If you are interested in starting a trucking company, there are several important things that you need to keep in mind. While not impossible, the process does require a number of critical steps that you must be careful to include if you want to be successful.
In the following sections, we will run through the ten most important things to keep in mind when starting a trucking company. And if you’re looking for a company to work with, you should check out Fortune Carriers. They are truly the best in the business, and have proven to meet all of the requirements that we lay out below and more.
1.Find your niche
Surely you know this fact in and of itself. But the precise niche you find is critical to each of the successive steps you take. When starting out, keep in mind that here are many different categories of trucking, depending on what you are carrying. This can include dry van, refrigerated items, specialized equipment, etc. You also need to define your geographic area as laws vary from state to state.
2. Create a business plan
You need to come up with a solid business plan. Just as you would with any other type of business, starting a trucking company requires creating a complete business plan. This includes:
- Outlining your long-term goals for the company
- Creating strategies for how to reach those goals
- Coming up with financial projections
- Outlining your operational procedures
3. Choose a legal structure
Every business has to have a legal structure under which it will operate. The factors that influence the type of legal structure you choose include liability, taxation rules, and the amount of flexibility you want to have. Before you get started, you should research the options and see what each of them entails. Options include:
- Limited Liability Companies (LLCs)
- Sole proprietorships
- Partnerships
- Corporations
4. Find funding
This is usually a fair challenge. You need to figure out exactly what your financing needs are and determine how to fund them so that you can operate until you start to make a profit. Needs will include things like equipment, insurance, and operating costs.
There are different ways that you can look for funding. You can apply for a loan, although you should keep in mind that this will include interest on your repayments. You can also look for an investor that might want to become a stakeholder later on.
5. Fulfill legal requirements
Once you have your plans in place, you will need to fulfill all the necessary legal and regulatory requirements to open your business. This includes:
- Registering your business. You will need to obtain a license to operate on the federal, state, and local levels.
- Obtain all the necessary permits. This includes getting your USDOT number, Unified Carrier Registration (UCR), an International Registration Plan (IRP), and possibly other permits.
- To fully comply with regulations, you will need to ensure that you meet the requirements for hours of operation, drug testing, and other safety measures.
6. Obtain equipment
You will need to decide whether you want to buy or lease equipment. There are pros and cons to each of these options. While buying can be more beneficial in the long run, it will require a greater amount of initial capital.
If you choose to lease, you will have to put less down upfront, but it could end up costing you more overall as payments could include interest. You also won’t have the option for resale if you choose to lease.
7. Find drivers
You will need to find qualified drivers to work for your company. There is a long list of licensing requirements, as well as requirements related to experience that qualified drivers are expected to have. Before you get started, you should familiarize yourself with these requirements and be sure your drivers can meet them.
8. Take advantage of existing technology
The trucking industry has advanced a great deal in recent years. There are new technological innovations available that you should take advantage of if you want to keep up with the competition. This includes:
- Advanced systems for dispatching. These systems include route optimization technology, real-time tracking that is driven by AI, automated dispatch technology, and advanced communications systems.
- Fuel management systems. These systems include real-time tracking of fuel levels, remote access control that allows for the prevention of fuel theft, and data analytics so that owners can study fuel patterns and optimize later usage.
There are also other technologies available that people are using. Look into what is available before you get started; these tools will help you operate a more efficient and productive company.
9. Come up with a marketing plan
Every successful business needs a marketing plan. You will need to figure out a target audience for your services, create and build relationships with potential brokers, and work hard to make your brand known in your community. Be sure to study the competition to keep up on what they are doing – your success will depend on their success, to some extent. Be prepared to adjust your plan as necessary as you go along.
10. Stay on top of developments in the industry
Regardless of the industry you work in, it is essential that you keep your eyes open for changes and developments. The world is changing rapidly, and every business that wants to be successful needs to evolve to keep up with the competition. So make a regular effort to look around online, take part in industry forums and events, and watch your competition closely to see what they are doing. If you are diligent and consistent in your efforts, you should end up with a good, successful business.
Start early and stay organized
Starting a trucking company is a complex but potentially rewarding endeavor. If you choose to do this, be sure to allow yourself enough time to complete the process carefully. Consult an expert if necessary about the legal aspects of opening the company. And be sure that potential drivers are fully trained and licensed. Also, keep in mind that you will need to secure funding at the beginning, so you should start looking into this as soon as possible. Follow all the steps carefully, and you should be in a good position to have a very successful company.
Also Read: Advantages of Partnering with Recruitment Agencies in the Trucking Industry
