Remember that writing a business plan is like putting together a puzzle. You work it one piece at a time, and you don't have to start at the top of the list. We are following the outline in order because we can only write about one thing at a time; doing this step-by-step makes it easy for readers to follow.<br/>
We have covered a lot of ground in parts one through 15 of this Business Planning for Successful Expediters series. This part is a review for those who have been following along and an introduction for the readers we will gain when this edition is placed in their hands at the upcoming Expedite Expo.
It is one thing to read a series of articles on how to write a business plan for a one-truck expediting business. It is quite another to actually write one. While writing a business plan is not an easy task, doing so is the best way we know for an expediter to gain a solid understanding of his or her business and the industry at large. Writing your business plan forces you to think things through that you might otherwise overlook. Putting your goals in writing – and your plan to achieve them – vastly increases your likelihood of success.
Part one explains some of the financial benefits that writing your business plan can produce. It also talks about how to set specific goals if you do not already have them. These are not goals that other people think you should have. These are goals that are rooted in your desires, and for that reason are meaningful and motivational.
Parts two and three are designed to put you at ease as you write your plan. You do not need to know how to write a business plan before you begin. While your plan may be read by the experts who help you in your business (banker, accountant, attorney, insurance agents, financial planner, etc.), you do not need the skills they have to write a good plan. Writing a business plan is like piecing together a puzzle. You do it one piece at a time. As the pieces come into place and the big picture comes into view, the task gets easier. The task is large. Be patient and enjoy the challenge as you proceed.
Part four shows how expediters talk about their businesses to others almost every day, and how to work this informal talk into a formal, written description of your business. You are not starting from scratch when you begin writing a business plan. You already know a great deal about what your plan will say and the results your plan will be designed to produce.
Part five presents a suggested outline (shown below) for a one-truck expediter business plan and some of the formal language that is used. We are working through the outline one subject at a time, taking as much time and space as we need to explain each item and guide you step-by-step through the process.
This piece is part 16. Parts six through 15 cover the outline from the beginning to the Owners and Managers section. As you can see, we have a long way to go. If you wish to join those who are following this series, you can catch up online. The entire series is on the ExpediteNOW.com web site.
Expediter Business Plan
- Executive Summary
- Table of Contents
- Business Description
- Business Name
- Business Form
- Business Owners/Managers
- Business Type
- Business Location
- Business History
- Mission Statement
- Current Situation
- Goals
- Market Analysis
- Industry Overview
- Target Market
- Value Proposition
- Pricing
- Competitive Analysis
- Competitor Identification
- Competitor Strengths and Weaknesses
- Differentiation
- Economic Analysis
- Business Cycle
- Industry Cycle
- Freight Cycle
- Operations
- Management
- Talent and Tasking Sales and Marketing Truck and Equipment
- Time Management
- Load Strategy
- Risk Management
- Insurance Operating practices
- Risk Analysis
- Financials
- Balance Sheet
- Profit and Loss Statement
- Break-even Analysis
- Ratio Analysis
Don’t let the size of the task get you down. As expediters struggle with the challenges brought on by the worst economic downturn in two generations, slower freight means more time is spent waiting for loads. This can be turned into a benefit if you set a goal to use your spare time well.
If you are not using it to help write a formal business plan, this outline can still be useful as a way to organize your questions, views and ongoing research. Look over the topics. Some will interest you more than others. Focus on those.
Say you are parked at a truck stop while waiting for freight. As usual, you see other expediter trucks from competing carriers. You can’t help but wonder about the freight they may be getting that you are not. You might talk to some of them and hear things like “We’re dying out here and will have to leave the business if it does not pick up.” “I’m doing OK but not as good as I’d like.” or “I heard yesterday that contractors with that carrier are not getting paid on time.” Such talk may be of interest, but how reliable is it, and what does it really mean?
Look at the outline and find Competitive Analysis. Would you like to know more about what your competitors are doing and how they are doing it? Might you use some of the spare time you don’t want but now have to make a serious study of it? Expediters writing full-fledged business plans will do so as part of the larger business planning process. You may not wish to write a complete plan, but focusing on just one part can be meaningful and even valuable if you find a better place to hang your hat.
Remember that writing a business plan is like putting together a puzzle. You work it one piece at a time, and you don’t have to start at the top of the list. We are following the outline in order because we can only write about one thing at a time; doing this step-by-step makes it easy for readers to follow.
You are not writing a business planning series. You are writing a business plan or zeroing in on particular topics of interest. The pieces that interest you most will be the easiest to work. If you would like to know more about your competition, you can begin by using the words in the outline above. Go to an online search engine and ask, “How do I do a competitive analysis?” Dozens of resources will instantly appear that tell you how to do exactly that. If you are willing to dedicate some of your spare time to it, you can learn a great deal about others who seek to haul the same freight you haul.
We have been surprised and gratified by the positive feedback this series has produced. Our office staff receives more requests for back copies of the series than anything else in this magazine. Business planning requires focused effort, some of which can be boring and tedious. Yet requests for the series continue. While we are sometimes tempted to drop the series for pieces that would be more fun and entertaining, reader interest keeps the series going.
Thank you, regular readers. If you are just joining us, welcome aboard!
