The trucking industry is worth hundreds of billions of dollars. This industry employs millions of drivers and generates billions in annual revenue. Without the trucking industry, it would only be a matter of time before America’s regular functions stop.
Trucks transport nearly 71% of all freight in the United States. That means truckers are transporting over 671 billion dollars of goods every year. With the ongoing driver shortage, there is a high demand for truck drivers. If you are thinking of starting your own trucking business, now would be a great time.
Check out our tips on how to start your own trucking business.
CDL
A CDL (commercial driver’s license) is a requirement to operate heavy duty vehicles. The minimum age requirement for a CDL is typically 21. Some states allow drivers between the ages of 18-20 to apply for a single-state CDL.
- To get a CDL you must provide
- Identity and Social Security Number
- Proof of state and US residency
- Submit a completed Medical Examination Report Form
- Pass a vision, knowledge and road and driving test
Once obtaining your CDL, you can start gaining experience.
Develop a Business Plan
Business plans create a road map to success. They are an important tool to help guide you in your decision making. A traditional business plan should include the following:
- Executive Summary
- Company Description
- Services
- Market Analysis
- Sales and Marketing
- Funding Request
- Financial Projections
The details in each section of your business plan will be different depending on if you choose to be an owner operator or a company owner. Make sure that each section accurately represents your company. This lets future investors and partners know how well you have done your research and that you know what it takes to be successful.
Choose a type of company
In the trucking industry there are 4 common structures:
- Sole Proprietorship
- Partnership
- Limited Liability Corporation
- Corporation
Each has its pros and cons. Do some research to see what best fits for your business plan.
Funding
Starting a trucking company comes with a lot of expenses. You will need to pay for a tractor, trailer, licensing requirements, registration costs, insurance, state-specific expenses and possibly more.
Look into financing options for helping you pay for the startup costs.
The Trucker’s Network partners with Business Funding 4 You. They offer the best and most affordable options for helping your business grow.
Compliance
Your trucking company must follow several trucking safety rules before you can start working.
- DOT Number
- Obtaining an Authority
- Complete Your Unified Carrier Registration (UCR)
- Get an International Registration Plan (IRP) Tag
- Obtain an International Fuel Tax Agreement (IFTA) Decal
- File a BOC-3 Form
- Check to see if you will need to file Heavy Vehicle Use Tax
Insurance
Insurance is a requirement for all truckers and trucking companies. It will help protect your business from unexpected financial burdens.
The Trucker’s Network partners with Trinity Insurance Services for commercial truck insurance.
