Running any business is tricky. Even if you have experience managing a brand, it becomes a whole different story once you become an owner yourself. If you plan on starting a trucking company, is it necessary that you take up the role of a truck driver before you start your own company?
It does not matter why you ended up wanting to start a trucking company. But having experience as a truck driver does offer numerous benefits. For one, you already know the challenges many truckers face. You also have an understanding of how the trucking industry works.
But even without experience, you can start your own trucking business. As long as you are willing to learn, can hire people who know a lot about the business, and can find qualified drivers, then it is possible to launch a successful trucking business. But before you start making any investment, you should already have an idea of the following.
How Much Money It Would Cost You
If there is one thing for, that is the fact that trucking is never a cheap business. You will face many upfront costs before you can even legal start your brand. There is a need to give your finances a thorough inspection before you make the commitment.
Trucking comes with many costs and expenses. Aside from the licenses and permit fees, you will need the right trucking insurance and set aside enough marketing budget and contingency budget. There’s also your fuel allowance, the costs of truck maintenance and repair as well as your recruitment fees.
You need to have a solid plan on how you intend to cover all these expenses and other future costs. It makes sense to expect that it may take six to 12 months before you can earn your investment back. Ensure you have enough investment for both the initial and ongoing costs plus a contingency plan in case you need an additional budget in the future.
You will benefit from hiring an accountant as early as now. An accountant that already has experience working with other owner-operators can offer you valuable financial tips for your business. They can relieve you of numerous financial stress relievers so you can focus on running the business instead.
Making the Right Investments
For starters, you need to consider buying brand new or used trucks for your business. Consider your budget when making the investment. You want to buy one from a reputable brand whether you are planning to buy used or brand new.
It is wise to get a truck that is still under warranty. This can save you tons of money when it comes to truck maintenance. If your budget can only accommodate second-hand trucks, for now, you will want to have the trucks inspected and obtain the service records.
Make sure you are already doing research on how to best navigate trucking maintenance and repairs. If you can accommodate your own truck maintenance team, the better. You also want to ensure you already have reliable trucking parts and vendors all lined up in case you will need Cummins replacement parts in the future.
Identify Your Target Customers
When starting the brand, it is you who will need to find your own customers. It is crucial that you determine your ideal customers to make it easier for you to reach them. You will want to grab the attention of your target audiences and find ways to differentiate your brand from the rest.
Since you are still a brand new trucking business, you will need to find out how you can create value for your target audiences. You are still building your credibility. You need to work hard to gain your first clients and acquire referrals.
Make Business Decisions Early on
As early as now, you should already have an idea of how to make certain business decisions. You will encounter numerous circumstances that will test your resilience and decision-making ability. It is best that you determine how you will handle things before you even start your trucking brand.
For one, you will need to decide between finding your own loads or leasing onto a company. When leasing onto another company, you have the option to sign a lease-purchase agreement or buy your own equipment and use another carrier so you can use their operating authority. If you want more freedom, you can be your own carrier, develop your own customer base and work twice as hard to attain more freedom and higher profit margins.
You should also have an idea of how to invoice your clients. You need to figure out how to get pain on time and ways you can cash in checks asap. It is also worth deciding if you will be working with a factoring company or not.
Saying yes to a trucking business requires patience, determination, a lot of investment, and willingness to learn. Even as an experienced truck driver, there is so much to learn before you can call yourself a successful owner-operator. These tips will give you a glimpse of what’s in store for you in case you pursue your dream trucking business.