With trucking leading the way as the dominant mode of transporting freight, there has never been a better time for starting a trucking company. The industry is expanding and there are tremendous opportunities for individual truck drivers to capitalize on this growth. If you’re tired of working under a dispatcher and ready to put in the long hours, starting a trucking company could be the right way to go.
With the proper resources, planning, and work ethic, owner-operators are likely to make much more money than company employed truck drivers. According to the Department of Labor, the average yearly salary of an employed trucker is just over $37,000, while the Owner-Operator Independent Drivers Association reports owner-operators earn a median gross income of $160,000. The money is there to be made, but here are a few steps that will help guide your transition from a company truck driver to the owner-operator of a trucking business:
- Before investing in your own trucking company, consider the lifestyle requirements that are involved. Owning and operating a trucking business requires long hours and lots of time away from home. While owner-operators have much more flexibility and freedom than company employed truck drivers, starting a trucking business requires a lot of hard work. If you’re willing to take on the challenges to turn a profit and build your brand then it’s time to take the next step towards starting a trucking company.
- Market and Network
- If you’ve decided that being an owner-operator fits well enough with your lifestyle and are ready to be starting a trucking business, it is time to market your brand and build a network of connections. Attend trade shows and use any existing contacts to establish relationships with other businesses and trucking companies. When starting out, a successful owner-operator must always be open to working with new people and expanding their base of customers.
- Independent or Sub-contract?
- A big decision that an owner-operator has to make before starting a trucking company is whether to sub-contract their loads. By sub-contracting, owner-operators save money on taxes and reduce their workload by paying other independent drivers to haul their freight. If an owner-operator chooses to stay completely independent and hires their own fleet of drivers, they will have greater start-up expenses but stay in control and maximize their potential profits.
- Budget and Expenses
- When you feel it’s finally time to put forth the initial investment for starting a trucking company, make sure to add up all your expenses and organize a budget for the prospective year. Also, remember to stay in close contact with an accountant and be up to date with the government licensing and permits required by each state.
Ready to start your own trucking business but low on the necessary funds? Freight invoice factoring can help. Freight factoring companies will buy your invoices at a discount and provide immediate cash in return, allowing your trucking company to grow. Don’t wait months for a bank loan that could put you in debt. Freight invoice factoring is reliable and gets you cash fast. Call 1-855-322-8671 to receive a free quote today!