Starting a business is a lot of work. There are many different factors to consider and multiple decisions to make. For a trucking company, there are even more details such as following legal regulations, investing in quality equipment, and protecting your business in case of accidents.
Keep reading for a complete guide to starting a trucking company. Learn more about how to get started and how to set up your business to succeed early on.
Do Your Research
When starting any business, you should make sure that you know enough information about the industry you’re entering into. If you have questions about the trucking industry or starting your own business, do some research or talk to experts.
In the trucking industry, you should also make sure that you’re knowledgeable about any laws that your company will have to follow. For example, there are laws about what licenses are required for people operating your trucks. There are also regulations for making sure trucks can be labeled and identified.
Make Experience a Foundational Part of Your Company
Before starting your business, consider your experience and knowledge to decide what you need. You should have a good amount of experience in the trucking industry if you’re planning to start your own company. However, if you lack experience in certain areas, you should pay extra attention to recruiting people who have those skills. Overall, you should aim to have a team with a comprehensive set of skills and experience to benefit your company.
LLC vs. Corporation
You’ll need to determine whether it makes more sense for your business to file as an LLC or a corporation. The main difference between these two classifications is that corporations operate with a structure of shareholders while LLCs are led by individuals. LLCs typically have more flexibility regarding business operations and procedures. They also have more options for taxes. However, it’s easier to distribute shares in corporations.
If you’re unsure about which classification best fits your business, seek advice from a professional. Once you decide whether your business will be an LLC or a corporation, you will need to file paperwork with the government.
Make a Financial Plan
You’ll need to save money ahead of starting your business or have a plan for how you will get the finances you need to start your company. You’ll also want to create a budget while considering your start-up expenses. For example, you’ll need to pay employees, buy equipment, pay advertising fees, and pay any filing fees. There may also be other payments associated with starting your business or long-term expenses to plan for right away.
Determine Insurance Coverage
Purchasing insurance for your company is important to ensure that your business is protected in case of accidents or damage. It’s crucial that you make sure you have just enough coverage. Too much can cost your business more for coverage that you don’t need. On the flip side, too little coverage could leave parts of your business unprotected.
There are various kinds of coverage for trucking companies. For instance, there is a non-trucking liability that covers accidents outside of work time. There is also general liability insurance. Your liability coverage minimum will depend on the kinds of materials you transport. The type of trucks that you use will also determine what type of coverage you need.
Consider these factors and research insurance companies to find the one that works for you. You should look into company reviews, the discounts they offer, and whether they provide the type of insurance you’re looking for.
Obtain Equipment and Develop Procedures
Now it’s time to start putting plans into action. You’ll need to determine what kind of equipment you need and search for quality trucks. You’ll also want to establish procedures for how you will run your business. What are the rules that employees need to follow? How will your days be structured? How will you store equipment and who gets access to it?
Quality equipment and thought-out procedures are essential parts of your business that will determine how it will function going forward. It’s important to put the time into these parts of a trucking company to make sure your business is sustainable in the long run.
Insure Your Trucking Company
Overall, the best thing you can do when starting your business is to do your research about what you’re going to invest in. Find quality people and equipment to set your business up for success.
There are a lot of things to consider when starting your own business. At Portal Insurance, we can take one thing off your plate by offering professional and complete trucking insurance coverage. We offer different kinds of coverage and discounts to appeal to multiple different kinds of businesses. Get a quote today to start protecting your trucking business!