The Dump Truck Service Financial Dashboard provides you with complete control over your financial model in real-time. Please watch the video below!
1.0 Executive Summary
Dump Truck Service, LLC (“the Company”) is currently seeking to acquire $200,000 in order to purchase two trucks that will provide waste materials hauling and materials delivery services throughout Madison, Wisconsin. The business was founded by David Tanglewood. The Company will provide its services to a wide spectrum of customers including construction firms, real estate developers, property rehabilitation firms, and contractors throughout this market. The business will also bid on state and municipal government contracts to render these services in conjunction with public works projects.
1.1 Operations
The Company’s initial two trucks will provide comprehensive waste management and delivery solutions to its clients. The Company will charge $100 per hour for providing these services. In order to ensure that the business is able to operate at 100% capacity as soon as the vehicles are acquired, Dump Truck Service, LLC will implement a highly focused marketing campaign that is principally geared towards contractors, developers, and real estate investment firms. Each truck is anticipated to produce $800 per day of revenue.
The Company will maintain ongoing relationships with both public and private landfills in order to properly dispose of waste materials from construction sites. In regards to working with private refuse businesses, the Company may generate ancillary fees when scrap metals are disposed.
The operations and services of the business can be found in Chapter Three of the Dump Truck Service business plan.
1.2 Financing
The Company intends to acquire a standard commercial loan in order to acquire two dump trucks. Each vehicle is expected to have a purchase price of $85,000. The remaining capital will be used for professional fees, licensure, the Company’s initial marketing (including direct marketing programs), and early operating expenses.
As the business will have a substantial amount of tangible assets, the Company could further acquire further rounds of capital in order to purchase additional dump trucks in order to provide services within a greater market area. For new truck acquisitions, Management may work with equipment leasing companies. This would reduce the capital expenditure of the business as it expands.
1.3 Mission Statement
Dump Truck Service, LLC’s mission is to provide comprehensive materials hauling and compliant waste management services to clients throughout Madison.
1.4 Management Team
David Tanglewood has been involved in the construction logistics industry for the past twenty-two years. Mr. Tanglewood will be able to foster the necessary relationships with construction firms in order to ensure full capacity usage of the fleet at all times.
1.5 Revenue Forecasts
1.6 Expansion Plan
Once the business establishes a significant presence in the Madison market area, the Company may expand into other markets in Wisconsin. The Company will continually add new dump trucks into the operations of the business in order to increase the monthly per-hour billable fees. Finally, an acquisition of a business may occur should it be financially prudent to do so.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Dump Truck Service, LLC. The business is based in Wisconsin.
2.2 Required Funds
A $200,000 conventional business loan is being sought by Mr. Tanglewood.
2.3 Investor Equity
Mr. Tanglewood does not require the assistance of a private investor in order to establish the operations of Dump Truck Service, LLC. The Founder will provide $45,000 of equity.
2.4 Management Equity
David Tanglewood and his family will retain a complete ownership stake in the business.
2.5 Exit Strategy
Dump truck services are highly valuable businesses given the substantial per hour fees generated from services coupled with their relative economic immunity. If the business is generating substantial profits, then Mr. Tanglewood may seek to sell the business for a significant price to earnings multiple. As an alternative, the Company may merge with a larger entity. This event will be coordinated with both the business’ CPA and attorney.
3.0 Operations
The primary center for profit will come from the continued hauling of construction waste from sites throughout Madison. The Company will work with demolition contractors, real estate developers, and contractors. Generally, the business will charge $100 per hour of service rendered. Given that the business will initially operate two trucks, the business expects to produce $1,600 per day through these operations. The Company will employ three properly licensed drivers to operate the fleet of dump trucks. By the third year of operations, the business will have four trucks in continued operation.
An ancillary revenue center for the business will come from the divestiture of scrap metals and saleable waste in tandem with private refuse and recycling businesses. This will be a more modest profit center for the business.
Of utmost importance to the Company’s growth will be the continued acquisition of contractual agreements with state and municipal entities. There are numerous public works projects that are conducted in this market, and government agencies frequently engage in requests for proposals among private entities that provide onsite support services. As the Company expands, the business will work with a government contracts consultant in order to submit quotes so that the business can receive this type of work.
As an additional avenue of growth, the business may engage in hazardous materials hauling. These services carry substantially higher fees given the regulations that must be adhered to when transporting these materials.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Dump truck services and related companies are able to remain stable given that they provide a service that is in continued demand among all companies that are engaged in construction, demolition, or public works. At this time, the economic climate continues to remain very strong as unemployment rates have continued to remain low and consumer confidence remains high. The demand for real estate development has remained incredibly resilient given the need for new housing.
An ongoing issue for the business will be the underlying cost of diesel fuel. These costs will be second only to the cost of labor. In the event that the cost of energy spikes substantially, the business will revise its per hour fees. The Company will only engage in price hikes when it is not anticipated that the price of fuels will decline within a three month period. It should be further noted that the business, once it is viable to do so, will acquire electric dump truck vehicles as they are introduced to the market.
4.2 Industry Analysis
There are 29,000 companies that operate in a dump hauling capacity. The demand for dump truck services remains as a $30 billion per annum industry within the United States. The industry provides competitive salaries for staff given their need to have commercial licenses to operate in this capacity.
The growth of this industry is directly tied to the demand for new real estate development as well as property renovation projects. As mentioned above, one of the more exciting growth trends for this industry will occur when fully electric vehicles become available and affordable. This will negate the risks that are associated with diesel fuel pricing fluctuations. As it relates to technology integrations, GPS tracking will continue to be used in all trucks operated by the Company. This will ensure that all drivers comply with transportation laws.
4.3 Customer Profile
The Company will principally work with construction firms, demolition contractors, construction materials distributors, and public agencies. The revenue profiles of these entities will vary depending on the specific construction discipline of the client.
Generally, these entities are expected to produce in excess of $1,000,000 per annum. These companies will require the Company’s dump hauling services at least three times per month. The average monthly expenditure among these clients will be $800 to $2,000. The Company’s anticipated government contracts are expected to produce $5,000 per month.
4.4 Competition
The substantial per-hour fees generated by dump truck services has driven a number of entrepreneurs to develop these types of businesses in every market in the country. Dump Truck Service, LLC will maintain a significant pricing advantage by maintaining a low-cost office while also generating ancillary fees from scrap disposal. This additional income will provide the Company with a substantial financial cushion.
Another major advantage for the business is that the Company will be able to provide its services on an emergency basis. This is especially important when public agencies have an immediate need to have construction materials delivered urgently. As Wisconsin experiences substantial snow each year, it is expected that these entities will also require ongoing deliveries and distribution of salt in order to protect roads.
For your dump truck and hauling service, you can indicate other methods in which you will be able to more cost and time efficiently render services to your anticipated client base.
5.0 Marketing Plan
Dump Truck Service, LLC will maintain a highly focused marketing campaign given that the business is not marketing its services to the general public but rather a select audience of construction and real estate firms in the Madison market area. As will be discussed below, the business will also work with government contract procurement experts to facilitate the acquisition of these highly lucrative contracts.
5.1 Marketing Objectives
• Engage in a number of marketing strategies that will make Madison area construction firms and demolition contractors aware of the business’ services.
• Work with government contracts consultants that will assist the business when developing RFPs and RFQs.
• Use traditional advertisements among regional publications that are focused on trades within Madison and its surrounding market areas.
5.2 Marketing Strategies
As soon as Dump Truck Service, LLC acquires the capital sought in this business plan – the Company will begin a direct marketing program towards numerous contractor, developers, and construction firms. The business will competitively price its services on a per-hour basis in order to ensure that a substantial client base can be achieved in the first year of operation. Mr. Tanglewood maintains extensive contacts among construction professionals in the Madison area market and he will be able to leverage his existing relationships in order to immediately produce financial results for the Company.
Starting in Year 2, the business will begin to bid on government contracts. As discussed earlier, each of these contracts is expected to produce $5,000 to $6,000 per month of revenue (approximately 50 to 60 hours of work per month). As both state and municipal public works agencies are not swayed by negative economic changes, Management feels that this will be a major catalyst for growth over the life of the business. To that end, the business will work with experts that work with companies like Dump Truck Service, LLC to create proper proposals for government contracting work.
As it required by all businesses these days, the Company will maintain an online presence although this will be a more modest form of marketing. The online platform will provide images of the Company’s dump truck fleet, per hour pricing information, and contact information. The business’ printed marketing materials will always have the web address listed. The website will be designed so that it can be easily found among interested parties in the greater Madison metropolitan area.
In tandem with a qualified marketing firm, the business will place a moderate amount of advertising among construction, trades, and real estate focused publications on a regional basis.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
David Tanglewood has been active in the field of construction, materials hauling, and waste management operations throughout the entirety of his career. Given his relationships with numerous entities in the Madison market, he will be able to effectively establish a massive client base while concurrently securing government contracts.
7.0 Financial Plan
7.1 Underlying Assumptions
• Dump Truck Service, LLC will purchase two trucks. This will be the primary usage of the $200,000 commercial loan.
• The Company will charge a rate of $100 per hour, which may increase depending on the cost of fuel and whether or not hazardous materials are being transported.
7.2 Sensitivity Analysis
Dump Truck Service, LLC’s revenues may fluctuate depending on the ongoing demand for new real estate developments. These risks will be tempered as the business will engage in government contracting as well. In the event of difficult economic times, the business will increase the scope of its target market area to include markets outside of Madison.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
