Breaking into the trucking industry can lead to a lucrative career path because most companies need people to deliver their goods. If you’re planning on starting a trucking business, there are some things you must first consider. Check out the things to consider when starting a trucking business for beneficial information.
Business Structure
One of the first things you need to consider when starting the company is the business structure. The most common structures of trucking businesses include sole proprietorships, partnerships, corporations, and limited liability corporations. Each structure has its advantages and disadvantages (mainly surrounding tax and liabilities), so it’s essential to select the best option for your business.
Driver’s Experience
Whether you plan to drive the truck yourself or to hire drivers, a CDL license is mandatory for all drivers. Private schools and training can help drivers obtain licenses. However, it’s still important to factor in the driver’s experience. Generally, it’s best to select drivers with experience driving vehicles with semi-trailers or trailers, as they have prior knowledge that will help them drive their best.
Safety Compliance
Safety in the trucking industry is an extremely important topic. To keep drivers and your business safe, it’s best to enlist the help of a safety compliance company. Essentially, safety compliance services are important because they prioritize employee safety and help companies stay on top of regulatory changes within the industry.
Truck Costs and Maintenance
Truck costs and maintenance are important things to consider when starting a trucking business because they determine budgeting. A new semi-truck can range from $70,000 to $150,000, and maintenance can tack on an additional $15,000 per year. Depending on the number of trucks you acquire, you can face hefty costs from maintenance and insurance alone. Luckily, with proper financial management, you can budget accordingly.
Federal and State Regulations
Before operating a trucking business, your company must comply with federal and state regulations. Receiving operating authority from the US Department of Transportation, getting a motor carrier number, and purchasing commercial trucking insurance are things you must do first. And depending on your state, you must also comply with regulations and receive certain documentation.
