The Basics of Starting Your Own Trucking Company
If you’re looking to start your own trucking company, you might already be aware that you’re facing an uphill battle. Starting up a business of any kind is a risky venture, and many of them fail in the first year. Trucking companies are facing more problems than ever in recent years, thanks to the lingering effects of the Covid virus. If you’re determined, however, there are a few things to think about as you work on starting your own trucking company.
Know Your Freight
Once you’ve decided that you want to run your own trucking company, one of the first things you’ll need to determine is what kind of freight you intend to haul. For some, the easy choice is to haul general freight that doesn’t require any extra certifications or licensing. For others, it will make sense to take on the extra work and fees in order to become a specialty trucking company that can handle more sensitive cargo. What you prefer and what your circumstances are will be the determining factors in what kinds of freight you decide to take on.
Choose a Business Structure
When your company is first starting out, you will need to choose which business structure will work best for your needs. For small businesses, these structures are:
- Sole proprietorship
- Limited Liability Company (LLC)
Each of these business structures comes with its own advantages and disadvantages, so it’s important to look into each one carefully. These affect ownership rights, owner liability, and how taxes are determined and filed, among other things. A company that grows beyond the scope of remaining as a small business can become a corporation, such as a C-corporation or S-corporation.
Get Your Documentation Together
This might be one of the most difficult and time-consuming processes when you decide to start up your own trucking company. The documentation needed, even for a small company that chooses not to carry specialized freight, is extensive. There are a lot of government regulations that need to be followed, and many of them require documentation for your business. In addition, you will need various licenses and certifications, especially if you choose to haul specialized freight. You will also need documentation for all of your employees, making the process that much more draining and time-intensive. However, all of these documents are absolutely necessary and critical for the survival of your business.
Be Smart With Your Funds
“It takes money to make money.” We’ve all heard the saying, and it is often true, but it is critical that you always invest your money wisely. If you drain every single penny right at the start, there is a very slim chance of your trucking company actually staying afloat. You need to start small, especially in the trucking business. The costs between equipment, salaries, documentation, maintenance, and repairs are all going to be a major drain on your finances, especially in the beginning. Starting out fresh with no reputation will make it difficult to get work at first, so you need to have a financial buffer for the slow beginnings.
Get Ahead of Potential Problems
The economy is a mess right now, and there is a critical truck driver shortage happening in North America. This is something that anyone hoping to start up a trucking company should be aware of—these obstacles will cause problems for anyone trying to start up a brand-new trucking company. You need to be aware of what kind of issues you’re going to face as you begin your business and make any attempts you can to counteract them.
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