Starting any kind of business requires planning, perseverance and a passion for logistics and customer service.
These are the core factors that can make or break a trucking business. Besides these factors money is also necessary in just the right doses. Most businesses collapse in the first 2-3 years. Therefore, it's essential that you have a sound business plan, a substantial finance base and a strong will to succeed. This is especially true if you intend to start a trucking company.
If you're wondering how to start a trucking business, the first prerequisite is hands-on experience. You are definitely at an advantage if you have experience as a truck driver. The truck driver is responsible for maneuvering the vehicles, loading and unloading and dealing with customers. Obviously, the truck driver is the most important cog in the wheel.
When deciding how to start a trucking company you have 2 routes to choose from. You can be a one-man show and drive your own truck. Alternatively, you can obtain contracts and hire truck drivers, who have their own trucks to fulfill these contracts. Both these routes have their own benefits and pitfalls. So decide which one is best by making an analysis of the investments, costs, takings and profit involved.
As always, the business plan is what maps the future course of your trucking business. Decide whether you want to be a sole service provider or hire other truckers as well. Based on whether you decide to operate a multi-trucking company or a single owner one, you have to make an estimation of the initial investment that will be required. On an average, the start-up costs in opening a trucking business are between $10000 to $50000. Depending on how much you work, you can make profits of around $50000 and above annually. If you don't have the necessary finance, you should consider borrowing from banks and local financial institutions. If you know of investors who are willing to lend you the required capital, this may be
a good option to pursue. When devising your business plan state clearly the amount of operating expenses involved, capital requirement, expected gross earnings and profits.
The licensing formalities and compliance requirements for a trucking business are somewhat complex. You might want to engage the services of someone who is competent enough to handle all this for you. You'll need State permits, IFTA license, State registration, fuel tax reporting etc. You also have to get insurance according to your precise needs.
When determining how to start a trucking business formulate a first-rate marketing approach. If you've been in the industry for sometime, you may have a few leads to work on. Getting contracts requires good salesmanship skills and maintaining them requires efficient and faultless service. Get business cards printed and hand them out to potential clients. You could also advertise your services over the internet, in newspapers and in the yellow pages.
If you're planning to start a multi-trucking outfit, you have to employ skilled, qualified and licensed drivers. The drivers represent your business and anything that they do reflects directly on your company. Conduct a reference check before employing any truck driver. Incompetence and unprofessional behavior can cost you valuable contracts. So, make sure that you hire competent and skilled individuals who value business as much as you do.
When deciding how to start a trucking company, pay attention to all the fine points of owning and operating trucks, obtaining finance, procuring contracts and hiring fine truck drivers. In these days, of rising fuel costs make sure you have sufficient finance to tide you over the first six months at the very least. As your fleet grows, you may need Fleet GPS Tracking to get to help you manage all the logistics of routes, vehicles, drivers and payload. Starting and operating a trucking business is not the easiest thing in the world, but with the right dose of hard work and business acumen it can turn out to be a money-spinning venture.