Starting and running a business successfully is one of the most important things in achieving personal dreams. However, the type of business and the industry to consider is essential. Therefore, I would like to start a trucking company. The industry of logistics and transportation is one of the fast-growing businesses in North Dakota. Across the country, there are many opportunities to explore in the industry as other businesses grow, leading demand for logistics and transportation services. The technology and the use internet, as well as the expansion of online retail businesses, are the major opportunities that have led to high demand for logistics and transportation services (Murphy et al. 2018). As a result of this demand, different companies have ventured into the industry, most of them are successful and continue to expand to meet the demand. It is, therefore, evident that there are more space and opportunities to venture into the market as a new trucking company and operator. This paper investigates a trucking company that I would like to start and run on a full-time basis in the future, the business. It describes the background and the main aspects of the business operations of the company.
Form of the Business
The company will be a Limited Liability Company (LLC). This form of business is more beneficial and easy to manage (Pohl, 2016). I consider starting an LLC business because it is flexible and provides similar benefits when it comes to multiple ownership since I would like to venture into the business with a partner.
Advantages of LLC
- It provides significant liability protection for the owners and has fewer formalities for corporate functions
- It provides limited liability for managers
- It is easy to manage
- It provides extraordinary flexibility thus making it easy to allocate profits and losses to owners in specified amounts
These and many other advantages of the LLC business will enable us to venture into the industry and achieve the objectives successfully.
Name of the Business
The business name will be Rose Lee Logistics, LLC. The name is a combination of my middle name Rose and my partner's middle name Lee, we both have combined objectives and interest in the venture and intent to work together in exploring the opportunities in the industry to succeed in the world of business. LLC is a form of business that provides flexible management and operational activities for members; therefore, it would be much easier and more possible to combine resources, skills, and other aspects to start and run the business.
Services to Be Provided By Rose Lee Logistics
Rose Lee Logistics is a trucking company that will provide transportation and logistics services across Williston ND and beyond. The primary service to provide for the customers is the transportation of goods. The following is a list of services to be offered by Rose Lee Logistics:
- Warehousing, this is to facilitate storage and ensure the safety of goods before shipping to the desired destinations
- Expedited shipping of goods
- Equipment for hire
Location of the Business
Rose Lee Logistics will be located in Williston, ND. The city of Williston is a city that has grown into a center of business operations within ND; there are many companies and business centers that require transportation and logistics services. Furthermore, the city connects several other cities such as Dickson ND, Mandan ND, Grenfell Canada, and Minot ND (Fernando & Cooley 2016). Transport network across connecting these cities and other areas extending to these sites are good; this will enable the company to reach many customers and expand the market effectively. The oil boom has also led to the growth of business and the city, providing more opportunities for the transport and logistics industry.
There are many trucking companies in Williston that serve the region and beyond. Competition, therefore, is stiff, and this would require Rose Lee Logistics to use strategic erasures to venture and secure a considerate Marek share to survive in the market. Examples of competitors include:
- American Freight Inc. founded in 2001
- B4 Logistics Inc. founded in 2005
- Steller Trucking LLC founded in 2014
These competitors have been in the market for more than five years; their existence has changed the industry. The use of technology has influenced the development of these companies and the industry at large. Their operations are diversified and provide trucking services at an average cost (Myers Jaffe, 2019). In my view, these computers are will not only act as a threat in the business but provide an opportunity for us. Their existence has made the industry and the services popular; therefore, to compete with, we will offer our services at lower prices and develop new marketing strategies to provide better services.
There is a niche market for the company to focus on, despite other opportunities available in the market, this niche market will help to build company name and provide an immediate market for our services. Niche markets that the company will consider includes:
- Oil products delivery
- Delivery of equipment and materials for the manufacturing industry
- Shipping of online retail goods
Williston is characterized by a growing number of manufacturing companies and businesses related to oil products as well as population. Williston population in 2018 was 27,096, and 762,062 in North Dakota; with the rising demand for logistics and transportation, this population will provide a market for the company to explore (Brandy, 2018). Over 30 manufacturing companies, including RDO Equipment Company, ND Mill and Elevator, Plains Grain, and Wil-Rich, are potential customers (Brandy, 2018). To build the company's image, Rose Lee Logistics will focus on customer-based strategies, timely delivery, and expedited shipping.
Required Cost to Begin the Venture
The total cost to begin the venture, therefore, is $268,500, this would require external sources. Many businesses in Williston ND has developed by sourcing capital from money lenders. One of the money lenders that I would consider is the Business Development Loan Program offered by the Bank of North Dakota. I would like to loan $ 250,000 to contribute to business capital. BND provides load at a variable rate of 0.5% that can be adjusted from a monthly to quarterly basis (Brandy, 2018). Other financial options include family support, personal savings, and business partner.
The company would require one marketing manager and three drivers.
The management will be based on a consultative leadership style. This leadership style is more effective, especially when the business is new in the market. Different ideas from different members of the leadership will serve a critical role. The Decision-making process will involve employees and the manager. Consultative leadership will apply effectively to the company's management structure since there will be few employees whose roles and ideas are critical for decision making.
Skills to Help Me Succeed in the Venture
My role as the owner and manager of the business will serve to improve management performance. I have worked as a marketing executive for four years, and as a result, I have developed good leadership skills and management skills that will be useful in running Rose Lee logistics. Some of the critical skills that I have developed includes:
- Excellent interrelationship skills
- Team building
- Excellent in leadership and problem-solving skills in management
Despite these skills, other skills are required to start and run a business effectively. Some of the skills that I lack include marketing skills, creating commercial awareness, adaptability, and good planning and organization of sales strategies. As a result, the business would require a manager
Potential Profit for the Venture
I expect Rose Lee Logistics to have a consistent growth because there are many opportunities to explore in the market. Having good management and marketing strategies, the company can make $ 100,000 per month.
Potential Risks Associated With the Venture
Despite the opportunities such as going demand for logistics and transportation services, and space niche market, there are various risks to consider, these are:
- Risk of underutilization of the equipment
- Risk of the inadequacy of capital
- Risk of losing customers and drivers
- Risk of cyber-attacks as a result of using technology to run inventory and shipping services
Conclusively, starting a trucking company in the region is one of the best business ventures with potential benefits. There are many opportunities within Williston city and beyond. Increasing demand for trucking services is one of the promising factors for starting this business. There is a high chance for Rose Lee Logistics to obtain a considerate market share in North Dakota within a short period. There are many manufacturing companies and oil-related ventures that require trucking services; therefore, there is great potential to succeed in the venture. My management skills will also help run the business and reduce underperformance.
Brandy. J (2018). After Struggles, North Dakota Grows Into Its Ongoing Oil Boom
Murphy, L. A., Huang, Y. H., Robertson, M. M., Jeffries, S., & Dainoff, M. J. (2018). Sociotechnical systems approach to enhance safety climate in the trucking industry: results of an in-depth investigation. Applied Ergonomics, 66, 70-81.
Myers Jaffe, A. (2019). Exploring the role of natural gas in US Trucking (Revised Version).
Pohl, M. (2016). Taking the Series LLC Seriously: Why States Should Adopt This Innovative Business Form. J. Bus. & Sec. L., 17, 207.
Fernando, F. N., & Cooley, D. R. (2016). An oil boom's effect on the quality of life (QoL): Lessons from western North Dakota. Applied Research in Quality of Life, 11(4), 1083-1115.
Cite this page
Start a Trucking Company: Exploring Logistics and Transportation in North Dakota - Report Sample. (2023, Oct 13). Retrieved from https://proessays.net/essays/start-a-trucking-company-exploring-logistics-and-transportation-in-north-dakota-report-sample
If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:
- Research Paper Example on Healthcare in the United Kingdom and the USA
- Questions and Answers on Human Resources Management
- The Extent to Which Mixed Methods Research Combine Quantitative and Qualitative Design
- The United States (U.S.) Involvement During World War 2 Essay
- Essay Example on Entrepreneurial: Thinking Creatively to Achieve the Impossible
- Essay Example on Amazon: Earth's Most Customer-Centric Organization
- Essay Example on Two-Party Voting: Divide & Conquer in US Government