The process of starting and owning a trucking business can be overwhelming and tiresome with everything that needs to be done. Whether you’re looking to start a small business in trucking or already driving truckloads, much research and preparation are required before you go down this new path.
Here are five steps to start your own trucking business with one truck.
- Pen down a business plan:
Writing a business plan can give you a road map for your trucking business. If you’re starting, this document will describe the kind of trucking business you want to operate and what resources you need to work on at maximum performance. This business plan can also prove helpful as you grow your operation or bring on additional drivers. Another critical aspect of any business plan is your vision for growth! Having a clear picture of where you want to take your trucking company will help you avoid common hurdles such as risk aversion. Writing this document might not be easy, but it’ll help ensure your trucking startup doesn’t stumble upon some of the more common roadblocks that can kill an exciting idea.
- Decide on the entity type of your business:
Setting up your business can feel overwhelming, but the most challenging part is usually figuring out which type of entity to choose. Knowing your options helps you determine the best structure for your business and the tax consequences that go along with that structure. Understanding each entity’s pros and cons will help you decide on the proper system for your business. With TranspoCFO, you’ll find out: What’s the difference between sole proprietorship, S corporation, and LLC? How should I set up my business? Which one should I choose?
- Decide which carrier you want to drive for:
Suppose you are interested in becoming an owner-operator truck driver. In that case, you must research which fleet will work best for your trucking needs. Once you have found the one that works best for you, it is time to do some legwork. You will have to decide whether or not you want to drive local based on your preferences or if you want primarily long-haul driving opportunities. There are many different carriers; do some research to find out more about their reputation and what type of freight they typically haul. They will list what parts of the country they operate in and the unique freight items they specialize in. Once you have narrowed it down from there, it is time to sign up with a carrier!
- Own or lease a truck:
Before you set out on your own, one of the most important things to do is obtain your truck. Depending on what type of trucking business you are going to start, you may be able to get a loan from a bank or credit union. If this isn’t an option, some leasing companies offer lease-purchase programs. Through this program, you will make monthly payments on the vehicle while paying off the loan at the end of the term. Other leasing companies allow you to purchase the vehicle anytime during the contract’s duration. In either case, you may be eligible for some discounts on fuel and maintenance costs through these programs.
- Hire an experienced service provider:
TranspoCFO will help you accomplish all the things you need to do before owning a trucking business. We have been providing these services to owner-operator truck drivers for over 20 years, which means we can recommend the best business entity and tax structure for your industry. We will help you with a business plan, decide what type of vehicle you should drive, and manage all your bookkeeping, accounting, and tax needs while you focus on driving.
Ready to take your business to the next level? TranspoCFO can help you develop a long-term plan of action. Whether it’s accounting, bookkeeping, tax preparation, or unlimited business consulting that you need, we have the tools and experience to get you there!