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Questions to ask before starting a trucking company

by Staff Writer
11 Jun 2021 at 13:08hrs | Views
For your information, when most people talk about starting a trucking business, they don't mean to become the operators themselves. It is a typically one-person controlled business that is divided into several branches. In other words, such people are acknowledged as self-employed individuals because they don't work for anyone. Before starting a trucking company, one has to be mindful of a number of things.  Bear in mind, stepping foot in the trucking industry can be challenging, so we recommend you do some research. In this feature, we have compiled a list of a few questions that you must ask yourself before starting a trucking company:

1. What Kind of Stuff Do You Want to Move?
Today, most drivers will haul all kinds of stuff, which can fit in the trailer. However, if you see the work of professional drivers, you will be startled to see that they specialize in a certain type of freight. Today, you get to choose from different kinds of trailers such as a van, flatbed, refrigerator, step-deck, tanker, and the RGN. The type you choose will depend on the stuff that you want to move. Furthermore, you also get to choose from different kinds of tractors, so it is important to build a strong perspective on what you want to do. Unless you don't answer this question, don't jump on to the next one.

2. What Business Structure do Your Prefer?
The actual question is, which business structure is best for you? Go through the list of the available business structures and then decide the right one according to the business needs. Today, the easiest form of business structure is a sole proprietorship, which entails little paperwork. However, you will need to do little homework before choosing the right business structure in coherence with your needs. Bear in mind, once you settle for a certain type of structure and begin to work, you will have no option but to work with it throughout the period.

3. What Equipment Does the Business Require?
When it comes to equipment, it is usually the tractor and the trailer. For your information, the tractor price can easily fall between $30,000 to $250,000, depending on what type you want. Secondly, if you want the sleeper truck, it will eventually cost more. on the other hand, trailers can range from $10,000 to $120,000, depending on the kind of stuff you will be moving back and forth. When you begin to identify the equipment needs, you will also have to see what will be operated.  You also need to know that some trucks are suitable for long hauls. This is where your research will benefit the most. Secondly, these equipment are not cheap, so you might also think about renting them in the long run.

4. How Will You Handle Maintenance?
Repairs will take a big toll on the company budget. Although you won't have to spend more on the occasional fix of the trailer, the most expensive repairs are done on the tractor. It will be costly but if you keep up with the maintenance and repair of your equipment, you will eventually eradicate the chances of sudden expenses in the future. Keep in mind, truck stops are available throughout the country, so you will need to educate your drivers about spending on the maintenance of the vehicles whenever it will be needed.

5. Do You Require any Special Clearance on the License?

Today, most drivers will have to go through the inspection done by the Hazardous Materials Endorsement. It is mandatory for businesses that have to carry extensive freight from one part of the country to the next. The other endorsements are required to pull a certain type of trailers such as a tanker, the triples, or the doubles. Inquire about these requirements from the motor vehicle department before you make any investment.

6. Do You Want to be an Independent Contractor?
Today, most owner-operators lease with a large carrier who hands everything from finding the right audience to go through the paperwork. This way, you have only left with driving the vehicle and paying your taxes.  When you lease your equipment to a company, it means that they will take a certain percentage of the profit as a commission when the load pays off. So you need to see if you want to work as an independent contractor or rely on a team.

Source - Byo24News

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