Trucking Business Plan: Template and Step-by-Step Guide

Why You Need a Trucking Business Plan

A trucking business plan is not an academic exercise. It is the document that stands between you and the money you need to launch, and more importantly, it is the reality check that tells you whether your trucking company idea actually works on paper before you commit $30,000-$80,000 of real money.

Here is the blunt truth from watching hundreds of owner operators launch their businesses: the ones who skip the business plan are disproportionately the ones who fail in the first 18 months. Not because the plan itself is magic, but because writing one forces you to confront numbers that wishful thinking alone will not reveal. Things like the 30-60 day payment gap between delivering your first load and receiving your first check. Or the fact that insurance for a new authority costs $12,000-$25,000 per year⁶, not the $5,000 figure you heard from someone at a truck stop.

Use our Startup Cost Calculator alongside this guide to build your financial projections with real numbers.

Lenders Require It

If you plan to finance your truck through an SBA 7(a) loan, a bank loan, or even some equipment financing companies, a written business plan is not optional. The SBA requires a business plan as part of every 7(a) loan application, and most commercial lenders expect one for any loan above $50,000. Even factoring companies that fund your invoices will ask about your business model and operating plan during the application process.

An SBA 7(a) loan is particularly relevant for new trucking companies because it offers lower down payments (as low as 10%), longer repayment terms (up to 10 years for equipment), and interest rates that are significantly better than dealer financing or lease-to-own programs.¹ But the application is thorough, and a weak business plan is one of the top reasons applications get denied.

Strategic Clarity for You

Beyond lenders, the business plan is for you. It answers questions you need answers to before you sign a truck note:

• How many miles per month do you need to run to break even?
• What is your minimum acceptable rate per mile?
• How many months of cash reserves do you need before revenue flows in?
• What happens to your cash flow if the freight market softens 15%?

If you cannot answer those questions with specific numbers, you are not ready to launch. A business plan makes you get specific.

Trucking Business Plan Template: Section by Section

The following template covers every section a lender expects to see and every question you need to answer for yourself. We will walk through each one with real trucking-specific examples and the actual numbers that apply to owner operators and small fleet operations in 2026.

Section 1: Executive Summary

The executive summary is the first section of your plan but the last one you should write. It is a one-to-two page overview of your entire business, written for someone who may not read the rest. Loan officers review dozens of applications per week -- your executive summary needs to tell them in two minutes whether your plan is worth a deeper look.

What to include:

• Business name and structure (LLC, S-Corp, sole proprietorship)
• Owner background -- your years of driving experience, CDL class and endorsements, any management or business experience
• Service description -- what you will haul (dry van, reefer, flatbed, specialized), your operating region, and your target customers
• Financial snapshot -- projected first-year gross revenue, total startup costs, amount of funding requested, and how you will use the funds
• Competitive advantage -- what sets your operation apart (specialized endorsements, regional expertise, existing shipper relationships, niche equipment)

Trucking business plan example -- executive summary excerpt:

Midwest Freight Solutions LLC is a dry van trucking company based in Indianapolis, Indiana, operating under the sole ownership of [Name], a CDL-A holder with 8 years of OTR and regional driving experience. The company will operate a single 2021 Freightliner Cascadia on regional lanes within a 500-mile radius of Indianapolis, serving the automotive, food distribution, and general freight markets. Projected first-year gross revenue is $210,000 based on an average rate of $2.40/mile and 7,500 loaded miles per month. Total startup costs are $47,500, with an SBA 7(a) loan request of $35,000 to cover the truck down payment and initial operating capital.

Notice what that paragraph does -- it tells the lender who you are, what you will do, where you will do it, and exactly how much money you need. No fluff, no inspirational language about "revolutionizing logistics." Loan officers want specifics.

Section 2: Company Description

This section provides the legal and structural details of your trucking operation.

Cover these points:

• Legal name and DBA (if different)
• Business structure -- LLC is most common for owner operators; see our guide on how to start a trucking company for business structure details
• Date of formation (or planned formation date)
• State of registration
• USDOT number and MC authority (or planned application date)
• Physical address -- home-based is fine and common for single-truck operations
• Mission statement -- keep it one or two sentences and make it practical, not aspirational fluff

The company description is also where you establish your operating authority type. Most owner operators apply for common carrier authority, which allows you to haul freight for hire. If you plan to broker freight as well as haul it, you need separate broker authority, which has its own bonding requirements.

Section 3: Market Analysis

The market analysis is where many trucking business plans fall flat. Lenders want to see that you understand the freight market you are entering, not just that trucks exist and freight needs moving.

Industry overview. Reference current data. According to the American Trucking Associations, trucks move roughly 72% of all freight tonnage in the United States, generating over $940 billion in annual revenue.⁴ The trucking industry employs approximately 3.5 million drivers,⁴ and the American Transportation Research Institute (ATRI) tracks detailed cost-of-operation data that you should reference throughout your plan.²

Target market. Define who will pay you. Are you targeting freight brokers on load boards? Direct shippers? A combination? If you have existing relationships with shippers or brokers from your company driving days, name them -- that is a massive credibility signal to lenders.

Service area. Define your operating lanes. A 500-mile regional radius from your home base is a common and defensible starting strategy. Specify the freight corridors you plan to work. For example, an Indianapolis-based operation might focus on the I-65 corridor (Indianapolis to Chicago and Indianapolis to Nashville) and the I-70 corridor (Indianapolis to Columbus and Indianapolis to St. Louis).

Competition. Acknowledge that trucking is a highly fragmented industry with over 900,000 registered motor carriers.³ Your competitive analysis should not claim you will outcompete everyone -- that is not credible. Instead, explain why there is room for your operation: your specialized equipment, your niche lane knowledge, your willingness to handle freight types that larger carriers avoid, or your service reliability.

Market trends. Reference relevant trends:

Trend	Impact on Your Operation
Driver shortage (estimated 80,000+ driver deficit)	Strong demand for reliable capacity
E-commerce growth driving last-mile demand	Increased regional and short-haul freight
Freight market cyclicality	Plan for soft markets, not just boom times
Increasing regulatory compliance costs	Higher barriers to entry favor established operators
Technology adoption (ELD, TMS, load boards)	Levels the playing field for small carriers

Section 4: Services and Operations Plan

This is the section where you describe exactly how your trucking company operates day to day. Lenders need to believe you can actually execute, not just plan.

Equipment. Specify the truck and trailer you will operate.

Item	Specification	Estimated Cost
Tractor	2021 Freightliner Cascadia, ~350,000 miles	$65,000-$85,000
Trailer	53-foot dry van (owned or leased)	$15,000-$25,000 (used)
ELD device	FMCSA-compliant electronic logging	$25-$40/month
Dash camera	Forward and driver-facing	$30-$50/month

A used truck in the $60,000-$90,000 range with 300,000-500,000 miles is a realistic starting point for most new owner operators. New trucks cost $150,000-$180,000 and are generally not advisable for a first truck unless you have substantial capital or guaranteed contracts. For a detailed comparison of purchase vs. lease economics, see our truck financing guide.

Operations model. Describe your daily operations:

• Load sourcing -- Will you use load boards (DAT, Truckstop.com), work with brokers directly, or pursue direct shipper contracts? Most new authorities start with load boards and build broker relationships over the first 6-12 months.
• Dispatching -- Self-dispatched, or will you use a dispatch service ($300-$600/month or 5-8% of gross)?
• Hours of service -- How many hours per day will you drive? Under current HOS rules, you can drive a maximum of 11 hours within a 14-hour window after 10 consecutive hours off duty.
• Maintenance plan -- Preventive maintenance schedule, preferred repair facilities, and emergency breakdown procedures.
• Safety and compliance -- DOT inspection readiness, driver qualification file maintenance, drug testing consortium membership.

Capacity and utilization. Lenders want to see realistic utilization projections:

Metric	Conservative Estimate	Target (Month 6+)
Miles per month	7,000	9,000-10,000
Loaded mile percentage	80%	85-88%
Days on road per month	22	24-26
Average loads per week	3-4	4-5

Be conservative in your first-year projections. New authorities typically run fewer miles in the first 90 days while building relationships and learning the business. Your projections should ramp up gradually, not start at maximum capacity.

Section 5: Management and Organization

For a single-truck operation, this section is straightforward but still important. Lenders want to know who is behind the wheel -- literally and figuratively.

Owner/operator qualifications:

• CDL class, endorsements, and years held
• Total years of commercial driving experience
• Types of freight hauled (dry van, reefer, flatbed, tanker, hazmat)
• Safety record -- clean CSA scores and inspection history
• Any business, management, or logistics experience beyond driving
• Relevant training or certifications

If you have a business partner, dispatcher, or accountant, include their qualifications as well. For a small fleet plan (2-5 trucks), include your driver recruitment and retention strategy -- lenders know that driver turnover is the biggest operational risk for growing fleets.

Advisory team. Even solo operators should list their professional support:

• Accountant -- especially one experienced with trucking tax deductions (per diem, depreciation, fuel tax credits)
• Insurance agent -- specialized in commercial trucking
• Attorney -- for business formation and contract review
• Mentor -- a SCORE mentor or experienced owner operator who advises you

Section 6: Financial Projections

This is the section that makes or breaks your business plan. Every other section supports this one. If your financial projections are unrealistic, sloppy, or missing key expense categories, your loan application is dead on arrival.

Financial benchmarks throughout this section are informed by ATRI's annual Operational Costs of Trucking report,² which remains the industry's most comprehensive cost dataset. Cross-reference these numbers with our owner operator cost breakdown for detailed per-mile figures.

Revenue Projections

Start with conservative assumptions and show your math. Lenders prefer applicants who underestimate revenue slightly over those who project best-case scenarios.

Revenue formula:

Monthly Gross Revenue = (Miles per Month) x (Loaded Mile %) x (Average Rate per Mile)

Example -- Year 1, single dry van:

Quarter	Miles/Month	Loaded %	Rate/Mile	Monthly Revenue
Q1 (Months 1-3)	7,000	80%	$2.30	$12,880
Q2 (Months 4-6)	8,000	82%	$2.40	$15,744
Q3 (Months 7-9)	9,000	85%	$2.45	$18,743
Q4 (Months 10-12)	9,500	85%	$2.50	$20,188
Year 1 Total				$202,665

Notice how revenue ramps up over four quarters. This is realistic. In Q1, you are building broker relationships, learning load boards, and dealing with the inevitable early-stage inefficiencies. By Q4, you should be running more miles at better rates with less deadhead.

For a detailed breakdown of what owner operators actually earn, see our owner operator income guide.

Revenue assumptions to document:

• Average rate per loaded mile (use DAT rate data for your lanes as a baseline)
• Deadhead percentage (12-20% of total miles is typical)
• Days off per month (factor in home time, maintenance, weather)
• Seasonal variation (Q1 is typically the softest freight quarter)

Expense Projections

This is where most trucking business plans go wrong. Leaving out even one major expense category -- quarterly taxes, for instance -- can make your projections look profitable when the reality is a cash flow crisis.

Monthly expense breakdown -- single truck, owner operator with own authority:

Expense Category	Monthly Cost	Per-Mile Cost	Annual Cost
Truck payment	$1,200-$1,800	$0.14-$0.20	$14,400-$21,600
Insurance (liability + cargo + physical damage)	$1,000-$2,083	$0.12-$0.23	$12,000-$25,000
Fuel (at $3.50-$4.00/gal, 6.5 MPG avg)	$4,000-$5,500	$0.50-$0.65	$48,000-$66,000
Maintenance and repairs	$800-$1,500	$0.10-$0.17	$9,600-$18,000
Tires (amortized)	$250-$400	$0.03-$0.05	$3,000-$4,800
Permits and fees (IRP, IFTA, UCR, HUT)	$200-$350	$0.02-$0.04	$2,400-$4,200
ELD and technology	$50-$150	$0.01-$0.02	$600-$1,800
Tolls	$100-$400	$0.01-$0.04	$1,200-$4,800
Factoring fees (if used, 2-3% of revenue)	$300-$500	$0.03-$0.06	$3,600-$6,000
Phone and communications	$100-$150	$0.01-$0.02	$1,200-$1,800
Accounting and legal	$150-$300	$0.02-$0.03	$1,800-$3,600
Drug testing consortium	$15-$30	<$0.01	$180-$360
Total Operating Expenses	$8,165-$13,163	$0.99-$1.51	$97,980-$157,960

Do not forget these commonly omitted expenses:

• Self-employment tax -- 15.3% on net earnings up to $168,600 in 2026⁵
• Federal and state income tax -- set aside 25-30% of net income total for all taxes
• Health insurance -- $400-$800/month if buying individual coverage
• Deadhead fuel -- your revenue projection uses loaded miles, but you pay for fuel on empty miles too
• Lumper fees -- $50-$300 per load at certain warehouses, not always reimbursed
• Detention and layover -- time spent waiting is time not earning

Profit and Loss Projection

With your revenue and expenses mapped out, build a month-by-month profit and loss statement for your first 12 months.

Simplified Year 1 P&L example (single dry van):

Line Item	Year 1 Total
Gross Revenue	$202,665
Total Operating Expenses	$132,000
Net Operating Income	$70,665
Self-Employment Tax (15.3%)	$10,812
Federal/State Income Tax (~12% effective)	$8,480
Net Income After Tax	$51,373

That $51,373 is your actual take-home pay for the year. It is a real number that reflects what a well-managed single-truck operation can produce in year one. It is not glamorous, but it is honest, and honesty is what gets loan applications approved.

Cash Flow Projection

Cash flow is different from profit, and it is what kills new trucking companies. You can be profitable on paper and still run out of cash because of the timing mismatch between expenses (immediate) and revenue collection (30-60 days).

Cash flow formula:

Monthly Cash Position = Starting Cash + Revenue Collected - Expenses Paid

Key cash flow considerations for your projection:

• Payment terms. Brokers pay on Net 30-45 terms. Your first load might deliver on day 15, but you will not see that money until day 45-60.
• Factoring. If you factor invoices, you receive 95-97% of the invoice amount within 24-48 hours, but you pay 2-3% in fees. Factor this into your projections if you plan to use it.
• Lumpy expenses. Insurance is often paid quarterly or semi-annually, not monthly. IRP plates are due annually. Budget for these lump-sum payments.
• Build a cash reserve line. Show lenders you plan to maintain a minimum cash balance -- $5,000-$10,000 is a reasonable floor for a single-truck operation.

Month-by-month cash flow example (first 3 months):

Item	Month 1	Month 2	Month 3
Starting Cash	$12,000	$3,185	$3,370
Revenue Collected (with factoring)	$0	$11,185	$13,370
Operating Expenses	$8,815	$11,000	$11,000
Ending Cash	$3,185	$3,370	$5,740

Notice how tight Month 1 is. You spent $8,815 on fuel, insurance, permits, and truck payment, but collected zero because even with factoring, you had no invoices to factor until loads were delivered. This is exactly why lenders want to see cash reserves and why undercapitalization kills new trucking companies.

Break-Even Analysis

Your break-even point is the revenue per mile at which your income exactly covers all expenses. Every mile you run above this rate is profit; every mile below it is a loss.

Break-even formula:

Break-Even Rate per Mile = Total Monthly Expenses / Total Monthly Miles

Example:

$11,000 monthly expenses / 8,500 total miles = $1.29 break-even rate per mile

If your all-in cost per mile is $1.29 and you are booking loads at an average of $2.40 per mile on loaded miles (with 85% loaded mile percentage, your effective rate on all miles is about $2.04), your profit margin per mile is $0.75. That is healthy.

Present your break-even analysis as a table showing different scenarios:

Scenario	Monthly Expenses	Monthly Miles	Break-Even Rate
Low utilization (startup phase)	$9,500	7,000	$1.36/mile
Normal utilization	$11,000	8,500	$1.29/mile
High utilization	$12,500	10,000	$1.25/mile

Debt Service Coverage Ratio

If you are applying for an SBA 7(a) loan or any bank loan, the lender will calculate your Debt Service Coverage Ratio (DSCR). This measures whether your business generates enough income to cover your loan payments.

DSCR formula:

DSCR = Net Operating Income / Annual Debt Service (loan payments)

Example:

$70,665 net operating income / $21,600 annual truck payment = 3.27 DSCR

Most SBA lenders want a DSCR of 1.25 or higher, meaning your net income should be at least 125% of your annual loan payments. A DSCR above 2.0 is strong. Below 1.0 means your projections show you cannot cover your loan payments, which is an automatic denial.

Section 7: Funding Request

If you are seeking financing, this section specifies exactly how much you need and how you will use it. Be precise -- lenders do not fund vague requests.

Structure your funding request like this:

Use of Funds	Amount
Truck down payment (20% of $75,000)	$15,000
First-year insurance (prepaid)	$14,000
FMCSA authority and permits	$2,500
ELD, dash cam, and technology setup	$500
Operating capital (3 months of expenses)	$15,000
Total Funding Requested	$47,000

Specify your funding source strategy:

• SBA 7(a) loan -- up to $5 million, 10-year terms for equipment, competitive rates (Prime + 2.75% for loans under $50,000).¹ Current SBA.gov guidelines require a comprehensive business plan, personal financial statements, three years of projected financials, and evidence of owner equity injection (typically 10-20% of the total project cost).
• Equipment financing -- for the truck itself, through banks, credit unions, or equipment finance companies. See our truck financing options guide for a full comparison.
• Personal savings -- lenders want to see skin in the game. Plan to contribute 15-20% of total startup costs from personal funds.
• Combination -- many new operators combine an SBA loan for startup capital with separate equipment financing for the truck.

Section 8: Appendix

The appendix supports everything in your plan with documentation. Include:

• Personal resume highlighting driving experience, safety record, and business skills
• CDL copy with relevant endorsements
• Personal financial statement (assets, liabilities, net worth)
• Two years of personal tax returns (1040 with all schedules)
• Credit report (pull this yourself first so there are no surprises)
• Letters of intent from brokers or shippers (if you have them -- these are extremely powerful)
• Equipment quotes or purchase agreements for your planned truck
• Insurance quotes (get at least two quotes before writing your plan)
• Lease agreement for your business address (if applicable)

Common Mistakes in Trucking Business Plans

After reviewing hundreds of business plans from new owner operators and small fleet startups, the same mistakes show up repeatedly. Avoid these and you immediately separate yourself from 80% of applicants.

Mistake 1: Fantasy Revenue Projections

The single most damaging error is projecting revenue as if you will run 11,000 miles per month at $3.00/mile from day one. New authorities do not get top rates. You do not have broker relationships yet. Your load board history is empty. Project 7,000-8,000 miles per month in Q1 at rates 10-15% below market averages for your lanes. If you beat those projections, great. If your plan only works at maximum capacity and peak rates, it does not work.

Mistake 2: Ignoring the Cash Flow Gap

Your business plan shows $15,000 in monthly revenue, so you think you are fine. But brokers pay on Net 30-45 terms, and you delivered your first load two weeks after launch. That means your first check arrives 6-8 weeks after you started spending money. If you did not budget for that gap, you are broke before you are profitable. Either build 2-3 months of operating reserves into your funding request or include factoring in your cash flow projections.

Mistake 3: Underestimating Insurance Costs

New authority insurance is expensive. First-year premiums for primary liability ($750,000 minimum,⁶ though most brokers require $1,000,000), cargo coverage ($100,000), and physical damage on a $75,000 truck run $12,000-$25,000 annually. If your business plan budgets $6,000 for insurance, the lender knows you have not actually gotten a quote and your plan loses credibility instantly.

Mistake 4: No Contingency Plan

What happens if diesel hits $5.00 per gallon? What if the freight market softens and rates drop 20%? What if your truck needs a $6,000 engine repair in month four? Your business plan should include a sensitivity analysis or at minimum a paragraph addressing how your business survives adverse conditions. Lenders know the trucking industry is cyclical -- they want to see that you know it too.

Mistake 5: Copy-Pasting a Generic Template

Loan officers can spot a fill-in-the-blank business plan template from a mile away. If your market analysis could apply to any trucking company in any city, it is too generic. Use specific lane data, local market conditions, and freight corridor details for your operating area. Reference actual DAT or Truckstop rate data for your primary lanes. Mention specific shippers or distribution centers in your region.

Mistake 6: Omitting the Owner's Qualifications

For a single-truck operation, you are the business. If you have 8 years of clean CDL-A driving experience, a spotless CSA record, and endorsements for hazmat and tanker, say so prominently. If you have management experience from running a dock operation or dispatching, include it. Lenders are betting on you as much as the business model.

Mistake 7: Forgetting Taxes

A troubling number of trucking business plans show a "net income" figure that has not been reduced by self-employment tax (15.3%) or income tax. Your plan should show after-tax net income because that is the real number, and it is the number the lender will calculate anyway. Showing pre-tax income as your bottom line signals that you do not understand your own finances.

How to Use ATRI Data in Your Business Plan

The American Transportation Research Institute publishes an annual Operational Costs of Trucking report that is the gold standard for expense benchmarks in the industry. Referencing ATRI data in your business plan immediately adds credibility because it shows you are grounding your projections in real-world data rather than guesswork.

Key ATRI benchmarks to reference:

Cost Category	ATRI Average (per mile)
Fuel costs	$0.54-$0.66
Truck/trailer lease or purchase	$0.25-$0.35
Repair and maintenance	$0.17-$0.20
Insurance premiums	$0.08-$0.12
Tires	$0.04-$0.05
Permits and licenses	$0.02-$0.03
Tolls	$0.02-$0.04
Driver wages (for fleets)	$0.55-$0.70
Total marginal cost per mile	$1.67-$2.15

When building your projections, compare your line-item estimates against ATRI figures. If your fuel cost per mile is significantly below the ATRI range, you need to explain why (maybe you run a newer, fuel-efficient truck, or your lanes avoid expensive fuel regions). If your insurance is above the range, explain that too (new authority premiums are higher than the fleet average that ATRI reports).

Writing Your Plan: Step-by-Step Process

If you are staring at a blank page, here is the sequence that gets you to a finished plan most efficiently.

Step 1: Gather your numbers first. Before writing a single word, get actual quotes for insurance, truck pricing, and permits. Check DAT or Truckstop rate data for your target lanes. Pull your personal credit report. You cannot write realistic projections without real data. Use our Startup Cost Calculator to organize your figures.

Step 2: Build the financial projections. Start with the numbers section, not the narrative. Create your 12-month revenue projection, expense budget, cash flow statement, and break-even analysis. If the numbers do not work, you will know before you waste time writing an executive summary for a business that is not viable.

Step 3: Write the operations and market sections. With your numbers solid, describe how your business works and the market you are entering. Be specific to your region, your lanes, and your equipment.

Step 4: Write the management and funding sections. Describe your qualifications and specify exactly how much funding you need and how you will deploy it.

Step 5: Write the executive summary last. Now that you know your complete plan, summarize it in one to two pages. Pull the most compelling numbers from your projections and the strongest points from your experience.

Step 6: Get a second set of eyes. Before submitting your plan to a lender, have a trucking-experienced accountant or a free SCORE mentor review it. SCORE (Service Corps of Retired Executives) offers free business mentoring and many chapters have mentors with transportation industry experience.⁷ Find a mentor at score.org.

Formatting Your Plan for Lenders

Presentation matters. A well-formatted plan signals that you take your business seriously.

• Use a clean, professional font -- nothing fancy, just readable
• Include a cover page with your business name, owner name, date, and contact information
• Number your pages and include a table of contents
• Use consistent formatting -- same heading styles, same table formats throughout
• Bind or present it professionally -- a simple report cover from an office supply store is fine
• Create a PDF version -- most applications are submitted electronically
• Keep it to 15-25 pages -- thorough but not padded with filler

For SBA loan applications specifically, ask your lender for their preferred format. Some SBA-preferred lenders have specific templates or formats they want applicants to follow, and using their format reduces back-and-forth.

Next Steps

A trucking business plan is the foundation for every financial and operational decision you will make in your first year. Take the time to get it right, and it pays for itself many times over in lender confidence, strategic clarity, and financial discipline.

Here is where to go from here:

• Calculate your startup costs to build the financial projections section with accurate numbers tailored to your specific situation.
• Read the complete startup guide for the full step-by-step process of launching a trucking company, from business formation through your first load.
• Review owner operator expenses to benchmark your projected costs against real operating data from active owner operators.
• Compare truck financing options to choose the right financing structure before you write your funding request section.
• Understand realistic income expectations to ensure your revenue projections align with what owner operators actually earn in your equipment type and region.

Your business plan does not need to be perfect. It needs to be honest, specific, and grounded in real numbers. The operators who take this step seriously are the ones who are still in business three years from now.