There are over 350,000 independent owner-operator truck drivers in the United States. This has become a popular industry and a great opportunity for small business owners to make money. Whether you are a single truck operator or own a complete fleet, there are expenses like truck equipment and licenses that will eat into profits. It takes about $180,000 a year to sustain a trucking company. If you do not plan for these costs, they could bring your trucking business to a grinding halt.
Before buying any equipment, interested parties must check with the US Department of Transportation and the Federal Motor Carrier Safety Administration to discover what permits and insurance policies are necessary to start. The cost will depend on how big your fleet will be.
Check with your city to see what licenses are required. You’ll probably need a sales tax license, general business license, and possibly one for conducting business across state lines
The Large Expenses
If you want to organize a fleet, you’ll need to find real estate. This will require parking and docking for the fleet along with office space for administrative tasks. Start small with your fleet and gradually add one truck at a time. You can also buy used trucks, just make sure the trucks are well maintained and have accurate maintenance records.
Hiring employees will also be a large expense. You’ll have to hire office staff, subcontractors or employees. Note that employees will make up about 26 percent of your overall expenses, so hire qualified drivers.
There are quite a few small, but necessary, expenses that you will encounter that are critical to your success. Some of these include: tire costs, repairs and maintenance, toll fees and passes, and of course gas. Repairs and maintenance can easily take up 10 percent of your overall expenses.
Ensure that you integrate these expenses into your budget and business plan. Make sure to have enough money set aside in the first year to pay for these expenses.
If you want to start a trucking business, consider financing it. FAM provides trucking business loans for small businesses. Even if you have bad credit, FAM will work with you to secure financing. Our organization helps small businesses reach their financial goals with competitive rates and short term loans.