The transportation sector is one of the few industries that are expected to grow by at least 2% in the coming year. That makes for great opportunity for those that want to break free from the pack and start their own business.
What will you need?
First you will want to obtain your business license and operating authorities or as most call them running rights.
Why do I need running rights?
You will need your running rights so you are able to transport goods. The government requires that you obtain licensing as well as the companies you do business with. Without the required running rights you will not be able to start-up your business. For more information on the running rights needed to start-up your business please visit 411 Transportation Solutions link located at the bottom of this page.
The next step would be insurance.
You will need to insure your vehicle(s) and purchase cargo liability insurance. Be sure to shop around for the best prices. The rates are coming down and if you decide to hire owner operators you may want them to purchase buy down insurance. Buy down insurance is a great idea. It cuts down the cost of your insurance deductible in case of an accident. When I started up an expedite company I had every driver purchase this insurance and I payroll deducted the cost from them each month. I would definitely suggest looking into this, it is always better to be safe than sorry and it is inexpensive. If for some reason you do have an accident in the first year of starting up your business you do not want to have to close the doors because your insurance deductible was two high.
How much will this cost me to start?
Starting up your business doesn’t have to cost a fortune. You can start-up your company for as little as two thousand dollars or less. Here’s how. Start your business up from home; use your own computer, internet and your own vehicle. If you already lease a vehicle be sure to change it into your companies name so you can right it off at the end of your business year as well as your internet, phone and so on. You will need to purchase a printer/fax machine; you can find these for cheap at your local store. Next is a phone line, this is very important since this will be your businesses life line. I suggest products like magic jack where there is one low fee for the year that is very cheap. Once your business is running and you are making profit then you may want to find a shop or office to run your business from and put in a more sophisticated phone system. The bulk of your start-up cash will be obtaining your running rights and insurance. The way to save money is to apply for your authorities yourself or buy a business package that supplies everything you will need. If you go to a consultant it could end up costing you anywhere from a thousand dollars and up!
Where will I find loads?
Start with the contacts that you already know; dispatchers and companies that you have delivered for. Your current or last employer may not like it but most likely they started out the same way. If you don’t have any contacts start with load boards. There are many areas that you can find freight; here are a few. Load boards; there are many out there some are free or offer free trials. You can also contact load brokers, send them your information and make sure you let them know where you have vehicles located to haul goods. Contact other carriers as well and post your vehicle(s) online so businesses know what is available.