In the United States alone, the trucking industry brings in over $700 billion and is responsible for nearly 6% of all full-time jobs. So, if you’re thinking about starting a commercial truck service, there’s never been a better time to do so.
But, how do you go about starting a commercial truck company that is actually successful? You’ve come to the right place for help.
Keep reading to learn the steps to take to start a trucking service that will become profitable in no time.
Create a Business Plan
First things first, you need to write a business plan that details the steps you plan to take to help your business reach its goals. The business plan should address the following items:
- What your goals entail
- Steps you plan to take to reach them
- Potential hardships and how you plan to address them
- Expected revenue and expenses
Creating a business plan is a lot of work, so don’t be afraid to hire a professional to help you write yours.
Register your Business
Next, you’ll need to legally establish your business as either a sole proprietorship, limited liability corporation (LLC), corporation, or partnership. There are pros and cons to each option, so make sure you explore them all before making a final decision.
Once you decide, you’ll need to register for an employer identification number (EIN) so you can open a bank account for your business.
Obtain Licenses, Permits, and Insurance
Next, you’ll need to do research into your local government requirements for licenses and permits. Depending on where you plan to operate your business, you may need the following:
- Commercial driver’s license (CDL)
- Motor Carrier Operating Authority (MC Number)
- USDOT number
- BOC-3 filing
You’ll also need to get proper insurance coverage. This includes:
- Passenger accident insurance
- Cargo insurance
- Primary liability insurance
- Physical damage insurance
Contact a few local agents to compare pricing to make sure you get the best premium for your coverage.
Purchase or Lease Equipment
Once you have all of your legal ducks in a row, you’ll need to decide whether to lease or buy your commercial truck equipment. Think about the type of trucking service you plan to provide before you make your decision.
For example, if you plan to carry food, you may need a refrigerated truck. Or, if your freight will be large, you need a truck that can safely carry all of the cargo. Once you decide what you need, run the numbers to determine whether you can buy or if leasing is a better option.
Once you’ve done all the foundational work, it’s time to get the word out about your new trucking company.
Think about what your target market considers when choosing a trucking service and make sure your messaging reflects that so they know what to expect when they hire you. And remember, marketing should be ever-evolving; not just something you focus on when first starting out.
Start your Commercial Truck Service Today
After reading through our tips on how to start a commercial truck service, you have the knowledge you need to get started. Now, the real work begins!
Looking for business advice as you get started? Check out our other articles before you go.