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How to Start a Trucking Business with trucking management software

How to Start Trucking Business

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The global marketplace is expanding and the need for the product transportation is growing faster than light. Trucking business is on the rise and opening your own trucking company can be a profitable endeavor. You have the dream, the goal, the funding… what’s next? It may be the time to Start Trucking Business with trucking management software.

  1. Decide Which Trucking Business You Need

You can choose from two commonly used trucking company operating standards.

  • Company that uses sub-contracted drivers

This is a cost-cutting option, which has you using drivers who are employed by another company. You own the business and deal with the contracts while your drivers are managed by someone else. While such business requires significantly less spending, it brings lower profits. However, you can still find profit maximizing solutions by working with trucking management software.

  • Company that uses privately hired drivers

This is a more common type of trucking business that requires substantial initial funding. You hire your own drivers, deal with contracts, buy equipment, cover insurance costs, etc. You exercise full control over your business and the drivers.  Accordingly, you get higher profits. Such business owners benefit from trucking management software to cut operating costs and get fuller control of their company.

  1. Draft a Business Plan

Just as any other startup, a trucking company needs a good business plan. Outline the information about your goals, timelines, and strategies. Determine which accounts you will be servicing. Mention your profit-generating plans and approximate deadlines. Underline your goals, values, and wishes.  Include purchasing trucking management software in your plan since it will help you reduce the costs and improve the output.

  1. Get a commercial driver’s license (CDL)

Even if you are not planning to drive a truck yourself, you need to make sure that all your private truck drivers have valid commercial driver’s licenses.

  1. Obtain the Necessary Documents

 

  • Federal DOT number and Motor Carrier Authority Number
  • IRS tax form 2290
  • International registration plan
  • International fuel tax agreement
  • BOC-3 filing

 

  1. Get Insurance

Since trucking business carries certain hazards, the insurance requirements for it are rather strict. You need to closely study your insurance requirements and purchase the policies. It’s better to consult with your local expert. Make sure all you truck drivers have health insurance as well.

 

  1. Buy the Equipment

If you decide to hire drivers on your own, you need to acquire the vehicles. Depending on your initial funds, you can evaluate how many trucks you can afford. Remember, that most of the trucking businesses start small. You can expand your fleet as your company grows.

Before choosing the right vehicles for your company, consider the type of cargo you are planning to carry. You might need additional equipment for various types of cargo. You can also consider leasing the trucks instead of buying them. Consider using trucking management software to help you service your fleet on a regular basis.

 

  1. Find Customers

Building a client base is hard work, so start as soon as possible. Make a list of potential clients and pick up the phone.  Be ready to start with small local contracts.

Make sure to take full advantage of your business by using trucking management software. In the modern world of technologies, having an online assistant is vital to keeping up with the workload.

How to start and run a successful trucking company?

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How to start and run a successful trucking company?

If you are a truck driver for years then you must be making resolution every year to start your own trucking business. But, due to the competency and difficulty of the procedure you remained unable to get around it. But, now you don’t need to worry or get disappointed, as we are going to tell you some secretive tips to run your own trucking system. Our tips will help you to succeed faster than you have dreamt of. Here are the things that you need to consider and do.

  • Create a plan

If you have not run your own business yet, then you may not be aware of the importance of making a business plan. Creating a full-fledged plan is really important as it will keep you on the track during various phases of your business. It should include your business needs, your goal, the strategies that you would implement and the tips to manage to business once it is established.

  • Choose your equipment

Transportation industry is very vast, so you are required to choose your equipment wisely. There are some considerations for choosing the equipment which are:

  • Whether you want to lease a vehicle or are interested in purchasing your own?

Though you may have your own choice about leasing or buying a vehicle, but it is always recommended to purchase your own vehicle. No doubt that it will cost you more initially, but you will be profited in the long run. It will also let you have full control over your business.

  • Which vehicle would be appropriate for your business?

As you have a great choice, you need to consider that which vehicle would be appropriate for your business. Like, if you are thinking to run a food transportation business, then you would need a refrigerated truck.

  • How many commercial vehicles you need or you are able to buy?

Though it would be good to have as many vehicles you can, but depending on your financial ability, you can start even with a single vehicle. You can further add to your fleet as your profits will grow.

  • Bid well by keeping all your expenses in mind

This is the most important fact to consider. You should choose your rates in a way that they must be high enough to be gainful and low enough to be competitive. You will only be able to earn and make profits, if you know your expenses properly.

  • Ensure proper management of your business

Once you have started your business, you are required to ensure it proper management to keep it on track and make it profitable. As it would be little difficult to manage all the aspects if you are running the business alone, investing in management tools can help you to get success. Proper management software will give you peace of mind that everything with your business is going well. Though you can get many such management tools, but if you want the one especially for managing the trucking system, then you can rely on TransIT.