Business

What You Need To Know Before Starting A Trucking Business

2 Mins read

Starting a new trucking business isn’t an easy venture. If you’ve got history in the industry, you’ll know that it’s competitive and there are a lot of big players on the field. It’s vital for you as a business owner and as someone hopeful for success that you know what you’re doing before you get going. It means looking beyond finance and support and marketing and knowing what there is to know before you strike out and accidentally miss your target. So, what do you need to know about being a success in the trucking industry – before you get out there?

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You Need Emergency Cash. You may have secured your funds with the bank, but you’ll need to have extra. You need money in the bank to cover you so that you don’t risk yourself going out of business. You also need extra cash for things like Service Trucks to help you out when you deal with breakdowns on the road. As a business, you need at least three months of expenses as a cash reserve, so that you have that fall back when things get a little tough.

You Need A Plan. Trucking isn’t something that can be done by those who aren’t strong stomached. You need more than just a truck to get on the road; you need a plan. This plan should be concise, watertight and be able to tell you where you want to end up as a business. It’s not an easy thing to do, putting together a business plan and a budget, but it’s something that must do if you want to succeed.

You Need A Bookkeeper. You need a specialist in finance that is also a specialist in transportation. The books for a trucking company are going to vary somewhat compared to a restaurant, and there are many complexities that need consideration. If you have an expert on your staff, you’re not going to need to worry that your financial obligations will be me. There are a lot of areas that you can go cheap on, but your accountant should never be one of them.

You Need Insurance. You are running a transportation business, it’s an obvious one here that you need to have adequate insurance. Not only to cover your business and your in-house operations, but for every single vehicle in your fleet. You can find agents out there that are experts in trucking insurance, so find them and get them on board as fast as you can.

You Need To Know Your Options. As the owner of a trucking company you have two main choices. You can stay a driver in the fleet and be on the road like your staff, or you can choose to don a tie and become an owner/operator. Making the right decision for you won’t always be an easy one but it’s a personal choice.

Trucking is big business; being on the road isn’t always safe. Keep yourself covered and know your financial stuff, and you’ll be a major player in your industry.

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Ryan Kh is a big data and analytic expert, marketing digital products on Amazon's Envato. He is not just passionate about latest buzz and tech stuff but in fact he's totally into it. Follow Ryan’s daily posts on Catalyst For Business.
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