The trucking business is one of the most profitable businesses in the United States that requires skills and not degrees. There are over 500,000 trucking companies in the US, around 13000 in Colorado alone. The reason being it’s an easy startup plan. All you need are commercial vehicles registered with Colorado dot number, few drivers who know how to drive and have a driver’s license, and money to invest.
Like every business startup, the trucking business also requires a few fundamentals. Firstly you should have enough money to buy a place, a few trucks or vans and some extra dollars to cover other expenses. Provided that you have enough dollars to start a business and you have already thought of a catchy business tag line to go with your company’s name, here are a few important things to keep in mind before starting your very own Trucking company.
1. Get Your Vehicles Registered
The first thing to do when starting a trucking business is to get your vehicles registered with the federal dot number or Colorado dot number. It is a number given by the Colorado Department of transportation to the business owner. It is an important step towards legalizing your business. It helps the authorities to keep a check and balance on your audits and finances. A registered vehicle is more likely to operate interstate without being interrupted by the authorities at every check post.
2. Get An International Registration Plan License Plate
The International Registration Plan (IRP) license plate helps you to move your freight not only interstate but also to a few parts of Canada as well. This helps in expanding your clientele. In turn, you can expand your business in more than one state, as it becomes easier to transit interstate.
3. Get Your Vehicles Insured
Insurance of vehicles is a great way to avoid unwanted and unexpected financial strains. It helps you run your trucking business smoothly with minimal financial loss. No one wants to bear the financial burden caused by damaged commercial vehicles. Getting a good insurance package means getting all the medical bills and property damages covered that might occur in an accident. Some insurance companies even offer legal fees if you are being sued. It is, therefore, a smart choice to get your vehicles insured otherwise you might end up paying thousands of dollars to cover the damage.
4. Identify Your Rates Per Mile
Before entering the market, it is crucial to lay down your rate list plan. Identifying your rate per mile helps you maintain a repute in the market. It also helps clients to sieve through all the competitors and choose the one that suits their pockets. Your rate should be high enough to make a profit along with covering all the necessary expenses like driver’s pay, up-gradation of vehicles, etc. An average trucker company earns $2000-$5000 weekly. Just keep in mind the existing businesses. You want to make a place in the market, so offer a price that makes a client prefer you over others.
5. Identify Your Niche
The ‘Anything to anywhere’ attitude might hurt your early business. It’s better to identify your niche and select a specific target market, at least during the early stages of your business. It will not only help you avoid large competitors but also help create a place in the market. Focusing on clients with similar types of business may help your company flourish. The more diversified clientele will make you feel all over the place. Once your company has successfully anchored its roots deep into the market, you can always diversify and expand your business.
6. Select Your Team Carefully
The fate of every business lies in the team working behind. A good team will always put the company’s interest above all. Hire your drivers carefully. A skilled driver will be able to manage difficult roads easily as compared to the naive one. Always do a background check before hiring a person. You don’t want any thieves or lazy people working for your company.