Business plan

I did not have a written plan when i bought my 1st truck..... but i did grow up in trucking.
My banker knew that and didnt bat an eye on my 1st truck when i was 22. never looked back. good luck

 

Tell her to shut up and go somewhere else. I don't know if I'm overly tired but that beats all I ever stepped in!! They are really pushing it in this industry,making the new guys think its this glamorous endeavor !! It's a frigen truck for crying out loud...sorry for the rant,but holy geez.
I've been hearing this type of verbiage on here lately ,and I can't believe what they're putting the new guys through,ugh! I guess you have to be old and tired before they think you can buy a truck these days....

 

A good business plan is not something that can be explained in a few minuets.
It deals mainly with what you are going to earn and what your expenses will be.
Guarantees of business are a huge plus.
Track record of actual costs not projections also a plus.

It is usually set out in spreadsheets just containing the financials on a month by month basis projected forward.
There are then supporting documents as stated above.
There should be some motivating support documents stating reasons why it is envisaged that the service you want to offer is in high demand and why is should stay that way.
The experience and track record of those going to be running the show should also be given as supporting documents.
If any form of certification or exemptions are needed is is advisable to cover this as well.
It is also good to list possible risks and your remedies/contingency plans for these.

Basically the numbers have to make sense most of all.
Then you have to have to show you are able to get business.
Then you have to show that who you intend doing business with are credit worthy.
Then you have to show you are able to do the required business.
Then you have to show you are stable and reliable.

There is no absolutely right way to do it.
Just ways that financial institutions are more comfortable with.
If you are trying to finance only 1 truck I don't think getting to fancy will be required.
Rather go to a company who deals with truck finance.
They know what they are looking for and who they are dealing with if your bank is being to formal about this.

 

If you fail to plan, you plan to fail.

A business plan shows a lending institution that you have thought out your endeavor. You've thought of the pitfalls and how to overcome them. 80% of all new businesses fail. They would rather deny your application than spend the time in the costly process of repossessing your collateral. You can get one of several books at a local bookstore. Ask your lender if they have a preferred format. Ask if they have any examples you can look at.

 

Wrong. If you can get bank loan that's the best way. Truck dealers will rip you off as a noob with poor experience and first time buyer.


http://www.bplans.com/general_freight_trucking_business_plan/executive_summary_fc.php#.UhZcDGS9LTo
http://www.bplans.com/general_motor...ss_plan/executive_summary_fc.php#.UhZca2S9LTo
http://www.thefinanceresource.com/free_business_plans/free_trucking_company_business_plan.aspx


Here is also some useful info and research center where you can request any info on operating cost and such to support your plan. Good luck.

http://www.sba.gov/community/blogs/community-blogs/business-law-advisor/starting-trucking-business
http://atri-online.org/

 

I worked in underwriting for a major bank after I left teaching and before I decided that was too stressful and moved to a different department. Basically the bank wants to know that you've thought this through and you have a sound plan in place. You still might fail and they still might have to repo your collateral, but the percentage of failure for people who've put a sound plan in place is much lower than the percentage for the people who just fly by the seat of their pants.

That said, the plan doesn't have to be fancy. You don't have to go all out with spreadsheets and fancy formatting. What you do have to have is something that shows you've thought out how this is going to work. Here are the things we looked for:

-Realistic start up cost estimates
-Realistic estimates for first year revenue
-Realistic estimates for first year expenses
-Little details have been thought of: will you be working out of an office or at home? Are you going to hire a broker or do you have a wife/other relative who will be helping you arrange loads.
-Do you have an plan for unexpected expenses (how much cash on hand do you plan to keep, and is that a realistic amount considering your industry)
-Do you have the other required paperwork/licences/etc in order or will you get those once your loan is approved? If so, what's the timeframe for that and can you prove you can get those licences/certifications/insurances if we give you the money.

To be honest, one of the best business plans that ever crossed my desk was written in various color pens and makers on the backs of random paperwork. It was actually a loan for food truck, and honestly it looked like the guy had been putting it together on smoke breaks from a job waiting tables, but it was incredibly well thought out and we loved it.

 

I actually write up business plans and there are certain types of software that can help you if don't know how to, but ....in a nutshell...King Q & goingcrazy* have it pretty much right on point...its all about financial projections and supported documents...the bank just wants to know what kind of success do you plan to have, and most importantly, how they are going to get paid back. It would be wise to already have some business lined up, something you've already been doing and have experience in, where you can list a couple of references to make them feel secure...make sure your references know what you're trying to do...THE BANK WILL CALL THEM.

#TRUTH KEEP ON TRUCKIN'

 

GREAT advice....simple and well put...to the point