This is so because trucking companies compete for available business deals. Renting a truck costs much less than buying one. Well, this is because they provide essential services to the United States economy, by transporting large quantity of raw materials, machines, equipment, building materials and finished goods over land. An estimate of 15.5 million trucks operate in the United States of America, and of this figure 2 million are tractor trailers. It’s not impossible, but you’re not going to want to go off alone on this one. Here is a list of some well-known brands in the trucking industry; In most countries of the world, the economic strength relies heavily on an efficient, safe, secure and sustainable freight transportation system; it is a vital sector in commerce and industry. Interesting Figures About the Trucking Industry. You can continue to rent such equipment until you can purchase yours.eval(ez_write_tag([[300,250],'startupback_com-banner-1','ezslot_6',147,'0','0'])); This is yet another way to start a trucking company if you’re working on a tight budget. Apply for Trucking Authority – Trucking Company Forms. Starting a trucking business means that you would need a suitable truck; it could be a brand new or fairly used. One that applies to all is having the down payment. 15 Steps on How to Start a Trucking Company with No Money. New trucking company owners can invest somewhere between $10,000 and $20,000 to start a small trucking company. There are successful trucking companies today who started the same way (without their owners putting in any money belonging to them). 1. One good thing about trucking business is that you can start with just one truck and within a period of time, if you are dedicated and hardworking you can grow the business into fleets of trucks. If your intention of starting your owner operator trucking business is to grow the business from a one – man owner operator trucking business to a standard trucking company with fleets of trucks transporting goods all across the United States, then you must be ready to spend money on promotion and advertisement of your brand. The activities in the trucking industry is regulated by the United States Department of Transportation (USDOT), the Federal Motor Carrier Safety Administration (FMCSA) and the Federal Highway Administration (FHWA).They ensure that drivers and trucking companies adhere to safety rules and regulations and also that potential truck drivers undergo special training on how to handle large vehicle before applying and obtaining their commercial driver’s license (CDL). That is those who buy into your idea and believe that it would be a huge success in no distant time. You can find your own driver and potentially increase your bottom line a little more. In the trucking industry, there are many moving parts (no … Grants for truck drivers to start their own business It is on record that more than two-thirds of United States – Canada trade is moved by truck, this include more than 80 percent of all the goods exported from the United States of America to Canada. As a matter of fact, in the U.S. about 66 percent of truck tonnages move distances of 100 miles or less; local and regional hauls account for almost half of all truck revenues and are they are the preferred choice for private carriers. When starting a trucking company, put every detail of your services on your website pages. One of the easiest ways to achieve your goal is by applying for trucking grants. You're kidding, right? Setup Your Business. Action 1: Obtain the appropriate equipment. Meeting with your employees will give you the opportunity to listen to the challenges and difficulty that they are subjected to, while carrying out their jobs. Leading your company takes a disciplined approach. The rule of thumb in writing a business plan is to try as much as possible to be realistic and never to over project when putting figures on income and profits et al. Truck Insurance. **Good solid credit. Secure Business Insurance. Below are some of the platforms you can leverage on to boost your brand awareness and advertise your trucking business; If you have ever closely monitored other successful businesses, you would find that one of the reasons why they are able to go far is their management style. The Small Business Administration oversees this program to help out new entrepreneurs establish and strengthen their businesses. Many of the LLC tax classifications are common for a new trucking company. Understand the Industry. 3. Get the average. Once you are able to get all this facts, then you can go on to carry out your job. The trucking industry is responsible for flexible, reliable and economic movement of goods within and outside the United States. Just remember, owner-operators typically earn more than company drivers so a little effort now can lead to a bigger payoff later. How to Make a Successful Trucking Company: 7 Steps. Also lack of finance, high debt burden, cost structure, lack of scale compared to your peers who have already gained ground in the industry could be a major threat and challenge to the survival of your trucking business. It is economical to ensure you always source for deals from the destinations you are expected to deliver goods so that you will not run empty back to your base / station. IRP plates could cost you anywhere between $500 to $3,000 per truck. In other cases, there may be zero funds kept aside for actualizing the business. This help is offered by the National Association of Self-Employed. Profitability, 9 Small Cargo Van Business Ideas For Transporters. Whether you’re an owner-operator or you hire drivers, you/they need a valid Commercial Driver’s License (CDL), as required by the Federal Motor Carrier Safety Administration ().Drivers age 21 and over can apply. Write a Marketing Plan Packed With ideas & Strategies, 12. If you want to run a successful trucking business, then you must ensure that you put structures and processes in place that will aid you in achieving your business goals. To qualify, simply share your business idea and how you’ll be spending the amount when you win. There are diverse names that just might ring a bell when it comes to the trucking trade. Most trucking companies ensures that they install car (truck) tracker on their trucks; it enables them effectively monitor their trucks and it indirectly increases efficiency et al. There are several approaches that you can take in order to market your trucking business but you must first have a trucking service marketing plan at hand. Some of the fundamental differences to consider are the requirements needed to be approved, amount of time it will take to be approved, cost, additional benefits and long-term effects. The U.S. Department of Agriculture has made this grant program available for persons living in targeted (rural) areas. Based on your business plan and partnerships, the company entity can be a DBA business, LLC corporation or C-Corporation. An initial cost you can consider when starting your trucking company is about $6,000 to $15,000 (not including your equipment). Gather All Your Assets. This gives you an added advantage of succeeding in finding the right financing sources. If you are starting a medium scale trucking business, you can consider contracting the maintenance of your trucks; it is cost effective to do so. Conduct Market Research and Feasibility Studies, 4. Clearly, you need the best tools for your firm. This means to a large extent that trucking business is not only about transporting goods over a long distance. Is Being An Owner Operator Worth It? You should find one that serves your needs best. These are ways on how to start a trucking company with no money. We won’t sugarcoat it, there are A LOT of forms and licensing that new trucking companies must apply for—here is a list of the major ones: How Much Do Owner Operators Make After Expenses? As the name implies, this is a small business grant accessible by entrepreneurs including small trucking companies.eval(ez_write_tag([[300,250],'startupback_com-leader-1','ezslot_9',149,'0','0'])); Your small business gets awarded a grant of $10,000 which is expected to be channeled into establishing your business, in this case, your trucking company. We have created this page to give you some ideas for where to get funds to pay for everything that comes along with starting a new trucking company. There are statistics that 970 carriers with five or more trucks were forced to close their business in 2013. This is a popular option too. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity, 15. In essence, in order to retain customers and to attract new customers as well, you must go out of your way to meet and surpass the expectations of your clients. Ensure that you make provision for training and re – training of your staff. Nevertheless, this shouldn’t dampen your spirit as there are ways you can establish without having sufficient or no funds at all. This article is relevant to all situations. How do you know if you qualify for this grant program? There is hardly any city in the United States of America where you will not find the presence of big corporations who are into trucking business. Starting a trucking company without money is possible. Before any truck leaves your yard for a trip, make sure that the truck is in tip top shape for the journey. Most people don’t have the money they need to fund their startup trucking company, and as they say, money doesn’t grow on trees. Those with prior experience of trucking services know that it’s a capital intensive sector. Such entries are taken from all across the country. In the end, winners are given grants of $50,000 to put towards their businesses. Get a CDL. Add 10% to 15% to get the price brokers charge shippers. Creating a trucking business plan. This is a contest that allows entries from people with compelling stories. Why is this so? However, when visitors come to your website, its design must make an impression. It has been proven over and over again that excellent customer services and excellent service delivery/products are one of the surest ways to increase customer retention for your business. The trucking industry is not restricted to only trailers or large trucks that haul goods from one, destination to another via interstate highways; it also involves smaller trucks that help transport smaller quantity of goods from one destination within a city to another destination within the same city. If you want to be your boss, you can also start your own trucking business. No doubt writing a business plan may not be as easy as it sounds, but thanks to software (templates) that now make it easier for people to write their business plans without consulting the services of business experts. No doubt starting and operating a trucking business can be challenging, but the truth is that it can be rewarding at the same time. It is important to consider many factors before venturing into the trucking industry. To qualify for this grant opportunity, you’ll need to become its member. Basically, when it comes to trucking business, you are expected to go out there to source for deals. A company that helps businesses and individuals to ship goods, personal or commercial items, raw materials and other possessions from one location to another using trucks, trailers, vans or any other commercial vehicle is known as a Trucking Company. As a matter of fact, it is safer to underestimate when writing a business plan so that you won’t be so disappointed when reality sets in. Canada has well over of 250,000 truck drivers. Develop an Iron-clad Competitive Strategies to Help You Win, 13. The grant amount ranges from $10,000 to $500,000. This is ideal for persons having insufficient funding to start their trucking business. Additional Resources to Start Your Trucking Company. I know you can’t wait to find out how. High interest loan through finance company; Finance through the company you’re leasing your truck with; Want To Start A Trucking Business With Bad Credit And No Cash? Go ahead and lease-to-own a truck with no money down from one of the big carriers. There is more to starting a business than just registering it with the state. Lastly, if your employees especially truck drivers are well taken care of, they will be committed to the growth of your business; they will work hard to help you achieve your business goals and objectives. The Department of Veteran Affairs has created a program where those who have served in the military can access funding to set up their businesses. Ensure that you under promise and over deliver. A CDL allows you to operate vehicles for ... Do Your Paperwork. This entry requirement is then followed by posting on your company’s Facebook page to tell your story. Once you are able to secure a business, you are expected to assess the nature of what you are supposed to transport, the numbers of hours it will take you to transport the goods from where you are expected to pick it from to where you are expected to deliver it. Introduce your business by sending introductory letters alongside your brochure to stake holders in the construction industry, manufacturing industry, oil and gas industry, timber merchant et al. Call the brokers and find out how much they pay. However, that’s only the beginning. The demographic composition of those who are in need or those who patronize the trucking industry cannot be categorically stated. Paperwork, documentation, and forms. This is a gradual process where you get to pay off your lease and own the truck. There are truck rentals for a variety of purposes. Under this program, both new and existing entrepreneurs are qualified to apply. The line between profit and loss is very thin, one wrong decision can bankrupt the company. A mistake by many want-to-be-owner operators, … But if you don’t have social financial facility, then your best bet is to acquire fairly used trucks. Such information will prove to be invaluable. It's called “The Never Never Plan” for a reason - - you'll never pay the truck off before it's costing a fortune in maintenance. Attend chambers of commerce meetings with the aim of networking and introducing your trucking to business to stakeholders in the industry. Go to a load board. The SBA can help you write your business plan, find funds and market your business (see the Resources section). I’m a big fan of keeping things simple. Each will then compete to win an annual prize of $25,000. One of the easiest ways to achieve your goal is by applying for trucking grants. In most cases, people are constrained by inadequate funding. If you get a loan from a bank to start a trucking company without driving, … Is the Trucking Industry Growing or Declining? Other factors that you should consider before choosing a location for your trucking business are closeness to the highway, closeness to industrial and commercial hub and any location that will give you enough space for parking and servicing your trucks. You can … Also, loads of people are motivated to start their trucking business simply because they can become their own boss with less stress save for the challenge of driving long distance and maintaining heavy duty trucks. Depending on the trucking company you sign up to work with, they are more likely to provide you with the required training. I’ve been navigating the trucking compliance world for 15+ years, and I’ve helped hundreds of trucking companies start out. Startup cost also fluctuates based on the type of trucking company you want to start, including cargo you plan to haul, the operation you want to run, insurance coverage, and more. Starting and growing a trucking company on your shoulders takes a lot of hard work and dedication. Part of what you need to do to run a successful trucking business is to create time to meet with your employees on a regular basis. So, if you are considering starting your own trucking business, it is better to start from the scratch and then build the business to become as big as you want it to be. Choosing a Process Agent. Drivers aged 18-20 can drive intrastate. Starting a trucking company without money is possible. The United States economy depends on the trucking industry to deliver about 70 percent of all freight transported annually in the country. Starting a trucking business. Know the Major Competitors in the Industry, 5. This diverse industries are made up of a few large companies and thousands of small and medium-sized businesses around the US and Canada. You can start a trucking company at least with other people’s money. Aside from transporting goods and equipment within the United States, most trucking companies in the United States are also involved in transporting goods and equipment to and from Canada and Mexico. Trucking owner-operators and small trucking company owners have a few options to get access to the trucking business financing they need, and each comes with its own benefits and drawbacks. You might not have the opportunity to buy a franchise from a well – established trucking company, but you can position your trucking business to work with larger trucking corporations. However, the idea is not to give up, but to be optimistic and hardworking at all times. Its Veteran Entrepreneurial Portal connects veterans with grant opportunities for their trucking businesses. Acquire a Business License. Start a trucking business by writing out a business plan and incorporating a business. You can even get trucking company name ideas by reading, How to Name Your Trucking Company. Create an outline. He is the Executive Producer @JanellaTV and also doubles as the CEO, POJAS Properties Ltd. 15 Truck Financing Options for New Businesses With Bad Credit, How to Be a Successful Trucking Dispatcher, How to Buy a Used Truck from a Dealer and Negotiate the Best Deal, How to Cope When You are Married to a Truck Driver, Where and How to Buy a Truck Online With Bad Credit, How to Write a Trucking Business Proposal That Gets Noticed, Agreement Between Truck Driver and Owner – 10 Clauses to Add, 20 Smart Tips on How to Run a Successful Trucking Business, How to Invest in Buying a Truck and Rent It for Passive Income, 30 Best Places to Find Shippers & Companies That Need Truckers. Trucking industry trends expect freight revenue to grow by 75 percent over the next nine years and with the trucking industry eclipsing over $726.4 billion in revenue for 2015, starting a trucking company now can be extremely lucrative. Trucking grants provide a significant part of the funding required to enable you to launch your operations. Start a Trucking Company With One Truck. These activities accounts for about 671 billion dollars’ worth of manufactured and retail goods transported by the trucking industry in the United States alone. How to start a trucking business Step #1: Get your commercial driver’s license. While several companies will help you start your trucking company and apply for Small Business grants, the Small Business Administration (SBA) is an excellent and free resource. Also, a certain percentage of government contracts are given to small businesses. Some of the threats and challenges you are likely going to face in the trucking industry are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices. The trucking industry adds to the national economy of the United States and the industry is responsible for providing jobs for millions of people. 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