Because a business plan is a written document, it forces you to state your goals in writing and in words that make sense to your advisors and peers.
***image1***The first article of this series introduced the concept of business planning and discussed the benefits of having a plan of your own.
This article discusses what an expediting business plan may contain and how to avoid being overwhelmed by the process.
When you write your business plan, do so with your audience in mind. Only a handful of people are likely to read your document or parts of it, but they are very important people in your life as a self-employed expediter.
Your audience will likely include the banker or finance company officer who finances your truck, your insurance agent, your CPA or other tax adviser, your financial planner if you have one, your attorney, your spouse and other family members who would need to know what to do if you became incapacitated, trusted friends or other advisers you may have, and anyone else who can help you succeed.
If you do not have an accountant, attorney and other such people in your life, do not let that stop you. You are not writing a business plan just for the people mentioned above. You are writing it first and foremost for yourself.
Because a business plan is a written document, it forces you to state your goals in writing and in words that make sense to your advisors and peers.
It forces you to define what kind of expediter you want to be. It gives you reasons – your reasons – for being out there. It keeps you from second-guessing your choices when industry conditions fluctuate. It keeps you focused on your goals when you hear of others that seemingly have it better than you.
In other words, you write a business plan first to put yourself on track, and second to give others the information they need to help you succeed.
If you do not have the professionals in your life that many successful expediters do, you will have time to develop those relationships later. Remember, this is a step-by-step series. We are starting at the very beginning of the business planning process and taking it one step at a time.
How do you keep from being overwhelmed by the business planning process? You do it by being patient with yourself and determined to see the project through. You do not have to know how to write a business plan before you start. You can learn as you go. It is not important to quickly complete your plan. It’s better to move at a comfortable pace and see the job through.
Again, be patient. You did not know how to walk before you learned to walk. You did not know how to read and do arithmetic before you learned those skills. You did not know how to drive before you learned to drive. If you do not know how to write a business plan today, that is no problem at all. You can you can learn, just as you have learned before.
The first question your business plan should answer is “Who do you think you are, and what do you think you are doing?” If you do not know that, you are almost certainly doomed to grope your way from one bad decision to another, and end up with little to show for your expediting efforts.
Business plans usually include a section entitled “Business Description.” That is where you state who you think you are and what you think you are doing. Three hypothetical business descriptions follow.
David and Jane Andrews
David and Jane Andrews are a highly successful husband/wife over-the-road truck-driving team. They use a specially equipped truck to transport high-value and expedited freight for (carrier name) in return for the money (carrier name) pays them. This type of trucking is known as expediting. The drivers (usually independent contractors) are known as expediters. The Andrews’ business results, goals and methods are described in this business plan.
Who do the Andrews think they are? They think they are a highly-successful expediting team. What do they think they are doing? They think they are earning money by transporting expedited freight in a truck designed for that purpose.
Joe Smith
Joe Smith is entering the expediting field with no prior truck-driving experience, but with experience in (name the prior work). Skills that carry over from his previous work include (name them). Smith has researched the expediting industry. His business plan has been reviewed and endorsed by three well-established expediting professionals. Smith intends to drive a fleet owner’s truck for three years as he saves money for a truck of his own. He is now sharing his business plan with fleet owners to introduce himself and find the fleet owner who can best provide the coaching and truck Smith needs to accomplish his goals.
Who does Joe Smith think he is? He thinks he is a newbie expediter. What does Smith think he is doing? He thinks he is looking for a fleet owner that can help him learn the business and save money toward a truck of his own.
Frank and Betsey Jones
Having celebrated their youngest child’s high school graduation, Frank and Betsey Jones, ages 47 and 46, are taking up a new career as an expedited freight truck-driving team. They are seeking a loan to purchase an expediting truck that they will use to haul expedited freight. They will use income earned in that endeavor to pay off the loan and build their retirement savings. John has been driving trucks most of his adult life. Jane has worked various part-time jobs over the years while taking care of the children at home. While their net worth is near zero, they are looking forward to the increased income team expediting can provide. They plan to retire when John is 67. Their net-worth and retirement-lifestyle goals, and the way they intend to achieve them, are described in this business plan.
Who do the Joneses think they are? They think they are parents now free to hit the road as an expediting team. What do they think they are doing? They think they are seeking a loan to buy a truck that they will use to earn and save money for retirement.
Notice we are not asking “Who are you and what are you doing?” We are asking, “Who do you think you are, and what do you think you are doing?” That is an important difference.
The Andrews think they are highly successful, but are they really? Joe Smith thinks he is seeking a fleet owner that will help him achieve certain goals, but is that what Smith will end up with? The Joneses think they are free to take up life on the road as expediters, but are they really?
Written business plans help people think clearly about who they are and what they are doing. When the Andrews say they are highly successful, their business plan would explain exactly what that means. When Joe Smith says he is seeking a fleet owner, a description in his business plan of the fleet owner marketplace will help Smith avoid theunskilled or unscrupulous fleet owners that are out there. When the Joneses say they are ready to live on the road, their proposed home-time schedule in their business plan will help them make sure they really are.
In addition to definitions of success, marketplace descriptions, and production schedules, business plans generally include things like statements of net worth, pro forma statements of income and expenses, a risk analysis section, a description of general economic and general industry conditions, and much more. But before developing any of these it, is vital to be able to say who you think you are and what you think you are doing.
Business plans are highly individualized. Your work schedule will almost certainly be different from most others; as will your retirement objectives, immediate and intermediate financial needs, truck preference and many other items.
Even health enters in. For example, if your family has a history of diabetes, and you are not a diabetic but may one day be, that is something to address in your business plan, since diabetes can disqualify you from holding a CDL. If part of who you are is a potential diabetic, your business plan should state and discuss that risk.
While your business plan should present you in the best possible light, it best to describe the real you. The Joneses admitted they were a middle-aged couple with a near-zero net worth. They did not try to fool themselves or others by passing themselves off as a business success story. Instead, they take the more honest and effective approach of writing a plan based on real circumstances and realistic expectations.
Before you begin to write a business plan, you simply must know who you think you are and what you think you are doing, and you must be able to write it on paper. If you do not know, set a goal to figure it out and get busy doing so.
Be careful, though. Your friends and family may start worrying about you if you go from one person to the next asking, “Who am I?” It does not have to be that hard. This is not about philosophy or theology. It’s about business.
Start by asking yourself, “What kind of expediter do I want to be, and what do I hope to accomplish in the years ahead?” Be very careful to keep the focus on yourself, and not on others. Do not fall into the trap of asking “Who am I compared to other people, and how does that make me feel?” This is not about others. It’s about you and the kind of expediter you want to be.
If you are uncertain about what kind of expediter you want to be, resources are available to help you decide. Expediting styles are described in the article “Introduction to Expediting.” You can read it online at http://www.expeditersonline.com/downloads/introduction.pdf. The Driver Lifestyles section of the ExpeditersOnline.com web site describes a number of solo and team drivers, their trucks and how these people live and work on the road.
Read a number of driver profiles. For each, ask, “Who does this person think he or she is, and what does he or she think he or she is doing?” After answering those questions about other expediters, it will be easier for you to answer the same questions about yourself.
The next installment of this Business Planning for Successful Expediters series will further discuss the business description section of your business plan. Until then, try writing a hundred words or so (two or three paragraphs) that describe, in business terms, who you think you are and what you think you are doing.
Phil Madsen is the Senior Field Editor with Expediters Online. He and his wife Diane are a straight-truck expediting team. In 2003 they left their white collar careers and became expediters to increase their income, simplify their lives, spend more time together, share a business project, and see the country. They are pleased to say, “It’s working!” Phil can be reached at [email protected].
