Many people get into the trucking business and regret it later. Why? Because it’s expensive. A lot more expensive than you would think. So, here is a step-by-step process to help you create a strong foundation for a long-lasting endeavor.
Step 1: Map Out Your Business Model
Make sure you map out your business model. How will your trucking operation work? Will you be an independent contractor or will you work directly for a company. If you’re an independent contractor, find out what the law in your state says about your rights and responsibilities, since you’ll basically be your own independent business owner.
For example, one thing you may have to face as an independent is the possibility of being sued after being involved in a wreck. You’d have to talk to truck accident lawyers Craig, Kelley & Faultless LLC to figure out what your liability would be if you got into an accident, for example.
You’ll also need to manage insurance and taxes on your own.
Step 2: Raise Capital
Raising capital is usually necessary for a truck loan because the bank will probably want to see that you have “skin in the game.” Usually, this means you’ll have to come to the table with a sizable down payment – savings – that you can put toward the purchase of a truck. If you don’t have any money saved up. You’ll need to work on that first.
Step 3: Find Lenders
Finding a lender can make or break your dreams of breaking into the trucking business. Most banks are going to be reluctant to lend you money – especially if you have bad or shaky credit. What you need is a hard money lender. These lenders from Equipment Finance Canada are willing to give you money if you can give them collateral. Basically, you have to come to the table with something worth money that they can use as security for repayment of the loan.
If you do have something valuable, but you don’t want to sell it (either because it’s personally meaningful to you or because you expect it to go up in value later), then a collateral assignment of this kind could be a great option so long as you repay the debt.
Step 4: Get Insurance
Ask about insurance, even if you work for a company. Make sure you’ve covered for the type of driving you’ll be doing. If you drive across state lines, you will need to make sure your insurer covers this too.
Step 5: Formulate a Maintenance Plan
Maintain your truck. Should be a no-brainer, but it has to be said. If you’re getting into the trucking business, your truck will need periodic maintenance from skilled semi truck repair technicians so that it runs properly. You’ll want to find a heavy duty truck drivetrain parts distributor and other companies that can provide prompt access to replacement parts so that your vehicles do not spend too much time out of commission.
Step 6: Join A Local Or State Association Of Truckers
If you’re just starting out, it’s a good idea to reach out to other trucking professionals and companies. This usually means you have to join a local or regional association of truckers. So, if you live in California, for example, you’d join up with the California Trucking Association. Associations in the trucking industry are a bit like trade unions.
It puts you in contact with people you need to know to get into the business and start driving.
You will also learn a lot about the trucking business, what it’s like, what to expect, the costs, how to hire the right people for truck driving jobs, and other’s experiences in the business.
Charlotte Hunt grew up around trucks at her family-run haulage company. Now having taken over the business from her father she blogs about the trucking industry in her spare time.
