If you’re looking to take your career in an exciting new direction, starting your own trucking company may be the way to go. You can now set your own hours, choose which loads to transport, and decide when you’d like to take time off, all while being the boss and increasing your income to six-digit figures. However, before beginning your business operations, you should ensure that you are prepared to make an adequate initial investment and have a great deal of patience in complying with the requirements.
Here are the steps to kickstart your trucking business off the ground.
1. Create a business plan. This document outlines your company’s goals, mission, and budget.
2. Register your business by obtaining licenses and permits from the government. Be ready to pay your taxes.
3. Invest in quality service vehicles.
4. Prepare your fixed assets and secure startup capital of thousand dollars for small trucking company.
5. Purchase insurance for your company to protect your business in case of an accident. Without insurance, you could be liable for any damage that could occur.
6. Find a good location for your business to determine how accessible your company is to potential customers.
How Much Does It Cost To Start A Local Trucking Company?
Starting a local trucking company in the United States typically costs a starting capital of $10,000 to $20,000. This funding will be used for the initial down payment on your license, permit fees, truck, plates, and insurance. Once you have fully established your trucking business, you must pay your monthly expenses for fuel, maintenance, food, etc.
Is Owning A Truck Profitable?
Yes, trucking is a profitable industry. Trucks deliver about 70% of all products across the United States, worth a staggering $700 billion. This provides plenty of opportunities for driving revenue and profits for your trucking business, whether you’re an owner or an owner-operator. However, note that although you could have a potentially high income, it poses a danger on the road. So, be prepared when it happens, as you’re most likely liable for the damages or once your driver gets injured due to a car accident.
How Do You Find Truck Loads?
Here are the common ways you can find truck loads:
1. By looking for a freight broker on Google or social media sites. If you’re an independent contractor, a freight broker can help you find freight to haul as they will negotiate with shippers to get the best possible rate for each shipment. However, they typically cut the profit between 25% and 35%. Just ensure that when contacting a freight broker, you ask about their experience, services offered, and rates to help determine if they are the right fit for you.
2. By availing shippers’ and dispatch services. Direct networking with shippers and dispatchers could help you get loads since they thoroughly understand the country’s freight lanes and back-office support. Take note that when you work directly with a shipper, you can earn more per load since you won’t be given a percentage rate, unlike with a freight broker. However, this method isn’t recommended for newer owner-operators.
3. Enlist as a government contractor. Transportation services are always in demand by governments at all levels. That said, as an alternative to working with private companies. The only catch is that you’ll need to take additional measures to become a government contractor. You can also look into hiring a transportation company that already has a government contract.
What Are The Challenges Of Running A Truck Company?
Like any business, running a truck company comes with its own set of challenges. First, you must understand the trucking regulations governing a particular state, such as the speed limit and cargo weight. Another challenge you will face is finding and keeping good drivers. You must ensure they are reliable, trustworthy, and skilled at their jobs to avoid accidents and car damage. Lastly, there are expensive fuel and other maintenance fees, such as oil changes, tire rotation, and battery replacement.
Tips on What Kinds Of Trucks Are Worth Investing In For Beginners
There are many types of trucks on the market, and it can be difficult to know which ones are worth investing in. However, it would be best to first consider the following before making your decision:
1. Consider the types of products you’ll be transporting. This will help you determine the size and type of truck you need.
2. Think about your budget. Of course, the more expensive the truck, the more it has a high-power engine, a wide cargo area, and better performance.
3. Decide if you want to buy or lease your trucks. If you’re just starting, it’s probably best to lease your trucks. This way, you won’t have to worry about maintenance and repairs, and you can upgrade to newer models as your business grows.
Starting a trucking company can be an expensive investment, but once you master how it works, it’ll surely be worth it. Ensure you follow the guidelines on starting your trucking company so you won’t have any problems. Keep in mind the challenges and risks that might occur, so you don’t have to wiggle any surprises along the way.