The trucking industry happens to be one of the more profitable industries in the nation and contributes quite a bit to the economy. One main reason is that this country has quite a robust infrastructure of major highways and roads, making trucking one of the best ways to transport freight.
Statistics show that the trucking industry is responsible for hauling 71% of the freight in the US, which roughly translates to more than $700 billion in products and goods shipped per year. That said, there’s still a shortage of drivers and the demand for freight is still growing. This means there’s no better time to get your trucking fuel card and start your company. The sooner you get started, the sooner you can be on your way to establishing a career.
To assist you with establishing yourself, here’s what you need to know regarding starting your owner/operator business and ensuring a long-term cash flow.
As it is with most businesses, starting your trucking company means a lot of planning paired with preparation in order to ensure both success and smooth operation. Even if your business is small, there will be quite a few moving parts. These could include deadlines, managing your drivers, products and goods, and other logistical challenges.
For this reason, your business plan will be critical and can assist you when it comes to making a strategy for operations and ensuring that your business operations are seamless once you get the business up and running.
It’s All in a Name
One of the goals for any business is to have a name that catches attention. This ensures people remember you over the competition out there — and in the trucking industry, there is a lot. Once you’ve finally come up with the right name, you’ll need to trademark it and secure a domain name for your website. It’s always a clever idea to take all necessary legal measures so that you can avoid any sort of conflicts involving the brand name of your business, and to ensure you get all of your rights reserved.
Typically, when you start a trucking business, you can expect to spend as much as $30,000. This will go to a down payment on a truck(s), insurance, licenses, permits, state-specific fees, and salary for your driver(s). If this amount worries you, there are quite a few ways to secure the funding you need. Consider applying for a business loan and finding investors. Aside from those options, you might utilize a home equity line of credit, sell your properties, or even use any savings you may have.
As with any new business, you’ll need to determine which type of tax structure or legal entity you want for the business. There are four options you can choose from – Sole proprietorship, corporation, LLC (Limited Liability Company), and a partnership. This decision is your prerogative, but many trucking companies use an LLC structure due to the fact that it shifts the liabilities to the business and offers a structure that’s more reasonable.
In America, the trucking industry is a massive $700 billion sector and the demand is still rising. In order to establish a trucking company that’s successful, you’ll need to develop a business plan that’s solid as well as research and then meet all of the legal requirements mandated by the industry. Then purchase and be sure to insure your assets. Hopefully, what you’ve read here today will assist you with understanding the industry and has bolstered your desire to get your business started. Working in the trucking industry can be profitable, prosperous, and lucrative.