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Start a Trucking Business in 7 Steps
The trucking industry will remain essential with the constant demand for goods and services. This leaves plenty of opportunity for the ones willing to enter the business. Starting a company in this industry can be quite challenging, given the high demand for new drivers. About 80% of the goods in the US get transported by truck, and the industry is estimated to be $726 billion with growth expectations.
Determine your category with your trucking business
The trucking industry has different categories, which will determine how you will shape your business. You would want to select the size of your business and the market it covers. You can start small, covering the regional market. In the future, your business will grow.
Company owners need to define the service they will offer. The basic service is transporting freight, but some might decide to provide niche services or add-ons. Some might choose to dedicate themselves to a specific type of cargo and become the leading expert in it. Also, it would be best to define which clients to cater to. Many companies need trucking services, but you need to know which ones you will serve. Knowing your target customers will help you shape your business strategy.
Determining why your business differs from the rest on the market is essential. Creating a unique selling point will set you apart from competitors. With more than 1.3 million businesses in this industry, offering something different is crucial in shaping your business strategy.
When you have a clear idea of your business, it is time to shape a plan that contains the details. A business plan will determine the direction you are heading. The plan explains the target customers, location, competitors, equipment, employees, service prices, and other essential aspects. The business plan should contain your short-term and long-term business goals as well.
Establishing a trucking business in any niche requires a few steps. You will need to legally register a company and choose the form. There are different structures to consider, so you should analyze them and find the perfect solution for your business. Also, your business will need a bank account for transactions. Trucking companies should always have insurance to protect the cargo, the vehicle, and the people involved.
The trucking industry is highly regulated, so you must be familiar with all the legal requirements. Truck drivers need to have a commercial driving license or CDL. The other permits depend on your location, so be sure to check them with your local authorities.
Finding the equipment that matches your trucking business needs is crucial. Business owners will buy or lease trucks for their specific business operations. You also need to weigh up whether it’s better to buy second hand vehicles over new examples. Purchasing a used dump truck is often more cost-effective, especially for first timers. However, the trucks aren’t the only equipment. It would help if you also considered the office equipment and software needed.
Creating a successful team is challenging. Your employees will represent your brand in front of the clients, so picking the pens that reason with your values is crucial. You will need reliable truck drivers that handle the routes. However, your business also needs someone to tackle the finances and administration. With the current shortage of truck drivers in the US, you will need to find the right ones.
When your company is ready to start, you need to find your clients. Reaching out directly to potential clients is one of the standard marketing practices. Also, don’t underestimate the power of social media. Create a website and social media pages for your business so customers can easily find you. On the other hand, good old word of mouth never fails. Share that you have a new company with others and let the opportunities come to you.