Whether you’re an aspiring business owner or a serial entrepreneur, founding a new company is always nerve-wracking. Starting a trucking company is especially complicated due to the expense as well as all of the moving parts involved. While there are many different ways to go about starting a trucking company, the following tips should apply to almost every scenario.
Shop Around for Insurance
Due to the high liabilities associated with trucking, you can expect to spend a decent amount of money on insurance. Compile a list of both local and national commercial trucking insurance companies and get a quote from each. Even the smallest discounts on your monthly insurance bill can result in big savings over time, especially when your company has numerous employees and trucks.
Get Your Permits in Order
Beyond forming an LLC, you’ll need to deal with a lot of government red tape. For one thing, you’ll need a Motor Carrier Authority Number as well as a Federal DOT Number. In addition, you’ll have to get an International Fuel Tax Agreement License. You’ll also require a Federal Employer Identification Number to hire employees.
Hoard Hardware in Advance
Whether you’re leasing trucks or buying them outright, you’ll go through staples like tires, tire labels, oil and filters like nobody’s business. Buy those basic materials in bulk before you get rolling. You’ll also need plenty of shipping labels and forms to manage logistics. Look at established companies like AdvantageID to supply all of your clerical needs.
Explore Your Financial Options
Unless you’re already independently wealthy, you’ll need to obtain financing for your new trucking company. While there’s always the traditional bank or credit union loan, you might be better off assembling a group of private investors to provide the necessary capital. Consider using an invoice factoring company to simplify accounting once you’re up and running.
Lock Down Clients Beforehand
Considering the high overhead that comes with operating any trucking business, it’s important to hit the ground running. You should have clients already lined up before the first truck rolls. Use a forum or load board such as Turnkey Authority to find your first few jobs and establish a reputation for your burgeoning shipping company.
Wheels in Motion
Starting a trucking company is by no means the easiest way to launch a small business. However, the rewards can far outweigh the risks if you have a solid business plan in place. Establish a wheelhouse and stay within it until you’re financially comfortable. Once you’ve found your bearings, the sky is the limit.