Beginning any size trucking business requires an in-depth business plan, as well as a large amount of money upfront, just like with any other type of business. But once you’ve dotted your I’s and crossed your T’s, starting a business such as this can be very profitable.
Your Truck
Of course, no expedited trucking business could operate without the use of a truck. But the type of truck that you purchase can make all the difference in your bottom line, as well as how efficient you’ll be able to operate. Consider the type of freight that you’ll be shipping on a regular basis, and the size of the loads that will be the main part of your business. You’ll want to make sure your truck is equipped to handle that.
You’ll also want to consider buying new or used. There are obvious advantages to buying used — namely, the cheaper price. But while you can save money buying used, you need to account for possible maintenance and repairs that might be needed sooner, as well as any warranty on the truck.
Permits and Licenses
You’ll require a business permit and a tax registration certificate in order to legally operate your business and collect revenues from it. If you have intentions of becoming one of the many trucking companies hiring employees at any point in the near future, you’ll need to get an Employer Identification Number from the IRS and hire a payroll service to generate checks and deduct any taxes.
Insurance
You’re going to require adequate insurance, particularly if you’ve got employees. Obtain auto and workers’ comp policies. Purchase adequate general liability insurance to cover any possible damage or loss of clients’ property as a result of accidents on the road or damage while on the road.
Target the Right Entities
You’ll want to network with manufacturers, distributors, and other firms whose predominant line of business is dependent on prompt deliveries within the business industry. For example, target firms such as medical services that rely on prompt deliveries.
Taking these steps can get you on the path towards a profitable expedited trucking business!