If you dream of being an entrepreneur and are looking to start your own trucking company, you should know that you can start from the very basics. If you have an old truck rusting away in your garage, or if you can gather enough money to purchase an old second-hand model, you should know that it is very much possible to set up your own trucking company with an old truck.
While entrepreneurs often have to deal with permissions and regulations from their respective motor carrier authority and other legal implications, they should be aware that they can set up a trucking company with minimum resources as well.
While other competing trucking companies with multitudes of assets and thousands of trucks at their disposal may seem intimidating to you, you should know that by following the right steps and armed with even a single truck, you can find your own niche and succeed. Listed below are steps that you need to undertake to start your own trucking company with a single used truck.
1. Complete All Trucking Authority Forms
Starting your own trucking company requires tons of paperwork and documentation – which it may all seem too redundant, it is important to complete the legal compliance aspect of your trucking company to ensure its success. If you fail to complete the required documentation, you could face legal proceedings, fines, and even charges against you or your company in the future.
The most important part of the documentation process would be filing for a USDOT number to get registered with your area’s respective motor authority. You would have to pay a fee which would be about USD 300 to complete the registration process.
2. Get In Touch With A Processing Agent
It is recommended that you get in touch with a professional processing agent or a processing company that can handle all legal matters for your trucking company. This is because, for each area or state that your trucking company operates in, you would need a respective agent to handle all pertaining procedures and requirements.
The process agent would be responsible for completing the form BOC-3 filing procedure for your trucking company and if you are confused as to which agent you should choose, you can always consult FMCSA guidelines with regards to it. A process agent would be an integral part of your company matters and hence you should make this decision carefully.
3. Get Insurance For Your Truck
Once you have completed all necessary paperwork, you now need to get your vehicles insured. Your truck would probably be an integral part of your business processes and hence it is imperative that you get it insured. Additionally, you would also need liability insurance which is essential for all trucking companies if they are looking to get their damages and any potential accidents covered.
Your truck could be carrying often expensive and costly items from your clients – in case of an unfortunate accident, you need to make sure that both your truck and its contents are insured. Before selecting an insurance company, look for and compare different quotes and also make an effort to consult the FMCSA guidelines with regards to trucking companies’ insurance.
4. Increase Your Fleet
While your older used truck would suffice for your operations in the beginning months, you would need to consider increasing the number of trucks that would operate in your trucking company’s operations. Whether you look to buy, rent or lease trucks depends upon your financial situation. Depending upon your needs, routes and clients, you can choose the number and type of trucks that you would include in your fleet. If you wish to purchase several new trucks, it is recommended that you get them from the same dealer to avail a discount.
5. Purchase The Right Trailer Equipment
Once you have your trucks, it is essential that you set them up the right way. If you choose the right equipment for your trucks and trailers, you can ensure that your trucking operations would go on in a much smoother and hence efficient manner. Depending upon your truck’s setup, you can also charge a higher freight for your trucking company’s services. Poor quality equipment could also potentially damage your items en route and hence allow your insurance company to charge you a higher premium.
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