There probably couldn’t be a better time for you to start up your own trucking business than the present. In addition to the rising demand for freight, there’s also an ongoing driver shortage, with steadily increasing rates for shipping freight. With approximately 70% of all freight shipped via trucks in this country, your new business should be able to start off with a bang.
Preparation and Planning
It will take a great deal of preparation and planning in order for your small carrier business to get off the ground. Many owners of trucking businesses have actually started out as owner-operators, and in order to do this, you will need to obtain your commercial driver’s license. You’ll probably also need to hire additional drivers for your fleet of trucks, and then start planning for how you conduct your business.
Create a Business Plan
It’s very important that you create a business plan for your trucking business so that you will have a roadmap to follow in the coming months and years. Your business plan should include a company description, an analysis of your market, a sales strategy, financial projections, a plan for your personnel, a description of your management and organization, and an executive summary which will serve as a high-level overview of your operation.
After you have obtained your commercial driver’s license, as an owner-operator you’ll also be obliged to fulfill a number of other legal requirements. For instance, you’ll have to obtain a Department of Transportation number, a motor carrier number, an international registration plan, and some international fuel tax agreement stickers. You will also be obliged to install FMCSA-registered electronic logging devices, in order to comply with regulations for hours of service.
It will be necessary for you to obtain funding so that you can cover the cost of the vehicle down payments, permits, insurance, and a number of different expenses, specific to the state you will be operating in. To actually finance your new business, you may need to acquire a bank loan, sell properties, acquire a home equity credit line, and maybe even tap into your savings account.
Need funding to start your trucking business?
If you’re looking to start up your own trucking business, you’ll certainly need funding to help get things underway. Contact us at Third Bay Capital so we can discuss some options with you for that needed funding.