How To Start A Successful Trucking Business- A Complete Guide

The trucking industry is growing at a fast pace and plays a major role in the economy of the country. Presently a plethora of companies are operating on a regional, local, national, and international scale to transport the goods across the lines of the state, province, or country.

To start a successful trucking business, one should be acquainted with a good understanding of trucks, truck types and parts, transport laws, routes, and various industry patrons.

We have created a comprehensive guide to help you start your own trucking company without any cloud of thought. So let’s dive in.

But first things first. Let us gain grounds on the facts and figures you need to know about the trucking industry.

The Ins & Outs Of Trucking Industry

Being one of the most lucrative industries, the trucking industry accounts for around 9 million jobs in the U.S. In fact, more than half of the freight transportation is sustained by the trucking industry.

Due to this, the overall profit of the North American trucking industry is estimated to be $671 billion in domestic business and more than $200 billion in cross-border transportation across Canada & Mexico.

To oversee these truck movements, there are some regulatory agencies namely USDOT (United States Department Or Transportation), FMCSA (Federal Motor Carrier Safety Administration), FHA (Federal Highway Administration).

The purpose of these agencies is to ensure that the trucking companies adhere to safety standards and transportation laws.

How To Start Your Trucking Business

Step1- Things You Should Consider

• Business models of the trucking industry- Either hire subcontracted drivers who bring their own trucks, but this business model restricts your control over the operation. The other business model is the one where you can employ the drivers for your own trucks. This option will yield you more profit and provide you with greater control of operations.
• Market demand- The demand for the trucks will not suffer any downfall as the customers will always depend on the safe and secure delivery of the goods at all points of the map.
• Niche services in the industry- Food delivery, Private Carriers, Courier firms, for-hire carriers.
• Challenges of the trucking business- These challenges include a spike in fuel cost, changing markets, inability to scale efficiently, unorganized revenue structures, economic downturn, etc.

Step2- Designing And Developing A Business Plan

With the starting of any new business, it is recommended to design a business plan for the smooth flow of your business. This plan needs to cover each and every aspect of your business such as your company description, business structure, your goals and objectives, employee policy, marketing segment, financial forecast, sales strategies, advertising, and the budget.

After you have outlined your business plan, the next step is to select the location of your business that is in proximity to the market niche that you intend to serve. The next step is to purchase the trucks and hire the staff for driving as well as maintenance.

Step3- Fulfill All The Legal Requirements

The first and foremost thing is to select an operating entity for your business such as general partnership, sole proprietorship, limited partnership, etc.

The next step is to purchase all the necessary insurance for your company such as motor truck cargo insurance, general liability insurance, physical damage insurance.

Step4- Get The Grip of all Your Assets

Consider all the assets that will allow your trucking business to achieve profit and function smoothly. All this consists of the following business expenditure- cost of trucks, purchase of office, insurance, license, permits, etc.

Step5- Search For clients

After completing all the above steps, the final stage is to reach your clients. For this you need to create a strong brand identity and promote your trucking business through advertisements and promotions. This include

• Listings in the directories
• Advertisement in the trade papers of the industry
• Banners posted in the industrial locations
• Social media promotions, etc.

Now that you have a basic idea of how to start your trucking business, it’s time to give wings to your dreams and enter into the ecosystem of the trucking sector.