When most people think about prosperous industries in the U.S., trucking is probably not the first business sector that comes to mind. However, one drive on an open highway should tell you everything you need to know about the demand for trucking and haulage businesses in the country.
Besides selecting a business entity, business name ideas, you will also need to choose a unique business name to register your business. Essentially, your business name will be the initial impression for prospective clients, so make sure that it communicates your brand, personality, and specialty. If you need help, this article from Media Heroes guides you through a step-by-step process of generating business name ideas.
Well, if you’re willing to start your own business and have a profound love for driving and logistics, starting a trucking company may just be the right fit for you. With over 72% of all goods transported around the U.S. being moved through trucks, in the U.S., there’s always a great demand for trucks, and more importantly, trucking companies.
So, suppose you want to know how to start a trucking business. In that case, you should know that there are many factors to consider, including writing a business plan, selecting your business entity, getting licenses, hiring employees, searching for clients, etc.
In this article, to make things easier for you, we’ll break down the most critical steps you need to go through to start a trucking company and get your business in high gear.
Compose a Well-Thought Business Plan
Composing a business plan for your trucking business is the first step you should take, as it will help you focus on the core parts of establishing your company. A well-thought-out business plan will explain the reasons behind your company’s founding, the money required to get started, financial projections that display costs versus profits, and other strategic details.
Composing a trucking business plan will keep you focused on building your business according to a blueprint, which can be very helpful as you get into the dirty work of getting started and may not have the time or resources to refocus on your overarching strategy. In addition, you’ll also need to attach a business plan for just about any small business loan application, so you’ll be glad you composed a business plan before you start applying for funding, as the process will be much smoother.
Register Your Business
Once you have a solid business plan in place, the next step is to register your company with any local or state governments that demand it.
Select a Business Entity
Before submitting your paperwork, you’ll want to look at the different business entities available as each offers different personal liability protections, ownership structures, taxation methods, and other technical differences. For instance, if you’re starting the company by yourself, you can look into limited liability companies since they present the best solution to protect your personal assets. On the other hand, if you’re starting the company with a partner, you’ll need to consider the different types of LLCs designed for partnerships and corporations. Although the process of incorporating your business is a little paperwork-heavy, the process itself is relatively easy.
Select a Business Name
Besides selecting a business entity, you will also need to choose a unique business name to register your business. Essentially, your business name will be the initial impression for prospective clients, so make sure that it communicates your brand, personality, and specialty.
In addition, check to ensure that your desired business name is not already taken. Once you have a shortlist of a few potential names, do a quick search in the U.S. Patent and Trademark’s database to understand whether the name you’re considering is available for use.
Obtain All Necessary Business Licenses and Permits
Next, you need to ensure that your trucking company is operating legally, and in doing so, you’ll need to obtain all necessary business licenses and permits. To begin with, all U.S. states will require you to get a general business license if you want to headquarter your business within its boundaries.
Furthermore, you’ll also need to secure an international registration plan, which is required if your truck or trucks are over 26,000 pounds and crossing state lines. Since regulations about licenses and permits vary by state, check with your state’s authorities to determine exactly what you need to stay on the right side of local rules.
Purchase or Lease Equipment
As you probably know, equipment is everything in the trucking business because if you buy bad trucks, you’ll run into many problems. When it comes to getting the equipment you need, you can purchase or lease the trucks, and knowing which option is better suited for your company could be challenging to determine. The best solution to this problem is to talk to someone who owns or owned a trucking company to help you decide the most cost-effective solution to your problem.
Hire Drivers and Market Your Business to Get Customers
Finally, if you plan to start by yourself as the sole operator of the trucks, you won’t need to hire drivers right away. Nevertheless, if you plan to operate a fleet of trucks, you’ll need some qualified drivers which you can find using sites like LinkedIn to narrow down your search.
And even more important than hiring drivers are your potential customers. To find your first customers, you can also turn to social media networks and create company profiles on the platforms where your prospective customers are. Since you’re going to be driving for other companies and not individuals, it may be wise to download a proper LinkedIn lead generation tool to find clients and grow your pool of potential customers quickly.
Now that you know the fundamental steps to start a trucking business go out and get started. Begin with a single truck and grow a trucking empire that has deals with the most prominent national retailers. Take advantage of the shortage, and show everyone how to run a trucking business the right way.
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Hello, My name is Shari & I am a writer for the ‘Outlook AppIns’ blog. I’m a CSIT graduate & I’ve been working in the IT industry for 3 years.