Start Your Own Trucking Company – Starting your own trucking business is a big step and requires a lot of planning, study, discipline and commitment. Being a successful semi truck owner-operator requires the same, if not more. Over 40 years in the trucking industry, we’ve seen thousands of people go from truck drivers to owning their own trucking businesses. We want to share our thoughts on the roadmaps that successful owner-operators have followed to build their trucking companies.
All successful owners must have at least five years of experience in the specific class of vehicle they wish to own. The most common shipping categories are Dry Van Long Distance, Chemical Tanks, Bedside, Hazardous Materials, Heavy Trucks, Regional Shipping, Containers, Dump Trucks, Car Trailers, Refrigerated Shipping, just to name a few.
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Start Your Own Trucking Company
Each part of the truck class has its own special expertise to achieve success. Knowing the type of trailer used in each category is a skill to operate before you head out on your own.
Steps To Building Your Own Trucking Business
Truck specifications vary greatly depending on the type of truck you choose to start a business with. Owner-operators should be specific about the category of trucks you specialize in, as the trucks you buy may be limited to that industry. Once you have a specific truck, moving industries can be very expensive if your truck does not have the necessary specifications for a different class of truck. For example, heavy-duty trucks require more horsepower and rear ratio for the job, but are not economically viable for long-haul transportation in standard dry vans.
If you are not in love with a particular industry, you may want to buy a truck that can adapt to different industries. An 80,000 GVWR heavy-duty truck is typically a truck with an 18-speed manual transmission (covering the entire gear range) and a rear gear ratio of 3.70. You might want to choose a good solid engine for reliability and good fuel economy. Do your homework. Talk to fellow owners and hear their experiences with different truck engines, transmissions and rear ratios. It is always smart in any business to talk to as many people as possible and learn from your mistakes.
Of all the choices you have to make when starting a trucking business, the most important are choosing a truck and how to finance it. Always buy the newest, lowest mileage truck you can afford and get the shortest financing time possible. Successful truckers know that reliability and consistency ensure longevity and success.
If you buy a seven-year-old truck with 600,000 miles on it and finance it for three years at 800,000 miles, chances are good that your engine will need to be overhauled. If that happens, you don’t have many options unless you pay an extra $25,000 if you still owe two years on your truck.
Guide: How To Start & Run A Successful Trucking Company
If you buy a four-year-old truck with 300,000 miles on it and finance it for three years, the payment will be higher, but your truck will be more reliable. Pay when your truck reaches 800,000 miles. You have many other options and you may have had the opportunity to increase your savings. At this point, you can trade in your truck for a newer model or get financing for an engine rebuild and drive with a new, reliable engine and statewide warranty.
Choosing the right vehicle financing company is extremely important. For over 36 years CAG has been financing trucks, we have seen horror stories like you wouldn’t believe. Check out our full list of truck financing tips for some great tips to help you choose the right truck loan finance company.
If you are looking to hire a trucking company, you want to do your homework. As previously mentioned, it is wise to talk to other owner-operators and they will always be your most reliable source of information. Ask questions about driver turnover rates. High driver turnover is a huge red flag that their owner-operators are not happy. This could be the result of high load waiting times, bad chargeback fees, poor logistics management, or any number of other factors. Choosing the right trucking company can be the difference between success, mediocrity or failure.
When you have your own transport business, you can no longer be a salaried employee, you can go home and forget about work. If you want to reap the rewards of running a business, you need to fully understand your finances, create a budget, and have the discipline to stick to it.
How To Start A Trucking Company
Know your personal living expenses and keep them as low as possible for the first few years after starting your business. If you earn more than that, put it into savings.
Have at least $10,000 in the bank in case of an emergency. This is more than the working capital required to operate the truck, such as fuel, insurance and maintenance.
Keeping records is very important. Set aside time each day to update your account. Choose a software system that is easy to use. Choose a reputable accounting firm that has experience working with owner-operator trucks. Again, ask successful owner-operators for recommendations on good truck accountants.
AWAY FROM FACTORING COMPANIES. If you budget correctly, you won’t need it. These are huge and unnecessary costs
Starting Your Own Trucking Business: What It Takes And What It Costs
Take good care of your truck and it will take good care of you. Keep your maintenance account fat and the rest will be easy. Maintain your truck regularly and don’t cut corners. Truck maintenance can be a recipe for disaster, especially for trucks with modern emissions systems. Have a good relationship with a reliable truck repair shop or dealer that can get you back home quickly. You don’t want to waste days waiting for your truck to be serviced, a great shop can make a big difference in your bottom line. Plan ahead and schedule a truck service appointment to ensure minimal downtime.
Of all the factors that make a career in the automotive business rewarding, none is more important than having the full support of your family. Make sure everyone in your family understands what is involved and the temporary sacrifices everyone will share. Starting a trucking business may mean putting in more hours than a regular job, but with determination, persistence and discipline, your family will reap the rewards for years to come. If you want to be an owner-operator, now is a good time to start. . With an ongoing driver shortage, increased demand for freight, and rising prices, this could be a good time to start a trucking business. But how much does it cost to start a trucking company?
Here’s a breakdown of the costs of starting a trucking company and what you might have to pay to start a new trucking business.
The initial costs you need to consider when starting a trucking company are between $6,000 and $15,000 (not including your equipment).
How To Start A Trucking Business In Canada
This includes registration and filing of documents, which costs between $900 and $1,500 on average. IRP (International Registration Plan) plates can cost between $500 and $3,000 per truck. Heavy vehicle operating taxes and permits can cost between $100 and $600 per truck. You may also have to pay additional state taxes, which can average $500 per truck.
Drivers earn 0.40 cents per mile, or an average of $60,000 per year. According to the US Bureau of Labor Statistics, the average annual salary for all occupations as of May 2020 was $47,130. Trucking companies earn about 4.8 cents per operating cost, which is a clear advantage. However, some drivers can earn more than that.
This scenario will encourage smaller operations that require less investment and can start up faster. If you are asking yourself, “How much do I need to start a large-scale trucking company?” if requested. On the other hand, a typical large trucking business requires capital of $5 million or more.
“Less is more” is the right point to keep in mind when starting your trucking business. You can start with one unit, so your start-up capital is reduced to a manageable level.
How To Start Your Own Trucking Business As An Owner Operator
Some of your fixed costs include the price of the truck, regular maintenance, annual permits, taxes and insurance costs. On the other hand, some variable costs include fuel costs, various repair costs, and fines. In total, around 60-70% of your operating costs come from these variables.
Before you begin, you will need a US DOT (Department of Transportation) number. You can get an MC (motor carrier) / US DOT number for $300.
As a new business owner, you need to register your account
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