Yes, it is in fact possible to start your own company with just a single truck!
In analysis of the latest trends observed in the trucking industry, many experts expect the overall revenue to increase by 75% over the next decade.
In 2015, the trucking industry grossed over $726.4 billion in total revenue, a number which has gone up every year since then. This means that starting a trucking business in today’s market climate can prove to be extremely lucrative.
As long as there is a demand for new products, trucks will continue to stay in demand for years to come. But if you are interested in owning a trucking business, it is important to not feel intimidated by the more established brands in the industry that likely own over a thousand trucks and are backed by investors who ensure that the capital is always there. In truth a vast majority of trucking companies consist mostly of small fleets of six trucks or less, which beggars the question, can you start your very own trucking company with a single truck? Here’s what you need to do to get started.
1. Apply for Trucking Authority
Forms, documentation and paperwork form the heartbeat of any trucking company. The entire process can seem considerably tedious, but it is necessary to get them down to get your company started. Ensure that you apply to relevant authorities and get all the necessary permits so that you can get started with your venture and gain trucking authority. To know more about this click here.
2. Hire a Process Agent
You will have to hire a process agent who will represent your firm in all important legal matters. Your process agent will help you deal with the legal technicalities of every region/jurisdiction your truck passes through. Your process agent will also be in charge of ensuring that your trucks remain compliant with the latest regulations.
3. Truck Insurance
Once you have established your business make sure that it’s insured. Any trucking business can be exposed to injuries or damages to the commercial vehicle. There have been several wheel-off instances that have resulted in accidents and caused damage to the vehicles. By installing wheel nut safety devices on your vehicle wheels you can avoid the wheel-off incidents. But that does not make your fleets secure from other liabilities.
Make sure that you have liability insurance to cover for such damages.
Secure quotes from several insurance providers before deciding on the right option for your business.
4. Buying or Leasing a Truck
You could decide to lease a truck or buy one outright. Choose the option that matches your current requirements. If you have managed to obtain the required capital to operate a small fleet of trucks, you could end up buying them at a discounted price.
However, if your current priority is to keep working costs at a minimum, leasing out trucks could turn out to be the best option for you. Only problem with such an arrangement is that leasing criteria may vary from one dealer to another.
Take the time to do the necessary research and compare various dealer offers before you sign on the dotted line.
Another option worth exploring is buying used trucks. The problem with this is that even though you save considerably upfront, it could prove to be costly over the long run. So think twice before you decide to go down this route as truck repairs are notoriously expensive for used trucks.
5. Deciding on the Right Truck and Equipment
Having the right equipment to tow truck shipments has a direct impact on your shipping company’s earning potential. Even though the shipment rates can keep fluctuating on a weekly basis, usually the flatbed truck loads are the ones paying the highest average rates.
This certainly does not mean that a reefer, van or step deck load will not pay you a better rate. We just recommend considering the overall average rate before choosing your equipment type for your truck. Also remember that location plays a major role for establishing shipment rates.
Overall, it is always better to customise your truck load searches depending on the type of trailer equipment you have and the location of your company.