Are you considering starting a trucking company? It’s a crucial business that can benefit the country as a whole.
You can work as a solo trucker or hire a fleet of truck drivers. You’ll provide an important service needed for the transportation of goods.
But how do you succeed with starting a trucking company? It’s one of the most challenging types of businesses to run. You have to worry about fierce competition, high expenses, and major risks.
We’ve prepared this guide on how to start a trucking company.
Let’s start with your business plan!
Business Plan for a Trucking Company
The first step is to prepare your trucking company’s business plan. In this business plan, you have to outline the following:
- The name of your company
- Where you’ll incorporate your company
- How many trucks (initially) you’ll want to own
- A set budget for your initial funding
- What type of trucking company will you run?
- Will you deliver goods for other companies?
- Will you rent out your trucks to truckers?
- Your projected launch date
Once you’ve set up your business plan, you have a blueprint to get started with your trucking company. You want to also make sure you find a policy that provides insurance for all trucks you purchase.
Track Your Dispatches
It’s imperative that you track your truck’s dispatches each time it leaves your docking station. Make sure you also keep records of when each truck returns.
This lets you keep track of expenses and how long each journey takes. This will help you plan to increase your productivity and efficiency. It’ll help you set prices, wages, and financial goals.
Your dispatch records should include information on the goods, the client, the driver, and the invoice amount.
Focus on Your Cash Flow
A trucking company is one of the riskiest types of businesses that one can run. As such, you want to focus on creating a safety net for your trucking company.
The first step is to make sure you have constant cash flow. You need to keep track of your profits each month.
You want to make sure that you do turn a profit each month. Keep notes if you fall under this goal during any month.
You want to make sure that you collect funds from your vendors as soon as possible. Give them a strict deadline of when to pay their invoices. If you run into difficulty, you might wish to consider an invoice factoring service.
You also need to keep track of your finances at all times. This includes your revenue, expenses, and tax obligations.
You should hire a financial advisor to assist you with increasing profits and cutting down on financial obligations.
Find Your Customers
Next, you want to find the ideal customers for your trucking business.
Let’s return to one aspect of your business plan. Do you wish to rent out trucks to truckers or do you wish to deliver goods?
Let’s start with the first option. You want to be discerning with renting out your trucks. It’s best to choose truck drivers with years of experience with driving trucks. You want to look at their work history to see how many trucking companies they’ve worked with.
Most truckers will want access to a truck as often as possible. As such, focus on a few select customers who’ll pay high fees for longer lease terms.
Now, let’s move onto the second option. Choose a few clients who can provide goods on a regular basis. You want to choose goods that won’t get damaged or expire easily.
You can find many clients who’ll want you to deliver food through their trucks. But this can be a risky move, as the food can get damaged or contaminated.
It’s best to play it safe at first. Once your trucking company builds lots of capital, you can then focus on branching out. Focus on a few clients at first before you try to expand your base.
So what are the best practices you need to run a successful trucking company?
The first is to do your research on the type of trucks you wish to own. Do you prefer a long-distance hauler or hot shot trucking?
It’s imperative that you understand how these trucks work and how to maintain them. If you hire truckers, you want to make sure they’re trained in operating different types of trucks.
It’s also important that you always deliver your goods on time. This can be a challenge during the early stages of your trucking business.
As such, focus on keeping timings of departure, delivery, and returns of your trucks.
This will help you keep track of your timing with delivering your goods. You can use this to prepare schedules beforehand.
For example, you might find that your trucks deliver goods, on average, a few hours before the requested delivery date.
This is cutting it way too close! You can request your truckers to leave a few hours earlier or even one day earlier. This can ensure that they’ll deliver goods before the requested delivery date.
You also have to keep yourself updated with regulations for a trucking business. It’s best to hire a lawyer who can do this research for you at all times.
You must also learn excellent customer service skills. Take time to practice speaking to your clients.
You want them to feel that they can rely on your trucking business. You also want to give them the impression that they can consult with your trucking business at any time.
Start Your Trucking Company
Now you know the guidelines to start a trucking company and are ready to get started!
Spend time focusing on creating a blueprint before you get started. Make sure you focus on building capital and keeping a consistent cash flow.
If you focus on keeping accurate records of your work, you’ll be prepared to scale your trucking company. This is a challenging business but one that needs talented entrepreneurs like you!
You can also find more tips on entrepreneurship on our website and read our latest cheapest truck insurance article here and share your feedback!