American Trucking Association reveals that “70% of all freight in the United States is currently transported by the trucking industry, 27% growth is expected over the next decade, and 91% of trucking companies operate six or fewer trucks, meaning the industry is dominated by small carriers.”
This is a too-good-to-true stat to ignore.
If you’re thinking to start a trucking company, you’re thinking right and please go ahead with your plans because you are not going to regret it.
But before you carry on with your business idea, here are prevailing challenges you will face when starting a trucking company.
Challenges You Will Face When Starting a Trucking Company
- Insufficient funds
- Bad roads
- High cost of fuel
- High cost of maintenance and services
- Double and even triple taxation
- Reckless drivers
- Not enough people have good managerial skills
With the right solution for these challenges facing the trucking business, it’s impossible for one not to be profitable at it.
To help you get started, consider these 5 steps that will help you start your own trucking company.
Start Your Own Trucking Company
1. Write a Business Plan
A business plan is the road map to any successful business. Therefore, just like you’d set up any business, you’ll also need to draft your business plan to make sure all things will move smoothly soon after you start your business. If you don’t then you may end up losing your company so soon.
Look, that’s not what you want. You want your company to break into the markets and be successful in one shot, sounds great? If yes, then make sure you set everything in place. Consider accumulating the capital you’ll need and any other resources that will be necessary.
2. Legally Establish Your Business
Now that you have set your business plan and you have the draft for reference, it’s time to legally secure your business.
This is a critical step that nobody should ignore because if you do, you’ll end up with a lot of legal cases that will continuously drag your trucking services down.
Look for the best business attorney to help you register your company as a limited liability company. Doing this will secure you a lot.
You will not have problems with legal actions or regulations. An attorney has the experience and skills to help you do that. Just make sure to elaborate to him or her every detail about your trucking company.
3. Obtain a Business License and Permits
You don’t want to have problems with your government or local county council. So, you need a business permit or license.
This will enable you to operate as a business effectively because you will have the full right of operating anywhere within your locality.
Additionally, the business permits allow you to easily pay taxes such that you don’t have problems with your local government. Remember to always pay your taxes as required so that your trucking business is not denied operation.
4. Buy or Lease the Right Equipment
Congratulations for reaching this far. Now it’s time to buy what you’ll need for your trucking company.
How many trucks do you need?
How many truck drivers will be enough for your company?
Do you need a central office?
If you have the answers to those questions, then you’re good to go. There are tons of equipment financing firms out there ready to help you. But if you prefer to lease a truck, take a look at this guide that details the cost to lease a semi truck.
5. Select Your Proper Insurance Coverage and Track Your Income and Expenses
Hurray! You’re at your final step, but look, don’t let your guard down yet. Select a proper insurance company because you’re going to need the cover at some point. Check their terms and select which one will suit you.
Here is a list of the top 7 auto insurance companies you may want to start your research from. Mentioning them here does not mean absolute endorsement, so be sure you are comfortable with their terms before proceeding.
Additionally, set a strategy that will help you track your income and expenses. This is very critical because you’ll use it to determine whether you are making losses or making a profit with your trucking business.
7 Questions You Need to Ask Before Starting a Trucking Company
- What kind of freight do you want to haul if you have everything you need to start your company?
- What kind of equipment does your new trucking company need?
- What business structure is best for you in terms of revenue and freedom?
- How will you handle maintenance and repairs? Will you need to hire an expatriate or you have a local team that handles it?
- Do you have an accountant? If no, will you be needing one?
- Do you need special clearances or endorsements added to your license?
- What kind of business licenses and insurance do you need?
It’s just that simple. No technical steps required. You just need to follow the steps one after the other and set up your trucking company. Wish you well with your new trucking company.
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