Best Tips to Start A Successful Trucking Company
Updated: Mar 16, 2020
You're ready to take a big step and start your own company. It's not easy, but it can be worth it!
Trucking is an extremely profitable industry when done right. So many people try to get in the business each year and end up failing because they don't realize how competitive the industry is. Knowing how to run your trucking business goes beyond knowing how to drive your truck. You need to take the time to plan it out step by step in order to succeed.
Here are the best tips to start a successful trucking company!
Plan your business
First and foremost, you need to plan it out before putting it into action. Develop your business plan which includes the type of equipment you will use, if you're going to lease or buy it, how many drivers you will want, and most importantly what your financial budget will be. This budget needs to include insurance costs, equipment costs, fuel costs, salary costs, all taxes and fees for getting your authority, and a portion left over for maintenance and repair. Learn how to write a business plan here.
Become official in the industry
Make sure you're in compliance before you get started to avoid any costly mistakes. There are so many permits and licenses you need before you can start your business and get on the road. You need a legal business structure, the right insurance coverage, and active MC Number, and all other paperwork that needs to be filed in order to run interstate or intrastate commerce. Know how to file for your trucking authority here.
Decide where you will find loads
Another important step to being successful is knowing where you are going to find loads. This is how you will make your money - so obviously its important in your success. Research your options. Make a decision if you want to use load boards, a dispatcher, or work directly with shippers and/or brokers. Also know the type of lanes you want to run in and the price you want to charge for running loads. Knowing this beforehand will give you a leg up and make the process easier. Not sure how to find loads for your trucking company? Click here!
Make a plan to get consistent funding
With running a trucking business comes lots and lots of bills. So, making sure that you have enough cashflow to cover all your monthly expenses throughout the year is extremely important to avoid failing. So many truckers fail in the first year because they do not plan this efficiently. A great way to making sure you have consistent funding is working with a factoring company. Research different factoring companies to find the best one that suits your company and its needs. Learn more about how to budget your first year in trucking here.