Top 7 Things to Consider Before Starting a Trucking Business

There are many different ways to operate a successful trucking business. That’s why we have created a handbook guide with 7 Tips on starting a trucking business and growing it.

1. Check Your Current Status

Have any papers that need filing you just haven’t gotten to? An email you never sent? When you first open your business and you’re running a small fleet of trucks, it’s easy to neglect the paperwork as you focus on other factors of the Trucking Business. Tracking paperwork is far from the most exciting aspect of the job, however, an organized office is necessary for future success.

2. Take Stock of Your Expenses

Finances: Now that the first phase of your Trucking Business has passed, it’s time to sit down and take a serious look at your finances to start a trucking business. It goes without saying it is important to keep up with budgets and costs, especially with a new trucking business. Good credit scores and reliable statements are necessary steps to ensuring financial security. good credit score, reliable statements, and managed sources of income.

Investments: As far as income goes, it can be really hard to keep track of your money flow in the trucking industry. Since most payments, like your hvut payment, are 30 to 90 days out, it’s up to you to keep track of what you have and have not been paid so nothing slips through the cracks. As your trucking business grows, you will need to invest in more equipment. Any lenders require you to provide financial statements to show that you are a legitimate trucking business. Make sure that you can provide financial statements either created by you or a CPA, so that you can be prepared.

Budgeting & Taxes: Budgeting can be a hassle. From planning out all of your expenses, including fuel, hotels if your trucks go out of state to your insurance and permit fees. It can be challenging to bookkeep all these expenses for when the tax season comes around.

Form 2290 can be complex especially for first time trucking business owners.
eForm2290 was founded to help truckers and trucking business owners like yourself take care of their taxes. We can help you electronically file your tax returns, help you with an irs e-file login, and can answer any questions you have throughout the entire process. Contact us today to get started with our experts. If you’d like more information on trucking taxes, check out this handy guide we created.

Creating a niche in your workforce will help you build a network of clients that you can trust to provide your company with work. If you try to find jobs in many different sectors, your network will be stretched too thin and wide. It’s estimated that there are over 2 million trucks currently in operation in the United States. That’s a huge competition.

In order to succeed, you need to choose the right niche or sector to focus on. This will be helpful, too, when it comes time to buy new equipment. The main sectors that the trucking industry is part of are:

If you want to focus on agriculture, you’ll need to invest in refrigerated trucks. If you are focusing on storage, you’ll be fine with dry trucks etc. When you choose a market to focus on, you can then ask your clients for connections they have within the same industry. By doing that, you’ll build up your client pool and start to see your trucking business growby grabbing this kind of trucking business opportunity.

Choosing your industry is not something to take lightly, of course. Make sure you do your research to find out if the industry is already too competitive, susceptible to recessions, too niche, etc.

4. Talk to Experts

Enlisting the help of experts can be a great step in starting and growing your trucking business. As a business owner, you are forced to wear many hats and juggle multiple roles at once. It’s important to remember there is no harm in asking questions and reaching out to experts for help. Reach out to companies you admire, attend conferences, or even just chat to other people at truck stops overnight. You’ll be surprised how much you can learn from one conversation.

As your trucking business grows, you need a reliable team on your side to help you with the nitty-gritty parts of being a business owner. Hiring management and office staff will lighten your load and may even help you get more organized and stay on track.. Hiring an accountant can be crucial for keeping track of your expenses, especially if it’s something you have never done before.

An office manager will keep track of all your paperwork for you. This means you can spend less time organizing papers and more time trying to find new, innovative ways to grow your business.

An HR manager will keep track of your employees' pay and benefits and is a helpful addition as your team starts to expand. A truck dispatcher will be beneficial to add to your team r when you have many different drivers in your fleet. They will be able to organize who goes where, when, and with what equipment.

With a reliable team by your side, you will be ready to face any challenges that might come with a growing trucking business.

And of course, hiring great truck drivers that represent your business day in and day outBy offering benefits and treating your employees with respect, you should be able to retain your drivers. Common benefits or bonuses that trucking companies offer are:

All of these things are hallmarks of a great boss. Your company's reputation matters, both for clients and future employees. Always make sure that you are treating everyone you come across with respect, as this will only help your business grow.

6. Stay Compliant With Regulations

It is absolutely crucial to stay on top of trucking regulations. With eForm2290, we can help you stay on top of your tax filings.

Environmental Regulations

Your trucks need to be regulated for several different environmental factors. Emissions are a major part of that. Anti-idling and greenhouse gasses are two factors to emissions that you need to control along with noise emissions. Both of These things come down to buying or leasing quality trucks and maintaining them, but of course, fees come along with it.

Federal Regulations

These include licenses and insurance as well as are boundaries set in place by the U.S. Department of Transportation on how long your drivers can drive before needing to rest. It is important to make sure your drivers adhere to these rules for their safety and everyone else's. Setting up a healthy work culture can help with compliance.

State Regulations

State regulations are similar to federal regulations, but vary from state to state. Make sure that you are aware of all the regulations you must follow in the state you are based in, and get in contact with local experts if you are ever confused.

Unexpected costs in the form of fees for being non-compliant are less than ideal. By ensuring compliance across the board, you can avoid those fees and keep your business running smoothly.

7. Look to the Future

All great business owners don’t just focus on the present. You need to stay on top of industry trends and expectations to rise above your competitors. Subscribe to newsletters, attend conferences, and do your own research to understand how the trucking industry develops over time. Don’t be afraid to make changes and get ahead of riding trends in order to retain your clients and grow your business even further.

One great place to look is at the growing technology that can help you run your trucking business. The easiest place to get started with new technology is for administrative work. You can organize your files and drivers in one data platform to coordinate everything. This may even cut your need for an office manager! There are some apps you can download to geo-track your drivers and send company-wide messages all from your smartphone. Your drivers can even keep track of their sleep and diets in some of these apps! This kind of technology can help you streamline your trucking business.

Common Mistakes When Growing Your Trucking Business

Of course, while there are a few things that will help grow your business, there are also things you should avoid. Being a business owner is never easy, however, avoiding these things will help you become a better boss.

Make sure you invest in reliable equipment. While it may be tempting to save money by going with less expensive trucks, it will not make sense in the long run. The repairs will stack up much higher than the amount you saved on the cheaper truck. While you don’t necessarily need the most expensive equipment in the country, you should consider your options. Do your research well ahead of time and figure out the best trucks for the price you are paying. Your drivers will thank you!

Make sure you invest in reliable equipment. While it may be tempting to save money by going with less expensive trucks, it will not make sense in the long run. The repairs will stack up much higher than the amount you saved on the cheaper truck. While you don’t necessarily need the most expensive equipment in the country, you should consider your options. Do your research well ahead of time and figure out the best trucks for the price you are paying. Your drivers will thank you!

Pricing is also a tricky thing. Make sure you balance a competitive rate that is comfortable for you and your clients. This is where talking to experts becomes crucial. Look at what other companies charge and talk to your financial advisors to find a middle ground on the right price to charge.

That’s why building a great team to support you is imperative to the growth and success of your trucking business. They can help you keep track of your finances and direct you when you feel stuck. With a strong head on your shoulders and a great team behind you, you should see your business succeed.

Watch Your Business Boom

With the advice in this article, you should be well on your way to growing your trucking business in no time. While nothing happens overnight, you should feel energized to get out there and become the best business owner you can be. By taking stock of your current situation, looking at your expenses and finances, finding your niche, hiring a great team to support you, staying compliant, and looking towards the future, you will be able to run a successful business for years to come.

If you’re looking for more information on owning a trucking business, check out other blogs on our site! We dedicate ourselves to being a great resource for truck drivers and trucking business owners alike to find information to help them succeed. We also offer an easy-to-use online form to file your trucking taxes! For more information on how eForm2290 can help you, contact us today. We look forward to working with you in the future!