{"id":205517,"date":"2022-05-19T12:53:05","date_gmt":"2022-05-19T19:53:05","guid":{"rendered":"https:\/\/www.nationalfunding.com\/blog\/?p=205517"},"modified":"2023-10-31T12:11:19","modified_gmt":"2023-10-31T19:11:19","slug":"how-to-get-into-a-trucking-business-everything-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/how-to-get-into-a-trucking-business-everything-you-need-to-know\/","title":{"rendered":"How to Get Into A Trucking Business: Everything You Need to Know"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Trucking is an exciting and lucrative industry with plenty of opportunities for business owners. However, in such a competitive and relevant field, business owners need to follow certain steps when starting a trucking business. Whether you\u2019re establishing a new brand or buying an existing company, consider the following steps and learn about how to get into the trucking business.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">5 Steps to Getting Into Your Trucking Business<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">These steps outline the most essential and helpful elements for getting your trucking business started. Though other tasks or challenges may arise throughout this process, these basic principles offer long-term security and preparation.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Step 1: Update Your Business Plan<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Having a reliable and educated business plan is the first and most important step. You aren\u2019t going to be able to manage everything perfectly with endless funds, so it\u2019s best to be intentional with your time and money. Consider your priorities when creating your plan: <\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What <\/span><i><span style=\"font-weight: 400;\">must<\/span><\/i><span style=\"font-weight: 400;\"> happen to make a profit?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is going to yield immediate results versus long-term results?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In what ways do you plan to grow and how are you prepared to support that growth?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What processes, services, or policies need to be developed and perfected as soon as possible?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you\u2019re buying an existing business, how will you maintain current projects?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What ineffective practices need to be done away with and what new practices need to be implemented?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A good business plan helps you stick to your objectives and guides decision-making for the future. Here\u2019s a quick reminder of the topics to include in a <\/span><a href=\"\/blog\/how-to-write-a-trucking-company-business-plan\/\"><span style=\"font-weight: 400;\">trucking business plan<\/span><\/a><span style=\"font-weight: 400;\"> to clearly outline your expenses and revenue:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Executive Summary<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company Description<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market Analysis<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Organization and Management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Products and Services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Marketing and Sales<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Funding<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial Projections<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supporting Documents<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Revisit and update your business plan once a year and reference it often. The economy and the market can be unpredictable, so of course you must be flexible; however, having an active and intentional plan will help prevent negative contingencies.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Step 2: Check Business Compliance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The next step is to make sure your business plan complies with federal and state government regulations. The last thing you need is an unexpected or preventable fee while you&#8217;re trying to establish a business. Keep in mind that the following list isn\u2019t comprehensive. Make sure you look closely at federal and local requirements, safety regulations, truck standards, etc.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Federal\u00a0<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>USDOT Number.<\/b><span style=\"font-weight: 400;\"> The U.S. Department of Transportation (DOT) requires all carriers to have a unique and identifying number to monitor safety and compliance practices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Operating Authority.<\/b><span style=\"font-weight: 400;\"> If you are a for-hire carrier, you also must get authorization from the DOT that determines what kind of cargo you can legally carry.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Heavy Vehicle Use Tax.<\/b><span style=\"font-weight: 400;\"> There is an annual federal tax for trucks that exceed 55,000 pounds that helps fund highway programs.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Local\/State Registrations<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>International Registration Plan (IRP).<\/b><span style=\"font-weight: 400;\"> There are certain registration fees that vary depending on the distance traveled in a state.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>International Fuel Tax Agreement.<\/b><span style=\"font-weight: 400;\"> To simplify reporting on fuel for states and Canadian provinces, there is a tax agreement that allows carriers to file a quarterly fuel tax that is distributed to participating states.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Registered Agent<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Carriers need a registered or process agent that processes legal documentation and other records, specifically with BOC-3 filing. Wherever you have an office, you need a designated agent in that state. This is one of the main steps to legally establishing your company.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Step 3: Check Driver Compliance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Not only does your business need to be compliant, but so do the drivers you hire. All drivers need to have a commercial driver\u2019s license (CDL) and any necessary endorsements for certain types of unique carriers.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Step 4: Verify\/Get Insurance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019re buying an existing business, be sure to confirm that the company is insured properly. Similarly, if you\u2019re starting your own business, you must get the right kind of insurance for a trucking company. It can be a big expense, but it\u2019s legally required for freight. Such insurance includes:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li><b>Primary liability:<\/b><span style=\"font-weight: 400;\">\u00a0If you (or your drivers) are in an accident where it\u2019s the fault of your company, then primary insurance helps cover the costs and damage. This amount is usually between $750,000-1 million dollars in liability coverage.<\/span><\/li>\n<li aria-level=\"1\"><b>Cargo: <\/b><span style=\"font-weight: 400;\">This type of insurance covers damage to the cargo or theft. $100,000 is a fairly typical price, but the type of cargo or coverage you need can make the price vary.<\/span><\/li>\n<li><b>Physical damage:<\/b><span style=\"font-weight: 400;\">\u00a0This helps cover truck damage if there\u2019s an accident where your driver is not responsible.<\/span><\/li>\n<li aria-level=\"1\"><b>Non-trucking use:<\/b><span style=\"font-weight: 400;\">\u00a0If a driver is liable for an accident but they are not hauling cargo for a third party, then this insurance helps cover those damages.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Step 5: Understand How to Increase Profitability<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">At the end of the day, you need a <\/span><a href=\"\/blog\/how-to-make-a-trucking-business-profitable\/\"><span style=\"font-weight: 400;\">profitable trucking business<\/span><\/a><span style=\"font-weight: 400;\"> to be sustainable. If you\u2019re starting from scratch, you need to be able to make money as quickly as possible to start generating revenue. If you\u2019re buying a trucking business, you need to optimize everything to prevent losing (or regaining) revenue. Some of the ways you can do that are to:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\"><b>Optimize loaded miles. <\/b><span style=\"font-weight: 400;\">Every mile load needs to be bringing in money for your business. You can maximize truckloads, especially if you hire a broker or utilize loan boards. You can also look for more specialized or niche markets.<\/span><\/li>\n<li aria-level=\"1\"><b>Increase fleet size.<\/b><span style=\"font-weight: 400;\"> If you can, add more vehicles and drivers to your fleet. It\u2019s one of the best ways to get more business, expand your company, and establish a brand. National Funding offers <\/span><a href=\"https:\/\/www.nationalfunding.com\/industries\/leasing-financing\/commercial-trucks\/\"><span style=\"font-weight: 400;\">commercial truck loans<\/span><\/a><span style=\"font-weight: 400;\"> to trucking business owners to help supplement those expenses.<\/span><\/li>\n<li aria-level=\"1\"><b>Be competitive.<\/b><span style=\"font-weight: 400;\"> You can attract drivers despite the driver shortage if you have compelling and competitive perks. Offering competitive solutions for your employees also means you can offer competitive solutions for consumers. Also, set a competitive rate for your business; consider what competitors are doing and make sure you aren\u2019t falling behind.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">We are prepared to help with your business<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you know how to start a trucking company, you need the resources. No matter how prepared you are, having enough funds can be a challenge for everybody. Buying or leasing the right equipment is one way to create or adopt a sustainable business, which is just one of the many monetary concerns for new business owners. National Funding has experience with trucking loans and is ready to offer you all the support you need.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you need money to hire and retain reliable drivers, to cover administrative expenses, or expand your fleet, National Funding has the right type of small business loan for you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ready to get started? Talk to a loan specialist to learn more or apply to <\/span><a href=\"https:\/\/www.nationalfunding.com\/small-business-loans\/\"><span style=\"font-weight: 400;\">get funding now<\/span><\/a><span style=\"font-weight: 400;\"> for your trucking business!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether you\u2019re establishing a new brand or buying an existing company, consider these 5 steps on how to get into the trucking business.<\/p>\n","protected":false},"author":32,"featured_media":193404,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-205517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-trends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Get Into Trucking Business | National Funding<\/title>\n<meta name=\"description\" content=\"Ready to start your trucking company? 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