Month: April 2022

9 Tips for Entrepreneurs on Starting a Truck Stop Business

April 21, 2022

According to market data, the U.S. trucking industry generated a whopping 796 billion dollars in revenue in 2018. If you want to tap into this market, one way you can do so is by starting a truck stop business.

Truck stops are essential to truck drivers, as they provide them with essential services and a much-needed break off the road. However, before you start laying out money, there are a few tips you should know.

If you play your cards right, your future truck stop could turn into a revenue earning machine. However, a few mistakes might make it a money pit. Therefore, we recommend that you read on and find out some of the top pieces of advice for opening a truck stop.

1. Pick the Right Location for Your Truck Stop Business

The saying “location, location, location” has never been truer than it is for starting a truck stop business. While you might be able to open up a specialized restaurant in an out of the way location, and still drawn customers with your renown—truck stops rarely work like that.

A trucker cannot make a 25-mile detour just to enjoy an unusual truck stop. They have to stop along their routes.

The drawback to this is that a truck stop off of the main truck route probably won’t do so well. However, the upside is that you easily pinpoint major truck routes on which to locate your business.

2. Research Future Re-Routing Plans

Another important thing to consider is future re-routing. Imagine you open a humming truck stop on a major route and that’s flowing with trucks both day and night.

Then boom. Plans come into place to re-route that area, and suddenly your once-thriving truck stop business is now as dead as a doorpost.

As you can see, the impact of highway construction can be severe, so it is very important that you do thorough research into whether your state has any plans to construct a highway that will route traffic away from your future business.

3. Think of Services That Will Draw in Truckers to Your Truck Stop Business

The next thing you will need to focus on when starting a truck stop business is what truck stop products and services you can provide that will draw in truckers.

Here are some of the things that truckers love to see when they hit a truck stop:

Competitive fuel prices (preferably for all sizes of companies)
Easy-on, easy-off highway access for truck drivers
Free, clean showers with privacy
A 24/7 restaurant or diner
Wi-Fi
Charging stations
Truck driver’s lounge
A truck wash

Besides these fundamental services, you can also focus on really going the extra mile and making yourself an indispensable truck stop by providing things like a parts store. Other handy services include nice-to-haves such as a gaming room, a gift store, and shipping services.

If you didn’t already know this, you may be surprised but some truckers travel with pets on board. If you want to make a dog-owning trucker’s heart very happy, then you can also consider providing grooming facilities or a walking area/service.

4. Focus on Visibility

Once you have decided what services you are going to provide to draw in business, you also need to think of ways to let trucking companies know that you are in business and that they should check out what you have to offer.

Marketing truck stops can be tricky, but you will need to draw up a marketing campaign directed at truckers. For this, you could take advantage of social media or, or local radio stations to start communicating with customers and letting them know you are open for business.

Another thing that you should put some thought into is how to achieve maximum visibility to truck drivers that are on the road. To attract the attention of truckers you will need to invest in some large-scale signage that makes it clear that you are a truck stop worth pulling into.

Don’t forget to plan some highway signs or billboards several miles out, as well as bright lighting for the signs so they are clearly visible at night.

5. Scope out the Competition

Ideally, you will want to be as far away from any hot competition as possible. However, if that means that you going to be located off the beaten route, that’s no good either.

If you can’t avoid competition, what you need to do is investigate the other truck stops around you and gauge how you can set yours apart from these. Is there a service you can provide that they don’t?

Could you beat the competition with things like a free cup of coffee with filling up? Not many truckers will say no to that.

Even if you are surrounded by large, franchised truck stops that have all the bells and whistles, if you think hard, you will undoubtedly be able to come up with an angle that sets you apart, such as family-owned, or outstandingly friendly service.

6. Create a Business Plan

When planning on starting a truck stop business or starting a trucking company, it is essential that you create a business plan. Business plans serve two important purposes. For one, they help you to secure financing in the form of investments and loans.

Not many investors will put money towards a business that does not have a clear business plan. Business plans state the planned operations, milestones, how these will be achieved, and also include key financial projections.

Besides this, business plans also help you with the running of your business. Having a business plan to refer to will inform you what business decisions are in keeping with your plan and whether you are on track to meet your goals and metrics.

7. Decide Whether to Buy or Build Your Truck Stop Business

Before you begin to draft your business plan, there are two key decisions you will need to make. One of them is whether to buy or build. Buying an existing truck stop might not feel as exciting as building one up from the ground.

However, some sources have stated that existing businesses have a better success rate than those started from scratch. One of the advantages of purchasing an existing business is that you will have access to immediate cash flow (in most cases). It’s also easier to get financing for an existing business.

Constructing a truck stop can also incur unplanned expenses. Research shows that up to 80% of large construction projects run over budget and take up to 20% longer than expected. If you choose to buy an already built truck stop, you can skip these issues.

At the same time, don’t completely rule out building your own truck stop. Perhaps you’ve hit on a prime location along a new route that is opening up? If so, providing you have done your research, opting to build could prove far more lucrative, even with unplanned construction-related expenses.

8. Don’t Rule out Franchising

Another key decision you need to make when starting a truck stop business is whether or not to buy a franchise. Franchises can be an efficient business model, with statistics showing their success rate to be 8% higher than for independent businesses.

If you buy a franchise license, you will be able to tap into the marketing and exposure that the brand has already created. When a trucker sees your sign, they will already know what to expect. Research has shown that customers love familiarity with a brand and that this can increases customer satisfaction.

However, this does not mean that you have to open a franchise branch to be successful with your truck stop. On the flip side, analysis of truck stop reviews showed that independent truck stops were the highest rated.

This goes to show that if you choose to open an independent truck stop, you can, by all means, make a roaring success out of it and garner a lot of happy and loyal customers.

9. Decide How to Fund Your Truck Stop Business

Most new truck stop businesses require a certain level of funding. If you need financing to start your truck stop business, there are a few options available to you. You can seek out investors, however, this will see you having to give up a portion of your business and a certain level of control.

If you don’t want to do this, you can also look into loans and other financing options. Securing a loan before you have been in business for a year or more can be tricky, especially if you go through a bank.

However, traditional lenders and smaller banks often have less stringent application processes, which may allow you to secure a loan in the early days. You can also consider taking out a business line of credit if all your need is a cash flow injection from time to time.

Are You Starting a Truck Stop Business and Do You Need Financing?

Do you need financing for starting a truck stop business? If so, you are in the perfect place to start comparing your options. Here at Your FundingTree, we offer a free application process designed to help you find the best loan for starting a truck stop business.

All you have to do is complete our free 90-second online application. Our financial advisors will then pair you with up to five lenders who work with truck stop businesses. It’s that easy.

If you have any questions about the process, please reach out and we will be happy to help or call 704-904-0774 to speak with a representative today!

Writing a Business Plan and 10 Tips for Small Business Owners

April 13, 2022

You can’t enjoy an epic vacation without a map, and you can’t build your dream house without blueprints. You also cannot start a successful business without writing a business plan.

Before something spectacular arises, there has to be a dedicated plan in place first. This way, you know what to expect and can anticipate any issues before they occur.

As a small business owner, are you gearing up to launch your company into the world? If so, writing a business plan can help you lay the groundwork for a successful, sustainable company.

Not sure where to begin? That’s why we’re here. Today, we’re sharing 10 tips that make writing a business plan as easy as possible. Read on to learn how to get started.

1. Include an Executive Summary When Writing a Business Plan

If your business plan is a novel, the Executive Summary is your introduction. Before you launch into the finer details of how your new company will be organized and managed, the plan should open with the big picture.

Here, you’ll simply summarize what your business intends to accomplish. Keep it concise and make sure to include these details:

Company mission statement
Short description of your products and services
Company location
Employee structure
Leadership team

One tip? Since you’ll be diving deeper into these categories in the subsequent pages, leave a space for your summary and write it last. That way, you can pull from the data you created and make sure everything is cohesive.

2. Add a Company Description

Next, you’ll provide more details about your new business. The Company Description section should immediately follow the Executive Summary. In it, you’ll include more granular details on what your company will do and the main points it will solve.

This is where you’ll explore who your target audience will be and how you intend to reach it. If you’re not sure how to identify these consumers, this guide is a great place to start.

From there, discuss your company’s key differentiators. What sets you apart from similar companies in your niche? Think about any advantage you bring to the table including:

Subject Matter Experts (SMEs)
An ideal location
An innovative product or service idea

This is the time to identify your strengths, as these will soon become the cornerstones of your marketing plan and will help you with writing a business plan.

3. Know Your Market Prior to Writing a Business Plan

You could have the best business idea in the world, but if there isn’t a need for it, it might not be the smashing success you imagined. That’s why it’s important to include a Market Analysis section when writing a business plan.

Take the time to research what others in your space are doing, and the success levels they’re experiencing. As you analyze their performance, look for key trends.

What are they doing well and why does it work? Is there anywhere they’re coming up short? What can you offer that’s above and beyond?

Competitive research can take a little time, but it’s always homework worth doing.

4. Detail Your Company Structure

Your business plan is incomplete until you define how it will be structured and who will be at the helm.

Begin by describing your business’ legal structure. There are many different structures to choose from including:

Sole proprietorship
Partnership
Corporation
S corporation
Limited Liability Corporation (LLC)

Then, illustrate the organizational structure of your company. Rather than listing it out in narrative form, it’s easiest and clearest to create a simple organizational chart.

Beneath it, explain the unique experiences and skills that each person brings to your business. You can even include resumes of your key team members if space allows.

5. Describe What Products or Services Your Business Will Provide

Be sure to include a section in your business plan that covers what products you will sell or what services you will provide. In addition to details on the offering itself, include information on how it will benefit your target audience or help solve an existing gap.

Then, take a close look at what your product lifecycle will include. How will you source the raw materials necessary for your product? Who will your suppliers and partners be?

If you have plans to acquire intellectual property, such as a patent or copyright, add those into this section, too.

6. Be Positive When Writing a Business Plan and Highlight Your Marketing Approach

Of course, it can be difficult to define a clear marketing strategy right out of the gate. Until you officially launch your new business and test it out in your target market, you won’t know what’s going to work and what will fall flat.

Still, it’s critical to include at least a rudimentary marketing approach in your business plan. How do you plan to get your offering in front of the people who need it the most?

What channels will you use to share your message (email, social media, print-based marketing)? Understand that along the way, you’ll need to adapt and tweak your marketing plan. As your audience evolves, your strategy should, too.

7. Introduce Your Sales Strategy

In the next section, include a brief write-up on what an actual sale will look like for your business. Will you operate strictly via an e-commerce website, or will you have a brick-and-mortar storefront? What are your anticipated sales targets?

If you plan to hire inside or outside sales representatives, mention this here, including as many details as possible. What is your approach to building your sales team? Will your reps be commission-based, salary-based or a combination?

You’ll reference your sales data later in the Financial Projections portion of your business plan. Make sure to completely describe your strategies so the two parts correlate.

8. Outlining Your Funding Requirements is Part of Writing a Business Plan

If you’re requesting a small business loan to help fund your new company, most lenders will request a copy of your business plan.

Not only will your plan give them insight into how you plan to create and operate your new business, but it will also include details on your specific funding requirements.

Using a five-year timeline, list exactly how much money you’ll need from a potential lender. Keep in mind that this isn’t the time for vague generalizations. You’ll need to break down your exact financial requirements, including the following details:

Whether you require debt or equity
The loan terms you prefer
The timeline of your request
How you plan to use the funds (equipment, hiring, expansion, etc.)

End this section with a forecast of your future financial strategy. Do you have steps in place to help you pay off your debt by a certain time? Do you plan to sell your business down the road?

Lenders will need to know that you have a set plan in place to ensure you don’t default on your loan. While it might be impossible to pinpoint exact numbers, you should know which approach is the most viable.

9. Add Financial Projections While Writing a Business Plan

You can round out your funding request by including financial projections that speak to the stability of your company. Remember: You want to convince any lender that you’re a responsible business owner.

Your financial data is a critical part of that persuasion, as is any collateral you can put against the loan. When you are writing a business plan, the financial section is typically the part lenders pay most attention to.

If your business is brand-new, use charts and graphs to illustrate the growth you anticipate based on market trends and competitor research. Be as specific as possible, using quarterly or even monthly projections.

If you’ve been in business for a few years, add detailed financial reports to this section. These include:

Income statements
Cash flow statements
Balance sheets
Capital expenditures

Go three to five years back when compiling your historical data and forecast five years into the future. Then, go back and make sure your projections line up with your funding requests.

10. Don’t Forget an Appendix

As you create your business plan, you may find that you have a significant number of documents to include outside of the core plan itself.

Rather than inserting them into their respective sections, you can add an appendix at the end and organize them there. A few of the most common add-ons found in appendices include:

Your credit report
Team member resumes
Pictures of your products
Important legal documents
Copies of business licenses and permits
Professional contracts

You can point to the location of these documents within your business plan by using parenthetical references.

Writing a Business Plan That Works for You

Whether you’ve been in business for years or you’re just starting out, you need a solid vision to know where you’re heading next. This is why writing a business plan is such an important task. Here is a great post on how to get a business loan which you should read now that you know about writing a business plan.

While it can take some time to gather all the details you need, the final result is a comprehensive, organized document that can help direct your company toward future success. Need a little assistance as you start down this exciting new road?

From insurance and benefits to payroll services and POS systems, there are many aspects to business ownership, and you shouldn’t have to juggle them all yourself.

Our team can help you grow your business through a range of professional business services, so apply via our website today!

7 Beneficial Ways to Use a Small Business Line of Credit

April 5, 2022

As a small business or start-up, having capital will determine whether you survive and grow. Your business must be able to cope with changes, especially during growth or a period of unsteady cash flow. A small business line of credit could help you grow your company and increase your cash flow.

Securing a small business line of credit is one way for your business to get access to the money needed for managing the daily cash flow and functioning of the business. It’s also a great way to make the most of new business opportunities.

Having a small business line of credit can be useful for your business’ growth and success. Read on to learn seven ways a line of credit can benefit your business.

What is a Small Business Line of Credit?

Whether secured or unsecured, a business line of credit gives businesses access to money that may be used to handle any expenses that come up. No lump-sum disbursement is done at the opening of the account so there’s no need to make follow up payments monthly.

However, the line of credit is usually renewed annually, and a credit review is also carried out. It’s sometimes compared to a revolving credit card.

As you withdraw funds, interest accumulates, and the amount repaid is available again for you to borrow as you gradually pay your balance. It is the lender who limits the amount that you are able to borrow.

This type of credit is a revolving loan which you are able to use to fund your business expenses. It can be used for a wide range of expenses. With it, you are now able to repay it once you gain additional capital and then spend it again according to your business’s needs.

Let’s take a look at some useful and unique ways that a small business line of credit could come in handy.

1. Start a New Marketing Campaign

A line of credit is often used to start a new marketing campaign by businesses that are seeking to gain new clients, position their brand differently or boost their online presence.

There are a few things to look into before using your line of credit to launch a new marketing campaign. Things such as, calculating the cost of the campaign, who are you targeting, and how will the new customers improve revenue?

2. Get New Supplies and Inventory for a Busy Period

If in your business, there’s a certain season that tends to bring in more revenue, it’s essential to stock up on inventory before the season becomes extremely busy.

Since the busy period normally follows a slow season where funds are usually tight, using a line of credit will help you to restock your supplies. You can pay down your line of credit once your revenue increases.

3. Hire Expert Help

A line of credit can be used by you to gain access to expert advice and training. Some ways of putting this line of credit to use include hiring a sales consultant to draft a new script for your sales team. You can also use it to train them and to get your new sales program underway.

For example, if it’s a case where you decide that your business is in need of new software. You can hire a consultant to help with choosing, installing and operating the software. Money to do so can be taken from your line of credit.

4. Seize New Opportunities by Using a Small Business Line of Credit

In some instances, businesses use their line of credit to make the most of a new business opportunity. For example, to start a new contract they might use their small business line of credit to purchase the products or services needed.

The key, however, is to calculate your expenses and make sure that the amount borrowed does not exceed the expected profit. If you turn a profit after your expenses, then it means that using your small business line of credit was a good idea.

If you don’t think you will make a profit by using a small business line of credit, then another type of business loan may be better suited for your needs.

5. Increase Your Credit Score

If you want to improve your credit score, you can ask your lender to share your loan information with a credit reporting bureau.

This way, your business’s credit report will contain your line of credit information such as the amount owed and how you’ve been making your payments. If you keep up with making timely loan payments, this will help to improve your credit score

6. Use a Small Business Line of Credit to Expand Your Business’s Location

Have you just completed a marketing campaign successfully? If your marketing campaign launch was a success, you now have more customers than your business can accommodate. This means it’s time to expand your business’s location.

When you use your line of credit for expanding your business’s physical location you have an opportunity to get the much-needed extra space for your business to grow. More paying customers makes it easier to pay off what was borrowed on the line of credit.

7. Take Care of Fluctuations in Cash Flow

Sometimes your business will have low cash flow due to how long your customers take to pay you for whatever goods or services you provided them with. A line of credit can go a long way when this happens.

You can use it for the day-to-day operations of your business, utility bills, rent, or even for payroll and taxes. Once your customers pay you what is due, you can use that to pay down your line of credit.

A Small Business Line of Credit is More Than a Convenience

Getting a small business line of credit could be exactly what you need. It’s more than just a convenience. It can be used to expand your location, restock inventory, and take advantage of new business opportunities. More importantly, it’s great for helping the business grow and ensuring its operating during times of low cash flow.

You can also use it to get expert advice, train staff, and to launch a new marketing campaign. If you keep up with your loan payments, you could potentially have the chance to increase your business’s credit score. A better credit score can help you secure a higher line of credit.

The ways to use a line of business credit listed above will give your ideas on how to make your business successful. However, you may be able to come up with other things you can use your line of credit for based on your business’s needs.

If you would like to find more loan options for your business, then you can easily apply now.