Q:

What are some important steps to follow when starting a trucking business?

A:

Quick Answer

To start a trucking business, purchase equipment, get the right customers, identify expenses and run an efficient operation. Hiring an accountant may be a good financial decision when starting a trucking business.

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Full Answer

Begin by purchasing the right equipment for the type of trucking business you wish to open. This involves making a down payment and getting a loan to cover the rest of the cost. Depending on your financial situation, you may wish to consider leasing the equipment.

Next, advertise the business and network with local grocery stores and other businesses to gain clients. Load boards are a good place to start when looking for clients, but may not be a good long-term strategy. This is because these clients rarely convert into long-term clients and generally work with trucking companies that offer the lowest prices, limiting profitability.

It is equally important to bid well to be competitive but profitable. Factor in expenses such as fuel, labor, truck repairs, maintenance, and truck and trailer payments. Factor in deadhead miles, which refer to traveling without a load after delivery.

Finally, run an efficient office by hiring qualified staff. The size of the office should be proportionate with the size and type of trucking business. Come up with sustainable strategies to maintain cash flow, especially where slow-paying clients are concerned.

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