How to Start a Trucking Business
Being a business owner offers a variety of benefits – challenge yourself, control your own destiny, financial rewards, find your own work-life balance, give back to the community, independence, and many other things. There are many business ideas you can consider starting today.
If you are looking to start a trucking business, know that starting it has never been simpler. There are many impressive deals on financing and trucks and discovering delivery bookings. However, if you are a first-time trucking business owner, it may take some effort and passion on your part. If you think it is the right one for you, here is how to start a trucking business to help you get rolling.
Find Out How You Will Operate
When starting a trucking business, find out how you will operate. There are 2 ways how you can operate – hired drivers or owner-operator. There are pros and cons to each. Take time to read them so you will know which one is right up your alley.
Create a Business Plan
Any type of business requires a solid business plan. It is your roadmap to success so make sure to include business overview, executive summary, financial planning, market analysis, products and services, sales and marketing, and operations plan, to name a few.
Identify your Niche
There are several niches in the trucking industry such as building supplies haulage, courier service, delivery van, moving company, and truck leasing. Know which niche you want to focus on. You can have more than one niche but if you are a new player in this industry, focus on one niche, for the meantime.
Trucks are expensive. If you can’t afford to buy one yet, look for a truck finance solution online. You can apply online and acquire immediate pre-approval on a loan. However, before you do, check if the truck can hold the needs of your cargo. If you will be carrying perishable items like dairy products, fish, and meat, you need to have a refrigerated compartment.
Meet the Requirements
In terms of operating a trucking business, there are certain laws you have to meet. Some of the documents you have to submit are articles of incorporation, certificate of registration, and list of employees and vehicles, among other things.
Establish your Trucking Business
Establish your trucking business legally. When you set up a corporation or LLC (limited liability company), you need to get EIN (employer identification number) to open a bank account for your trucking business and designate a registered agent.
Get Necessary Licenses and Permits
Most states and local governments need businesses to have licenses and permits before they operate. If you are a trucking business owner, you need to get licenses and permits, but it depends on the services you offer and where you operate.
Buy an Insurance Coverage
You need to buy an insurance coverage for your trucking business. Call different agents to ask about cargo insurance, liability insurance, and passenger accident insurance.
Monitor your expenses and grow your trucking business.