How Hard Is It To Start a Trucking Business?
In the U.S., it’s not hard at all – Just enter a lease/purchase contract with another trucking company and run for them ’til you go broke ha-ha. On a serious note – fewer than 20% of the people that start this way ever pay off the truck, much less become successful.
However, there’s a proven way of how to become successful in this business. First, have a business approach – lot of times people want to become owner operators simply don’t have enough money. You need to save at least $20,000 to cover your initial down payment for a truck, have enough money to cover your unexpected break downs (as any trucks can break down on the road, and while you’re under a load will be the most costly and unpleasant experience).
Keep in mind that purchasing a semi is a commercial loan and APR for such loans could be in 12-15% range, so choose wisely, what truck to buy as it will affect your monthly payment.
Secondly, you going to need money for your plates. Truck plates (IRP plates) are costly – usually it’s in $2000/year range and it’s due all sum upfront.
Third, open your own permits, never rely on your company you’re leased to to provide you with permits. The more control you have over your operations – less dependent you’re – more choices you have. More choices = more money.
Save your money, buy a truck and trailer, get your licensing, permits, insurance and your own operating authority. Now you’re a trucking company. Make sure you do all the paperwork, pay your taxes, keep your records, do everything required to stay compliant with all the rules and regulations. Get your loads from brokers on a load board and hope that they will pay enough for you to make ends meet and pay all your expenses.
Do the above but get your own customers. Shippers and receivers to haul for direct. If your rate of haul is such that you pay all your bills and turn a profit, save more money and buy another truck and hire a driver. Keep doing this until you have a trucking company of the size you want.
Another way is to get together with some other people, come up with the money, buy a bunch of trucks and trailers, a bunch of land so you can build offices, a dock a shop and storage facilities, get your shippers and hire people with experience to run it for you.
Most of the big trucking companies in the U.S. are owned by people that have never been inside a truck.
Weather you decide to do it one step at a time by yourself or with group of investors – save yourself a time and money – give us a call and we will use our experience to guide you to right direction, so you can avoid costly mistakes that can bring you down or even set you back.
Ready to start your trucking company or want to avoid costly mistakes? Feel free to contact us at 847-440-2266