So you’ve been thinking a lot about starting your own trucking company, but aren’t sure where to begin? Most likely you are overwhelmed with all of the paperwork, planning and preparation needed to start this next venture. Remember that if you “Sow the seeds of hard work you will reap the fruits of success” – Israelmore Ayivor. The benefits of continuing despite the upfront hurdles and challenges will be worth it in the end.
Benefits of starting your own company:
There are so many benefits to starting your own company. You are your own boss and get to choose what loads and routes you want to take. Money! You’ll be paid better since you own the company and the profit is 100% yours. Freedom, sweet freedom to make your own schedule. You can decide how many miles you want to run and can be home when you want to. You are responsible for your company’s success. This can be a good or a bad thing, but it does mean the more time and effort you put into your company, the more success you will see. With the ongoing driver shortage and increase in freight demand, there’s a real need for dedicated and consistent trucking companies.
Things to consider:
- Many insurance companies put restrictions on new authorities, so don’t plan on growing a new company quickly. Some insurance companies will only insure true owner/operators for the first two years of business, so no additional trucks or drivers during this time. Usually, the companies that put these restrictions on you are going to offer you better pricing than the companies that will allow you to grow.
- Don’t try to do too many operation types starting out. Insurance companies typically don’t want to take a new authority that’s doing a little bit of everything, so it’s important to figure out what kind of freight you are going to haul and stick with it.
- If you decide to add owner/operators to your company, require that they carry their own physical damage and non-trucking liability coverage. This protects your business in the event they get into an accident while they are not under dispatch, or if they have damage to their equipment, as this will fall under their own insurance policy instead of your company’s.
- Freight brokers or shippers can take 30-90 days to pay for a hauled load. Get set up with a factoring company to help with cash flow. This can be essential to keeping you on the road and able to pay for expenses.
- Fuel cards can help you save significantly on diesel, as well as other services. Find a fuel card that offers strong savings at locations along the routes you typically travel.
For our full guide to starting a new authority with additional tips on staying compliant and what to do next click HERE.
Our non-fleet sales representatives are available to guide you through the process and are committed to providing you the best coverage, at the most competitive price. Please contact us HERE if you have any questions or if you are ready to move forward with selecting the right insurance coverages to protect yourself and your new business venture.