How to Start A Trucking Company
Starting any kind of business requires planning, perseverance and a passion for logistics and customer service.
These are the core factors that can make or break a trucking business. Besides these factors money is also
necessary in just the right doses. Most businesses collapse in the first 2-3 years. Therefore, it's essential
that you have a sound business plan, a substantial finance base and a strong will to succeed. This is especially
true if you intend to start a trucking company.
If you're wondering how to start a trucking business, the first prerequisite is hands-on experience. You are
definitely at an advantage if you have experience as a truck driver. The truck driver is responsible for
maneuvering the vehicles, loading and unloading and dealing with customers. Obviously, the truck driver is
the most important cog in the wheel.
When deciding how to start a trucking company you have 2 routes to choose from. You can be a one-man show and
drive your own truck. Alternatively, you can obtain contracts and hire truck drivers, who have their own trucks
to fulfill these contracts. Both these routes have their own benefits and pitfalls. So decide which one is best
by making an analysis of the investments, costs, takings and profit involved.
As always, the business plan is what maps the future course of your trucking business. Decide whether you want
to be a sole service provider or hire other truckers as well. Based on whether you decide to operate a multi-trucking
company or a single owner one, you have to make an estimation of the initial investment that will be required.
On an average, the start-up costs in opening a trucking business are between $10000 to $50000. Depending on how
much you work, you can make profits of around $50000 and above annually. If you don't have the necessary finance,
you should consider borrowing from banks and local financial institutions. If you know of investors who are
willing to lend you the required capital, this may be a good option to pursue. When devising your business plan
state clearly the amount of operating expenses involved, capital requirement, expected gross earnings and profits.
The licensing formalities and compliance requirements for a trucking business are somewhat complex. You might
want to engage the services of someone who is competent enough to handle all this for you. You'll need State
permits, IFTA license, State registration, fuel tax reporting etc. You also have to get insurance according
to your precise needs.
When determining how to start a trucking business formulate a first-rate marketing approach. If you've been in
the industry for sometime, you may have a few leads to work on. Getting contracts requires good salesmanship
skills and maintaining them requires efficient and faultless service. Get business cards printed and hand them
out to potential clients. You could also advertise your services over the internet, in newspapers and in the yellow pages.
If you're planning to start a multi-trucking outfit, you have to employ skilled, qualified and licensed drivers.
The drivers represent your business and anything that they do reflects directly on your company. Conduct a reference
check before employing any truck driver. Incompetence and unprofessional behavior can cost you valuable contracts.
So, make sure that you hire competent and skilled individuals who value business as much as you do.
When deciding how to start a trucking company, pay attention to all the fine points of owning and
operating trucks, obtaining finance, procuring contracts and hiring fine truck drivers. In these days,
of rising fuel costs make sure you have sufficient finance to tide you over the first six months at the
very least. Starting and operating a trucking business is not the easiest thing in the world, but with the
right dose of hard work and business acumen it can turn out to be a money-spinning venture.
Start a Trucking Company
Start a Trucking Business: 5 Things You Need to Know
Write a Trucking Business Plan
Choose a Name for Your Trucking Company
Get Trucking Insurance
Trucking Management Software
How to Become a Truck Driver
How to Pick a Truck Driving School
Get a Commercial Driver's License
What is a Freight Broker and Should You Become One?
How to Start a Freight Brokerage
Transportation Management Software