In 2019, the transportation and logistics market value in the United States was a respectable $1.3 trillion. The steady demand for logistics services has many business-minded people thinking to start a trucking company of their own. Are you one of them?
Starting a trucking company isn’t easy or cheap and the scary reality that failure to bring the company to profitability will end in financial ruin keeps many from even trying. However, if you start from a foundation of proven business principles and you follow through with a solid business plan, you have a good chance at succeeding.
In this post, we will explain what it takes to get going. Where you go from there is all up to you. Keep reading to learn what it takes to start a trucking company.
Accept and Understand the Risks
Determination to overcome considerable challenges and the willingness to take a risk with significant startup capital is a must for anyone wanting to start a company of this kind. Before you start off down this road, ask yourself two important questions and if the answer is nothing but a confident “yes” you have failed before you even begin.
- Do you have or can you reasonably acquire the start-up capital required?
- Are you willing to do whatever it takes to build a client base?
With these two questions clearly answered in your mind, writing up a business plan that you are confident in is the first step. Here are some things you will need to include:
Found a Legal Company
It is highly recommended that you found your trucking business as a Limited Liability Company (LLC) to protect and separate your personal assets from the business. Forming an LLC will require you to take certain crucial steps in your startup process like obtaining an Employer Identification Number (EIN) and appointing a registered agent for receiving and processing legal requirements of federal and state government agencies.
If you incorporate in Oregon, visit oregontaxcpa.com for more information about requirements and managing the company finances.
Base of Operations
It is possible to run your trucking company out of a minimal small office space or even from a home office. As your business grows your needs will grow with it, but it is important to keep overhead expenses to a minimum from the start so be frugal.
Trucks and Drivers
This is the foundation for which your company will grow. You have many options that you should consider such as leasing versus buying trucks or even contracting with independent trucking professionals that own their own rig. Hiring drivers that are professional and have a good standing CDL is a top priority.
Establish Procedures
From marketing and sales to dispatch and client relations, make sure you are clear in understanding how to operate the day-to-day of your logistics company. Train your people to uphold the values of your company and to operate on the principles you lay out clearly in the procedures you establish.
Start a Trucking Company
In order to start a trucking company and become a successful business owner, you will need to have the knowledge, skills, start-up capital, and most importantly a burning determination to see your vision become reality. For more valuable insights into starting a business, read other articles on our site.