According to statistics, trucks deliver up to 70% of all freight in the United States. This equates to billions of dollars in shipping products each year. With the continued driver shortage, growing freight demand, and rising prices, now might be an excellent moment to launch your trucking company.
Starting a trucking company may seem a lucrative idea, but there are many challenges involve like capital, retaining client base, getting necessary licenses (for example, if a truck enters the state of California, then it must need a California Dot number ) or bad drivers etc.
On the other hand, there are several advantages to owning a trucking company. You may pick and choose which firms to deal with, what loads to transport, and how frequently you’ll make the trips. You may also be paid more because you own the firm and receive a larger portion of the earnings.
Despite all of the advantages listed, it is important to note that beginning a trucking business may be extremely intimidating. I
A-List of important considerations, if you planning to start a trucking company
Step 1: Planning
Starting your own trucking company takes much planning and preparation. The typical way is to begin as an owner-operator, which means you should own your vehicle and engage in the day-to-day operations of your fleet. Many new owner-operators begin their careers as drivers to get hands-on experience.
Step 2: Decide a catchy name for the company
It is also critical to choose a name for your trucking company. Think up several names, then check to see whether any of them are already in use by other businesses. Use company name search tools or do an internet trademark search to accomplish this.
Step 3: Search about your target market
When starting a trucking company, it is also critical to target a suitable market segment. Becoming a specialized carrier may let you avoid competition from major carriers, develop your brand in the sector, and maximize your sales potential.
Step 4: Choose your rate per mile
Another aspect of establishing your trucking business is determining the best fee per mile to charge. It should be high enough to allow you to earn a profit, pay operational costs, and compete with the prices your shippers are charged by brokers.
Step 5: Start working on the Business plan
It is usually a good idea to create a trucking business plan. A well-thought-out business plan makes the process of launching a trucking company much easier. It defines your company processes, such as sales and marketing strategies, pricing, operational operations, fleet management, and so on.
Step 6: Take into account the legal requirements
In addition to a valid commercial driver’s license, owner-operators must meet several FMCSA criteria. The following are some of the credentials that a trucking business may require:
- US DOT Authority Number
- International Registration Plan License plate
- International Fuel Tax Agreement Permit
- Unified Carrier Registration
- Heavy Highway use tax return
Step 7: Funding your business plan
In most situations, an investment of $10,000 to $30,000 should be sufficient to cover the price of insurance, vehicle down payments, licenses, and several state-specific expenditures when starting a trucking company or trucking business.
There are several options for financing your new trucking company, including utilizing a home equity credit line, obtaining a bank loan, selling assets, and using your savings. You may also contact lenders who can offer you needed assets to decrease your early overhead.
Step 8: Purchasing assets for your new trucking enterprise
If you have enough money and decide to buy your assets, it is always preferable to prioritise quality over cost, especially when it comes to commercial vehicles.
Step 9: Make insurance of your assets
Every carrier needs insurance to safeguard his or her trucking company from unanticipated financial constraints. This should include hazards like vehicle damage and injuries sustained in a car accident.
Step 10 Efficient Driver Recruitment
Choose the best Drivers for your company and take the necessary qualification test. View a potential driver’s crash history for the last five years and roadside inspections for the last three years using a Pre-Employment Screening Program. Focus on driver satisfaction and fulfilment rather than merely cash-based incentives for driver retention.
Step 11: Increase your customer base
Staying loyal to one customer may appear fair at first, but it may not be viable in the long run. What you need to do is diversify to be successful regardless of your client’s specific financial situation.
Step 12 Maintain fleet management
The management of vehicles gets increasingly difficult as the number of vehicles increases. It is critical to building your fleet management systems when starting a trucking firm since they impact various elements of your transportation operations, such as:
- Maintenance of vehicles
- Driver conduct and procedures must be monitored
- Compliance
- Safety of the fleet
- Fuel management