Undoubtedly, a lot of people find starting a trucking company to be very intimidating and challenging. Even though that’s definitely something that cannot be accomplished overnight, it’s far from a mission impossible.
Just like with most things in life (especially the ones that involve establishing a business), it does require some prep work, organizing, planning, and of course, time and effort, but it’s surely doable.
If you recently decided to be part of this industry, yet you could use some tips when it comes to this, then you should definitely check out everything that I’m about to say today. So let’s uncover some useful information together.
How Is Your Financial Situation?
No matter how ambitious, skilled, and driven you are, without money, you practically can’t do anything. Blasting off a business requires a certain amount of money, so if you’re planning on having one, then you simply need to set aside some cash for it.
I do not mean to scare you, but you will have lots of costs, starting from buying trucks, insurance, and many others that will come in between. That’s precisely one of the reasons why you must carefully think things through and know exactly what you’re getting yourself into before you take any further steps.
Another thing that I would like to accentuate is the fact that you shouldn’t expect any profit during the first year. That’s simply how things work in this industry, which means that you must prepare yourself for some financial difficulties (in that period of time, of course).
The Quality Is Everything
The logistics industry is one of the oldest industries in the world, however, without a doubt, it is rapidly expanding, particularly over the past couple of years, due to technology and many other changes.
But that doesn’t necessarily mean that every company in this industry is going to thrive unless it offers top-notch service and delivery. Without it, you cannot expect any significant growth.
So have you asked yourself if you’ve equipped yourself with all the essentials in order to provide first-class delivery and service? One of the biggest priorities when it comes to this should definitely be a box truck roll-up door due to its numerous benefits. If you opt for the best roll-up doors, you will enable your truck drivers to deliver packages effectively and right on time.
Not to mention that you will keep cargo safe during travel. If you’ve already obtained one, yet you notice that it doesn’t work properly, then make sure to contact a professional who is going to repair it. Don’t let something like this negatively impact the quality of your delivery and overall service.
Are You Familiar With Taxes?
This question frequently causes confusion among the owner-operators of a trucking company. Namely, what most of them do not know is that there’s a difference between taxing a driver and the owner of the firm.
What most first-time owner-operators fail to realize is the fact that they must pay taxes on a quarterly basis, instead of having their money automatically taken from their paycheck by the employer.
Therefore, I advise you to tell your drivers to set aside somewhere between twenty-five and thirty percent of their salaries for taxes. And if possible, they could also keep all their business receipts and paperwork so they can efficiently monitor all their earnings.
Have You Done All The Paperwork?
In case you didn’t know, this industry is heavily regulated by the state and federal governments, hence it means that there’s a lot of paperwork involved. This includes the following:
- Establish the business entity (referring to the LLP, LLC, and Inc) – Incorporating means that your firm is structured the right way and divides your personal things from the professional ones. This normally involves setting the name of your business, along with determining an EIN (employer identification number) with the IRS. Bear in mind that without EIN, you cannot open a business bank account, plus it’s mandatory for tax fillings.
- Do you have the necessary licenses and permits? – If the answer is no, then there’s no need to remind you that this should be your next move. Namely, you must obtain the ones that are important to your area of operations, along with the type of cargo. Additionally, you will have to get your CDL too. Apart from all these things that I just mentioned, you will need to acquire the BOC-3 filing and USDOT number.
- Obtain motor carrier operating authority – In these instances, you have two options at your disposal. The first one is to acquire your own security, which I’m not sure is the best idea since it can be very pricey. According to my sources, filing fees begin at $300. The other alternative is to drive under another firm’s MC authority. There are many companies that let owner-operators do this. No matter what you decide, keep in mind that it’s crucial to gather all the necessary documentation and give money for all the fees before you make any other move.
You Need To Understand How Market Works
This industry is generally a lot more complex than you may think it is and establishing a company doesn’t just involve hiring drivers and delivering things. It’s so much more than that. You will have to handle various things at the same time, and focus on marketing needs if you want to prosper.
Don’t forget that, at the end of the day, you should do whatever you can to attract as many customers as possible, and you’re not going to be able to do so if you do not show them how valuable your business is and you won’t be able to do so without relying on marketing.
If you want to spread the word about your company, then you must also make use of various social media platforms and concentrate on making strategies that will help you effectively promote your firm.
Kick-starting your own trucking company is going to be difficult at first, but if you believe in your dream enough, you are ready to do everything that’s in your power (which includes implementing these tips too) to make it come true, then I am absolutely sure, you’ll get there.
