How to Start a Trucking Company with No Experience?
Trucking is one of the most vital industries in the United States and serves as a backbone for the economy. A vast portion of the nation’s products is transported on commercial trucks.
Recently, the American Trucking Associations estimated a shortage of about 160,000 truck drivers by 2028.
Given the market conditions, there are currently many opportunities in the trucking industry. You may be considering starting a truck company with little or no experience as a driver, a business owner, or either. This article highlights some of the most important things you should know if you are considering starting a trucking company without prior experience.
- You must decide who will drive: When starting a trucking company, the first question that arises is: how many trucks will you have and who will drive them? If you are planning on driving yourself, then you will be working as an owner-operator. If you hire someone else to drive your truck, you will need to put a plan for hiring and retaining the drivers.
- Business plan: To establish a successful business, you need a firm plan for financing, start-up costs, insurance, client acquisition, accounting, tax preparation, and other vital issues. If you have no experience, then consulting with trucking business consultants can help you.
- Financing your trucking business: As you probably already know, there are start-up costs associated with forming a new trucking business; most businesses need some form of financing to get off the ground, either from savings or a bank loan.
- Registration and permits: One of the key things that make the trucking industry unique is that truckers/business owners need to obtain a wide range of different registrations and permits to operate – especially if you are planning to go across state lines. Your business may need to obtain the following: An EIN number, a DUNS number, MC/DOT number, Boc-3 filings, and UCR and State permits. Without the proper registrations and permits, a trucking company could face severe state or federal sanctions. Suppose you are starting a truck company with no previous experience. In that case, it is crucial that you get all the paperwork done the right way.
- Building and growing your business: Your business can offer the best services in the world, but it will not mean much if unable to obtain clients. There are many opportunities in the trucking industry, but it’s also competitive. Hence, having proper contacts of shippers and brokers is essential.