What should be in your business plan? More than likely, you will need to borrow money. To do this you must develop a plan incorporating specific information that reflects your opportunities for success. Over 90% of small businesses fail within their first year, primarily due to a lack of planning. Financial institutions want to know that you have done your “homework” and understand basic economic terms and trends within the industry.
It is critical to explore realistic short-, mid-, and long-term goals.
It is essential that you are able to show your cost of operations, including the fixed and variable costs. What are they and how can you control those costs? Learn what your operating assets are in comparison to your liabilities. Learn how to manage costs and be able to realistically project your financial success. Determine how much cash flow you will need to have in order to succeed.
Develop realistic operating procedures that reflect the freight you will be hauling, and the demographics of where the freight originates and where it is delivered. Understand that different freight lanes require different rates and why. Know where to get freight and when to use or to avoid load boards. Spot market versus contract rates. How to figure a fuel surcharge or should you figure a fuel surcharge, advantages and disadvantages? These are things that should be included in a business plan.
This first training class is an overview of what you need to succeed and what you will need to show to financial institutions and lenders in securing financing. The other training classes will help you to answer the multitude of questions that you will face in securing a realistic and comprehensive Business Plan.