This financial model turned out to be a work of art. Anybody looking to start a trucking company (or organization) will benefit from this financial forecasting template. It has all the assumptions you need for this type of business and was built to handle large- or small-scale operations as well as scaling from small to large.
$45.00 USD
After purchase, the template will be immediately available to download. This is also included in the industry-specific financial models bundle and the service businesses template bundle.
Template Features:
- Forecast for up to 5 years.
- Drive monthly delivery demand by type (up to 3 types).
- Dynamic inputs for deliveries, coverage rate (owned vs. required trucks)
- Up to 3 delivery / truck / vehicle types to scale out (or this could be differing transportation methods (ships/planes).
- Option to lease or own trucks and dynamic scaling logic included.
- Monthly and annual summaries included.
- Financial Statements (Income Statement, Balance Sheet, Cash Flow Statement).
- Robust variable cost assumptions (insurance / repairs/maintenance / fuel / and more) on a per truck basis.
- Also, general slots for costs per delivery per type included.
- Revenue defined as average delivery fees per trip (adjustable by type and over time)
- Awesome visualizations with cohort rows that are easy to follow.
- KPI calculations included (EBITDA/Gross Profit/Cash Flow per delivery and per owned truck).
- Includes a DCF Analysis, IRR (internal rate of return), Equity Multiple, ROI, and Minimum Equity Requirement
- Option for joint venture with inside and outside investors (see cap table tab)
NOTE, in the video you will see the fuel costs multiply the total miles by cost per gallon. Since then, I have updated the calculation on this model so that you can input the average miles per gallon for each truck type and that will drive the required gallons to be purchased and resulting cost based on the price per gallon input.
Starting a trucking business can offer several advantages:
- High demand: The trucking industry is vital for transporting goods over long distances, and the demand for transportation services is generally stable, providing a consistent customer base.
- Profit potential: Trucking can be a lucrative industry with the potential for high-profit margins, especially if you effectively manage costs, maintain a strong customer base, and optimize your operations.
- Scalability: As your business grows, you can expand your fleet by adding more trucks and drivers, allowing you to take on additional clients and increase your revenue. This financial model makes this happen seamlessly with elegant logic.
- Independence and flexibility: Owning a trucking business gives you the opportunity to be your own boss, make your own decisions, and set your own schedule. You can choose the types of loads you want to transport and the regions you want to serve.
- Job creation: Starting a trucking business can contribute to job creation by hiring drivers, mechanics, dispatchers, and support staff, which positively impacts local economies.
- Diverse clientele: Trucking serves a wide range of industries, including retail, manufacturing, construction, and agriculture. This diversity allows you to cater to different customers and diversify your revenue streams.
- Tax benefits: Owning a trucking business can provide various tax advantages, such as deductions for fuel, maintenance, insurance, and depreciation of equipment.
It's important to note that starting a trucking business also has challenges, such as high initial costs for purchasing trucks and equipment, competition, regulatory compliance, and potential risks associated with logistics and driver management. Thorough research and careful planning are crucial to mitigate these challenges and maximize the benefits of starting a trucking business.
Expected Trucking Business Profitability (rough estimate)
The average profit margins of a trucking business can vary significantly depending on various factors such as the type of trucking operation, fleet size, operating costs, market conditions, and geographic location. This model will let you determine what your margins could be based on defined assumptions.
The average profit margin for a trucking business typically ranges from 3% to 7%. It's important to note that this is just a general range and individual businesses may have higher or lower margins based on their specific circumstances.
Profit margins in the trucking industry tend to be relatively low due to high operating expenses such as fuel costs, maintenance and repairs, insurance, and driver wages (all accounted for in the template). Additionally, market competition, regulatory compliance, and economic conditions can further impact profit margins in the industry.
The forecasting template comes with all the inputs zeroed out so you can follow along with the video and enter relevant configurations based on your plan.
Also, if you are looking to value an entity, you may find use out of this template for small business valuation.
