It’s been a while.  Some 30 years ago, we started a small trucking company. One that grew into one of the larger private carriers in the Commonwealth.   It wasn’t what we started out to do; no, we were really running a small medical device manufacturer.  But, our customers wanted just-in-time delivery (sometimes just-in-breath delivery) and most of them had no loading docks and no warehouse crew.  If we wanted their business, we needed to deliver to their clinics, arrange their stock, etc.

So, on top of starting and running our medical device firm- one that by then had production facilities in two locations (Virginia and California), soon to be in five other places around the US and the world- we needed to start and operate a trucking firm.

We didn’t start big.  We bought two trucks- actually, two straight trucks to start.  Which meant we weren’t going to carry more than 22000 pounds on any trip.  But, that also gave us enough time and experiences to grow that effort into a series of big rigs (as well as shorter 30 foot tractor-trailers for the urban environment).  Every one of our trucks had lift gates (the price of which often matched the cost of the trailer without the specialized equipment), so that we could deliver products to the ground, to places (almost all) that had no loading docks.

Just this month, a new client approached us to help them set up a trucking firm.  Because that’s what we do- we help companies start and grow their business.  It had no idea we’ve done this before- in a big way.  And, the process, while specialized for truckers, is a vital learning lesson for those contemplating their own new enterprises.

The first consideration when starting any new business is the funds needed to cover your living and business operating expenses until revenue (and profits) start to flow.  At the very least, that means you should have 90 days of expenses in the bank- now.  So, you can pay your  bills, start your firm and devote your thoughts to that- and not worry where your next meal is coming.

We also believe you need a business plan.  Not like the 30 to 100 page tomes we created each and every year for our own enterprises (often twice a year, because we met and exceeded our objectives, making the existing plan obsolete)- but one that answers at least  the basic questions listed below.

If you are going for a trucking business, the question is whether you plan to deliver locally or nationally to start.  In our minds, there is no question.  Local is the way to go.  In our endeavor, we handled our own freight deliveries for up to 400 miles from our locations.  We also never had to deal with brokers (to start)- but as we grew, we used them to fill our trucks for the return trips home.  Brokers take a portion of your revenue- and are not always the most reliable in assuring you have freight when and where you want it.  Which is why sticking to local deliveries to start is a better idea, since you can control everything- without a broker’s involvement.

If you are a trucker you should remember that you need to track your miles and your fuel purchases- because you will be filing timely reports for each state in which you travel.  Moreover, some states (New York, Oregon, and Kentucky come immediately to the fore) will require you file income tax returns, as well.  No matter what, you will be filing Highway Heavy Use Taxes (IRS Form 2290) and obtaining your Uniform Carrier Registration (UCR).

We incorporated our trucking firm in North Carolina (with foreign registration in Virginia).  Because the worker’s compensation rates for NC were among the best in the US.  We also applied for our own authority- which means we were responsible for drug and alcohol testing (join a consortium, it’s more expensive but easier), taxes, permits… in a word, everything.  And, you can’t do that without a business plan, either.  (The plan is a required submission for the UCR.)

Getting your own authority takes time.  And, it also requires you have your insurance lined up- and probably a surety bond for your operation, as well.  And, you can bet that the DOT (Department of Transportation) will be coming to audit you.  Which is why you need everything ready, your T’s crossed and your I’s dotted, to insure you can proceed.

Nowadays, there’s also a protest period.  Where your name and information is published in the Federal Register and competitors can complain (or not) that you will be harming their business.  It may or may not happen- but if it does (in about 5% of the cases), you are left dangling in the wind for more weeks and months.  (Remember that cash hoard we wanted you to have, right?)

Not really a requirement, but we recommend you join OOIDA (Owners and Operators Independent Drivers Association).  They have lots of pointers you will need- as well as the  mass buying authority that will save you money.

But, if you are like we were, you can bet that your operation will be making you money- significant money- within 180 days.  As long as you can be a good boss and manage your own business well (including taxes and accounting.) That makes it all worthwhile.

Share this: