June 12, 2023 / by
Start a Successful Trucking Business in Today’s Hot Consumer Market
How to start a trucking business
With smart preparation and planning, you can become your own boss in the trucking business and share in the profits generated by a lucrative industry. In the next five minutes, we will reveal all you need to know about how to start a trucking company and how to get more loads.
Trucking in the USA
Delivering about 72.5% of all goods throughout the country, trucking is the backbone of the U.S. economy. U.S. trucks carried 10.93 billion tons of freight in 2021 alone. Also, thanks to more Americans ordering products online, a driver shortage, and globalization of trade, experts project a trucking industry’s job growth rate of 4% from 2021 to 2031, adding 259,900 trucking job openings yearly.
What do you need to start a trucking business?
Success and profitability in the trucking business start with your decisions in choosing and acquiring your vehicles and setting up your trucking operation. This section provides the essential details of how to start a trucking company.
Initially, you must decide whether to buy or lease your trucks. The most common way to acquire commercial vehicles is through one of three leasing agreements.
- Operators: This lease allows you to possess the vehicle full-time through the lease period. With this lease option, you are responsible for the taxes, maintenance, and permits. But you get to walk away without any obligations when the lease expires.
- Terminal Rental Adjustment Clause (TRAC) Lease: A TRAC lease requires a small upfront downpayment. When the lease expires, you can purchase the truck for its residue value or allow the leasing company to sell it.
- Lease-purchase Plan: This type of lease favors trucking entrepreneurs with bad credit or who lack the funds for a down payment. However, this leasing arrangement carries a high-interest payment.
Your choice of commercial vehicles will depend on the type of freight involved and operational requirements. Typically, you will need a dry van for loose freight, a flatbed for oversized or wide loads, and refrigerated vans for items that must remain cold.
Business set up
The following steps will help you get a solid start in the trucking business.
1. Get a commercial driver’s license and driving experience. Whether you plan to be an owner-operator or a non-driving fleet manager, the Federal Motor Carrier Safety Administration mandates you get a valid commercial CDL license. You can get training and licensing through private schools or some trucking companies.
2. Write a business plan. Your business plan will outline your strategy for your potentially successful trucking company. If you are unsure how to do it, there are plenty of online guides and templates to assist you. The Small Business Association (SBA) suggests your business plan should have a three-to-five-year projection.
3. Get financing: Due to current demand and the driver shortage,getting a business loan to pay your trucking business’ start-up costs is much easier than in the past, even if you have fair credit. Also, credit unions’ business loan requirements are usually not as strict as large banks.
4. Open a business bank account. For legal and tax purposes, you should separate your trucking business finances from your personal accounts by opening a business bank account and business credit card.
5. Buy insurance: You’ll need a minimum of $750, 000 for liability to comply with the Federal Motor Carrier Safety Administration (FMCSA) insurance requirements.
5 Getting your trucking authority: You will need to apply for your trucking authority in your state. This designation gives you the operating authority to work as a hired carrier over state lines.
7. Learn all the legal requirements: The trucking industry is highly regulated. Ensure you learn and comply with all FMCSA legal requirements for owner-operators.
How to find loads
After you launch your trucking company, finding loads will be the least of your concerns when you join trucking alliances through Sylectus. This software as a service (SaaS) can be a powerful tool for your trucking business’ growth by linking your truck business with carriers and brokers with exceptional creditworthiness, safety scores, and payment terms.
Sylectus Load Board connects you to a trusted network of trucking professionals to get more loads and get established in the industry. Sylectus’ cloud-based transportation management system (TMS) provides easy integration with brokers, major carriers, and third-party systems to ensure you get the best load board rates and exceptional opportunities to boost your revenue. In addition, you have the option of getting 24/7 real-time updates on your mobile.
Making Your Final Decision to Start a Trucking Company
If you aim to start a successful trucking business, now is an excellent time to pursue it because high consumer demand and the driver shortage make it an opportune time to enter a profitable freight delivery market. Plus, portable technology like Sylectus makes getting more loads, forming solid business relationships, and managing your trucking business much easier. Try Sylectus today