Did you know that in the United States, the trucking industry is one of the economy’s largest revenue streams and makes up six percent of the country’s workforce?
It’s a great time to get into the trucking industry, and this guide is going to tell you exactly how to start a trucking business.
The first thing you need to do is decide on the name of your trucking business. Once you have that, you can get it registered and insured. You also need a solid business plan before you buy your fleet.
Let’s break down each step so you can start your business with confidence and get your fleet moving sooner.
Do You Want to Be Behind the Wheel or Behind a Desk?
Once you have an awesome name for your trucking business, you need to decide how you want to run it. Are you planning to be an owner-operator that also drives the trucks? This a great way for truck drivers to become independent.
Do you want to get off the road and hire truckers so you can focus on running a business instead? This is a great option for former truckers who want to put their knowledge to use and handle business management instead of driving.
Once you figure out how you want to run your business, it’s time to draft a business plan.
Writing Your Business Plan
A trucking company requires expensive vehicles and equipment, so your business plan needs to outline the financing you need to succeed.
It should also include your profit goals, market research, and business strategy.
Keep in mind that you’ll use your business plan to request financing from lenders and investors, so you should not cut corners. Put yourself in their shoes and ask what you would like to know if you were considering investing in a startup trucking business.
Apply For Licenses and Permits
If you’re a long-time trucker, you already know that the trucking industry is highly regulated. You’ll need to apply for several different trucking licenses and permits before you can get your business on the road.
The most important ones to apply for are the commercial driver’s license (CDL), USDOT number, and motor carrier number.
Ensure Your Trucking Business
Trucking companies only make money when their trucks are running, so you need great insurance to cover the inevitable maintenance your fleet will require.
The Federal Motor Carrier Safety Administration (FMCSA) requires that trucking companies have a minimum of $750,000 liability insurance to operate. Depending on your business size, you may need even more.
Plus, to secure financing, you need to show potential lenders that you have adequate insurance.
Learn More About How to Start a Trucking Business
After you’ve handled all of these logistics, you can start working on actually running a business. You can secure financing, open a business bank account, and start hiring truckers.
Hopefully, this guide on how to start a trucking business gave you the confidence you need to make your dream a reality. If you need more help, check out the School For StartUps.
We’ll teach you everything you need to know to get your business off the ground and succeeding. Apply today here.