Everything Trucking Companies Need to Know
A trucking company owner needs to manage all the activities starting from understanding the overall operating cost to run the business, to finding out the best truck insurance plan to safeguard it. As a trucker, you must know every other expense like fuel, maintenance, food, etc.Read more
How to Set Up a New Trucking Company?
To start a new trucking company, you must know different aspects related to it. If you want to know how to set up a successful trucking company, the below steps will help you in clearing your doubts.
1. Find the Right Niche
If you want to start a trucking business, you need to choose a market niche. Whether you want to focus on the markets that the large carriers avoid or want to choose to haul specialised loading business. The market type you will choose will determine the trucks you will buy or lease, the rate you will charge, and the customer you will service.
Fleet businesses are generally divided into several categories like packers & movers, general freight, tank trucks, heavy hauling, building materials, motorised vehicles, household goods, bulk loading, petroleum products, agricultural commodities, dairy products, and refrigerated solids.
2. Create Your Business Plan
To run a successful trucking business, you must have a business plan. You must research to get a broad view of the industry. Under your research, you should begin with market research and a data-driven strategy to attain business goals.
You must know what type of trucks you will lease or buy, the type of loads & freights you will work with, the driver hiring process, find the competitors & conduct a SWOT analysis, and know-how to diversify your business. Hence, an accurate business plan is a roadmap to making your trucking business a successful brand.
3. Know the Cost of Business & Find Resources
Investing in a trucking company is an expensive affair. There are a lot of upfront costs that you will have to pay before starting a company. The costs include the down payment of the truck, registration fee, licensing fee, truck insurance cost, and permit fees. After completing this payment, you must also include fuel, maintenance, food, miscellaneous, etc.
Moreover, you should know beforehand how to cover these costs and start making a profit out of it. The first 6 to 12 months will be difficult for you to spend and cover the cost. Therefore, you must know the cost of business and find resources to run the business.
4. Know the Rules You Have to Follow
Before starting the company, you should know the rules and regulations that you have to comply with. Your trucking company must obtain the necessary business licenses, permits, registration certificates, and truck insurance for truckers to start the business.
Depending on the states and their policy, you must have all the permits to run a trucking company. Running a trucking company allows you to separate your personal belongings like assets, and business liabilities.
5. To Enhance the Taxing Process
Along with the commercial vehicle insurance policy, you must know the effective GST on your trucking business. For heavy goods vehicles, the GST differs from the light-duty vehicle.
An ideal trucking business has transparency in tracking income and expenses. For an efficient taxing system, purchase excellent bookkeeping software and hire an accountant to look after income and expenses. Understand the shipping contracts and payment receiving date. Also, it is advised to keep your personal and business finance separate to keep a record of receipts, invoices, and expenses.
6. Find the Best Driver and Hire Them
One of the important steps to establishing a successful setup is to find the best truck drivers with clean driving history. A successful company offers some benefits to those drivers who have accident-free history, flexible working, and received training certifications. All the above features will help you to commence a trucking business and provide satisfaction to the employees.
The trucking industry is the backbone of the logistic sector in India. Having a great fleet company with excellent teamwork is half the work done. The other is having efficient back-office operations to look after all the connecting departments. It is suggested to get all the permits and licenses according to the state policies. Also, buy a truck insurance policy to give your truck extensive financial cover.
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