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Trucking is a very lucrative business in the US as it’s responsible for transporting more than 70% of the country’s freight. In fact, in 2019, the total revenue of the trucking industry reached a whopping $791 billion. For this reason, it doesn’t come as a surprise why so many entrepreneurs and former truck drivers end up opening up their own trucking businesses.
If you’re an ambitious person who is considering starting a trucking business, you are probably already aware that you will be facing many challenges along the way. The launching process can take a lot of work, patience, time, and dedication but hopefully, in the end, all of that will be worth it considering the profitability of this industry.
Below we share our tips on what factors to consider when establishing a trucking business and the critical steps you should bear in mind on the path to success.
Trucking Business Tips
Find Your Niche
The first step to establishing a thriving trucking business is to identify a niche to service. Focusing on several niche loads such as hauling fresh food products or delivering special construction materials can help you avoid competition with already established haulers, ensure continuous work, and improve revenue opportunities.
However, since different markets and locations have diverse landscapes, you must do some research on what is relevant for the locations where you plan to operate. You should also consider which products or services suit you, how to meet the needs of customers and shippers, and what distinctive features you offer that set you apart from the crowd.
The Business Plan Is A Must
Regardless of the industry you want to dive into, having a written plan for your business is an essential part of any entrepreneurial journey. It is a document that outlines all the important steps for starting and operating a business, which you can edit and update as things progress and change.
By drafting a business plan for trucking company, you will be able to identify potential clients, set your business model, have a clear grasp of your finances, discover the best marketing strategies, and avoid any mistakes that can end up being costly.
Having this information in hand will give you structure, and clear focus, and guide your decisions. Once you write it, it will help you stay organized and efficient, and help you scale your trucking business.
Register Your Truck Business
The following step after creating a business plan is to register the trucking company with state authorities.
As soon as you submit your paperwork, you should investigate the various business entities that are available as each offer different ownership structures, taxation policies, personal liability protection, as well as technical differences.
For example, if you’re opening a trucking business by yourself, you can consider registering as a limited liability company, because this entity offers the best protection for your personal assets. However, if you have a partner, you should consider different LLCs specifically tailored to partnerships. Incorporating a trucking company might seem overwhelming due to the paperwork involved, but in reality, the process can be completed rather quickly.
Additionally, you need to come up with a business name. The name you choose for your business should convey your brand, values, and mission because it will be the first thing prospective clients notice about your business. Once you narrow down a few potential names, conduct a quick search in the United States Patent and Trademark Office’s database to see whether your desired business name is available.
Obtain Necessary Permits, Licenses, And Insurance
The next thing on the to-do list is to ensure that your trucking business is legal and obtain all necessary permits and licenses. To begin with, if you want to base your company within the boundaries of any US state, you must possess a general business license.
Remember that if your trucks are traveling across state lines and weigh more than 26,000 pounds, you will need to get an International Registration Plan. As laws differ from state to state, check with the authorities in your state to learn what licenses and permits you should get in order to conduct business legally. Consider purchasing cargo, physical damage, and public liability insurance.
The trucking industry is one of the most profitable opportunities for entrepreneurs today. This may seem daunting at first, but if you follow all the important steps, plan properly, and obtain the right licenses and permits, you will set up your company in no time and increase your chances of building and growing a sustainable trucking business.