Want Help Starting Your Own Trucking Company?
There are a lot of things you need to take into consideration when you get ready to start your own trucking company. A trucking business can be a great thing and it can offer you a unique way to build a better life for yourself and your family – but it is also a very challenging business to be successful in.
Many won’t be. They will fail and they will lose money and time in the process and in a year or two – or less – they will be driving again for someone else’s company and worse off than they were before they tried to start their own trucking business.
That’s a shame and I hate to see that happen to anyone.
It doesn’t have to happen either. One of the key things that determine whether a trucking business will be a success or a failure is the knowledge and preparation of the owner before they launch their new trucking business.
DOT Compliance and Regulations
Trucking is heavily regulated and often motor carriers are fined and penalized for all kinds of infractions – whether they even understand the requirements or not.
While you may not agree with the regulations in some cases – ignorance will not save you. In fact, it will open you up to all kinds of risks that you won’t even see coming until its too late.
So start by gaining a good understanding of the key regulations you must deal with and build your company with good management control systems from day one. Many of the things you need to do are relatively simple and easy enough to do – that is once you understand what needs to be done in the first place.
Driver qualifications, Drug, and Alcohol testing and Financial responsibility are critical areas (there are many others too!) that get countless motor carriers in trouble. Learn what it takes to avoid problems – especially in these areas.
Even established trucking companies that have been operating for years need to be sure they are doing things right – and that they are staying current. Too many find out the hard way that “that’s the way we have always done it” doesn’t work very well when DOT (or a lawsuit) finally comes calling. At that point, it is already far too late – and there will be fines and penalties and possibly even a loss of authority to operate.
Wrong Truck Selection
Countless new oner operators buy the wrong truck the wrong way at the wrong price – and they go broke fast as a result. In very general terms you are looking for a used truck that will be somewhere between about $20k to about $50k on average.
Too many new owner operators go to a dealer and buy a much newer and much more expensive truck than they need and than they can yet afford. You do NOT need a brand new truck! Nor can you afford one…
You also do not need to start putting all kinds of custom chrome and other cosmetic upgrades on the truck either – there will come a time for that – if you are smart enough to make your business profitable first that is. But I have seen many broke drivers immediately spend hundreds and even thousands of dollars putting new bumpers, visors, grills, trim packages, and other stuff on financed trucks before they even made any money with them!
That my friend is beyond stupid!
But you get to decide. Learn from their stupidity and their mistakes you can do better – or repeat them and fail like they always do. then you will become another cautionary tale for someone else perhaps. I do not recommend that approach, but hey – it’s your life, your business and it is your choice.
I suggest choosing a better truck – then focusing on making money first and after all at is done then you can begin customizing and improving your truck over time as you can truly afford it.
Failure to Set Up Financial Management Systems
Treat your trucking business as a business. Separate your business financial management systems from your personal finances now. Understand that you have to track manage and control every dollar. Every single dollar – no exceptions!
You also need to understand and then set up specific accounts for specific things. Here are a few to begin with;
- Emergency Reserve
Far too many people fail to do this. Instead, they mix it all in with their personal finances and run it all fro a personal checking account primarily. That is a serious mistake.
Failing to have an emergency reserve account is another – and so is failing to have it adequately funded too. Big trucks big bucks – I know you have probably heard that before, and if you haven’t heard it before – you have now. Truck repairs are expensive and even getting towed a few miles to a shop can cost several hundred dollars before the first wrench gets turned.
Stuff will break. I guarantee it.
It is NOT a matter of if but a matter of what, when, where and how much it will cost you to get moving again. Yet owner operators are often caught off guard and are “surprised” when these things happen. That is foolish. Know this now – it will happen and you need to anticipate it and be ready for it when it does. That way it will be just an inconvenience and nothing more instead of a major crisis that will put them out of business or come very near doing so.
Want My Help?
I am going to make you an offer that may make all the difference the world to your future. Join my FREE facebook group and then send me a private message and let me know you want a free consultation. When you do that I will call you (at a mutually agreed upon time) and give you a free no obligation consultation on your trucking business plans.
Join the Trucking Business Success Facebook group HERE and I will see you there and talk to you soon.