Make a Year?
At Speed Movers LLC, we expect to make;
- First Fiscal Year (FY1): $85,000 (35% of revenue generated)
- Second Fiscal Year (FY2): $240,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $610,000 (55% of revenue generated)
d. Profit Margin of a Box Truck Business
According to reports, most moving companies only profit about 10%. Note that some are higher and some are lower, depending on location and business niches.
Growth Plan
a. How do you intend to grow and expand?
We intend to compete favorably with leading moving and storage companies in the United States, which is why we will ensure that every service carried out meets and even surpasses our clients’ expectations.
b. Where do you intend to expand to and why? (Geographical locations)
- San Francisco, CA.
- Austin, TX.
- New York, NY.
- Houston, TX.
- San Antonio, TX
- Dallas, TX
- Chicago, IL.
- Atlanta, GA.
After extensive research, we believe we can find local relocation jobs in these cities. We believe these cities will grow to become the bread and butter of the professional moving industry. We believe they will also offer us the foundation to develop our brand in the future.
Exit Plan
At Speed Movers LLC, we see family succession as a possible business exit strategy that might be great for our brand. This is because this business exit strategy does not need too much involvement from external parties. In addition, it is also one of the easiest and most straightforward options when done right.