How to Start a Trucking Business
The demand for truck drivers soared in 2020 as more and more businesses have opted for E-commerce operations. This has strengthened Australia’s position as a world leader in road freight transport. It is now more important than ever to have an efficient, speedy, and safe way of transporting goods from point A to B. Trucks are a vital part of the nation’s economy and will continue to be so for years to come.
Are you looking to start your own trucking company? Here are some tips to help you get your new business in the trucking industry off the ground.
1) Develop a Business Plan
Before setting up your own trucking company, you’ll want to decide what kind of work you want to do and what kind A business plan will help ensure you are set up for success. Before setting up your own trucking company, you’ll want to decide what kind of work you want to do and what kind of services you offer. Will you be an owner-driver or will you hire employees? What type of business do you want to operate? What sort of hours do you want to work? Is there a high demand for your services? Alongside these questions, you’ll also want to consider the below.
Types of Truck Company You Want to Establish
You’ll need to determine what type of truck company you’d like to establish. Remember, truck drivers also aren’t just required for transporting freight. They’re required for many different purposes. Here are some of the many different types of trucking companies and jobs to consider when starting your business.
An owner-driver is self-employed and provides transportation for various companies by driving their own truck. Often, owners will recruit other drivers to work for them as subcontractors.
Removalists are required for moving house, office, or property. This may involve collecting items from disparate locations like retail stores, warehouses, and factories. A removalist can offer both local and interstate removals.
Interstate truck driver
An interstate driver is someone who drives their own truck between locations that are far away from one another. Interstate drivers involve longer hours and hire servicing costs due to the extra mileage travelled.
Tipper truck driver
Construction companies rely on tipper drivers, those who deliver and collect materials such as gravel for construction work.
Freight hauliers move goods from one location to another. You could opt to transport livestock, refrigerated goods, dangerous goods or any type of freight.
Road train drivers
A road train is a combination of a prime mover and several trailers that have been pulled together to form one long vehicle. This allows for a much higher load capacity than smaller trucks.
Once you’ve worked out what services you want to offer, you’ll need to make a list of all your fixed and variable costs to ensure your business is profitable. Major expenses could include wages, fuel, vehicle maintenance, fleet management, accessories such as truck tie down straps and truck tarps.
If you’ve never worked in the trucking industry, you will need to secure the appropriate licences. This may include a heavy vehicle licence, agricultural vehicle licence, dangerous goods licence and more. The licences you require will depend on the services you intend to offer. It’s important to note, each state may have different requirements when it comes to licencing and permits so if you intend to operate in other states, don’t forget to do your research.
2) Register Your Business
Once you’ve got your business plan ready, you’ll need to get your business registered. There are four main business structures in Australia. These are sole trader, partnership, company and trust. Before registering your business, research the different types and which one would best suit you. You’ll either likely require an Australian Business Number (ABN) or Australian Company Number (ACN). If you’re ever unsure, you can always seek out legal advice from a lawyer.
3) Buy Your Truck
Trucking companies need a truck! Once you’ve determined what type of trucking company you want to operate, you can start searching for the right vehicle. You don’t have to buy a brand new truck. Whilst your truck business is in its early stages, it might be more cost-effective to lease or shop second-hand vehicles. You also can’t just buy any truck you see fits. Make sure the truck you choose meets the demands of your chosen market niche.
4) Get the Right Insurance For Your Trucking Company
Before you start operating, you must have a place in plan to minimise business risk. This includes having business insurance. Depending on the type of truck business you are operating, your chosen cover of insurance will likely need to protect the vehicles, others, freight, yourself and your employees.
5) Market Your Trucking Company
Marketing will help you find loads to transport. There are many ways you can market your truck business. You could grow a social media presence, network with potential partners or turn your vehicle into a moving billboard with branded truck curtains. The opportunities are endless and this is your time to get creative.
6) Operate a Profitable and Successful Trucking Company
We’d be lying if we said starting a successful trucking company is easy. The trucking industry involves many costs from fuel and servicing to insurance payments and business expenses. We’ve also put together some tips for starting a successful trucking company in our blog.
Bee Jays Canvas Co is Here to Help
When starting your brand new trucking company, don’t forget about truck tarps and spare parts. Bee Jays Canvas Co supplies industrial-strength tarps to truck companies all across Australia. Visit our warehouse in Welshpool or contact us online to order custom tarp products for your vehicles.