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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Retaining your drivers is one of the best ways to keep your trucking business running successfully. Truck driving is a challenging lifestyle. Truck drivers give up most of their family time, driving for long solitary days with limited access to healthy food options.

Also, they often feel disrespected by other drivers on the road and their employers. These challenges make many of them quit their job, making it difficult for trucking companies to find qualified truck drivers.

Additionally, trucking companies with truck drivers find it hard to retain them. This is due to the truck driver shortage that the United States is currently experiencing.

Although finding and retaining truck drivers is no easy feat, commitment and making your drivers a top priority can change everything. Continue reading as Global Multi Services explain the modern ways to find truck drivers and retain them.

HOW TO FIND TRUCK DRIVERS

TARGET OTHER DEMOGRAPHY

According to statistics, the average number of new truck drivers is around 35years. But that does not mean you should only target the demographic. Consider underrepresented groups like female drivers, who comprise less than 10% of truck drivers, according to the ATA.

RECRUIT YOUNG DRIVERS

Recruiting young drivers is the key to long-term success as older drivers retire. You can recruit them through training programs, mentorships, or local outreach. But the only downside to these is the issue with insurance carriers’ driver eligibility.

USE MULTIPLE PLATFORMS

‌One of the best ways to find truck drivers is by being visible. That is why it is paramount to post your listing in many places. Here are a few platforms to post your visibility.

Company Website

Your website is one of the most suitable places to advertise job openings. Have the following sections on your website.

  • The “Apply” section should be in the headers of your website.
  • Job description and application process

Social Media

‌Social media platforms are an efficient place to use in the hiring process. According to statistics, 80% of people use social media to search for job postings. Additionally, 90% of companies use it to recruit employees.

‌Social media can be challenging to maintain when using all the platforms. Therefore, choose two or three platforms. LinkedIn and Facebook are common recruiting platforms. You can start with them and add more later.

Job posting board

Job posting boards advertise openings in your company and increase the likelihood of finding the best candidates. Some posting boards are only for truck drivers. Here are a few job posting boards:

  • Flex Job
  • Google for job
  • Every Truck Job
  • Truck Driver Job 4all
  • CDL Jobs

MAKE THE APPLICATION EASY

We all know information is important when hiring someone. But, getting all that information during the first application process is unnecessary. No one enjoys filling in endless applications, and potential employees might move to another company if your application is too long or complex. Therefore, keep your applications easy, short, and straightforward.

EMPLOYEE REFERRAL PROGRAM

Your current truck drivers and staff are the most valuable resources when considering how to find truck drivers. Many of them know someone fit for the job prescription. So, creating an employee referral program makes it easy to suggest candidates. But it must come with a referral reward for these to work.

TIPS FOR RETAINING TRUCK DRIVERS

INCREASE PAYMENT

Every employee is at work to make a living. So, how much you pay your drivers determines if they will work in your company. Therefore, offering more per mile, incentives for meeting specific goals, and other significant benefits is paramount.

COMPENSATE YOUR DRIVERS

Compensating your drivers motivates them to work smarter and stay loyal to you. You can create a list and categories. For example:

  • The most professional and dependable drivers
  • The best fuel mileage and pre-trip inspection

These improve your business and increase your driver’s pocket. You can also consider providing a gym membership. That means they do not have to pay for one out of their paychecks.

OBTAIN NECESSARY PERMIT

Permits are mandatory for trucking companies operating intrastate or interstate. It prevents illegal operations and ensures truck drivers adhere to government regulations. Obtaining all the necessary permits like UCR Permits, IRP Plates, and Motor Carrier Permits allows your drivers to haul across multiple states without detention.

PRIORITIZE THEIR HEALTH

‌According to CDC reports, long-haul truck drivers are likely to be chronic smokers, obese, and develop high blood pressure and diabetes. Sadly, these lead to serious health complications and deaths.

Prioritizing your trucker’s health encourages them to live healthier and partake in more physical activities. Here are several ways to help them:

  • Organizing health training
  • On-site gyms or providing memberships for external gyms.
  • Giving incentives to truckers that quit smoking or lose weight.
  • Encouraging cooking rather than eating fast food.

These steps make them feel valued and help them stay longer with your company.

REGULAR HOMETIME

‌Drivers also have friends, sons, daughters, mothers, fathers, wives, and siblings. But they give up their time and the people they love to deliver freights. Driving for days can lead to loneliness, depression, and other mental issues. So, it is essential to prioritize your driver’s hometime. Spending time with their family is vital to their mental health and your company.


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Do you want to set your hours and be independent while driving? Are you planning to venture into the trucking industry but not sure if the trucking business is a good investment? We have all the answers to your question.

The trucking industry keeps everyday life moving, and the industry has continuously grown over the years. With the trucking demands and digital revolution, trucking companies are more valuable than ever. But the National Association of Small Trucking Companies states that about 15% of new trucking companies survive their first year of business.

Well, your trucking company does not have to be one of those 15% statistics. Whether owner-operator or truck driver, you can create a profitable trucking business with careful planning, hard work, and dedication.

At Global Multi-Services, we want to make that happen. That is why we compiled a list of things to consider to ensure your trucking business provides a return on your investments.

SELECT A SPECIFIED NICHE  

Choosing a specified niche determines the services you offer, what equipment you buy, and what rates you charge. It is also one of the best ways to form critical financial planning and make profits.

Look for loopholes in the industry. That is, what customers are lacking in the industry. It is also advisable to pick a niche with less competition directly from large, established companies.

For example, the dry van market is more competitive because it has many established companies and owner-operators. But temperature control is a more profitable niche. There is less competition, seasonal fluctuation, and risk of economic disruptions to the market.

CALCULATE THE OPERATIONAL COST  

An adequate financial plan is paramount when starting a trucking business. Also, your income must be higher than your expenses to make profits. Therefore, you must know your operational cost. These help you determine the revenue you need to generate to make a profit and how high you need to set your prices.

The operational cost is divided into fixed costs and variable costs.

FIXED COST  

Fixed costs are predictable costs, and they do not fluctuate over time. They include the following:

  • INSURANCE

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.

  • TRUCK AND TRAILER COST

Your truck and trailer cost often varies from time to time. However, it will be a fixed cost you pay every month if you take a loan.

  • LICENSE AND PERMIT

Trucking companies must obtain state and federal permits to operate legally in the United States. The Federal Motor Carrier Safety Administration and Department of Motor Carriers ensure trucking companies adhere to the industrial regulations. So, you need funds to apply for your IRP Apportioned License Plates, IFTA License and Decals, UCR Permits, Motor Carrier Authority, and Unified Carrier Registration. These licenses and permits often require yearly or quarterly renewal, which could mean extra fees.

VARIABLE COST  

Variable costs are costs that do not fluctuate based on production or revenue-generating activities. They affect cash flow and increase based on your business size.

Variable costs include the following:

  • MAINTENANCE SERVICE

Your equipment requires regular maintenance to keep them in good working condition. It varies depending on your operations and equipment.

  • FOOD AND TOLLS

Food is a must-have, and its prices depend on the area and restaurant. The toll fee also depends on the states you are operating across.

  • DRIVER COMPENSATION

Driver compensation is your highest variable cost. Therefore, carefully plan the types of truck drivers you want to employ. Also, you can work with owner-operators if it’s a better option.

  • FUEL PRICE

Fuel prices are different in each state, season, and city. So, your fuel cost depends on the miles traveled and the state.

CUT FUEL COST

The International Fuel Tax Agreement simplifies fuel tax reporting for trucking companies operating in the contiguous states and Canadian provinces. But they must obtain an IFTA License and IFTA Permit in their base jurisdiction to be qualified. Registered companies must also file IFTA Quarterly Fuel Tax Report to their base jurisdiction totaling miles traveled and fuel purchased in all participating jurisdictions. Your base state calculates the fuel tax you owe each jurisdiction.

With IFTA, trucking companies’ fuel taxes are determined by the fuel cost in their base jurisdiction. That means fuel price at the pump minus their per-gallon state tax. Therefore, always purchase fuel in states and pumps with the lowest price.

FIND SHIPPERS 

Finding loads can sometimes be hard for a new trucking company. So, you need to develop a good strategy for finding shippers. Develop direct relations with shippers and offer a competitive price. These promote your business and maximize your profit margin. You can also find shippers through freight brokers or load boards. But they will charge a fee, reducing your profits.

PLAN YOUR CASH FLOW  

Running a successful trucking business requires careful planning of your cash flow. Shippers and brokers make payments between 15, 30, and 45 days. So, a cash-flow management strategy is mandatory to keep your business running while waiting for payments.

PROMOTE YOUR BUSINESS  

The trucking industry is highly competitive. Therefore, you must promote your business relentlessly to attract good clients and quotes. Create a website and social media accounts to reach out to your potential customers. Also, attend various networking events and join online communities to connect with people beneficial for your business growth.

ABOUT GLOBAL MULTI SERVICES  

Global Multi Services help trucking companies apply for their truck permit and license in the United States. Our experience and expertise allow us to overcome permit application difficulties and obstacles, allowing you to run your trucking business legally.