Thursday, July 11, 2013

Trucking Business

Starting a trucking business is a great business since it is in demand. I have been thinking for some time now. Regardless if you are an entrepreneur or a truck driver, starting a trucking business must have caught your imagination also. As it stands, the trucking industry is one of the biggest businesses in the world. Hauling business and even logistics is a billion dollar business with an insatiable market. This is because transporting goods across long distances has become an important industry. No matter the industry you find yourself, you must transport bulk goods to and fro (both raw and finished goods). That makes the haulage industry a very lucrative one.

          How to Start a Trucking Business Plan (Hauling and Logistics)

Now if you are interested in knowing how to start a trucking business; you have come to the right place because I will be sharing some tips to help you succeed in this field. Your journey to starting a trucking business begins here.

1.Choose a niche

The trucking industry is very broad and to succeed in it, you must select a niche. Will you be engaged in transporting bulk goods or would you be leasing trucks to businesses in the transport industry? Will you outsource your truck to a trucking company or would you rather put your truck on a hired purchase?

Are you going to haul short or long distance? If you are to go into transportation; will you haul solid or liquid goods? These are the questions you must answer before setting out to start your own trucking business. In this article, I will focus on how to start a trucking business with respect to the transport industry; haulage to be precise.

2.Start-up Capital

The next thing you will need to begin your journey in the trucking industry is capital and you are going to need lots of it. Trucking is capital intensive and arguably the bloodiest part of starting a trucking business. Your start-up capital will largely depend on the size of the fleet you are intending to own. Are you going to buy new trucks or used trucks? There are two ways with which you can get your trucks; you can either purchase them outright or get them on lease. Another option is to look for subcontractors. While the initial investment is quite huge, you can easily get it back if you make the right management decisions.

3.Rules, regulations and insurance

Rules and regulations is the second point you must consider when starting a trucking business. There are different licenses and permits that must be filled up, which includes state registration and permits. To know what rules you’ll have to comply with, it is greatly recommended that you do your research or ask for help from someone familiar with the rules. Another important factor you must consider before starting a haulage business is insurance; which will cover the truck and the goods being transported.

4.Your management strategy

The fourth factor to look into when starting a trucking business is your management strategy to handling payload and clients. A good management team is very essential to running a successful trucking company. Your management team must be experienced in the transport industry; especially with truck management. Another important aspect of running a trucking business is your accounting process. You can buy an accounting software your business to make things easier.

5.Your services to client

What types of goods are you planning to transport? Will you haul solid, liquid or gaseous substance? Are you going to haul durable goods or perishable goods? Each type of freight has their set of requirements, so it would be best that you decide on this before you even open shop. The types of cargo you will be able to carry will determine the type of clients you will work with. And speaking of clients, you’ll need to present yourself well to get the hauling contracts you need.
No matter how big or small your business is; your outlook matters, so don’t neglect working on image and brand. Present your services, the cost of providing the services, and other added advantages or benefits that you think can make them sign up with you. Once you get the contract, give them quality service so that they’ll be enticed to keep coming back.


Challenges of starting a trucking business
Aside the issue of capital, the trucking business is management intensive. Another challenge militating against the success of trucking businesses is bad roads. The issue of bad roads results to unnecessary repairs, maintenance and accidents/hazards. The last but not the least challenge of starting a trucking business is getting good drivers. The “face” of your company is highly dependent on the type of drivers you employ, so make sure your hire drivers that are fit for the job. Check their references and background; and make sure that they’re not taking any illegal drugs. Hiring a terrible driver or being involved in an accident is going to be a disaster; not only to the finances of your company but also to your brand image, so recruit wisely.
As a final note, this is all the advice I can provide for now on how to start a trucking business. The trucking industry is quite a tough terrain to break into but the reward is worth it.



For inquiries on JAC Light Duty / Heavy Duty Trucks you may call 0917.447.4068

17 comments:

  1. Thanks for the information, I just started researching the logistics of opening a fleet company. I am thinking about starting a small company to lease vehicles out to specialty clients and have been looking online for what type of vehicles would be the most indemand.

    ReplyDelete
    Replies
    1. Well it depends on your location.Here in Manila trucks such as elf,closed van are in demand since construction is booming.You better conduct a feasibility study and check your local area on what types of vehicles is in demand.

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  2. Great information. I have been looking into starting my own transportation company in Minneapolis, MN and I am so excited. I really appreciate this post. Thanks.

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  3. Thanks for your comments,I am glad i am able to share with you my knowledge. Goodluck!

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  4. Very detailed information! Actually, I'm planning to start my own trucking and heavy hauling company. And I'm gathering some information that I can use for it, because starting a business like this is not easy.

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    Replies
    1. Thank you and good luck on your trucking business.

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  5. for a person wanting to invest in buying a truck to haul short distances (within state of OH), what would be the most practical items or goods to haul? What type of local companies can you market to and how can you do this and get these contracts?

    ReplyDelete
    Replies
    1. Trucking business has proven to be profitable whether you cater individuals or company.Catering big time company would require big cash out because you will be needing to purchase not just one truck for hauling. For a start up i would suggest that you start with one truck and start a relocation service or if you would like to haul goods avoid perishable goods so you won't be needing refrigeration on the vehicle.You can haul construction supply, junks, scrap and more and market your service within your area. Goodluck!

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  6. My friend worked for a few different trucking companies near Toronto. He really liked it because he got to know the Toronto area really well. He hasn't worked in trucking for a while now but he still knows those areas extremely well, so whenever he goes back, he knows cool places to visit.

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  7. Thanks for the post! Trucking businesses in the Philippines is very important especially for those family who is moving on a new house.

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  8. Hi! I am thinking of starting a trucking business by buying 2 trucks and we already have a target market. Now my question is, how do we about the legalities? do I just buy a truck and get a franchise? or will I need to register to DTI and SEC a new business? and how is the taxation? thanks

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  9. For a sole proprietorship you can, register to DTI to get a name for your company, then get a business permit from your mayor. Then you can register this to the BIR for tacation purposes when you start yiur operation. These three are the requirement to get a permit from LTFRB to register your truck for a for hire plate. This is applicable only in the Philippines.

    ReplyDelete
  10. For a sole proprietorship you can, register to DTI to get a name for your company, then get a business permit from your mayor. Then you can register this to the BIR for tacation purposes when you start yiur operation. These three are the requirement to get a permit from LTFRB to register your truck for a for hire plate. This is applicable only in the Philippines.

    ReplyDelete
  11. Thanks for your post! By the way, I also found this article useful: 5 Steps to Start a Successful Trucking Business.

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  12. Great post on trucking business.. and thanks for sharing insights.. I love trucking..

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  13. Warm Greetings!


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    Our trust and devotion in helping the Operators and Owners is our passion.
    TruckStar was done with the people that are engaged and fully hands-on to this type of industry .
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    No special computers is required. Access anywhere and anytime.

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    ​Find out how we can help you grow your business further.

    All you have to do is register below.

    We can't wait to be on of our loved users!

    To register and know more about TruckStar just visit http://truckstar.biz/


    Thank you.

    Wishing you all the success,
    The TruckStar Team

    ReplyDelete
  14. Warm Greetings!


    We cordially invite you in our latest endeavor in Technology in helping Business Owners of this unique service providing industry.

    Our trust and devotion in helping the Operators and Owners is our passion.
    TruckStar was done with the people that are engaged and fully hands-on to this type of industry .
    We keep the system very simple, intuitive and closest to the heart and mind of a business owner.

    We give the most attractive features and simple pricing scheme.

    No special computers is required. Access anywhere and anytime.

    FREE your worries about computers and such, it's time to devote your time growing business with TruckStar.

    ​Find out how we can help you grow your business further.

    All you have to do is register below.

    We can't wait to be on of our loved users!

    To register and know more about TruckStar just visit http://truckstar.biz/


    Thank you.

    Wishing you all the success,
    The TruckStar Team

    ReplyDelete