Did you know the trucking industry moves 71 percent of all US freight? It should come as no surprise, therefore, that it’s a $700 billion industry. If you’ve been driving a truck for a while and think you’re ready to start your own business in the shipping industry, what’s holding you back? The trucking industry is full of opportunities. Whether you want to drive as an independent contractor or create a new trucking business, there’s plenty of success to go around. The only question is, how can you launch the best trucking company around?
We can help you there. Keep reading for everything you need to know about how to start a business in this vast industry.
Research The Market
First, diving into any business venture is risky. The best way to mitigate this risk is by learning everything you can about the industry.
For example, what is the demand for the types of services you will be offering? Is there a particular niche or need in the trucking industry that you could fill? The last thing you want to do is limit your income potential by jumping into an oversaturated market.
What types of cargo should you ship? What area of expertise holds the most promise and potential for your business?
Additionally, learn about the laws and policies governing truckers and trucking companies. If you’re going to start a new trucking business, you must make sure you’re operating within the confines of the law.
There are strict rules about transporting cargo over state lines in commercial vehicles. You need to be well-versed in all of these laws.
Finally, look into the financial details.
How much money will it cost to start your business? What will be your monthly and yearly operating costs? How much money can you expect to earn?
Create A Business Plan
Once you’ve completed your market research, you’ll have the information you need to build a professional business plan. It needs to be thorough and well-written, as your business plan will be a major determining factor when it comes to getting financed.
A professional business plan will include an executive summary, a company description, and a list of company goals. It will also detail your management layout as well as the exact types of products and services your company will provide.
Then, your business plan will outline your marketing strategy, financial needs, and financial projections. Each category should be based on your market analysis to prove that you’ve done your research and know what you’re getting into.
Seek Startup Funding
As noted above, the quality of your business plan will partially determine your chances of getting financed. However, most banks and other lenders will also gauge your eligibility based on your credit history. In most cases, you’ll need a minimum credit score of 640 to 700 to get approved for a business loan.
However, these qualifications will vary from lender to lender. It will also depend on how much money you request.
If you get turned down by a lender, don’t give up. There are also private investors, angel investors, and crowdfunding groups that can help you get the money you need to start a new trucking business.
If all else fails, you can fall back on personal finances. This includes savings, credit cards, and personal loans. You might also have some luck seeking love money. Love money is financing donated to your cause by friends and family members.
Acquire The Appropriate Licenses And Permits
Now that you have the funding you need to get started, it’s time to make your new trucking business legitimate. Acquire the licenses and permits you need to operate legally.
Aside from your CDL (if you’re driving a truck), you’ll also need a trucking authority. A trucking authority allows you to hire drivers and ship cargo over state lines.
The other permits you’ll need will depend on:
- What state you’re based out of
- What cargo you’re shipping
- Where you’re trucks will be going
We cannot stress enough how important it is to ensure your company is operating legally and legitimately. You don’t want any hefty fines or penalties.
Buy Or Lease The Trucks You Need
There is an endless range of trucks you can use for your new trucking business. They vary in terms of load capacity, comfort, amenities, weather resistance, and more.
If your drivers are putting in long distances, you need to make sure they’re comfortable on the road. Many long-range trucks have expansive cabs in the back with sleeping quarters and other amenities.
Additionally, decide if you want to buy or lease the trucks you need. There are pros and cons to each option.
Regardless of which route you choose, make sure you’re investing in trucks that are reliable. Look at each truck manufacturer’s reviews to determine the best option for your company. You should also take into consideration the cost of repairs and maintenance, as those will vary from manufacturer to manufacturer.
Hire Qualified Drivers And Learn The Tricks Of The Trade
If you want to have the best trucking company, you’ll need to hire the best drivers. You don’t want just anyone getting into one of your trucks and representing your company on the road.
We recommend completing an in-depth screening process for each hire. The shipping industry, unfortunately, is associated with some negative stereotypes. Strive to fight against those stereotypes by hiring highly qualified drivers.
And finally, talk to other people in the trucking industry to learn the tricks of the trade. For example, if you search for DEF fuel near me, you can find companies that will make your life easier by delivering fuel to your location.
Ready To Start A New Trucking Business?
Starting a new business of any kind takes research, planning, and dedication. If you’re planning on launching a new trucking business, more power to you. We know you can make it successful.
Follow our tips listed above to get started on the right foot. And if you’re looking for more information regarding the trucking industry, we’re here for you. Browse through the rest of our blog to find more content that can help you achieve your business goals.
