The trucking business is profitable enough. Almost 70% of products that are delivered across the US are worth about $700 billion as stated on ezlogz.com. So there are great opportunities for you if you want to open a trucking company. What are the benefits of starting your own business? As a founder, you can choose companies to work with, decide what cargo to haul and make your own travel schedule. But despite all the advantages, starting a trucking business can be quite difficult. It has its own challenges and problems. For these reasons, many people give up the idea of starting their own freight company.
To help you succeed in the trucking business, we’ve prepared some advice:
It is one of the principal steps in starting every business. According to Small Business Association recommendations, you should project no less than 3-5 years ahead. It typically includes:
Having drawn up a detailed plan of your actions, you can proceed to the second point.
Trucking business is very competitive, so you need to select the right market niche to avoid competition with large companies. Before making a decision, give answers to these questions: what products or industries in my location are interesting for me? Who are my ideal customers and shippers? Being their niche carrier, how can I be useful for their business?
The right rate per mile will make you a profit, cover extra charges and the broker’s commission.
As required by the FMCSA, you need a valid commercial driver’s license if you are an owner-operator. If you are 21 year old, you can apply. Drivers aged 18-20 can drive within the state. You can apply for a commercial driver’s license, just paying the application fee. They need proof of identity, US citizenship, and valid security number. After having passed all the exams, the driver receives his CDL.
To start a trucking company, you need to complete your trucking authority. It’s obligatory for the businesses when they work as a hired carrier over state lines for vehicles more than 10000 gross vehicle weight.
The transportation company is a highly regulated industry. Owner-operators must be compliant with some FMCSA requirements. Learn the rules of applying for trucking business authority, obtain all necessary documents, open your business bank card and get your company insured.
There are different types of available leasing programs. Study them to find the best option for your business.
This includes drivers, dispatchers, sales and marketing staff, administrative staff. The number of employees depends on the size of your company and your revenue goals.
So the process is not so easy and quick, as it can seem at the beginning. But, all of the preparations and paperwork will end and you’ll be able to start your company. The trucking industry will always be in high demand. Take advantage of the opportunities this business niche opens up for you.