If any industry in the US is taken for granted, it is likely to be the trucking industry. However, recently many individuals have begun taking an interest in starting a trucking company because of how lucrative the sector actually is. The trucking industry is at the core of economic growth, and the modern marketplace would not exist without it. In fact, the sector is responsible for almost 68% of all freight tonnage in America.
However, only a few people were willing to venture into this field in the past. But today, you will find many people searching for carrier agreements and sifting through the paperwork necessary to start a trucking company. So, if you’re in the search for some important tips before setting down the roots for your own business, here are four things you need to know:
Have Entrepreneurial Resilience
Despite many people jumping on the trucking bandwagon for the profits it has to offer, only a few have a strong enough business foundation to make it last. It is not a business for the weak. It is for people who like to take up challenges headfirst and stand their ground when things get tough. Bear in mind, in this sector, it takes more than just owning a truck or knowing how to drive it to be successful.
Many people don’t even know how to calculate the cost per mile when starting a new business. And acquiring clients can prove to be quite challenging in the beginning. Hence, it is vital to have entrepreneurial resilience and have an extra layer of skin on yourself before setting off on this journey.
Time Is of the Essence
Time is money in the trucking sector. There will be someone else who lifts the weights if you don’t. As a result, when you enter this business, you must acknowledge the importance of time. Every day, thanks to massive technological and internet advances, the trucking industry is changing. And in the end, you will likely lose out if you fail to offer top-notch services. Therefore, it is essential to make the most of your time, planning ways to stay relevant and improve your services.
Have A Strong Team in Place
Although this sounds like more of an HR task, any trucking company owner should be aware of it. You will need professionals to help you navigate this industry when you decide to dive full force into it. Having an experienced accountant on board can help take care of the business’s finances and provide you with information about future needs. Therefore, never undervalue the importance of hiring a bookkeeper when you are starting a business.
In addition, you will have to hire a safety and compliance lawyer. The moment you begin working in the field, you will have many challenges to overcome. An attorney’s support will be of great help in this matter. This way, you can also keep up with the necessary regulations, such as your US DOT biennial update.
Furthermore, you will also need to have an insurance agent onboard. They can help guide you on insurance policies and be the first point of contact when an accident occurs.
Keep Aside Emergency Cash for Rainy Days
One of the most common reasons why people give up on starting their own businesses is the lack of cash. Not to mention the fact that even the wealthiest of business people will run out of budget eventually.
To put it simply, you should know the trucking company is an incredibly lucrative opportunity, but it can offer a very low-profit margin in the beginning. You may find it especially hard for you to prosper in the craft if you do not have hands-on experience. Therefore, when starting, it is recommended that you keep at least 2 to 3 months of reserve cash aside for the rainy days. Even if the business model is successful, it is always difficult to predict challenges further await you. Plus, if you’re not good at budgeting, you’re likely to run out of cash during the first few weeks of operation. Hence, it is always smart to keep some cash aside when things don’t go according to plan.
Featured Image by Renee Gaudet from Pixabay