5 Things They Don’t Tell You About Starting A Trucking Business
Ever thought that owning a trucking business would offer you unparalleled freedom, the potential to earn as much money as you desire, and the ability to support your family, and more? While this is all true, there are a few other lesser-known factors that are involved with running a successful fleet.
We’ve been supporting trucking businesses since 2010 and have witnessed the frustration and stress experienced by owner-operators and fleet owners who underestimated the full scope of owning a trucking fleet.
Below, we list five crucial items that are rarely discussed when starting a trucking business:
- The first year of your trucking business is the most expensive.
During your first year of operation, your insurance will be the highest and you will have one-time startup fees, like IRP plate per truck, IFTA license per vehicle, etc. And on top of that, you are having to learn how to manage the cash flow of your fleet to ensure you always have funds to refuel and take care of operational costs, like equipment maintenance and repairs. - There are back-of-the-house administrative tasks.
Just like every business, owning a trucking business comes with its fair share of administrative tasks required by the DOT. These items include carrier file management, maintaining Motor Vehicle Records per driver, quarterly IFTA filings, and more. - You must keep up with all the DOT’s Safety standards & regulations.
You are not only responsible for how you operate machinery on the road but are responsible for all your driver’s actions too. If you or one of your drivers violate a DOT safety standard – like speeding or driving under the influence – your fleet will be subject to an audit, costly fines, and even loss of trucking authority. And as the trucking industry evolves, the DOT will introduce new and updated safety standards that you must be aware of and adhere to within your fleet. - Establish a healthy load mix.
Building strong client relationships is the key to sustained success for your business. And when creating these relationships, make sure you have a healthy balance between one-time loads and consistent loads, as this strategy will provide a steady and reliable cash flow for your fleet. - Find a trusted equipment leasing partner.
Expanding your fleet means that you will need more equipment. Having an equipment leasing partner is critical because they will understand what type of equipment is needed for your unique business needs and might even offer you discounted rates!
We understand the complexities that owning a truck business entails and have seen firsthand the frustrations that it can cause. At Aladdin, we are dedicated to supporting you for the long haul. We provide services, like invoice factoring, IFTA filing services, safety audit and appeal support, and equipment leasing and financing solutions, to support all aspects for your trucking business.
With us by your side, you can fully focus on why you started your trucking business: the pursuit of freedom!
