The trucking industry is booming, and with the ever-increasing demand for goods, it is one of the best times possible to launch a trucking company. Before you begin, you will need a business plan that specifies your processes, from sales and marketing to pricing and fleet management to operational activities and beyond.
Creating a proper business plan is a lot of work, but once you lay down the tracks, you will have a clear picture of your goals and resources. This will help ensure your success as you embark on the endeavor of launching a trucking company.
What Does a Trucking Business Plan Do?
When you make a business plan for your trucking company, it sets you up for future success. It requires devoting time and effort to consider how you want to run your trucking business. It also allows you to develop strategies that will help you reach those goals.
You may only know that you want to start a trucking company, but you might not be sure how to take the steps to make a business plan. Before you begin, you should consider a few factors that will help you fill in all the blanks.
For starters, you will want to consider if you’re going to be an owner-operator. You should also decide if your focus will be short-haul or long-haul trucking. Once you’ve thought those things through, you will want to think about your fleet. Are you planning to purchase your trailers or use an operating lease?
Other things you must consider are your financial forecasts, your overall budget, your budget for ancillary expenses, and your expansion plans for the future. It is a lot to think about, but there is one crucial step to take before you create your business plan.
What to Do Before Writing Your Trucking Business Plan
While you should be considering your trucking company business plan, you need to make your new trucking company an official business. This means you must register your company with your business name.
Registering your trucking company will require you to decide on making it a sole proprietorship with a DBA, S Corp, C Corp, or LLC. You can also register your business in your state or another state.
Once you have registered your trucking company as a business, you will get an employer identification number from the IRS. You can then proceed with getting a DOT number. This requires you to state where your business will operate, the number of trucks in your fleet, and the kinds of materials you will transport.
Additional steps include filing the BOC-3, obtaining truck insurance to protect your investment, getting apportioned plates, setting up an International Registration Plan, making an International Fuel Tax Agreement, and getting a Unified Carrier Registration. Some of these things will require annual or ongoing costs to maintain them, further complicating the issue.
Fortunately, you can get help when you start a trucking business to show you every step you need to take and ensure you’ve got everything set up properly to be a success in the industry.