Goods will always need to get from point A to point B, which is just one reason many people are attracted to the idea of setting up a trucking company. If you’re among them, these tips can help you hit the ground running.
Find Your Angle
When a trucking company is new on the scene, it’s typically helpful to target a niche market. You can always expand later, but picking a specific service to focus on — such as hauling refrigerated goods — will cut out distractions and let you work toward excelling in one profitable area. Try to avoid markets that are already oversaturated.
Create a Business Plan
Your target market will play a big role in informing your business plan, an essential document for any new company. A solid business plan will guide you through the process of forming and running a company, and it will serve as evidence that you’re on good footing if and when you approach lenders.
Know Your Costs and Rate
From payments on your truck(s) to insurance and fuel expenses, you’ll need a firm understanding of how much it costs to run your business. This will help you set the rates you charge shippers.
Setting an appropriate per-mile rate is essential for running a trucking company. Your rate will be influenced by an abundance of factors, including fuel prices, miles are driven, and the type of product you’re hauling.
Be Aware of IFTA
The International Fuel Tax Agreement (IFTA) is an important factor in any trucker’s life. IFTA governs fuel taxes across all of the United States, except for Hawaii and Alaska. It also applies in Canada. You’ll want to do some research on how to comply with IFTA.
Monitor Cash Flow
Cash flow is essential for trucking businesses, but it can be interrupted by unexpected delays and expenses. Solutions like lines of credit and factoring may help you through cash flow interruptions, so familiarize yourself with these options.
To learn more about financial solutions for your business, reach out to Critical Capital Solutions today.