How to Start a Trucking Business

Small trucking companies are popular in many countries and account for thousands of gainfully employed. The industry is capital intensive and highly profitable.

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

Write a Trucking Business Plan

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.
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