In 2019, the total trucking industry revenue was $791 million. As we are approaching 2023, these old numbers just indicate that a rise is in the wings in the coming decade. Entrepreneurs and ex-truck drivers are looking to start their own trucking businesses as the potential turnovers are enormous.
Talking about profits and starting a business may seem easy, but it can be quite difficult. As with every business venture, the competition can be fierce. For that reason, you will have to surround yourself with the right people if you want to succeed.
Follow the five actionable steps below if you’re planning to start a trucking company.
Create A Business Plan
Even if you are new to starting your own business and the trucking industry, you’ve probably heard that a business plan is a must.
Success is based on facts and plans. A well-informed and fact-devised strategy will open a myriad of possibilities for you and your business. So, if you’re wondering how to start a trucking company successfully, keep in mind that you’ll need to have a solid business plan right from the start.
If you don’t have experience in writing a business plan, you can always use business plan templates to make your life easier and start your business effectively.
Find The Right Location
Even if your business is not registered yet, you need to look for a suitable location for your business. Of course, the location will largely depend on your needs and whether you will be backed by a large team or a small one.
Note that all of these factors are essential. In 2019, 795 trucking companies failed, and that might have happened because their business plan wasn’t in order, which ultimately translates to a “financially unfeasible business model”.
Register Your Business
Sticking to the technicalities of the business world, after your business plan is perfectly crafted with the help of templates and you’ve found the right location for your company, it’s time to register your business as a legal entity. There are many ways you can approach this aspect.
For example, you can either opt to form an LLC or go for a partnership entity. However, if you want to enjoy the success of your trucking company on your own, you can opt for a sole proprietorship legal structure.
After that, it’s time to visit the IRS webpage and register your business for legal income (taxes). After you receive your employer identification number, your business is set to make profits legally.
Equip Your Trucks
Moving on to the most important part of every trucking company, which is the trucks. You need to equip your trucks with all the technology and tools necessary to increase efficiency and ensure safety for your drivers.
Sometimes equipment can be expensive upfront. Instead of cutting corners and not getting any equipment whatsoever, think about whether leasing equipment would be more cost-effective.
Choose The Right Insurance
Protecting your trucking business and managing risk should be a top priority, especially if you are just starting out. There are many things that could go wrong in the trucking industry such as damage to goods or accidents on the road.
There are many insurance policies available that can help you manage your business more confidently and mitigate most of the greatest risks. Furthermore, you can protect your employees and assets with popular insurance options like liability, cargo, and physical damage insurance.
You should also ensure that you have comprehensive safety policies for your trucking company, which will help you educate your employees on how to behave and react to different situations.
Begin Looking For Clients
A business can only function if it has customers that generate income. Once you have all the pieces in place, you need to look for ways to get your first customers and grow your company consistently.
If you’ve been involved in the trucking business for some time, you might already know some people or have connections that can help you get started and gain some momentum. If not, it is worth calling potential fleet owners, government contractors, and businesses to see if they might be interested in your services.
You can also take to social media to lure in new customers, or create a compelling website where your contact information will be available to everyone.
Bottom Line
Starting a trucking company can be a very lucrative venture. However, to succeed in the trucking industry, you must follow the best business practices including creating a compelling business plan, registering your business, and choosing the right insurance. Follow the steps we outlined and you might have a better chance of success.
