Guides to write a business plan for a transportation and storage business

A business plan is a written document that sets out the commercial, operational and financial objectives of a business and explains how it's going to achieve them.

To put it simply, it consists of two distinct parts:

• A written part that presents, in detail, your project, the team, your business strategy, and your medium-term objectives.
• A financial forecast that highlights the expected profitability of the project and the funding requirements.

A business plan is a document that sets out your goals for the next three to five years and explains the strategies and actions you plan to take to achieve them.

There are three main reasons to write a business plan for a business operating in the transportation and storage sector:

• To draw up a roadmap: helps you make informed decisions about how best to allocate resources and ensure long-term success.
• To track financial performance: enables you to regularly compare your financial performance against what was planned in your business plan and adjust accordingly.
• To raise funding: helps you articulate your growth potential and funding requirements, making it easier to secure financing from lenders.

The absence of a business plan is one of the main reasons why more than 50% of new businesses fail within five years. If you are setting up a transportation and storage business, drawing up a business plan is essential to reduce the risk of your project failing.

The main components of a utility business plan follow that of a standard business plan outline:

• Executive summary: provides a concise overview of the business plan, highlighting the key points, financials and objectives of your transportation and storage business.
• Company description: delivers a comprehensive overview of your transportation and storage business, covering its vision, legal structure, history, location, and the management team.
• Products and services: describes the transportation and storage services offered by your company, emphasizing its benefits.
• Market analysis: evaluates the transportation and storage landscape, target demographics, and competitive dynamics to pinpoint strategic opportunities and threats.
• Strategy: maps out your transportation and storage business's marketing, sales, and pricing strategies aimed at achieving objectives and outmaneuvering competitors.
• Operations: provides insights into your transportation and storage business's key assets, and staffing needs essential for smooth day-to-day functioning.
• Financial projections: presents a detailed financial forecast, including cash flow, income statement, and balance sheet, guiding your transportation and storage business's financial trajectory.
• Appendix: includes supplementary information such as resumes, legal documents, detailed research, and additional data that support the business plan.

Nowadays, the most efficient way to write an professional business plan is to use a business planning software.

The Business Plan Shop’s online business plan software lets you confidently create your plan without worrying that you've left out a crucial part:

• Our detailed outline includes all the key sections expected in a business plan so you won't have to worry about missing out on crucial aspects.
• Instructions and examples in every section help you power through your plan with confidence.
• Avoid lengthy text by adding images, tables or charts throughout your business plan.

Once you're done, download your business plan as a PDF or Word Document and send it to lenders.

Your business plan serves as a powerful tool to secure funding for your transportation and storage business by showcasing your vision, market opportunity, operational strategy, and financial projections to potential lenders.

By demonstrating a clear understanding of your industry, a solid plan for growth, and a realistic assessment of funding requirements, you can instill confidence and attract the necessary capital to fuel your transportation and storage venture.

Here are the three main sources of funding for transportation and storage businesses:

• Loans and credit: Transportation and storage businesses can secure financing through bank loans, lines of credit, and government-backed loan programs to fund vehicle purchases, facility construction, technological upgrades, and operational expansion.
• Investment and private equity: these businesses can attract investment from venture capital firms, private equity investors, and infrastructure funds, providing capital for scaling operations, acquiring new technologies, and expanding logistics networks in exchange for equity stakes or profit-sharing arrangements.
• Government grants and programs: various government grants and funding programs support transportation and storage infrastructure projects, including those aimed at improving logistics, enhancing public transportation, promoting green transportation initiatives, and expanding warehousing capabilities.

The Business Plan Shop has a range of business plan templates to help you write a business plan to present to investors or lenders.

Mst of our business plan templates are examples of companies and entrepreneurs seeking bank loans and so can be used in the same way to structure your business plan!

• Download your chosen template in Word or PDF format (or load it directly into our online business plan software to use as a starting point for your own plan).
• Replace the template’s text and numbers with your business’ details to make it your own.

Here are some of the mostly commonly made mistakes made by entrepreneurs when writing a business plan for a transportation and storage business:

• Underestimating infrastructure costs: failing to accurately estimate costs for purchasing vehicles, building or leasing storage facilities, and maintaining infrastructure can lead to budget overruns and operational disruptions.
• Neglecting regulatory compliance: overlooking industry regulations, such as transportation safety standards, environmental regulations, and licensing requirements, can result in legal liabilities, fines, and operational restrictions, particularly given the stringent regulations in the transportation and storage sectors.
• Ignoring seasonal demand variations: not accounting for seasonal fluctuations in transportation and storage demand can lead to resource mismanagement, underutilization during off-peak times, or overstretched capacities during peak periods.
• Inadequate risk management: failing to identify and mitigate risks such as fuel price volatility, supply chain disruptions, and accidents can lead to significant financial losses and service interruptions.
• Lack of technological integration: ignoring the importance of investing in and integrating modern technologies like logistics management software, GPS tracking, and automation can result in inefficiencies, reduced competitiveness, and poor customer service.

You should be reviewing and updating your business plan at least quarterly to track your actual performance against what was forecasted at the beginning of the year.

By tracking key performance indicators (KPIs) on a quarterly basis, you can identify any areas of your business which may require a greater budget allocated to them and obtain funding as soon as possible.

You'll also be able to view what's working for your business and what isn't to ensure that your short-term goals and actions are aligned with your long-term objectives outlined in your annual business plan.

The Business Plan Shop's financial forecasting software makes it easy to track your actuals against your forecast to ensure you’re reaching your goals.