Small trucking companies are popular
in many countries and account for thousands of gainfully employed. The industry
is capital intensive and highly profitable.
Write a Trucking Business Plan
Truckers are busy people hauling
goods within state and cross country. They earn fair wages and are constantly
on the move.
The business is highly competitive
because of a proliferation of large trucking companies and individual truck
owners.
If you have the financial
wherewithal you could purchase a few trucks and start your company. However
going small has its own merits. Owning a single truck especially as a
first-timer provides a simple format to learn and grow in the business.
A trucking company needs a dedicated
parking area or garage for the trucks. You also need insurance cover against
vehicle theft, goods theft, accidents and damaged goods.
Secure comprehensive liability
insurance from your local insurance firm. Before launching the enterprise there
are a few things to consider.
Jobs related to the Trucking
Industry
- Drivers
- Dispatch riders
- Casual labor
- Back-office
- mechanics
The first step is to write a
trucking business plan. The plan should cover purchase of the vehicle, type of
vehicle, operational base and management structure.
Other considerations are startup
capital, legalities, staff wages and services. Highlight what unique service
that makes your establishment better than your competitors. Work on different
strategies including effective marketing and proper accounting.
Carry out a Feasibility Study
While writing your business plan
carry out a feasibility study. Understand your competitor’s strengths and
weaknesses. A survey should focus a target demography and types of good you
want to haul.
Incorporate the Business
The trucking industry is regulated
and operators need to fill the appropriate documentation. Incorporate the
business as a limited liability company.
Take out insurance cover and get a
tax identification number. to operate you need a business name and trading
license. Your drivers should have commercial driving license and good track
record.
Make sure you have a good liability
insurance cover for your trucks. The truck should have vehicle particulars and
road worthiness certificate.
A requirement is obtaining a MC and
DOT number. Forms you need to fill include USDOT& MC numbers. Form SS-4
for the internal revenue service. Form BOC-3, UCR form and pay administrative
fee.
Documents Needed to Open a Truck
Company
- incorporate as a limited liability company
- interstate operation license
- within state operation license
- liability insurance
- vehicle particulars
- vehicle insurance
- commercial drivers license
- Form SS-4, BOC-3, USDOT &MC
- Join state transport union
Cost considerations
Startup cost depends on your
business model. A small trucking company could start a box truck business with
$20,000. To arrive at a workable estimate factor cost of vehicle, office lease
and running costs.
Funding the Trucking Business
You need serious money to run a
trucking company. The most expensive item is the truck. You need fixed and
working capital to run the establishment t successfully.
Borrow from any commercial bank in
your area or a trade bank. You could bring on board a partner or find a core
investor.
You could sell startup equity to
investors. Try using your personal savings or borrow from friends and family.
Purchase the Truck
There are different types of trucks
in the market. The type of goods you want to carry dictates the truck capacity.
Common trucks are straight trucks, box trucks and even refrigerated trucks.
Marketing
Hire sale representatives to visit
companies in your locality. Advertise in print and electronic media.
36 best automobile business ideas
36 best automobile business ideas
0 comments:
Post a Comment