5 Steps to a Successful Trucking Business
Trucking is a competitive industry, but the demand for transportation is higher than ever. In 2021, the trucking industry as a whole earned over $875.5 billion in revenues, and experts expect the industry to grow to more than $1,075.8 billion in revenues by 2026. Suffice to say, there is some space for new trucking businesses to survive and thrive.
If you are thinking about launching a trucking company of your own, you should find the process relatively simple. From just one truck, you can grow a trucking empire — if you follow these easy steps.
Gain Experience in Trucking
The trucking industry presents dozens of unique challenges to business leaders that outsiders will be utterly unaware of and ultimately overcome by. Thus, before you launch a trucking business, you should find a way to gain experience in this field. Many trucking entrepreneurs develop valuable experience in this industry by working for several years as truck drivers, which allows them deep insight into the various processes involved in trucking. As a truck driver, you can begin to understand the needs of clients and employees, which will help you develop a better business strategy for your own trucking venture.
Once you have some experience as a company driver, you might begin your entrepreneurial career by becoming an owner-operator. These truck drivers own their own vehicles and contract with trucking companies or shipping clients directly. Though owner-operators assume more liability, they can earn much higher pay, which could put you on the path to building a bigger trucking business.
Develop a Trucking Business
Whether you are launching your trucking business as an owner-operator or you are beginning a trucking company from the administrative side, you need a strong business plan from the start. Before you take any other steps to become an entrepreneur in this space, you need to put time and energy into developing every aspect of business strategy, from a memorable name for your trucking company to intricate financial projections of your prospective markets.
It might be helpful for you to find an entrepreneur mentor to help you put together a cohesive and professional business plan. Ideally, this mentor will have some experience in trucking and therefore able to guide you around some of the most pressing challenges facing the industry. If you cannot find a mentor, you might pay consultants to help you organize your business plan or take advantage of business plan apps that take you through the business planning process step by step.
Find Business Funding
It always takes money to make money. Your business cannot grow without capital, so you will need think critically about how you are going to fund your venture before you launch. You might look into how to get trucking business loans, which can assist owner-operators in the acquisition of additional vehicles to build a bigger and more profitable fleet. You might also search your professional network for angel investors, who might be convinced to give money in exchange for equity in a company that is likely to grow within an exploding industry. You should become familiar with all the different ways to fund and finance your business, so you can be more informed about the decisions that could impact the future of your trucking company.
Maintain Industry Compliance
It is no secret that freight transportation is heavily regulated. All trucking companies, even owner-operators, need to comply with safety and government regulations, or they face serious fines and other dangerous penalties that could put them out of business. You should spend time researching the necessary steps for regulatory compliance during the business planning phase, and you should continue to check and double-check your company’s compliance during operations. If you struggle to understand the complex policies involved in regulatory compliance, you can hire a registered filer from the Federal Motor Carrier Safety Administration (FMCSA) or from any other agencies
Manage Your Trucking Fleet
Once you have grown your trucking company to encompass a fleet of vehicles, the last step to achieve success is maintenance. You should develop corporate policies that ensure the health and satisfaction of your drivers and crews, and you should meet client needs to build a solidly positive reputation in the industry. Then, you should be able to ride the growth of the transportation sector to professional and personal success.