As we have discussed before, business planning is a must for the success of any business. Some business owners see business planning as a burden, but we only see it as a benefit.
Business Planning for Transportation Businesses Using Invoice Factoring
No matter if you are just starting a transportation business or if you are looking to expand your current transportation business into a new market, you should have a plan. We have compiled 5 must-have essentials to include in your business plan to ensure that you can reach any venture with ease.
1. Vision Statement
The first and most important element of your transportation business plan is your vision statement. A vision statement, or sometimes known as a mission statement, is a statement that acts as a road map to your company’s future.
You want your vision statement to be a guide to transformational initiatives. This can be accomplished by defining the direction that you want your company to grow in.
A vision statement can be a series of statements starting “My business will…” or one statement starting with the goal and ending with a “My business will…” statement that acts as the action you will need to take to get to your goal.
A vision statement is the key to fully understand what you want from your transportation business and fully understanding what it will take to get it to that point.
2. Description of Your Company
Being able to describe your company in its entirety in a brief, concise statement will make it clear to yourself, your partners, and your employee what it is that you do. This is more than just stating, “my business is a transportation business”. Dig deep and find out exactly what your company is and what it provides to your customers that your competitors can’t.
3. Description of Your Services
Just as you would with your company, you should be able to able to give a detailed description of the services your transportation business provides. As you are drafting descriptions, remember to include reasons why your services are different from other transportation businesses.
Another element to include when describing your services is pricing, rates and other financial factors. This will help you mark the current pricing of your services so when you refer back to your business plan, you can see whether or not it would be beneficial to increase your pricing to meet your goals.
4. Market Analysis
If you are planning on expanding into new markets, it is crucial to do a market analysis of the market you are currently in and the market you are expanding into. Discuss the marketing you are trying to ensure, the competitors in that market, where you fit into the market, and what type of market share you believe you can secure.
5. Budgeting Using Transportation Invoice Factoring
To accomplish any goal, you’ll need to establish a budget. Because of the invoice based nature of your work, you are constantly waiting for invoices to be paid and processed, putting limits on your working capital. With transportation invoice factoring, you will be able to get immediate payment for your invoices. An invoice factoring company will purchase your outstanding invoices to give you a 96% advance in just 24 hours or less. With this, you will have access to more working capital to increase your transportation business plan’s budget.