Generally, when people think about the booming industries in the USA, trucking might not be the first thing that comes to mind. But did you know that trucking is one of the booming industries in the US? So, if you’re planning to start a business, owner-operator trucking could be the right fit for you. In fact, nearly 72.6% of the freight in the US moves through trucks! That means, there is always a need for trucks — and, more importantly, trucking companies.
When starting a trucking business with one truck, you must consider many things. This includes – choosing your business entity, securing finance, and hiring employees. From start to finish, we will help you break down everything you must know to start a trucking company with one truck. We will also help you make the right decisions to get your owner-operator business plan started. But first, let us explain why starting your own trucking business could be a great idea.
Why Starting Your Own Trucking Business Could Be a Great Move?
Starting your own trucking company can be a highly rewarding venture due to the autonomy it offers. It lets you control all the strategic decisions and other operations. In fact, owner operators make 3x times the average salary compared to what over-the-road (OTR) company drivers typically make. Thus, we can say that the industry’s profit potential is substantial. Moreover, there is a constant demand for freight transportation services, which translates into significant earning opportunities.
So, if you possess robust business skills, have driver expertise and have an ambition to be your own boss, starting a trucking business can be a great move. Let’s find out how.
Offers You a Profitable Earning Potential
The trucking industry is known for its profit potential. As a trucking business owner, you can leverage the demand for freight transportation services and maximize your earning potential through strategic pricing and efficient operations. The trucking industry is a profitable one, but the only need is to build a strong clientele. If you manage costs and can get reputable clients that trust you, earning potential will be profitable in the long run.
Gives You Growth Opportunities
Starting with one truck doesn’t limit your growth potential. As your business expands, you can gradually add more trucks, hire drivers, and explore new markets to scale your operations and increase profitability. By starting your own trucking business, you can be your own boss and have complete control over your operations. You can set your schedule, choose your routes, and make strategic decisions aligning with your business goals. All such aspects let you grow and learn independently and make you a successful owner operator.
Provides Job Security and a Stable Income
Owning a trucking business can provide a sense of job security and stability. As long as there is a demand for transportation services, you can establish a steady source of income. Since you will start with a single truck, you will drive it, too, so you get to save on the hiring costs of drivers. With time, you can expand your business if you seem to be hitting some profits. At this point, you can stop driving and shift your position to a management level.
You Can Build Your Own Brand
Starting your own trucking business could be tough initially, as you must handle it all. Managing costs, operations etc. is challenging. But if you are able to cut through all these challenges and bring profits, you will sooner build your own brand and reputation. But to gradually build your brand and reputation, you will need to focus on offering your clients reliable services. If your clients are satisfied with your services, the chances of repeat business and referrals become easy.
How Can You Start Your Trucking Company with One Truck – Owner Operator Business Plan for 2024
Transitioning from a company truck driver to an owner-operator trucker is a significant step. You will become your boss and need to set up everything by yourself to be successful. So, if you wish to pave your path on this new journey of your life, here are 7 steps you must take to start a trucking company with one truck:
1. Write Up a Business Plan
The first step in starting a trucking business is to create a detailed business plan. Your business plan should outline your company’s objectives, target market, services offered, pricing strategy, marketing approach, and financial projections. A well-thought-out business plan will serve as a roadmap for your trucking business and help you stay focused on your goals.
2. Choose a Unique Business Name and Register it
Any business needs a unique name so that people remember it and it differentiates itself from other competitors. You should consider choosing a unique name for your trucking business that resonates well and is easy to remember for people.
Now, coming up with your business’ name would start with jotting down some words that you want to resonate with your business vision. Also, you should be aware that you are not copying any other business’s name.
3. Secure Finances
Now, when you have the business plan ready, you will require funds to make your business operational. The best way to secure funds is through low interest and repayment loan options. There are many lenders that can offer you small business loans or truck financing.
You can also consider other financing options to cover the initial costs of starting a trucking business. These may include purchasing or leasing a truck, acquiring insurance, licensing fees, fuel, maintenance, and marketing expenses. Explore traditional business loans, alternative financing options, or personal savings to fund your venture
4. Decide What Kind of Entity You Want to Be
When starting a trucking business, you need to decide on the legal structure of your business. You can operate as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each entity type has advantages and disadvantages regarding liability protection, taxation, and regulatory requirements. Consult a legal advisor or accountant to determine the most suitable entity for your trucking business.
5. Gain Some Experience
Planning out to start a trucking business all by yourself is not as easy as it sounds. It is crucial that you gain some experience prior to starting your trucking business. Firstly, get a commercial driver’s license (CDL) before starting off on the road, as understanding the difference between a commercial vs non-commercial license will be key for running a professional operation. You can go to a truck driving school or sign up for a training program. Another option can be to work in a trucking company as a driver to gain the necessary skills and on the road experience.
6. Obtain The Right Insurance Coverage
The next step is to get your business registered and fulfill all the paperwork and requirements as per the FMCSA. Then protect your trucking business by securing appropriate insurance coverage. Commercial truck insurance typically includes liability, cargo, and physical damage coverage. Consult with insurance providers specializing in trucking coverage to ensure adequate protection.
7. Hire Dispatch Services Provider for Owner Operators
As an owner-operator running a trucking business, efficient dispatch services are essential for managing your operations effectively. Consider getting best dispatch services for owner operators. Dispatchers working with dispatch companies can handle load booking, routing, scheduling, and client communication on your behalf. A reliable dispatch service can help you maximize your truck’s efficiency and profitability.
Dispatch Circle Is Here to Help You Start Your Business Journey!
We understand that starting your own trucking business with one truck is a lot to take on yourself. But don’t worry; we at Dispatch Circle are here to help. As one of the fastest-growing dispatch company in America, we offer much more to owner-operators or trucking companies than any typical dispatcher in your area. Our business plan is designed to help you minimize long waiting times between loads or empty kilometers (which is a truck traveling empty to its next pick-up location).
We handle invoices on your behalf; you only need to submit your proof of delivery (POD). Our team has assisted many owner-operators in running their business successfully. They can help you get your business up and running seamlessly.
Contact us if you want to use our owner-operator dispatch services.
Give us a call at +1 307 776 0001 or email at info@dispatchcircle.com