Last Updated on November 16, 2023 by Hina Rubab
Trucking is a serious business. Trucking companies that own, lease and operate trucks indeed have high start-up and operational costs. Trucks entail quite a huge upfront cost, not to mention maintenance expenses and the cost of operating the business as a whole. However, it is also good to note that trucking is a multi-million-dollar industry.
The COVID-19 pandemic, most especially, has changed the game of the trucking industry. The need for more trucks is growing as the consumer’s demand is increasing. And choosing and buying a new truck is easy since there are a lot of choices from good brands, like going for a Mack semi truck for sale online.
Because of this, you might plan to jump in the bandwagon or perhaps expand your business but the extra capitalization is too big. With this you might consider exploring the possibility of getting an investor.
Getting an investor or investors is not something new or something to be afraid of. In fact, even large multinational companies have investors in order to grow. If it is your first time to offer your business idea to someone else, there might be a few steps that will be of help when pitching to a potential investor.
Table of Contents
STEP #1: BRIEFLY DESCRIBE YOUR COMPANY.
It is important for investors to know the core values of your business and if it matches theirs. Show them your mission and vision for the company, and briefly describe your services, your target market, and your goals. This gives your potential investors a bird’s eye view of how the company will operate and thrive in the industry.
STEP #2: WHO IS YOUR TARGET MARKET?
This is the most important aspect in any business. In trucking most especially, you must be able to identify your market at onset so that you will know which trucks to buy and how to operate. Are you planning to go for short haul or long-haul trips? What is the size and behavior of the market you’re planning to attack?
STEP #3: BUSINESS MODEL.
Definitely, your prospects will be looking for your business model. This is where they will be able to look into the potential of your business. They would want to know your plan for making a profit. In your business model, you will identify the services you will offer, your identified target market, capital expenses and anticipated operational expenses, organization structure, and so on.
STEP #4: SHORT-TERM AND LONG-TERM GOALS
Of course, all companies definitely have goals. Since your investors are going to be your business partners, they would want to hear about the company goals too. Short-term goals are the ones that you set for the next 5 years of your operations, and long-term goals are for 10 years and more. Since the trucking business is expensive, it is important to show to your potential investors that you are in it for the “long-haul”, and not just a temporary kind of business.
STEP #5: WHY INVEST IN YOU?
Once you’ve already presented your business model and your company goals, it’s time to unleash your best salesmanship to seal the deal. Show your investors why it is worth investing in your company.
Answer all their questions straight up and do not leave with a single doubt in their minds. Honesty, transparency, and truthfulness are important ingredients that investors look for aside from the business potential.
Investors will be putting in hard-earned money into your business so it is important to take this very seriously. When they can see how committed you are to growing this business, then they would feel at ease knowing that their money is in good hands.
Partners are like spouses in business. You will be in it together through thick and thin, and since they will only rely on your financial reports, you have to make them see how capable and credible you are.
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