In your industry analysis, you need to provide an overview of the trucking business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the trucking business industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards short-haul trucking services, it would be helpful to ensure your plan calls for offering such services.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your trucking business plan:
- How big is the trucking business (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your trucking business? You can calculate this multiplying the price paid by the number of trucking services offered in your segment of the trucking industry.