The trucking industry serves the U.S. economy by transporting large quantities of raw materials, work-in-process, and finished goods overland, usually from manufacturing plants to retail distribution centers. A trucking business can be a truck with one owner or thousands of trucks owned by a company but driven by many different drivers. The U.S.
Department of Labor estimates that a truck transports about 70% of everything you use, eat, use, or enjoy at home, school, or work. It is also usually a truck that carries the parts or raw materials to do those things from the suppliers to the manufacturer and the store where they are purchased. So just from this brief overview, you can see that making a trucking business run smoothly is quite a challenge. Becoming an owner-operator is an exciting step in your career as a trucker.
Now you have the opportunity to be your own boss, earn more money, choose your own burdens and choose when you want to take time off. However, this type of race is not for everyone. There are many things you need to consider before you make the leap from company driver to owner-operator. Here are five things every truck driver should know before owning a trucking company.
A transport company is simply a company that ships goods or possessions by truck. Please note that the road transport industry is a cyclical sector made up of companies that offer shipping services, which use tractor-trailers. Most transport companies own and operate the vehicles in their fleets, while others rely on leasing. Over time, you can learn how to start a trucking company without driving by hiring additional employees and drivers.
And if you need to approach lenders, investors, or partners to finance your trucking business, the first thing many of them will want to see is your business plan. However, in order to properly serve the needs of its customers, a trucking company needs to have a large collection of tractors and trailers, which often number in the thousands. Writing a trucking company business plan keeps you focused on building your company according to a plan, which is especially useful as you get involved in the dirty work of starting out and you may not have time to refocus on your overall strategy. Most state, county and local governments require companies to have the correct licenses and permits before opening their doors.
But whether the trucking business transports whales and porpoises or fragile porcelain teacups, you always follow the same basic steps. Just like you would start a new job with a new perspective and set of goals, you'll also want to start your new transportation company with an organized plan. No, the trucking industry is not dying and due to the recent growth of the industry following the big hit of Covid19.Be sure to take your time with your purchase to make sure your truck selection fits your cargo needs. A trucking company has to pay excise taxes and have special permits from the federal and state governments to operate, as well as truck drivers who have their CDL (commercial driver's license) and also any permit they need, such as a hazmat certification.
Keep in mind that your company's success starts long before you get a truck, sign customers, or start delivering products. In a highly regulated industry such as road transport, you cannot afford to save money on poor equipment or materials. The costs of your equipment may be a little higher and the search for talent a little more competitive, but the underlying principles involved in starting a trucking business remain the same. .
