Do you dream of the open road? Many of us have had enough of the 9-5 office life and long for a flexible, exciting career.
In that case, it might be time to start your own trucking company. Whether you do local or long-distance trucking, it’s a lucrative field—there’s always a need for hauling, delivering, or moving goods.
If you’re ready for a career change, you’ll first need to learn how to start a trucking business. This industry is complex, so it’s not as simple as buying a truck and waiting for your first customers.
To learn more, keep reading to find all the key steps required for opening a trucking company.
Make a Business Plan
When starting a trucking business, the first step is to create a business plan. Essentially, this is an overarching document that outlines everything you will do to get your business off the ground and how it will operate.
There are plenty of business plan templates to help you get started or it’s easy to make your own. It should include a market analysis of the trucking industry, a marketing plan, an operational plan as to how you’ll manage the business, and a financial plan.
You’ll refer to this document often to ensure your trucking business is going According ToInfinit Accounting to plan.
Legally Register Your Company
Next, you’ll need to legally register the business. Trucking is a heavily regulated industry, so there are a few steps involved.
First, you’ll want to register the company, likely as an LLC. Then, open a business banking account to manage your finances—it can also help to find an accountant to help you when it comes to taxes.
You’ll also need to register your business with the trucking authorities. Depending on the specifics of your business, you’re most likely in need of registration from the Federal Motor Carrier Safety Administration (FMCSA.
They’ll legally register your business and ensure it meets all of the federal safety guidelines. Know that the registration process can be lengthy and complex, so it’s helpful to start well in advance of launching the company.
All of your drivers will also need to obtain a CDL, which stands for commercial driving license. Getting their CDL license requires an existing car driving license which they can acquire by passing the driving test. They can move their schedule to an earlier date by searching for driving test cancellations to acquire a driving license as soon as possible once they pass the driving test.
Buy or Lease Your Equipment
When thinking about how to start a trucking company, one of your biggest decisions is whether to buy or rent your equipment.
It’s no secret that trucks and their equipment can be a huge investment, so some trucking companies might prefer to lease their fleet in the early days. However, buying outright is also a good option, if you have enough cash.
Look into the pros and cons of both options before making a decision. Keep in mind that you’ll want to start small, so even one or two trucks can be enough to get your business off the ground.
As you start to expand, you can add more trucks to your fleet. However, don’t purchase or lease more than you need in the early days, as it will eat into your capital.
Find the Right Insurance
Another key step in the process is finding the right insurance. Trucking is a valuable industry, both in terms of the trucks themselves and the cargo they carry.
Plus, your company needs to look after its staff, providing insurance to cover them in case of accident, liability, or workers’ compensation.
Look for specialized insurance that will align with the type of trucking your company will do. For example, logging businesses should look for log truck insurance.
Business insurance can be expensive, but it only takes one trucking accident to ruin your business—don’t take the risk. Plus, having comprehensive insurance is a legal requirement when running a trucking business.
Once your business is ready to go, it’s time to start your marketing. There are plenty of trucking companies out there, so you need a solid marketing plan to find your customers.
Depending on your target audience, there are plenty of different ways to market. You might want to consider paid advertising in trade magazines, online ads, social media, or flyer drops to local businesses.
Attending trade association events is helpful too, as there’s a lot of power in face-to-face networking.
Once you’re starting to build up customers, be sure to retain them as loyal customers. You can do this by always delivering on time, offering impressive customer service, and treating everyone with professionalism.
Don’t Neglect Your Bookkeeping
It’s exciting once the profits start rolling in, but be sure to manage it carefully. Bookkeeping is an important part of any business, but especially trucking, since it has so many incoming and outgoing expenses.
Hire a talented bookkeeper to manage your finances, look after your taxes, and track that you aren’t spending more than you’re earning. As your business grows, this will help you avoid an IRS audit and ensures you’re paying staff on time.
Use These Tips to Learn How to Start a Trucking Business Successfully
Now that you know more about how to start a trucking business, are you ready to get started? If so, use the guide above to come up with a plan for your business.
Working in the trucking industry can be rewarding, lucrative, and varied. It’s a fantastic career, especially if you love driving and travel, so it’s time to take your career into your own hands, literally!
Although opening a trucking business requires patience and hard work, it’s sure to pay off over time.
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