Local businesses flourish when they have someone to haul their products from local to interstate markets. Providing delivery services or cargo pick and drop services to your local business can be a profitable venture for you as well. You can do so by starting a trucking company.
The benefit of a trucking company is that with large carrier motors, you can haul more products at one time. Starting a trucking company is also simple.
Here is what you need to do when starting a trucking company.
First things first, meeting the legal formalities is extremely important for starting a trucking company. The trucking business is highly regulated. If your company is based in California, you need these legal requirements
- CA DOT Number
- Motor Carrier (MC) Number
- International Registration Plan (IRP)
- BOC-3 filing
- Heavy Vehicle Usage Tax
- Other local permits, if required.
Meeting these legal requirements is important for trucking companies to avoid hassle with the authorities.
Getting Hold Of Trucks
The second step for starting a trucking company would be to arrange trucks. One of the greatest advantages of starting a trucking business is that you do not need to have huge sums of finances to start this business. If you do not have enough money, you can still start a trucking company.
You can lease a truck from someone willing to lease their trucks. You just have to operate the company, your delivery services will be provided by the truck driver. This business model is called owner-operator.
The second option would be to buy the trucks. If you have enough money you can buy new trucks or used trucks, depending on your budget. The advantage of this business model is that you will not have to share the profits.
When you have multiple trucks, you might have to hire drivers as well. Make sure that you choose reliable drivers who carry commercial vehicle driving licenses to avoid issues with legal authorities.
Get Them Insured
Insurance is extremely important for trucking businesses. Trucks have to travel long distances on highways and city roads as well. Chances for accidents are very high in the trucking business. Therefore, you should get an insurance package that covers your vehicles and staff as well. The insurance company should offer vehicle repairing costs and medical insurance to the drivers. The insurance company should also cover the cargo you are hauling. In case of damage or loss to the products, you do not have to pay the entire cost. Having an insurance plan can help you financially.
While getting an insurance plan, you should consider an arbitration program as well. Arbitration is important in a way that it can help you in cases with the clients. When you are hauling the cargo, it becomes your responsibility. Any damage to the products or loss of products may result in a dispute with the client. Make sure you have an arbitration program to help you in such cases and avoid court trials.
Manage Financial Structure
Like every other business, trucking companies require financial backing to operate. When starting a trucking company, you should have a financial plan to make things work. Since you do not have to buy the trucks, you can cut costs by leasing one or more trucks, depending on how big you want your company to be. However, it is wise to start low and build your business gradually.
The only expense you have to face initially is the fees for permits and licenses. You should also have something in your pocket to pay for fuel as well.