The delivery and shipping sectors are flourishing as more Americans place orders for goods online. To deliver goods on schedule, the nation depends on truck drivers. Therefore, this is an excellent opportunity for you to launch your own transportation company. In this blog post, we will discuss the essential steps when you want to start your trucking business.
Become familiar with truck-driving
You must first have a commercial driver’s license (CDL). You can enroll in a private truck driving school, or certain trucking businesses may sponsor your attendance at a CDL school through their own training programs. Many drivers who go on to become owner-operators first get experience in the industry by working as drivers for a while.
Create a business plan
Make sure you have a business strategy before you launch your venture. It should be very clear what your expected revenue and costs are. Remember that your spending must account for the money you will need to cover your daily expenses. To assist you in choosing the strategy that makes the most sense for you, you may need to consult with a business expert. Typically, a business plan contains:
More information about you and your organization, including how you differ from other trucking firms and how your expertise and experience in the sector can help your business.
The systems, personnel, and technology you intend to use to function effectively.
Types of services you will provide to clients.
An examination of the current market trends and how your business plans to make money.
Marketing and Sales
How you plan to draw in and solidify a foundation of devoted clients?
Decide on becoming a member with a specific motor authority.
A strategy that outlines how you’ll reach your income objectives.
Decide how your company will be organized
The following are typical trucking business structures:
- Setting up a limited liability trucking company (LLC)
- Forming a corporation (C-Corp, S-Corp, etc.)
Each type of business structure has its pros and cons that are unique to each state and are mostly dependent on responsibility and taxation. To determine which structure would work best for your company, you might schedule a meeting with an accountant.
Get a license for commercial driving.
A valid commercial driver’s license (CDL) is necessary, regardless of whether you are an owner-operator or you employ drivers, as mandated by the Federal Motor Carrier Safety Administration (FMCSA).
Drivers must be 21 or older to apply. And within the state, drivers must be between 18 and 20. Drivers fill out and pay for a CDL application. They require identification documentation, evidence of citizenship, and a current social security number.
Additionally, drivers must pass knowledge and eyesight tests. A pre-trip inspection, road skills test, and driving examination must be passed after receiving a commercial learner’s permit (CLP) (with their vehicles). Drivers who pass these tests pay the necessary fees and earn their CDL.
Benefits of Having a Truck Authority
The Ability to be Your Own Boss
You have complete discretion while operating under your own trucking authorization. You now have a ton of freedom (and responsibility) in terms of how you use your time, money, and resources.
You only have to answer to yourself, the FMCSA, and your insurance provider once you set out on your own as an independent owner-operator of a trucking company.
Select your own freight runs and loads
You have control over your loads when you work for yourself. This allows you much control over your travel plans, duration of absence, and financial gains. But after you have your MC number, big loads don’t magically appear in your lap.
Set your hours to work
You get to choose when you work and when you take time off when you have your own trucking authority. Many drivers consider it a dream come true to have this kind of control over their schedule, but you must keep in mind that you are managing a company. Spending too much time away from the road will prevent you from earning enough money to pay your bills and provide yourself a good income.