Did you know that the delivery truck driver industry is expected to grow by 5% a year? That’s enough proof to explore the idea of starting a trucking business.
More people are shopping from home, which is fueling demand. There are other areas of the trucking industry seeing growth as well.
Now is the best time to start a business, but do you know how to start a profitable trucking company?
Read on to learn the top tips to help you get your business off the ground.
- Plan the Business
Starting a business involves asking tough questions that you need to answer. You need to decide what your business model will be.
Will you start as a one-person show and work as a contractor? Will your trucking business hire people to drive trucks? If so, will those drivers be employees or contractors?
Those answers will drive the rest of the decisions you make in your business. They’ll dictate how many trucks and the type of business location you’ll need.
You should write a business plan to help you keep your initial thoughts in one working document. If you plan to get financing for your business, you will need to have a formal business plan.
- Register the Business
The trucking business is a transportation business, and you’re overseen by multiple agencies. As a business, you’re governed by federal and state laws.
As a transportation company, you also have to deal with the U.S. Department of Transportation and your state’s DOT as well. Your trucking business needs to have a Federal DOT number, commercial driver’s license (CDL), and Motor Carrier’s Authority number.
You may need more licenses depending on the type of goods you transport and where your business operates.
- Obtain Financing
You may need to get capital to start your business. You’ll need to take your formal business plan to the bank and get a business loan.
An alternative to a loan is to find an investor who will provide financing in exchange for a percentage of your company.
- Purchase Trucks and Equipment
Once you get your financing in order, you can purchase trucks and other business equipment. You can use the funds to secure your business location, too.
The types and number of trucks you’ll need depend on the type of business. If you plan to operate on your own, you’ll just need one truck. If you work with contractors, they’ll supply their own trucks.
- Limit Business Risk
A trucking business has a lot of risks. Your drivers could get into accidents, which can leave your company exposed to lawsuits.
The best way to limit your risk is to have adequate business insurance that covers your drivers, trucks and protects your business. You should have a law firm like Mary Alexander & Associates that can help you understand your legal risks.
Don’t Wait to Start Your Trucking Business
You want to strike when a golden opportunity presents itself. This moment is the perfect moment to start a trucking business that’s successful.
You do need to do a lot of planning and preparation. The trucking business tips listed here are where you need to focus your attention before you accept your first clients.
Do you want to learn other tips to start a business? Click on the Business tab on this page for more helpful articles.