How to Start A Trucking Business Company - How Much Money Needed To Buy Semi Trucks

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Experienced truck drivers who have been working for a few years as company drivers can consider starting your own commercial trucking company for better income and work schedule flexibility. Actually many people started in entry level truck driving jobs with the intention of running a small truck transportation business because it is a legitimate way to make good money but a lot of hard work and courage is required to succeed. The up front investment for your commercial trucks and insurance is quite substantial, and being able to get cheap financing regularly is just as important as securing business contracts for a steady stream of revenues.

Despite the increasing price of gas and fuel, the outlook for US trucking companies is still thriving due to the logistics and goods distribution industry. An astute truck owner-operator will need to face a lot of competition in order to win new trucking business contracts. Unlike being an employed commercial truck driver, you need to have very good business sense to start a trucking company aside from just good and safe driving skills.

Network with other truckers and ask for referral businesses. Advertise in trade magazines and yellow pages. Gaining the trust of your first 10 customers is very important, so make sure your service is absolutely perfect even at the cost of not making any money from these initial commercial trucking jobs.

Big rigs and semi trucks are very expensive, which is why many drivers never make it to start their own trucking service. The down payment and other up front expenses can cost you $10000 to $50000, not to mention the monthly installments that must be paid across several years. The expected profits are not going to be great unless you are own a multi-truck fleet organization, which takes a lot of business contracts and financing to realize.

You can choose to hire additional truck drivers on your payroll or sub contract jobs to other owner operators with their own trucks and earn a commission. There is no need to restrict yourself to either options and sometimes you can work with both hired drivers and partner with several other small trucking companies when you face shortage of vehicles to fulfill a particular contract.

However, it is very important to check who you work with. Ask for references on previous work performance, ensure they have valid commercial driver's license (CDL Class B and endorsements), run background checks for DMV records and criminal background screening, drug testing etc. You stand the risk of jeopardizing your commercial trucking company reputation, contract termination and costly commercial truck insurance if one of your employees drive reckless and cause a road accident damaging the truck and your clients' cargo. Recruiting responsible truckers is one of the most important aspect of running a trucking fleet, so this must not be compromised.

Have you been saving regularly in preparation to buy your own semi trailer truck and start a trucking company? If your personal money is insufficient, can you borrow the rest of the start up money from friends or you need a commercial trucking loan from banks?

To get small business loans, a comprehensive business plan that details your business goals, short term financing requirements, projected expenses, secured business contracts etc will be necessary. The paperwork involved is quite tedious, but this is the process every new trucking business owners must go through. An alternative will be private investors interested in your trucking service business, which can probably be close friends and family. Note that a conservative measure is to plan for the operating expenses for the first six months, assuming the worst case situation where you gain no business contracts meanwhile.

While learning how to start a truck service company, you will come across laws and business licensing procedures required by your state, such as the IFTA licensing and decals, state business permits/registration, BOC-3 filing, USDOT numbers, 2290's, IRP tags, MC numbers, fuel tax reporting etc. You may need the help of a trucking business compliance professional to ensure all your papers are in proper order to avoid any issues with the authorities. Do not forget to carry all the necessary commercial liability insurance coverage for operating a private truck fleet.

Generally, most new trucking business owner operators will choose to carry the same type of freight (fluid, dry freight, durable goods etc) that they are used to while working for others. That also mean they will be buying the same class of commercial truck which is probably better since it is safer to drive the same heavy class vehicles as used to for so many years.

The first few contracts you can procure will likely be from businesses and people you know in the industry. It is probably easy for experienced truck drivers to prepare some brochures outlining the services provided and the appropriate pricing that is in line with the market rates.

If you have build good relationships within the logistic industry over the years, it will be easier to price your commercial trucking services competitively without having to drastically undercut the competition just to win a few contracts.