TIPS FOR STARTING YOUR TRUCKING BUSINESS

September 15, 2022 0New Mexico Permit

TRUCKING BUSINESS

Are you thinking of starting your trucking company? While getting into the industry is not difficult, continuous operation can be challenging without the right approach. Regular operation requires meeting all the state and federal requirements. It also involves obtaining U.S. Department of Transportation licensing and permits. These include IRP Plate, New Mexico Permit, Kentucky Permit, and IRP Plate Renewal.

The trucking industry is a big game both locally and internationally because everything we use daily is hauled and delivered across various destinations. Freight demand has also sow higher, and many companies are desperate for truckers that can transport goods across and outside the United States. These demands are also the result of a massive shortage of truck drivers, creating problems with the supply and distribution of freight.

The trucking industry is also hotly competitive and dominated by high-ranking trucking companies. So how do you enter this rapidly evolving industry? Luckily, Global Multi Services is here to help answer that question. We understand the challenges of setting up a trucking company in the current business climate and the need for expert and relevant information. Read on for a road trip through the top tips to starting your trucking business.

 KNOW THE COST

Having a basic understanding of finances is helpful when launching any start-up business. These also apply to starting a trucking company. You must have a source of capital to start your transport business, and there are multiple options. They include banks, investors, and bootstrapping.

 

  • Operating cost

It is essential to consider specific expenses associated with the industry. Having a budget for operation and maintenance avoids downtime and increases cash flow. Operational cost includes license and permit fee, toll expenses, truck maintenance, fuel, truck repair, and many more. Also, invest in a secure location and other security features, such as trackers.

 

  • Marketing cost

While marketing may not seem important at this stage, it is paramount to budget for this expense as your company grows.

 

  • Insurance cost

Having insurance is mandatory for all trucking companies. Primary auto liability and general liability insurance should be the very minimum. You can also include coverage for physical damage, cargo, medical payment, and reefer breakdown coverage.

 CHOOSE A NICHE

While purchasing the right trucks and trailers leads to efficiency and speed of service. Choosing a niche will help you have a clearer idea of the type of truck you need and how much loan to apply for when you approach banks. It also structures your repayment plan while setting your interest rate more accurately.

 KNOW THE NECESSARY PERMIT AND LICENSE

Owning a trucking company comes with the challenges and liabilities of having all the required licenses and permit policies mandated by your state of operation. The Federal Motor Carrier Safety Administration and Department of Motor Carriers ensure trucking companies adhere to the industrial regulations. So, you must apply for your MC Authority, Motor Carrier permit, IFTA Permit, New Mexico Permit,  UCR Permits, and Unified Carrier Registration. These licenses and permits often require yearly or quarterly renewal, which could mean extra fees. The regulations vary by state, so consult your state’s guidelines to know what you need to stay on the right side of the industry regulation.

 EMPLOY THE RIGHT DRIVERS

The components of your business, besides your vehicles, are your drivers. Therefore, it is essential to recruit qualified and experienced drivers. Quality drivers boost productivity, elevate your business reputation and build customer trust. Your drivers must obtain the relevant licenses before driving intrastates and interstate. They also need constant training to handle driving in hazardous situations, like storms and heat waves. Avoid issues with the Federal Motor Carrier Safety Administration and the Department of Motor Vehicles by investing in experienced and excellent drivers.

 

REASONS TO START A TRUCKING BUSINESS

 EARN MORE REVENUE

According to statistics, running your trucking company makes you more money when compared to working as a company driver. There is no maximum on how much you can make as an owner-operator. Your earnings vary significantly based on your business model. Therefore, have a solid business plan and save money on operating costs.

 WORK ON YOUR SCHEDULE

One of the beauties of owning a trucking company is having the ability to get home when you want. You choose when to get loads, the route to take, who you work with, the cost, and how often you get home. You decide when to get home for important events and commitments. Having this freedom is beneficial not only for you but also for your friends and family.

TAKE UP NEW CHALLENGES

Working as a truck driver for another company for more than ten years can be exhausting, and everyone needs a new pace. Owning a trucking business is a way to stay in the industry you love while taking up new challenges and more responsibility.

ESTABLISH A FAMILY BUSINESS

Many truck drivers start a trucking company to have a family business. People want to leave a good legacy for their kids with lots of revenue. So, starting a business with their spouse, friend, or family member makes that possible. Being a team helps them make more money and run more miles.

FREEDOM AND FLEXIBILITY

Having a trucking company avoids having someone boss you around. You pick your loads, decide who you want to work with, make your own business decisions, etc. But, this freedom comes with a lot of responsibility, and it is up to you to decide if you are ready to handle these responsibilities.

IN CONCLUSION

The trucking industry is competitive, but with persistence and motivation, you will achieve success. Remember, problems and delays can crop up anywhere, but being transparent with your clients about what’s happening will stand you in good stead.

 

 

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New Mexico Permit: Important Facts About The Trucking Industry

August 4, 2021 New Mexico PermitNew Mexico WDT Number

The trucking industry is a leading indicator of the United States economy. Today, many industries rely on the trucking industry to transport their freights. They are also a good option to deliver safe and on-time products from the manufacturing site to the warehouse. When the industry face problem, many companies will not function well. These can cause loss of revenue and recession. So, you need to know crucial facts about the industry before deciding to become a part of it. These include knowledge about the New Mexico Permit, IFTA license, WDT New Mexico, IRP Plates, and many more. This is because many entrepreneurs have joined the bandwagon of the trucking business without knowing about its detail. In this blog, Global Multi Services will take you through facts about the trucking industry. Let’s dive in.

The Backbone Of The Country’s Economy

The United States economy depends on the trucking industry to transport freight and keep supply chains moving. According to research, the industry transports 70% of the country’s consumable goods to their destination. Reports have also shown that trucks move over 10 billion tons of freight and generate over $700 billion in annual revenue.

New Mexico Permit Is Mandatory

New Mexico is one of the states in the US that charges WDT New Mexico on motor carriers traveling across the state highway. All motor carriers operating across the state with a Gross Vehicle Weight of 26,000 pounds and above need to obtain a New Mexico Permit and New Mexico WDT to stay compliant.

There Is Driver’s Shortage

More than 3 million drivers work in the trucking industry.  Truck drivers face difficulties from many hours on the road to days away from home. These have made it difficult for the industry to meet customer’s demands and keep Over-The-Road truck drivers. Demographic shifts are also impacting the industry. Statistics have shown that the average age of many truck drivers is 40-55 years. This shows many truck drivers are approaching retirement, and other people are not ready to work in the field. With these statistics, the American Trucking Association have estimates that the industry has over 50,000 driver shortages, and the number is increasing every year.

Types Of Drivers With New Mexico Permit

Truck drivers involve two categories: These include Over-The-Road drivers and regional drivers. Both drivers require New Mexico Permit to travel across the New Mexico state.

Over-The-Road Drivers:

They are truck drivers responsible for the transportation of freight throughout the United States. They often spend days and weeks on the road before returning to their families.

Regional Drivers:

They are truck drivers responsible for the transportation of freight within regions. They spent hours on the road but complete their shift at night except on occasional trips.

Technology Is Impacting The Industry

The development of technology has also positively impacted the trucking industry. Many trucking companies use automated software to track freight, update customers and drivers, record miles travel by truck, and many more. Electric trucks are also making their way into their trucking industry.

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New Mexico Permit: How To Start A Trucking Business In New Mexico

June 8, 2021 New Mexico PermitNew Mexico WDT Number

Running a trucking company is one of the most successful businesses with many benefits in the United State of America. The business allows you to choose the type of company you want to work with and the type of freight you want to haul. It also allows you to decide how often you want to work and your fleet charges. According to surveys, the trucking industry will experience 27% growth in the next decade and 70% of fresh in the US are transported by trucking companies. The rise in freight demand, rates, and driver’s shortage in the industry made it the best time to venture into the business. However, the industry has a lot of competition which can be intimidating for beginners. Read on as Global Multi Services explains how to start a successful trucking company in New Mexico and obtain New Mexico Permit. Let’s dive in.

Choose A Name

Choosing your company name is the first step to take when starting a trucking business. Brainstorm different ideas and you can also ask your friend and family for help, then check if the name has not been used by another company. You can achieve this by searching through the United States Patent and Trademark Office database online or by using business name tools.

You can also file for a fictitious business name if you want a business name that does not have your first and last name. Or set up a limited liability company or other entities with your business name.

Choose Your Niche

Targeting the right niche is an important factor when venturing into the trucking business. Research about products transported to your target location and the critical needs of logistics activities in the area and analyze how you can meet the needs better than other trucking companies. Know the needs of your target customers and their weaknesses.

Choosing your niche at the beginning will also help you avoid unnecessary competition, establish your business name, and boost your sales opportunity in the industry. It will help you streamline your operational processes which save you from operating “anything to anywhere” freight services

Obtain Your Legal Requirements

You must fulfill all your legal requirements such as obtaining your New Mexico Permit before you can operate legally as a commercial motor carrier in New Mexico. Motor carriers registered in New Mexico and traveling intrastate for commercial purposes must apply for New Mexico Permit and get a New Mexico WDT Number.

The state also imposes WDT New Mexico, a weight distance tax on all qualified commercial trucking companies. Trucking companies operating in the state and across state lines must also acquire other legal registrations such as Unified Carrier Registration, USDOT Number, IRP license plate, Motor Carrier Authority, IFTA Permit, and many more.

Create A Business Plan

A carefully crafted business plan often makes the process of starting a trucking business easier. A business plan helps articulate the niche you want to venture into in the trucking industry. It also helps specify your fleet management, goals, marketing strategies, human and material resources needed, operational activities, and many more.

Select An Insurance Coverage

Protecting your trucking business from unexpected financial burdens and choosing the right insurance coverage is very important. Research about the best insurance company and read customer’s reviews on their website. You can also ask a legal practitioner for advice or recommendations on the best insurance to purchase based on your needs. The insurance should cover risks such as injuries caused by accidents, motor carrier damages.

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