Trucking is a very popular business in the United States. One major factor to this popularity is that almost every person living in the US today owns a car and needs to transport it from one part of the country to another. This creates a massive number of potential customers for truckers, and the demand is constantly growing.
But starting your own trucking company can be a little bit intimidating, especially if you’re new to business in general. Taking the right steps at the start is vital for your business’s success. Here’s what you should do if you want to get your business up and running.
- Create a business plan
- Gain the necessary licenses and permits
- Invest in the right equipment
- Learn about trucking insurance
- Hire the right employees
As with any business, you need to come up with a realistic business plan. While this is something that most people don’t exactly enjoy doing, it’s an absolute necessity if you want your business to succeed. A good trucking business plan will help you estimate how much money you’ll need and where the money will come from. It will also list out your goals and expectations for the first year, as well as future years.
A comprehensive business plan should also include market research. Look at the routes you want to take and the supply chains you want to work with, as well as a realistic analysis of your competitors. You should also include information on potential customers, for example, how much they’re likely to spend on shipping per month and where they’re from.
Another area that you need to focus on is making sure that you have all of the necessary permits. These will vary from state to state, so make sure you check with local authorities for more information. You’ll also need to be aware of the various federal trucking laws.
It’s a good idea to speak with other truckers to get their advice on the business aspects of owning a trucking company, like dealing with customers and making money. Other local truckers may also be able to tell you about other common expenses, like repairs and fuel costs.
One of the most important things you can do to make sure your business is profitable and safe is to invest in the right equipment. The first thing you’ll need is obviously trucks. Make sure they are large enough for all of your needs and have the necessary safety features, like airbags and anti-lock brakes.
It’s also good to invest in other equipment such as a slim LED light bar for trucks. This light bar allows you to see around the truck with a single glance. It enhances your safety as well as the safety of other drivers on the road. It’s also a good idea to buy some anti-theft devices, like a high-security padlock or a bike cable lock for your truck’s ignition.
While you don’t need to become an insurance expert, it’s important to have at least a basic understanding of trucking insurance laws and regulations. Your state may require that you carry specific types of insurance for your business, which could include general liability, workers’ compensation, and commercial auto coverage.
Not only do trucking companies need insurance, but drivers also require their own individual insurance. If a driver hurts someone or damages property and it’s found that the company’s commercial automobile policy did not cover them, the accident victim could sue your company for damages. Make sure your drivers are covered before they hit the road.
Apply for Credit
Applying for credit is another thing you should do as soon as possible. You can easily check your own credit score on the internet to see what kind of interest rate you’re likely to be offered. If it’s not good, consider meeting with a financial advisor so that they can help you improve your credit score and get more favorable terms from lenders.
A good credit rating is crucial for the trucking business since you’ll need to apply for financing to buy your fleet of trucks and equipment. Apply for credit from banks and independent lenders to get the massive amount of capital that you’ll need.
One of the most important things you can do for your business is to hire experienced, capable employees. The more time you spend hiring the right people, the less time you’ll have to spend training them after they’re hired.
Make sure that all of your employees are trained and licensed before allowing them to work on their own. Use an employment agency to find good candidates for your company. Also, use a background check service so you can avoid hiring employees who have criminal records or histories of bad behavior.
As you can see, there are many different aspects of starting your own trucking company, but it’s well worth the effort. All you need to do is take things one step at a time and you’ll have everything up and running.
Don’t let the scale of your project intimidate you. You can start slowly and build up your fleet as more profits come in. Just make sure to focus on each area as you go, like applying for credit and purchasing new trucks, and soon enough you’ll be making money.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.