Logistics play a big role in running the economies of countries, and in the United States, the trucking industry is at the heart of country-wide logistics. Whether it be their runs from the manufacturers to retailers or e-commerce-driven endeavors, the business of trucks hasn’t died down in decades and has only seen more impending growth. Within the United States alone, almost 70% of goods delivered are done through trucking.
Without the significant ebb and flow of the trucking industry, the economy of the United States would quite literally stop, and hence the scope of trucking is not likely to reduce any sooner. If you are looking to run your own trucking company, know that it entails much more than attaining the USDOT and an MC number, and given below are five steps that are likely to help you succeed:
1. Find your niche
To successfully operate in the trucking industry in the United States, it is important that you either recognize a gap in the market and fit right in or discover your market niche to serve. Given the high demand for trucking logistics, competition in this industry is fierce. A basic game plan is to look for markets that bigger players tend to avoid, such as hauling specialized loads. The pertaining vehicles, equipment, freight lanes, and rates are likely to be decided only after you have chosen your niche.
2. Draft a business plan
Once you have your niche and your market figured out, the very next logical step is to Draft a business plan. This essentially Would involve making decisions regarding the type Of vehicles and equipment your business would need. It would also involve deciding whether you will purchase, rent or lease the said assets. The location of your fleet’s base, hiring procedures in trucking, applicable tariffs, target consumer base, secondary consumers, etc., all will be accounted for in your business plan as well.
3. Registration and pertaining permits
Registering your trucking business and acquiring all relevant permits is crucial to starting your operations. Depending on the state you register your business and choose to operate in, the number of licenses and permits you may require may differ, but the basic requirements are generally the same throughout the country. Some of the basic requirements include getting a USDOT Number from the Department of Transportation, the Motor Carrier or MC number from the FMCSA, and a commercial driver’s license. You will also need to attain commercial trucking insurance for your fleet and daily operations.
4. Maintain a dedicated office space
Running a trucking company efficiently entails much more than hiring drivers, assigning trucks, and calling it a day. There is tons of paperwork associated with efficiently running trucking operations, which involves settling fleet routes, planning deliveries and pickups, assigning those to hired drivers, ensuring all work schedule is fulfilled, business development, and whatnot. By using relevant software and applications in all of these processes, a team of two would easily be able to handle all back-office work. You should look to use event scheduling apps, accounting software, and CRM software to run smooth operations.
5. Ensure compliance fulfillment
As a trucking company, you would be eligible to meet multiple rules, regulations, requirements, and safety protocols from both the federal and local governments. These involve controlling noise emissions, gas emissions, anti-idling, and fleet servicing to reduce the environmental impact of logistics. These also involve compliance with human resource regulations where drivers can only be allowed to drive up to 14 hours at most, with a 30 minutes rest stop break for 8-hour long shifts. Companies should ensure compliance by making drivers use mobile applications to clock in and out of their work shifts.
Conclusion
Trucking is the backbone of the economy of the United States, and small trucking businesses account for almost 80% of this market share. Starting your own trucking company isn’t as overwhelming as it seems if you follow the right steps and head in the right direction.
Also published on Medium.
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