Since the trucking business is one of the most profitable businesses and is one of the significant contributions to the economy, everyone who thinks to start their own business wants to get into this industry in high demand. But creating a trucking business is not as easy as the process seems.
You have to develop a complete business plan and then go through a long register and legalize your business by obtaining permits and licenses such as DOT and MC number of the federal state you are going to register your business in. For example if you are going to operate your business in California, you need to obtain a California DOT number.
All in all, it can be a confusing process, especially for those who have not dealt in any business before. Fortunately, this guide provides valuable tips for making the process simple and understandable for you.
Get A Driving License
For starting a trucking company, the first and foremost thing you need to obtain is a driving license. If you will be an owner-operator to serve your business as a driver, this is a must. For that, you can attend the truck driving school or enroll yourself in truck training programs to get a license.
Develop A Business Plan
Once you think of starting your business, you must have a complete business plan that shows what will be the expected revenue and what money you will pay for your living expenses. This plan also includes information regarding the nature of business and questions such as:
- Who are you going to serve?
- What will be the load and haul operation?
- What will be your target market?
Questions like these will enable you to think ahead and have a clear picture of your business.
Determine The Structure Of Business
When starting this business, you need to find out in which structure you will operate your business. Business structures include sole proprietorship, partnership, corporation, and limited liability corporation. Each form has its advantages and disadvantages. You need to find out which structure will best suit your needs.
Buy The Right Equipment
The right equipment will make a huge difference in taking your business forward. When selecting the truck for your company, you first need to track your expenses and decide whether you want to buy a used truck or a new one. Each one has its pros and cons.
Used trucks serve you with lower cost initially, but frequent repair in the future and new trucks mean higher investment in the beginning but more minor or fewer repairs in the future. This is the critical time to do complete research before making a purchasing decision that better suits your needs.
Apart from selecting the buying option, there are other factors you need to consider when choosing your truck, such as:
- Know your expense and prices of truck
- Check the comfort level
- Weather-resistant features
- The weight limit for loading goods
- A preferred cab style for load and haul
Obtain Federal Licenses And Permits
Before you start operating your trucking business, there are several federal and government rules and requirements you need to meet at any cost. Some of the essential licenses and permits are:
DOT number: these numbers are required to haul cargo in the United States. This number is required for a vast range of vehicle operations and to track your company’s safety records.
MC number: this number is also known as the operating authority that identifies the kind of business you will run and the sort of goods you are allowed to load.
IRP and IFTA: International Registration Plan (IRP) licenses will allow your truck to operate in all states. IFTA will enable your company to have a single fuel license, and you can file quarterly fuel tax returns.
Just as the licenses and permits, your trucking business needs to have insurance to operate safely on the roads. As an owner-operator, you need to obtain insurance coverage for your trucking business. This is the most effective way to secure your business against customer injury, equipment damage, and high-cost lawsuits.
There are different types of insurance to other kinds of trucking businesses with various risks. If you are not sure which type of risk your business may face, we recommend you begin with General Liability Insurance.