How to Start Trucking Business
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.
- 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.
- 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.
- 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.
- 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
- 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.
- 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.
- 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.
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