It is known that more than 70% of all freight in this country is shipped via trucks, and that translates to several billion dollars worth of goods which are shipped annually. Now is a great time to start up a trucking business because of the increased freight demand and elevated rates. Here are some pointers on how you should go about starting up your trucking business, so you can take advantage of the favorable climate for trucking.
Planning and PreparationÂ
There is undoubtedly a ton of planning and preparation necessary before you can get your trucking operation off the ground. If you’re just starting out, it might be best for you to be an owner-operator. You’ll also need to determine how many other drivers you’ll need to conduct your operations, and then you’ll need to go out and get these drivers committed to your company.
Create a Business PlanÂ
It is very important that you create a business plan for your trucking enterprise, because it will make startup much smoother. This document will outline your business processes and will also include your company goals. Your business plan will also identify the kind of trucking business you plan to operate, for instance short-haul or long-haul trucking. It should also detail whether you plan on being an owner-operator, and other details such as how you intend to procure trailers.
Legal RequirementsÂ
In addition to having valid commercial driver’s licenses for all of your drivers as well as yourself, there are a number of other requirements which you’ll have to comply with. These are outlined in the FMCSA, and they involve obtaining a number of different permits related to the trucking industry, for instance the US DOT authority number.
Funding
To begin operations for your trucking company, you’ll probably need to have at least $25,000 available, so that you can make vehicle down payments, acquire permits, by insurance, and pay for expenses specific to your state. There are quite a for you ways you will be able to obtain financing for your trucking business, including acquiring a bank loan, using a home equity line of credit, possibly investing your savings, selling properties, and a variety of other sources as well.
Looking to Start a Trucking Business?Â
If so, you’ll undoubtedly need some working capital to get your enterprise off the ground. Contact us at Hornet Capital Solutions so we can discuss some funding options which you may qualify for.
