This post is provided by James Allison.
There are huge benefits to running a trucking business. You can choose which companies to work with, decide which load to pull and how often to run. You can make huge profits because you own the company and you get a bigger share.
Besides plenty of advantages, you should be aware that starting a trucking company can be extremely challenging. After gathering your assets, you have to go through a long registration process to secure your rights, have to submit the registration fee (DOT and mc number cost), and other initial payments. That is why many people do not try to start a trucking company for the fear of going through these challenges.
Before starting a trucking business, one must design a complete plan, choose the right name for the business, and most importantly follow the rules and meet the criteria set by the government in this context.
Design a Plan
Starting with your trucking business involves a lot of planning and preparation. The most common way to start is as a sole owner, which means you have to own your truck and take part in the day-to-day running of your vehicle. No matter how you want to organize your trucking business, good planning is important.
Choose the Right Name for your Business
It’s not easy to come up with a suitable and appealing business name that accurately reflects your business. Businesses have failed in the past largely because of a name that was already obsolete, so it is important to get the right name.
If you want to be successful, you must choose an appropriate and appealing business name. It is also the key to distinguish you from your competitors.
Get A Business Premises
You would need to find a business premises that is suitable for your trucking business. The premises would have to be large enough to accommodate all your trucks and trailers, and also have some extra space for office work, vehicle maintenance, fuel storage, etc.
These types of premises are quite pricey. If you don’t have the capital available to purchase a business premises, you could always consider getting a personal loan from Power Financial Credit Union. Aside from financing your business premises, you can also use a personal loan to cover other expenses such as hiring employees or setting up your marketing material.
Alternatively, you can opt for a smaller space and have it rented, or you could start off small like many other trucking companies did and expand as your business grows.
Choose your Target Market
Proper niche market guidance is also important when opening a trucking company. Being a niche carrier can help you avoid competing with competitors, establish your reputation in the industry, and increase your sales opportunities.
Identify the Rates you are Going to Offer Per Mile
Another aspect of planning your trucking business is determining the appropriate mileage rate. It should be high enough for you to make a profit, cover operating costs, and compete with priced retailers that charge your senders.
Legal Requirements for Starting a Trucking Business
In addition to a valid CDL (commercial driver’s license), company owners must also meet most of the requirements specified by the FMCSA.
There are certain criteria a trucking business has to meet by obtaining certificates.
DoT and Motor Carrier (MC) Numbers
The USDOT number tracks your law enforcement and security records. The MC number distinguishes your trucking company from the goods you can carry.
You have to obtain the USDOT and MC numbers by registering your business with FMCSA. You must also complete the Motor Vehicle Identification Report (MCS-150) and Application for a Safety Certificate.
Evaluate the Estimated Cost of your Business
In most cases, to start a trucking company or truck business, you should estimate the amount of investment that pays insurance costs, vehicle payments, registration cost, salaries to the drivers, mc number cost, and other variable costs.
Cost for obtaining MC number
The cost for obtaining an MC number for each individual is a fee of around $300. Separate filing fees are also submitted with the application at the time of processing for each Authority sought.
There are many ways to fund your new trucking business, such as using your home loan line, obtaining a bank loan, selling property, and spending your savings. To reduce your initial startup, you can contact lenders who can provide you with valuable assets.
Hiring and Training Professional Drivers
Hiring good drivers and keeping them will play a big role in the growth of your trucking company. Therefore, it is highly recommended that you have a comprehensive plan and strategy for driver recruitment, driver satisfaction, and driver maintenance.
Growing your Customer Base
Remaining loyal to one customer may seem reasonable, but it may not be sustainable in the future. All you have to do is provide them with an expression and the confidence they require to keep going.
Conclusion
Consider each of these guidelines within your own individual business. Understand your goals, finances, and skills as an entrepreneur. Starting a trucking company is a heavy job, but it can be very profitable and rewarding depending on your job position and ambition to start your own business.
About the author: James Allison oversees content writing services at Globex Outreach. He uses his five years of experience to write content that always meets client’s expectations and goals.
