The trucking industry is a vital component of any economy since it takes goods to the customer. For this reason, many companies, as well as individuals, get into the industry hoping to make a profit. And most do. Using load boards alone, you can make up to $10,000 a month with one truck only.
If you can secure contracts with local stores and businesses, that figure can rise to $20,000. But, competition in the industry is cutthroat. To survive it, here are tips on how to start a trucking business from home.
1) Make a Business Plan
A solid business plan is the first step to starting any business. A plan allows you to put your dreams down on paper. And as you do, you get the opportunity to refine and redefine your goals, making it easier for you to actually achieve them.
Besides listing goals, a plan should also include business strategies, expected earnings, target market, and areas to serve. If you get stuck on your plan, turn to someone in the trucking business for help.
2) Register your Trucking Company
After completing the business plan to your satisfaction, move to the next step – opening a trucking company. Opt for a Limited Liability Company (LLC) if you intend to run your business from home. LLCs are easy to run and even easier to register.
Once you file the organization articles with your respective state and pay the nominal fee, you are literally in business. Better still, as the “Limited Liability” in the name suggests, an LLC limits your personal liability.
3) Get a License
Anyone intending to operate a big rig must obtain a mandatory Driver’s commercial License (CDL) from his or her state. That you can drive your car does not qualify you to drive a big rig. Rigs are complex beasts that have their own peculiarities; hence, the CDL requirement. So, expect to take a driving exam especially for commercial drivers to get the license.
4) Buy or Lease a Rig
After getting the CDL, now get yourself a rig – that is, if you do not have one already. Whether you get it new or used is up to you. But before you search for big rigs for sale or lease, ensure that they suit their intended purpose. For instance, if you intend to haul perishable products, a refrigerated truck would be a smart investment.
5) Insure Your Business
Hauling heavy freight over long distances puts both your rig and freight at risk of accidents or damage. So, take get liability insurance to secure you and it from any eventuality.
6) Market Your Business
This crucial step determines how quickly your business gets off the ground. Marketing is about finding clients you can haul freight for. To get started, and only as a short-term strategy, get your first customers from load boards.
However, take note that load boards are competitive, offer only rock-bottom prices, and rarely give you long-term customers. Even so, they at least get you started on the path to your dream business. With time, however, and after a lot of hard work, you will eventually get a steady client base.
Conclusion
To start your own trucking business, first, formulate your business plan. List your goals, intended clients, expected earnings, and strategies. Next, establish an LLC. It is easy both to start and run. The third step is getting a CDL.
After this step, buy a rig that is suited for its intended purpose. Then, take out a limited liability insurance policy on it. Finally, find customers on load boards as a short-term strategy. If possible, seek to secure contracts with local businesses for long-term business.
