Becoming A Business Owner: Getting Into The Trucking Business
If you are interested in starting a trucking company, consider operating it out of your home. The process is essentially the same, but you don’t have to pay for an office space, so you save money from the very beginning.
It can cost a lot of money to get a trucking company started. When you work from home, you can help to mitigate those costs. Every year, it costs more than a hundred thousand dollars to operate a rig. Filling up the tank with gas can cost as much as five hundred dollars. Therefore, every penny is important if you want to make a profit. You can save money working from your home, but you still need to be licensed and follow all of the state procedures to get your business started.
Getting Your Business Off The Ground
To start, you need to make sure your business is registered with the secretary of state. You can do this online; you simply need to give some personal information, name your business and submit payment information for the fees. How much you owe is different depending on which state you live in. It is less expensive in California, for example, than it is in Texas. Once the registration process is complete, you must head to the IRS’s site so that you can get a tax ID number. This does not cost any money.
Purchasing A Big Rig
Acquisition costs are completely different than operations costs. Expect to spend up to $175,000 on a big rig; this will get you a new vehicle with a tractor and trailer. If you opt out of getting the trailer, you can save as much as fifty thousand dollars. While that is a substantial amount of money, it is important to think first about the type of business you want to have so that you do not lose customers because of your decision. Many trucking companies actually purchase an additional trailer to improve their storage options. It is important to research the situation to figure out how you want to proceed, particularly when it comes to financing.
Hiring
You will likely need to hire people for your work – you won’t be able to do everything and even if you can, you won’t be able to do it well. Check here to see what people offer in freight forwarding jobs and to find talent.
Bonding And Insurance
Prior to getting your license, you have to have a bond and insurance. You are expected to get anywhere between $750,000 and $5,000,000 in cargo and general liability insurance. A surety bond is also important; it should be in the amount of $75,000. In order to get everything set up properly, speak with a commercial lines insurance agent.
Your next step is to fill out a FMCSA application. You must give them information related to your insurance, the driver and the bond. Drug screenings must be completed and you must also provide driving records. In addition, for a year and a half, you will have to take part in the New Entrant Safety Assurance Program. As part of the process, you have to agree to audits and random inspections. Once you are done with the program, you will get your official trucking license.
Working With Others
Networking is really important in this industry. If you want to have a good customer base, networking is the way to do it. Talk to shipyards and distributors and let them know who you are and what you do. Take pride in your work, getting cargo to its destination in a timely manner and without incident. These are the best ways to impress your customers and get them to use you time and time again.