Trucking is a business that requires a lot of cash flow and is responsible for transporting around 70% of all cargo in the United States. Becoming an owner-operator is an exciting step in a trucker's career, but there are many things to consider before taking the leap. Here are five things every truck driver should know before owning a trucking company. CMVs (Commercial Motor Vehicles) are subject to various state and federal laws regarding limitations on truck length and axle length. In addition to these upfront costs, trucking companies spend a lot of money on fuel, technology upgrades, repairs, parking, etc.
CMVs can be of different shapes and sizes, from 10,000 lb pickup trucks to 105,500 lb semi-trailer trucks. When setting up a trucking company, it may not qualify for a bank loan and you may want to avoid getting caught up in the repayment terms that accompany unsecured loans or cash advances. The success of small transport companies and owner-operators depends on finding loads to transport and maintaining a strong list of customers. It is important to work with a professional to help manage the business side of your trucking company. Focusing your trucking business on more specific loads can bring advantages such as less competition, year-round work, resistance to recessions and flexibility that large fleet operators don't usually have. When buying a truck for your business, you should talk to professional truck drivers who have transitioned to owner-operator and compare options before making a decision. Increasingly, companies equip their trucks with automatic transmissions for various reasons. Logistics companies rely on accurate time tracking based on mobile devices and GPS so that their employees can dial in and out directly from their smartphone.
It is also important to be aware of urgent filing requirements such as quarterly IFTA tax returns and multi-year CDL renewals.