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Haul-IT is an online management tool for independent truckers as well as an online marketplace to match truck load suppliers with truckers for backhauling opportunities and route optimization. Through a monthly subscription members will be given access to an online marketplace which matches empty load truckers with suppliers needing deliveries. The target market of trucking companies with 20 or fewer trucks represents 93% of the trucking industry and includes over 500,000 companies and over 26 million trucks. Development of the service is underway and small trucking companies have begun being contacted for a free membership. A strong management team with over 25 years of combined experience in development, marketing, sales, finance, and the trucking industry has been secured to ensure success. Haul-it has a strong business model of recurring revenues through subscriptions, along with commissions taken from completed auctions.
Haul-IT seeks to raise $600,000 over 2 rounds of angel investment funding, in exchange for approximately 42.7% equity.
Haul-IT is a subsidiary of Trucking Technology, Inc, a C-corporation organized under the Idaho Corporation Act.
Haul-IT operates out of the facilities of its parent corporation in Boise, Idaho, where it has negotiated lease terms that are beneficial to the startup. Haul-IT has intellectual property in the form of copyrights over all software and firmware code.
Given today's rising price of fuel and pressure on the transportation industry, operational efficiency and cost reductions are becoming more important in the long and short haul trucking industry. For suppliers of loads, Haul-IT allows them to find the lowest cost trucker who is willing to deliver their goods. The most important reason a trucker will utilize a tool like Haul-IT is if it provides them with consistent job and backhaul opportunities. Haul-IT's competitive advantage is that it is a free resource and revenue generating service for truckers.
The load providers are segmented by industry, size, and business type (manufacturer, distributor, etc). Haul-IT will target the food service industry initially due to familiarity and connections from within the company and its board. Some of the initial target load providing companies in the Boise area include: J Will Food Service, Sysco Foods, Albertsons, Ore-Ida, Heinz, Food Services of America, Tri-City Meats, Kraft, Amalgamated Sugar, and Simplot Foods. If truck traffic were stopped, grocery stores would be out of perishable food items in two to four days and clean drinking water would run dry in three to four weeks. The trucking industry is comprised of two segments: Less than truckload (LTL) and truckload (TL). With the increase in fuel prices, truckers have recognized the need to save costs and increase revenues as much as possible. The mission of Haul-IT is to provide the transportation industry with the most efficient tools to increase revenues and reduce costs through greater hauling and routing efficiencies. Development of the Haul-IT network is currently underway and is being headed by the company's Director of Technology, Matt Carr. The initial target market includes small independent trucking companies who transport food products as well as the load providers of food products. Acquiring load providers will require Haul-IT to employ a direct sales force dedicated to signing up regional food brokers, manufacturers and grocers. The initial sales efforts will involve obtaining lists of interested load posters and aggressive solicitation of small independent trucking companies to sign up for accounts.
Haul-IT will be released in January 2009, at which time truckers will begin being offered the network for free.
Haul-IT has been able to build a strong management team and advisory board that has secured the resources required to complete the development of this project. Haul-IT seeks to generate a substantial user base of 5,000 truck drivers and 250 truck load suppliers by 2012.
Haul-IT anticipates a 5 year harvest strategy through an acquisition by a larger trucking company or fleet management provider, such as CISCO or Qualcomm. Our CEP will directly oversee the CFO, Vice President of Marketing and Director of Technology.
Bill Lacey, the CFO, brings 8 years of accounting and financial experience to the company, along with experience working as a buyer in the food distribution industry. Vice President of Marketing, Mary Jennings, brings expertise and 5 years experience in sales and marketing. Haul-IT has already secured personnel to fill all positions for the first 5 years, with the exception of the sales reps, which will be hired in 2009. The proposed investment schedule is for $200,000 in the middle of year one and $400,000 in the first quarter of year two to support development and marketing of Haul-IT. By year five, the average valuation, based on earnings-based and sales-based valuations is $10 million, leading to a 10x return for our investors.
The majority of funds will be used to cover operating expenses as outlined in the Income Statement for Years 1-3. With modest growth projections and a slim cost structure, losses are minimized in the first three years of operation. Over the five year period ending 2012, Haul-IT needs to average 428 auction transactions per month, with an average commission of $155, to reach our break-even point. Through the investments in year one and two, cash balance and net cash flow stay positive enabling continued operations for Haul-IT. With increasing cash balances and assets, Haul-IT will have the money to provide stockholders with a sizable ROI. Angel funding of $200,000 received in June of 2008, with another $400,000 received in March 2009 when 250 Truckers have signed up. Follow these tips to build brand loyalty, and create a brand with "buy-in" from both customers and team members.


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Haul-IT targets all companies in the United States, but will initially launch in the Pacific Northwest. By Quarter 2 of 2009, 500 users will be active on the marketplace, and load posters will begin posting loads for auction. It is estimated that 428 monthly customers will achieve break-even for the company, which is reached early in Year 4.
It is projected after 5 years the company will be worth $10 million, which will lead to a 10x return for investors.
The company is headquartered in Boise, Idaho, and is currently 100% owned by Trucking Technology, Inc. Average operating cost for full time truckers is $0.66 per mile (based on 10,000 miles per month) and one of the biggest sources of waste in the industry is delivering a load to a destination and driving home empty.
For small independent trucking companies, membership to the web-based tool tracks the company's jobs in a calendar application and queue, allows them to network with other truckers, provides the latest industry information and trends and, most importantly, allows them to search and bid on backhaul jobs.
As a trucker returns to their point of origin, they are more likely to accept a lower price per mile to backhaul loads as opposed to returning with no load (known as dead heading). These individuals make between 15% to 30% of a load payment - much higher than the auction fee of Haul-IT at just 10%, giving the company a significant cost and value advantage over the indirect competition. The most appropriate segmentation method is by industry group and region in order to focus the initial sales effort. This will include regional companies who provide perishable and non-perishable grocery goods to distribution centers.
The difference between the two segments is that an LTL hauls multiple products for multiple companies in a single load. Additionally, we seek to reduce transportation costs to suppliers by matching them up with the lowest cost transporter through an online auction service for their deliveries.
Development is on schedule to be completed and ready for the initial users by January 2009, with first auction transactions taking place by June 2009. The units are estimated to cost $200, which will be recouped through the monthly service fee for the Haul-IT Premium service. The company will be positioned as the leader in transportation knowledge and trends to provide cost cutting solutions to businesses and revenue-generating opportunities for truckers.
We will rely on both online and offline marketing tactics as well as an aggressive referral program to do this. Once the trucker user base reaches 500, the Haul-IT sales force will begin direct solicitation of the load posters. Once 500 truckers have signed up and suppliers have committed to using the system, the auction transactions will begin taking place, and will grow rather rapidly once the truckers realize the additional revenue opportunities for their company. INRIX and OPIS are technology providers that will streamline development of the GPS services. Given this user base, we estimate a total of 19,000 transactions generating nearly $3 million in revenue.
The VP or Marketing will be responsible for all Sales Representatives, and the Director of Technology will be in charge of all Engineers. Mike Carr, the Director of Technology, has over 10 years experience in programming, web applications, and system integrations.
The initial executive management team is in place, as are the engineers who are developing the network. These expenses include rent, purchase of equipment and office furnishings, insurance, utilities, etc.
Year four is the first profitable year due primarily to the increased use of the Haul-IT network as user ratings are established and the model proves to decrease costs and realize more revenue for the truckers and suppliers.
Year one's $200,000 mid-year investments provides capital to develop and market the Haul-IT online network. These salaries are offset by the ESOP program to retain high performing efficient employees. If, on top of being personable, you’re also organized, ambitious, goal-oriented, and up for a challenge, real estate could be the career for you.
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The Word template contains a title page where you can put your company logo and your business plan title, including the contact information of your business. As reliance on rail freight has decreased the trucking industry has seen a steady growth over the last decade. This is being streamlined with strategic alliances with major load posters and development partners. Funds will be used to cover operating expenses, marketing and advertising, and development for the first three years. Additionally, Haul-IT's parent company has given Haul-IT complete access to its customers to encourage early sales. These services are free to members but they can also elect to subscribe to Haul-IT Premium which gives them an in-vehicle GPS unit that integrates with Haul-IT's route optimization software to sync with jobs in a trucker's queue.
This not only allows the trucker to receive additional revenue, but also allows the load supplier to experience lower transportation costs as the auction model creates a marketplace economy with lower bids for lower demand routes. Neither of these competitors are automated transaction sites and both require truckers to contact providers directly rather than bid and complete transactions online.
In order to post numerous hauling opportunities, Haul-IT must provide a substantial base of truckers who can consistently accept bids and reduce transportation costs over the alternatives, which include hiring a broker or direct solicitation of companies.
Upon building a network of truckers and providers, the sustainable competitive advantage for Haul-IT is its user base. Therefore we will seek the refrigerated and non-refrigerated independent trucking companies in the area who service this industry. It is so imperative that truckers to be able to eliminate dead heading by finding backhauling opportunities, that they are willing to pay brokers and intermediaries 30-50% commissions on these opportunities.
Our gross margin is approximately 90%, which is comparable to other online service providers, and is attributed to sales commission costs and GPS hardware costs. We are the only online auction for backhauling opportunities and GPS route optimization for trucks. Haul-IT will create partnerships with various truck stops to inform and promote the membership program and incentivize members to refer other members. A professional direct sales force will call on the load providers, while advertising and other non-sales efforts will be made to increase trucker sign ups.
Wright Express provides a Haul-IT branded fuel card, and Jackson's Food Stores has offered discounts to truckers utilizing the network. The management team has provided all technology and hardware to the company to ensure that development will be completed on time with little amount of initial capital as possible. Haul-IT also has several advisors from Albertsons, LLC, Tyson Foods, Frito-Lay, Tri-City Meets, and trucking professionals.
Marketing expenses are also included, which escalate throughout the year as product launch nears. It is projected that a first round of funding of $400,000 will be required following the launch of the Haul-IT Network. The business plan template also contains a table of contents that automatically updates as you go along completing the business plan. In the near future, system infrastructure will need to be update to keep current with technology advancement and company expansion. Finding backhaul opportunities has always been a concern and small trucking companies struggle to find them. This GPS unit will not only provide directions but also weather alerts, forecasted traffic patterns, identified route limitations (low bridge, illegal streets, load limits, etc) and interstate travel tracking for DOT compliance. Haul-IT will attribute a buyer-seller generated rating system, similar to e-Bay, to ensure the credibility of the trucking company for the suppliers. TL shipments are greater than 15,000lbs or a filled truck with a single company's products. Load suppliers have also recognized the need to reduce transportation costs, which through Haul-IT's online marketplace can easily be done.
The primary vehicles for promoting the brand and services will be online banner advertising, online search, direct email and mail, onsite advertising at truck stops, trade publication advertising and public relations. Haul-IT also includes a fleet card to all subscribers, which provides a 3-6% discount on fueling charges and other trucking related expenses.
We will continue to seek other trucking related services to offer additional discounts for our subscribers.
Modest wages for the executive team and office workers make up the smallest portion of use of funds, as once the company turns profitable wages will increase. The template has a detailed description for each item or heading in the document to serve as guide in writing your business plan and filling out all the necessary information. The Haul-IT Premium service includes the GPS unit free of charge, provided the subscriber agrees to a 3 year commitment of $20 per month.
In the United States alone, the trucking industry is comprised of 26 million trucks hauling over 10 billion tons of freight. A dedicated server is being hosted by a partner company to ensure that the service is available and backed up.
Although term sheets are still in development, Haul-IT intends to offer preferred equity conversion with accrued interest and convertible notes. Trucking transportation represents 70% of total freight volume in the transportation industry. This industry is primarily made up of small, independent truckers with 93% (over 500,000 companies) operating 20 or fewer trucks.



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