How can i start a trucking business

Second, it's a great way to build your business credit rating, which will come in handy if you need to apply for a loan in the future to expand your business, etc.

Finally, you get to enjoy the benefits of points, cash back or other rewards that may come with having a business credit card. However, just like your business checking account, avoid intermingling business expenses with personal expenses on your credit card. As we covered already, starting a trucking business can be costly, especially if you plan on buying a new truck.

Fortunately, as we discussed, there are a lot of financing options available as well as leasing options. Want some ideas on how to get that seed money? Check out these options:. As we already covered, you will need a CDL if you operate a semi. But that's not all. You will need to make sure you have appropriate insurance in place and file a BOC-3 form, which basically appoints a service of process agent in the states in which you will operate.

If you operate a box truck or cargo van business that is local, things are much simpler. You won't need many of the licenses and permits discussed above, so that's definitely something to consider when figuring out what type of business you want to operate. In many cases, you will also need to get a general business license which is usually not too expensive or difficult to obtain , but there may be other, more specific, permits or licenses required, depending on where you operate and the scope of activities you plan to engage in.

Finally, you will also need to get appropriate insurance for your trucking business. Depending on the type of vehicle you are operating, you will need different types of insurance. One of the things you absolutely need to get right is getting consistent and profitable loads. A load is basically a delivery job for your truck. One of the most common methods for getting loads is signing up for load boards.

These are generally online boards that list loads for delivery that you can access. Many but not all charge a fee to use them. Amazon has a robust load board and it's free. You can also contact freight brokers, 3PL companies and freight forwarders as well to see if they have loads available for you. Obviously, if you want to specialize in the moving business, you will need to market your business accordingly.

As we discussed earlier, get your business online and make your presence known within the local marketplace. Another way to make money without even doing a load yourself is renting out your truck to people who need it. You can rent to transport companies, or even local movers who may need an extra truck for the day. Ultimately, you want to experiment with various strategies — you may be surprised at what works best.

So there you have it — 6 steps to starting a successful trucking business with just one truck. Hope this has been helpful. If you want to learn how to make passive income in the trucking business, check out my article on trucking investing for passive income.

We cover three different ways to do this, with some pretty unconventional ideas. I think you will find it an interesting read. If you want to learn about other businesses in the trucking industry, check out my articles on how to start a box truck business , how to start a dump truck business and how to start a dumpster rental business.

Skip to content If you are interested in starting a trucking business with one truck but don't know where to begin, you are in the right place. What is a Trucking Business? The answer is a resounding yes! Semi-Trucks Semi-trucks are the largest, most expensive, and most challenging to operate. Box Trucks Box trucks are smaller and less costly but can still carry fairly large loads. Cargo Vans Finally, you can go with the cheapest and easiest to operate vehicle — the run-of-the mill cargo van.

Below is a breakdown of new box truck costs by size. Source As you can imagine, buying a used cargo van is going to save you a lot of money. How to Lower Your Starting Costs: Unless you have a ton of money lying around, you will probably need a loan to buy your truck.

Is a Trucking Business Profitable? A trucking business can be profitable if managed correctly. Source Ok, now that we've covered the introductory stuff, let's dive into the details on how you can start your trucking business. Step 4: Obtain Funding As we covered already, starting a trucking business can be costly, especially if you plan on buying a new truck.

That being said, you will still need some money to get started. Check out these options: Personal savings. You will often need some skin in the game before lenders will work with you, so having some personal savings is important.

Credit Cards. Try to get one that lasts at least a year so you have some time to get your business off the ground. Friends and family.

Although these people may be willing to lending you money, you have to weigh that against the risk of souring your relationship with them if things go sideways. Banks are a traditional source of funding for new businesses, but they will often conduct extensive due diligence and underwriting before lending to a brand new enterprise. Online Funding. This includes includes getting a loan using peer-to-peer lending, funding through kickstarter campaigns, using online lenders, etc.

Step 6: Get Loads For Your Trucking Business One of the things you absolutely need to get right is getting consistent and profitable loads. Check with large and small banks and credit unions for financing. Credit unions may be easier to get a loan from, as larger banks want to see two years of operating history. You can also check online for trucking lenders. And if you need to approach lenders, investors, or partners to finance your trucking business, the first thing many of them will want to see is your business plan.

Once you get financing, hire the best tax attorney and bookkeeper you can afford to manage your accounting. Use Intuit QuickBooks or other accounting software. Running your own trucking business is a great way to make extra money, but as a new operator, it can take time. With driver and truck shortages, more owner-operators are finding financing and leasing options despite less-than-perfect credit.

As more people shop online and want items delivered, it keeps the trucking industry in high demand and you can make money. Once you set up your company, get insurance and hire drivers. Use Truckstop. Hire the best tax accountants to help you look for ways to control expenses to maximize your profits! With a little planning and easy-to-use technology, you will be growing your business in no time.

A common complaint among carriers is around the struggle of negotiating with brokers. Part 1 of a 3 part series. How a husband and wife team went from running a van to operating their own trucking company using Truckstop. Available Loads.

Opportunity Amount. Loads Moved Today. Opportunity Realized. Heavy Haul. Flatbed icon. Available loads Opportunity amount Avg. Heavy Haul icon. Specialized icon. LTL icon. Live Available Loads.

SALES: Login Login to: Close. Overview Careers Contact Us Newsroom. Community Stories Blog Partners Webinars. October 13, Stay up to date on industry trends. Email address. How to negotiate better A common complaint among carriers is around the struggle of negotiating with brokers.

Fast Forward LLC How a husband and wife team went from running a van to operating their own trucking company using Truckstop. Sales: About Careers Contact Newsroom. Products Carriers Brokers Shippers. Bottom line? Are you sick of driving for an average truck driver salary?

Running your own trucking company can be a lucrative business. With truck driver shortages being the norm over the last few years, according to the American Trucking Associations, your service as a driver or owner is in demand, and demand can drive major revenue and profits. The good news is there are a number of companies and associations that can help you along your way, with everything from regulatory requirements to startup business funding.

The key is to not overlook any of the important stepping stones along the way to success. Related: Best Truck Loans of Another trucking company comes in the form of an owner-operator. The term owner-operator is used in many industries, but it often refers to trucking. It can come with autonomy and freedom, but it also requires more responsibility and business skills.

Here are the steps you can take to start a trucking company:. Honest self-assessment is an important first step when opening any business, including trucking. This can help make you a more empathetic boss. With time and effort, you can learn aspects of the trucking business that you might not have first-hand experience with. But before you can do that, take an honest look at your talents and capabilities to see if you have what it takes to create a trucking business out of nothing.

Ask yourself why you want to enter this field and if you are prepared to become a business owner. These are all things that you can learn or manage if you put in some time and effort.

Owner-operator trucking jobs are unique in that they can essentially be created out of thin air. You may prefer the desk work instead. You may need to run some numbers to decide which is more cost effective and has the potential to bring in more revenue. You also need to evaluate your own desire or lack thereof to drive.

The bottom line is this: Your best chance to succeed as an owner-operator is to understand both the business side of the trucking industry and the day-to-day realities of driving and maintaining a trucking fleet. Creating a business plan is an essential step in setting up any type of business, including a trucking company. Although many entrepreneurs fly by the seat of their pants when it comes to setting up a new company, those without a written road map are more likely to fail.

Knowing how to write a business plan , however, does require some inside industry knowledge. A good business plan can help you in multiple areas. One of the most important is that it can help you when you apply for commercial truck financing.

A well-written executive summary alone may be enough to explain why finance companies should extend you a loan. Beyond the broad strokes, a good business plan will detail how your business is going to operate, from sales and marketing to pricing, business operations, fleet management and other considerations.

More than anything, the very act of writing a business plan can help you articulate exactly what type of trucking company you want to operate. For example, will your business be a sole proprietorship, an S-corp, a C-corp or a limited liability company — you need to compare different corporations to understand what is best for you.

Do you plan to focus on long-haul or short-haul trucking? Should you buy trucks, or acquire them via an operating lease? Will you be an owner-operator? Do you have future expansion plans? Have you budgeted for ancillary costs? What are your financial projections? These questions, among many others, should be resolved as you go through the process of formalizing your business plan. The trucking industry is highly regulated. Some of these required documents include:.

Department of Transportation create a safety file on your business. This information is used during inspections, compliance audits and crash investigations.

Technically, not all trucking companies need a Motor Carrier number, but in reality, most do. Unlike a USDOT number, which is unique and applies to an entire business, you might need to file for more than one MC number, depending on your business. An MC number gives a company an interstate Operating Authority for a specific type of trucking. Depending on your business, you might need to obtain more than one MC number. These devices sync with a vehicle to automatically record driving time and other data points to help promote a safe driving environment for drivers.

Truck insurance is a necessity so that should be one of the initial steps in setting up your business. The FMCSA also requires certain types of insurance, such as liability and cargo insurance, before it will issue an operating authority.

Trucks are high-mileage vehicles that often have demanding schedules. This results in inevitable maintenance issues from time to time. Insurance is the tradeoff of a small, certain loss in exchange for protection against the possibility of a large loss. Of course, the more mileage a truck has, the more likely it will break down. Even with preventive maintenance, you should expect to encounter some periods when a truck is out of service.

In some cases, you might even be faced with a total loss of a truck. Liability insurance is another requirement for your business. If one of your truckers runs someone off the road, your business will be liable.

Just like the breakdown of your trucks can spell financial disaster, so can a lawsuit. Insurance can help you avoid the risk of paying out a large settlement should something happen.