Trucking may not be the first thing that comes to mind when you think of booming industries in the US. However, a quick drive down the interstate will show you the increasing demand for trucking and hauling services, especially as a study showed that 70% of US freights are transported via trucking. With the increasing rates and booming demand for trucking services, you should consider these tips to start a successful trucking business.
Have a Plan To Start Trucking Business
Starting a trucking business requires a lot of planning and preparation. You can take the usual approach by starting as an owner-operator. This will require you to have your truck and manage your daily activities.
Like many other owner-operators, it is required that you have the right type of commercial driver’s license to carry out your business. It is best to consider hiring other truck drivers if you don’t have any experience in the industry.
Since thorough planning is crucial irrespective of your fleet structure, it can be useful to have a business plan to capture your revenue and expenditures and the way forward for your business.
Choose the Right Name
Choosing a name for your trucking business is crucial. Therefore, it is advisable to brainstorm names to find one that is unique and properly reflects the aims and values of your business. The last thing you would want is to mislead your customers.
Fortunately, a few online tools help you choose a name or perform a trademark search. You can file a DBA if you want a business name that doesn’t include your name. You can also set up a sole proprietor, partnership, or LLC with the help of an attorney.
Be sure to select a name that is easy to pronounce and remember. The name can make it easy for you to reach customers and expand your business.
You’ll want it to be seen on your truck and found easily online when people are searching for your services.
Determine Your Target Market
One of the most important decisions you will make when starting a trucking business is to find your target market. Targeting the right niche gives your business a competitive advantage over larger trucking, which can help its growth.
It also helps build a reputation and boost your sales potential. By streamlining your business operations and resources with a specialized trucking niche. To determine your target market, you may want to consider your location, products, and nearby competing businesses.
One of the most important decisions you will make when starting a trucking business is to find your target market. #truckingbusiness Click To Tweet
Who will your business benefit the most, and what are other competing businesses’ strengths and weaknesses? These questions can help you choose the right market for your business.
Get Proper Insurance for Your Trucking Business
Insurance is a significant expenditure for trucking businesses. Trucking businesses require several insurance types. This includes primary liability, physical damage, cargo, per load insurance, and so on.
The type of insurance your trucks would need is directly associated with your risk of exposure to accidents, injuries, and other associated lawsuits.
You can likewise consider exposure to common risks such as injury, loss of income, and others specific to the industry, such as product damage due to poor delivery. Also, considering an 18 wheeler accident attorney would be best since accident losses can go beyond medical expenses and other non-economic damages.
If you find your business in such circumstances, it would be best to seek the services of a truck accident lawyer who can help you recoup your losses. They will also be better experienced with negotiating claims and ensuring that any lawsuits are settled with both parties satisfied with the outcome. Plus, it would relieve the stress of dealing with legal matters, especially if you don’t have that experience.
One time my husband’s dump truck had the tarp break and a gravel load went onto other cars. Thank goodness for the insurance policy to cover all the damage to the other vehicles. Luckily, no one was injured.
Save Money to Cover Startup Expenses
It would be best to have a significant investment upfront to start a trucking business. From purchasing the truck to acquiring licensing and registration, you will need significant funding to get started.
You may require between $10,000 and $30,000 to cover a down payment on your truck, insurance, licensing and registration, and state-specific requirements.
You can use home equity line credit, bank loans, sell properties, or use your savings to finance your trucking business. Meanwhile, experts advise saving enough cash to cover at least the first six months of your operation, which should factor in lease payments.
You can also consider other lenders to provide your essentials and reduce your starting overhead.
Choose the Right Truck to Start a Trucking Business
Your commercial truck is a crucial investment you will make if you want to start a successful trucking business. You must consider several factors to select the right truck for your business. These include price, weight limit, preferred cab style, whether you intend to operate locally, internationally, or both, and its weather resistance.
While it is best to truck for a test ride, you want to also consider its comfort level. For a small business, funding may limit your purchasing power, so you might want to consider the pros and cons of whether to outrightly buy or lease.
These are several factors to consider when starting a trucking business – from hiring staff, keeping them secure on the road, securing funds, and branding your business. However, the tips mentioned above can help you start right and put your business in progressive gear.
Gas / Diesel Costs
One of the big costs of running your trucking business is the price of fuel. When the cost of these is down, you may need to save money while the cost of fuel increases, as it is now over $6.00 per gallon. This type of expense can really eat into your profits.
However, if you plan ahead for it, you can survive and thrive when the expense goes back down.
Another big expense is repairing your truck. If you can do your own repairs you will save a lot of money! If you have to rely on a mechanic you may have to wait longer for the repair, which keeps your truck off the road and not making money.
The more miles you drive the more repairs you may need over time.
Your Thoughts on How to Start a Trucking Business
Have you thought to start a trucking business as a way to make a good living? If you already have as well I’d love to hear your input on this topic in the comment section.