A truck company is one of the most profitable business options in the United States. The reason for this is that there is always a demand for truck transport for companies that route any type of shipment.
You might consider starting your own trucking company if you are already involved in the trucking industry in some capacity. If you are a novice, setting up your own trucking company can seem overwhelming and even impossible. You will need to consider many factors, such as writing a business plan and obtaining insurance, as well as organizing sufficient funding and ensuring your tax affairs for the business are in order – you may want to speak with a startup cpa in NYC or a professional where you are based to ensure everything is legal and above board.
However, don’t be discouraged. There are some key steps you can take to get your truck business started and move in the right direction.
Create a business plan
If you want to be successful in the trucking industry, a realistic business plan is essential. This plan is a must-have as it will ensure you go through every phase of your trucking business prepared.
This plan will help you attract investors and outline your goals, strategies, as well as the steps to reach them. You should stick with your plan once you have it in place, however, don’t be afraid of revising it as your business develops.
You can either hire a professional or create your trucking business plan yourself. However, if you are not well versed in writing a business plan, you can always use a template to quickly and easily complete your trucking business plan.
Register your trucking business
After creating a business plan, the next step is to register your trucking company with the state authorities.
If you are starting a trucking company by yourself, consider registering as a limited liability company. This entity provides the best protection for your personal assets. If you have a partner, it is worth looking into different legal entity options that are specifically designed for partnerships.
You will also need to choose a business name. Your brand, values, and mission should be reflected in the name you choose for your company. Bear in mind that your business name will be the first thing potential clients notice about your business.
After narrowing down your name choices, you can search the United States Patent and Trademark Office database to see whether the name in question is available.
Get the necessary permits, licenses, and insurance
Next, you need to make sure that your trucking company is legally registered and obtain all permits and licenses. For instance, a general business license is required if your company will be located within the US.
Because laws vary from one state to the next, you will need to check with your state’s authorities to determine which licenses or permits are required to legally conduct business. You should also consider purchasing the right insurance to have it all covered including damage done by transportation and damage to your equipment as well as employees.
Keep in mind that starting a trucking company is a major investment. You need to always protect your assets and purchase specific types of insurance to help you do this. To ensure your property is safe consider policies such as workers’ compensation, general liability, and commercial auto coverage.
Take a look at your loan options
If you don’t have the budget to finance a large project like this, you can either opt for bank loans or pre-settlement loans from a family member or a friend. A bank may be able to lend you money if your credit rating is high enough. If you want to get the best deal, consulting a professional is your best option. These are the three most important things you should pay attention to when looking into bank loans:
- Rate of interest. This is the interest rate that you will pay back in addition to the loan amount. If possible, look for loans with lower interest rates
- The term of the loan. The terms of the loan outline the amount of time that you have to repay the loan.
- Collateral. Collateral is an asset that you will pledge as security for the loan. The lender may seize the collateral if you default on your loan repayments. This collateral can be your home, business, vehicle, or other personal assets.
Starting a trucking business can be easy. However, you need to make sure that your business runs smoothly and effectively, without any problems and losing money. Start slow, create a business plan, obtain financing, and then grow your fleet. Don’t forget to obtain the right permits and a solid insurance policy as well. Securing your business as well as your employees and equipment is much easier with a solid insurance plan.