A trucking company is a business that ships goods and products from manufacturers to consumers. It is a major industry and one that has a lot of potential for success for those who understand the logistics behind it.
The trucking industry is a highly competitive field. It is estimated that trucks haul about 70% of the things we wear, eat, use and enjoy throughout our day to day lives.
In order to make this process work, there are a number of people who help it go smoothly from the time of production to the delivery point. This includes each administrator, loader, mechanic, dispatcher and safety person who works to keep your goods safe.
Your trucking company should be organized, structured and run like a real business. This includes establishing goals, articulating value, identifying obstacles and presenting your plan for success.
There are many factors that influence the success of your trucking business, but a well-planned approach can make all the difference in your growth. The first step is to write a business plan.
The plan should include a short executive summary, goals and a detailed roadmap to success. The SBA recommends a plan that is 3-5 years long.
Once you have a plan in place, it is important to establish a budget and set goals for your business. Your budget should include equipment, insurance, office space and other expenses.
You should also take into account the cost of fuel. Getting the right amount of fuel will be important for your company to remain profitable and operate efficiently.
Your budget should also include the costs of hiring drivers and buying a truck and trailer. You will need to determine how much money you will need to cover initial startup costs, including licensing requirements and registration fees, and the amount of money necessary to pay for your first six months of operations, including lease payments.
Having enough cash to cover the initial startup costs will give you a cushion in case the trucking industry experiences downturns or the economy suffers. This will allow you to invest in new trucks and other equipment that will help your trucking company thrive.
There are several ways to finance your trucking business, including securing loans and credit. These loans can be secured through a variety of sources, including banks and private lenders.
In addition, the Department of Transportation (DOT) has a number of requirements that you will need to meet before your business can operate legally. The DOT requires carriers to obtain an Employer Identification Number (EIN) and other licenses and permits.
Once you have all these items in place, your business is ready to start hauling cargo. Identify your target market and find customers who will pay you for your freight services.
You can use online load boards or meet with potential customers face to face in relevant small business trade shows and industry groups. The best way to find freight is to network and build relationships with shippers.