Gus Bowen - Trucking Company: How to Start a Trucking Company and a Freight Broker Business Startup Guide

Trucking Company

How to Start a Trucking Company and a Freight Broker Business Startup Guide

Copyright 2018

All rights Reserved. No part of this book may be reproduced in any form without permission in writing from the author. Reviewers may quote brief passages in reviews.

Disclaimer: No part of this publication may be reproduced or transmitted in any form or by any means, mechanical or electronic, including photocopying or recording, or by any information storage and retrieval system, or transmitted by email without permission in writing from the publisher.

While all attempts have been made to verify the information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions or contrary interpretations of the subject matter herein.

This book is for entertainment purposes only. The views expressed are those of the author alone, and should not be taken as expert instruction or commands. The reader is responsible for his or her own actions.

Adherence to all applicable laws and regulations, including international, federal, state and local laws governing professional licensing, business practices, advertising and all other aspects of doing business in the US, Canada, UK or any other jurisdiction is the sole responsibility of the purchaser or reader.

Neither the author nor the publisher assumes any responsibility or liability whatsoever on the behalf of the purchaser or reader of these materials. Any perceived slight of any individual or organization is purely unintentional.

The role of the trucking industry in the economy cannot be overstated. About 70% of cargo in the US is transported by trucks. So, if the trucking industry somehow came to a halt, the economy would face a crisis of epic proportions.

Considering that a high percentage of goods are transported by trucks, smart business people can launch their trucking companies and take advantage of the increasing shipping demands high freight rates.

The initial cost of setting up a trucking business may be high, but with a great business plan, it is easier to secure the cooperation of both investors and money lending institutions. It is prudent to start small, especially if you are not relying on your savings, and then you may expand your company as your sales grow.

A person who is interested in making money in the trucking industry should acquire as much knowledge as they can. If they dont have a background in the industry, they may work together with a person who has experience, because valuable insider knowledge could potentially save you monetary and legal problems.

Many factors influence a successful trucking company, but the key factor is drivers. The industry has historically faced a shortage of drivers, and in this era of millennials, it is even worse. Competent and hardworking drivers are the secret to a successful trucking company.

Sadly, the trucking industry can be very harsh on new businesses. However, when you are informed about critical aspects of the industry, it is easy to adapt, survive the early stage, and see your company flourish.

The economy is experiencing a tremendous growth rate. This means that there is a big opportunity for smart people to launch their own successful businesses. One of the most profitable industries is trucking. The trucking industry is responsible for the movement of items across the country. It is a very competitive field. You might want to first learn as much as you can about the industry before you set up your own trucking company, or else you risk losing valuable time, energy, and money.

Most people tend to think that all trucking companies are similar, but that is not the case. You first need to decide precisely what role your company will fulfill.

Here are the main classifications of the trucking companies:

• For-hire truckload carriers

These trucks essentially haul other companies freight. Many companies need logistic support and supply chain management. Companies contract for-hire truckload carriers to transport their products. The business model is ever changing because it is based on the freight demands of the companies that you work with and contract terms. When the contract reaches maturity, the client in this case the company may allow other trucking companies to bid on it. And so, the nature and availability of freight are subject to change, and one of the measures of protecting yourself against loss is having multiple customers.

• Private trucks

If you have a company that produces a particular product, you might want to distribute your own product as opposed to contracting out trucking companies. Private trucks are thus used to transport freight that belongs to the parent company. Whenever private fleets are unable to meet their freight demands, they may contract out other truck companies.

• Household Movers

People are relocating every day, and they need to bring their stuff along. Establishing a household carrier company will facilitate the movement of peoples belongings. Considering the high percentage of people who relocate because of family, financial or even work-related reasons, this is an especially lucrative field.

• Inter-modal

In this model, the only function of trucks is carrying the freight to and from the railroad yard. This is how it works: a truck carries a load to the rail yard, the load is transported by rail, and finally, another truck carries off the load from the rail yard to its destination.

Market Research and Competitive Analysis

Market research will enhance the viability of your business, and competitive analysis will make your company stand out. Both market research and competitive analysis are important tools in ensuring the success of a company.

Market research is heavily based on studying economic trends and the behaviors of buyers. It gives you the ideas of product improvement in order to meet customer needs. These are some of the questions you may need to answer:

• Is there a demand for your service?
• What is the size of the market for your service?
• What are the financial abilities of your target customers?
• Where do your target customers live and can your business cater to their needs satisfactorily?
• Are there similar businesses operating within your target location?
• What is the best pricing for your service?

Draw Your Business Plan

Business plans help you start and run your company. They facilitate the structuring and growth of a business by allowing you to put down the key elements of your business. A good business plan will promote cooperation from important parties such as investors and managers. It will help you get funding or convince skilled people to work for you.

There are two main categories of business plans: traditional and lean start-up, but in both cases, the key elements of your business should stand out. The traditional business plan can be quite extensive, as it encourages pouring out the details in every section; while lean start-up business plans put emphasis on summarizing the key elements of your business.