Have you been working with trucking companies for many years? And you are considering stepping out to get your MC Authority? Having your motor carrier authority gives you many opportunities to increase your revenue and grow your trucking business. But it is not for everyone because many people have taken the leap and either burned out or failed.
Running a trucking company takes a lot of additional skills beyond driving. And many great drivers don’t have the business skills necessary to run a successful company. So, how do you know obtaining an MC Authority is the right move for you? Global Multi Services has compiled the cons of having your MC Authority, let’s dive in.
MANAGING THE BUSINESS SIDE
Having an MC Authority comes with the responsibilities of handling new roles in the company. It requires you to be more than just a driver and could have you working for longer hours than usual. You become your company’s CEO, sales and billing supervisor, dispatcher, manager, compliance ad safety office, and many more. These are often necessary if you are developing systems to make your business run smoothly. You may also have to work harder and smarter every week to keep your rig on the road.
FINDING LOAD IS DIFFICULT WITH NEW MC AUTHORITY
With MC Authority, drivers often struggle to find consistent freight at great rates. They are new to the business and have not built lasting relationships with shippers. Giving your load to a trucking company requires trust, loyalty, and experience. Everyone prefers companies with good track records and expertise that they can trust. And many new trucking companies do not have that. These make brokers hesitant to work with them. Growing your business requires you to actively and persistently look for new loads and negotiate your rates.
DEALING WITH COMPETITION
Trucking companies with the new MC Authority run into a lot of competition for top rates. They will be competing with big companies with years of experience, marketing teams, and loads of loyal customers. And the company can sometimes charge low to reposition their trucks. They will also compete with owner-operators who barely charge enough to keep fuel in their tanks. To build customer trust and increase your brand visibility, you need to adopt strategies and exceptional operating techniques.
RESPONSIBLE FOR MC AUTHORITY FEE AND OTHER EXPENSES
Operating under a company comes with enjoying their fleet benefits. And you will not have access to that when you are independent. You need to diligently keep track of your expenses and understand your cost per mile. You also have to pay for your MC Authority, license, insurance, Tax, fuel, and many more. All these expenses can add up quickly and turn what seems like a great opportunity into a nightmare.
Striking out on your own implies managing all of your paperwork yourself. These include bills, permit filing, receipts, invoices, and compliance documents. Big companies have departments that handle all their paperwork. But you have to do it all on your own and drive, maintain and manage all the other parts of your business.