7 tips to make a successful trucking company in 2021
Building a trucking company from scratch is no easy task and requires a lot of dedication, time and effort. You must be thoroughly educated about the current demands of the industry and build your business according to them.
Today we are going to give you 7 useful tips to help you start your own trucking company in 2021.
1. Decide on your target market
There are many different types of trucking businesses with each one performing a particular service. You have door to door services, business to business services, heavy hauling and other specialized services.
There is high competition in the trucking industry. Find a speciality which is not very popular in the market and build a business around it. For example you can take on specialized freight services for private companies or look into temperature controlled freight transportation.
2. Prepare all the necessary legal documents
If you want to start a trucking company you have to be prepared for all the legal work you have to complete and submit. There are many rules and regulations laid down by the country in relation to the startup and operation of trucking businesses.
All the drivers who are employed should have a CDL-A or a CDL-B license according to the kind of truck your business is going to use. Filing a BOC-3 form with the FMCSA is important since it grants your company access to interstate operations. You can consult a professional who will guide you through all the legal procedures.
3. Register your company with the state
Majority of the trucking companies opt for LLC as their business structure. The LLC status is beneficial and has many advantages including protection of the owner from debts and liabilities, simpler registration procedures for multiple states and other benefits related to taxes.
It is also the recommended option for new start-ups which don’t want to engage in long and complicated business formalities. You can consult an experienced LLC agent who can help you with the entire registration process.
4. Establish a solid financial plan
If you don’t have a practical and solid financial plan your business will end up losing a lot of money. Trucking is one industry which requires a lot of heavy investments which must be properly managed in order to ensure a profitable return. You should consider the different rates according to the mileage, freight type, speciality shipping cost, transportation speed and other factors. Long term expenses like repairs and maintenance fees should also be considered. Make sure to get a proper trucking insurance to prevent possible property losses.
5. Buy or rent the required vehicles and equipment
You can either purchase new trucks and equipment for your company or make use of an appropriate truck rental service. Long term leasing is also one option many companies choose. You should make the decision after evaluating the expenses, advantages and disadvantages of each option.
If you don’t want to make heavy investments in new trucks and equipment you can always opt for used or second hand equipment. The Truck1 Malaysia online marketplace sells good quality second hand trucks and construction equipment. Truck rental services are beneficial if you don’t want to be in charge of maintaining and storing your trucks.
6. Make sure you have a proper back office system
Every company has administrative duties which need to be completed. Back office operations should be carried out properly for the smooth functioning of your trucking company. This includes managing the various finances, legal procedures, customer records and contacts of shipping companies. They are also responsible for contacting employers and scheduling deliveries. It is always better to hire capable employees for your back office.
7. Establish contacts with prospective employers
One way you can establish contacts is by hiring freight brokers. Freight brokers help you to establish contacts with shipping companies who are in need of trucking services. However you will have to pay broker fees in this method. You can also make use of load boards online which will offer you multiple payment options for different types of loads.
Make sure you thoroughly educate yourself about the various risks and procedures involved so that you will always be ready to face unexpected situations. With proper planning and execution you can build the trucking company of your dreams.