The trucking industry is one of the most profitable. And there is always a need for drivers. Instead of working for another company, why not start a trucking company, and be your own boss?
Starting a trucking company is a daunting prospect, but it doesn’t have to be, especially if you can secure business loans for your trucking company.
Trucking companies are essential for getting all types of goods to their destination quickly and safely. Trucks are in more demand than ever despite the worldwide supply chain shortage. These 5 steps will help get your trucking company off the ground.
1. Choose Company Name
Choosing a company name isn’t as easy as it sounds. While the trucking industry desperately needs more truckers, many companies already exist.
Before deciding on a name, it’s essential to research whether there’s already a company with the same or similar name. Additionally, the name may be already under patent but not yet in use. Do your due diligence before choosing a name.
Once the name is decided, your company must be registered as a limited liability company (LLC) at a local and state level.
2. Create a Business Budget
Starting your own trucking company isn’t cheap. However, the majority of trucking companies began as small businesses.
Commercial trucks cost around $80,000, depending on the type of truck chosen. That figure doesn’t include the start-up costs of registering your business name, paying any employees, or maintaining a fleet of trucks.
Create a business budget to determine how much you have to spend vs. how much you need in funding. Where to get funding?
3. Secure Funding
There are several options when it comes to securing the funds needed to start your own trucking company. Small business loans are increasingly popular for all types of companies.
Another type of loan is a short-term business loan with lower approval requirements but higher repayment interest rates.
Credit cards are always an option if a business loan isn’t possible. In fact, your new trucking company should have both a dedicated credit card and bank account
4. Procure Proper Documents
Once your business funding is secured, the next step is acquiring the proper documents to start your business. Requirements vary by state, and you’ll need to complete both state and local requirements.
That means a business license, insurance, and international registration in many cases. The international registration allows you to operate in all states and some areas of Canada.
5. Acquire Your Fleet
Trucking companies are responsible for moving billions of freight every year. In 2017, trucks transported over 10 billion tons of freight in the United States alone. Choosing the right truck(s) for your fleet is important when starting your own trucking company.
Price, style of cab, and weight limit are three main considerations. Furthermore, leasing vs. buying has its own pros and cons.
If you buy a truck outright, you won’t have a monthly payment hanging over the business. However, you will also be responsible for any maintenance the truck needs.
Repairs and maintenance are typically covered while under a lease term. The lease contract may include mileage restrictions, restricting your company to local runs only.
Congratulations! Once you’ve completed the steps above, your trucking company is ready to start promoting and taking on customers.
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