Exporting goods has always been a very profitable business and nowadays many entrepreneurs have realized that transporting goods from one to another can get them huge profits and growth. Exporting goods can be through various modes of transport like train, ship, flight and etc, but there is another beneficial mode which can get you huge amounts of profit with less cost and that is trucking. Trucking is a very profitable industry which can generate up to $40 billion as annual gross profit in US alone.
If you need to transport goods at a short distance then there seems no point in incurring huge costs on shipment or rail services. In such cases trucking services is the best choice. As we said earlier trucking is a very flourishing career and if you plan to start your own trucking businesses then there could nothing be better than that. However trucking is a very competitive industry and without any previous knowledge about trucking or business can result in huge failure. Hence, every person who wants to venture in the trucking industry should spend huge amount of time in planning ad have perseverance and a passion for logistics and customer service. These are the main factors besides having the right amount of finances that can either fail or triumph any business.
Now, if you are really keen on starting a trucking business, let’s look at some of the requisites that you need to have before entering into this field. First and foremost, having experience or knowledge how the trucking industry works is highly essential. You could either take up a course or even having experience as a truck driver can prove to be handy because it is the truck driver who is responsible for the trucks, loading and unloading and dealing with customers. Evidently, it is the truck driver who brings life in the trucks.
Moving ahead, when you decide to enter the trucking industry, you have two options in hand. First, you can decide to run your own truck or second, you can become a contractor and hire truck drivers who have their own truck to work for you. As a fact, every business has its own pros and cons and hence the 2 options mentioned will have the same. It is for you to do a thorough analysis on the two and choose the best, according to your convenience and benefits.
Now, let’s take a look at some important points that you should keep in mind when starting your own trucking business:
Business Plan – before starting any business, having a sound and clear business plan is very essential. You have to decide whether you want to be a sole service provider or hire other truckers on contract basis. You have to make an estimation of the initial investment that will be required. On an average, the start-up costs in opening a trucking business are between $10000 to $50000. Depending on how much you work, you can make profits of around $50000 and above annually. If you don’t have the necessary finance, you should consider borrowing from banks and local financial institutions. If you know of investors who are willing to lend you the required capital, this may be a good option to pursue. When devising your business plan state clearly the amount of operating expenses involved, capital requirement, expected gross earnings and profits.
License – getting a trucking business license formalities and compliance requirements completed on time can be a little complicating. Hence, you might want to get assistance or services of a person who is competent enough to handle all this for you.
Building clients – Having an efficient and analysed marketing strategy is very important in a trucking business. You should know your target audience which includes people and business organizations that manufacture, sell and distribute goods and materials. Getting big companies to work with you will be difficult if your trucking company is just starting up and your trucking transport business has limited coverage. It is therefore important that you look for alternate potential clients who can include small business operators that are participating in trade shows to showcase their goods and products. These clients need trucking services when moving their goods from one location to another. Getting contracts requires good salesmanship skills and maintaining them requires efficient and faultless service. Get business cards printed and hand them out to potential clients. You could also advertise your services over the internet, in newspapers and in the yellow pages.
Truck drivers– If you are planning to venture in large fleet, then you need to employ skilled, qualified and licensed truck drivers. Good drivers will eventually result in more business for you. Before employing a truck driver conduct a thorough interview and do a reference and background check.
Starting a new business can be a little tricky and risky, but with proper business planning, sound financial analysis, good marketing strategy and human resource competency, there is no stopping you from reaching great heights and never ending success in the trucking industry. But always remember that owning a truck means paying taxes on them. Hence always make sure to pay your heavy vehicle use taxes by submitting form 2290 online. To pay your taxes you can hire the services of a proficient and IRs authorized e file provider like greentax2290.com and make sure to keep 2290 penalties at bay.