Most truck drivers and people who have worked in the trucking industry harbour the thoughts and dreams of starting their own companies one day. It is usually a desire born of one’s love for the job and the exciting prospect of watching a business grow and take footing in a very competitive industry. Despite the people working in the industry having the upper hand on how to embark on this journey, it does not mean those without firsthand knowledge cannot venture into the business.
Often people are cowed by the larger companies, but there is always space for the smaller players, and nobody stays small forever. Here are some useful tips that you can consider when toying with the prospect of starting your own trucking company such as Roadlinx.
Solid business plan
No business can take off successfully without a plan. A good business plan gives your idea a direction. Where you want to operate the business, the name of the business, source of your capital to start the business (whether a loan or personal savings. You will find prospective clients, the size of the initial fleet, and the size of the workforce to employ where you see the business in the next couple of years, possible operating expenses. All these are important things to map out when making a plan for your trucking company.
Registering the trucking company
Once the business plan has been properly laid out, the next course of action is to get your company legally registered. There are many forms and licensing and insurance paperwork that new trucking companies must fill and apply for before they can legally start operations. One of them is Strong Tie Insurance. It is advisable to start your venture as a limited liability company.
An LLC comes in handy in terms of retaining personal assets that are being utilized by the company. A limited liability company is formed by appointing an agent who will be the official contact person for the company; most times, the agent is yourself the owner. The next most important thing to do after forming the company is to ensure the business is insured to cover potential damages or injuries caused by the operating of commercial vehicles.
As the owner of the company, the capital required to either purchase or lease trucks for the business to start lies on you. If you have enough capital to purchase the initial fleet, buying them from one source can save you a lot of money on discounts. The fleet could either be brand new or used depending on the funds available.
New trucks will not set you back too much on spares and repairs, but used ones definitely will be on the higher side of repair and spare costs. Another option that you can explore is leasing the trucks instead of full ownership. Leasing has the advantage of lowering the monthly running costs of the trucks.
Location of the company
As a new player in the industry, you will need to strategically position the company’s physical address for visibility, nearness to target clients, and the nearness to a proper road network. Prospective clients need to be able to easily get to your business premises and feel impressed enough with your setup and reception to work with you.
The hiring of employees
You will need to hire staff for different roles in your company to ensure seamless operations and fluid execution of roles. Drivers, logistic officers and managers, administration staff, and subordinate staff all have to understand their job descriptions and ensure they perform their duties as required.
In the trucking business, drivers and logistic staff are the pivotal staff in your company. Picking up cargo, delivery, and frontline representation of the company lies majorly on their shoulders. In this regard, the two need to execute their duties in the best possible manner. Drivers you will hire have to be highly qualified for the job to liability issues when accidents happen. They MUST have commercial driver’s licenses that are up to date at all times.
Marketing of the company
There is no trucking company to run if there are no clients to bring in business. An aggressive marketing team has to be in place to approach prospective clients and lock the loyalty of those already in business with the company. The marketing team will manage the company website and ensure a constant online presence on social media platforms. Every positive new development in the company has to be given the limelight.
Types Of Transport Business You Can Undertake:
- Renting business: The truck rental business is quite popular across the world. People often make a good profit by renting their trucks to businesses for transporting their goods. However, the renters must have a driving license and have a citizenship certificate like Voter ID, etc. before renting the trucks.
- Cold Chain Service: You can also earn a lot of money through cold chain transport. Such goods are often transported in cold chain service, as these goods deteriorate quickly at normal temperatures. Although a large capital is required in this trade, the profit percentage is worth the money invested. Trucks used in this trade have such a structure that the temperature of its interior can be easily regulated.
- Logistic Company: You can also venture into logistic business by setting up your own logistics company. Many logistics companies are operating across the world and making a good profit. You can start this business with one truck also, and then later expand it.
- Packers and Movers: You can also undertake the trade of packers and movers. Thousands of packers and movers currently work in various cities. You can start this business with small capital in small cities. People who shift from one place to another often use packers and movers to shift their goods from one place to another. It is a highly profitable trade.
- Food Truck: The food truck business has been well received over the world in the last few years. The main reason is the creation of a variety of delicious foods, such as sandwiches, hamburgers, French fries, and other regional fast foods, which can be bought just from a moving truck. It is a combination of both restaurants as well as the truck business. In this type of business, you can change your location, that is, if your business is running less in one place, you can easily shift your business to another place.
Running a trucking company is not easy, but with sound management and proper planning, it is one of the most lucrative ventures one can consider undertaking.