Without trucking companies and their drivers, consumers would never get the goods they need. The economy would literally come to a standstill. Don’t believe us? Discover that more than 70% of all freight in the US is transported by trucks. This can translate into billions of dollars in shipped products each year. The truck sector is therefore a good sector to join.
But just like starting any other business, starting a trucking company means taking a lot of steps. So here are four tips you need to know about starting your own trucking business:
1. Arrange all business matters
We know this is a bit vague and intimidating. But that’s because there are many business-related first steps you need to take, regardless of the industry you want to join.
From choosing a name for your trucking company to drawing up a business plan, choosing a business format, obtaining all the necessary documents and finding financing for your business idea, these are all must-dos. However, going through all these steps is the only way to have a legal transportation company with every chance of success.
2. Buy the right equipment
When you start a trucking company, you need… you guessed it: a lot of trucks. These vehicles are what your business needs to make deliveries and other logistics services.
If you have enough money, it is best to buy new trucks as this can lead to reduced repair and maintenance costs or downtime in the long run, which can affect the profitability and efficiency of your fleet.
If you don’t have much start-up capital, you can buy used ones, but make sure they are well maintained and from reputable manufacturers. You can also choose to get equipment financing instead. The great thing about this is that you can get a business loan without having to put any money down as the equipment itself can be used as collateral. This way you can spend your startup money on more important expenses.
3. Think into the future
One of the biggest mistakes a novice entrepreneur can make is not thinking about the future and what might happen next. This can mean many things, including business growth, emergencies, and bad unplanned events. So future thinking actually means:
Protect your business financially
Unfortunately, unexpected things can always happen. And they can be quite expensive if you don’t have insurance coverage.
Every business needs a number of specific insurance plans to protect itself financially, including business insurance, employer compensation insurance, public liability insurance, business interruption insurance, and business property coverage.
And since you are in the trucking industry, you don’t even have to think about sending your drivers on the road without bobtail and bodily injury insurance, because without this insurance your company would have to pay out quite significant amounts in the event of an accident. money.
Given the growth
Many entrepreneurs dream that their business will be worth millions of dollars. Yet few forget that growth comes with costs in the form of investments. So, in addition to the seed capital you use to start your trucking business, make sure you set up a savings account where you can save money for future opportunities that can help your business grow.
4. Hire the right people
Last but not least, a transportation company needs skilled employees to grow and achieve success in the industry. So make sure you screen and hire the most experienced truck drivers on the job market. In addition to driving skills, you should also pay attention to soft skills because your drivers will have to meet and interact with many different people from across the state or country.