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? Find out that over 70% of all freight in the US is transported by trucks. This can be translated to billions of dollars in shipped products every year. So, the trucking sector is a good industry to join.
Yet, as it is with starting every 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 company:
1. Take care of all business stuff
We know that this is a bit vague and kind of intimidating. But that’s because there are a lot of business-related first steps you need to take, no matter the industry you’re planning to join.
From picking a name for your trucking company to creating a business plan, choosing a business format, obtaining all the necessary documents, and finding funding for your business idea, these are all must-dos. However, going through every one of these steps is the only way to have a legal trucking company with all the chances to succeed.
2. Buy the right equipment
When you’re starting a trucking company, you’re going to need…you’ve guessed it: a lot of trucks. Those vehicles are what your business needs to perform deliveries and other logistics services.
If you have enough funds, it would be best to purchase new trucks because, in the long run, this can mean fewer repairs and maintenance costs, or downtimes which can affect your fleet’s profitability and efficiency.
If you don’t have that big of initial capital, you can purchase second-hand units, but make sure that they are well-maintained and from reputable manufacturers. You can also opt to get equipment financing instead. The great thing about this is that you can get a business loan with no money down as the equipment itself can be used as collateral. This way, you’ll be able to allocate your startup funds on more important expenses.
3. Think in the future
One of the biggest mistakes a beginner business owner can make is not thinking about the future and what can happen then. This can mean a lot of things, including business growth, emergencies, and bad unplanned events. So, thinking in the future actually means:
Protecting your business financially
Unfortunately, unexpected things can happen at all times. And, they can cost pretty expensive if you don’t have insurance coverage.
Every business needs a few specific insurance plans to protect itself financially, including business insurance, employers’ compensation insurance, public liability insurance, business interruption insurance, and business property coverage.
Also, since you’re in the trucking business, don’t even think about sending your drivers on the road without bobtail and physical damage insurance because without it, in the event of an accident, your business would have to pay pretty significant amounts of money.
Many business owners dream about the fact that their business will grow to be worth millions of dollars. Yet, very few forget that growth comes with costs in the form of investments. So, besides the initial 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 trucking company needs skilled employees to grow and find success in the industry. So, make sure that you screen and hire the most experienced truck drivers available on the job market. Besides driving skills, you should also pay attention to soft skills because your drivers will have to meet and communicate with many different people from across the state or country.