How to Create Your Own Truck Driving Company

Trucking companies are responsible for distributing products and food to cities across the U.S.

Semi trucks are an important aspect of the transportation field in the U.S. as they transport products and goods across the country each day. While the job requires long hours and time away from families, many find it worthwhile since truck drivers make an average hourly wage of $17.92 according to the U.S. Bureau of Labor Statistics. The opportunity to increase these earnings exists for drivers who create their own truck driving company.

Instructions

1. Draft a business plan. Analyze the trucking and transportation industry to determine whether a new truck driving company is viable based on your location and your competition. Add up the costs of starting a truck driving company and include this in your written document. Detail your strategy for how you plan to finance, manage, market and staff your business as well as how you plan to grow it and make a profit. Use business plan information available from the Michigan Small Business Development Center to assist you in writing the business plan.

2. Secure funding. Pull your credit report from one of the three credit bureaus to review your credit history and determine what your credit score is. Talk to a loan officer at a local bank or credit union to learn if your score is high enough to qualify for a business or commercial loan to start your own truck driving company. Know the amount you need to borrow in advance by consulting the financial information and start-up costs you included in your business plan.

3. Register your business. Complete registration of your truck driving company at the federal level by obtaining an employer identification number (EIN) from the Internal Revenue Service (IRS) using phone, fax or an online registration form. Check with state and local revenue or tax agencies to determine if sales tax applies to your business and complete any necessary forms. Purchase liability insurance as well as motor vehicle insurance to protect your business as well as the trucks and drivers your company is responsible for. Make sure get a local business license as well once you've selected a physical location for your business.

4. Find a facility. Browse listings of commercial and industrial properties in your area by visiting the website LoopNet. Hire a commercial real estate agent to assist you in finding a property that can meet the needs. Look for a property with office space as well as an oversized garage to allow you to service and repair your equipment on-site rather than taking vehicles to an outside shop. It's best to find a location with easy access to major highways to avoid driving on city streets.

5. Purchase supplies and equipment. Find a new or used semi and trailer to buy. Contact manufacturers such as Freightliner, Kenworth or Peterbilt if you plan to buy a new truck. Looking on web sites, such as Trucker to Trucker, or check advertisements if you plan to start with used trucks. Add additional semis and trailers to your fleet as your business grows. Purchase service and repair tools and equipment and also get office supplies to manage the records and finances for your business.

6. Secure contracts. Network with company and business leaders by attending local business meetings and events in your community. Inform them of the services your company offers, and provide them with free estimates on hauling and distributing their products. Bid on trucking and transportation jobs opened by government agencies as well as new companies. Get to know local farmers and ranchers since they utilize semis and trailers during specific times of the year when large amounts of animals or grains need hauled.

7. Hire staff. Advertise in local newspapers, trucking publications and online job web sites to get applicants for driving position. Conduct background checks and drug screens on any potential hires since insurance covering your drivers requires no drugs and often no moving violations in the last one to three years. Develop a way to also check the status of their commercial driver's license (CDL) with the department of motor vehicles (DMV), since all drivers need this to operate a semi on public roads.

References

• U.S. Bureau of Labor Statistics: Truck Drivers

Resources

• Michigan Small Business Development Center: Business Plan Information
• Internal Revenue Service: Employer Identification Number
• LoopNet
• Trucker to Trucker: Semis and Trailers for Sale