QuestionHello!
I am VERY new to the trucking business. However, I live in the DC metro area- and, there are a tremendous amount of homes and buildings being built around here. I think that I would be an amazing idea to start a trucking business.
I am interested in purchasing 2 trucks. One to be operated here in Washington DC metro, and one to be operated in Georgia. What do you think about these areas as far as business? And, what types of trucks should I buy?
What are the start up fees associated with this type of business? I have not saved very much- but, I have great credit and a very good job.
And finally, WHERE DO I START???
*Please help!
AnswerHi Smith.
Starting a trucking company is not cheap. That said, you'll need to find some start up capital. Even with excellent credit, banks and other lending institutions shy away from new trucking companies because of the high failure rate. The first thing you'll need to do is write up a business plan. You need to figure out what area of the trucking industry you'll want to haul for. If there are new homes in your area, flatbed may be the way to go. Now, you'll need to figure out if you'll operate under your own authority, or lease out. Where will you get accounts. What will you projected income and expenses be. What type of equipment will you run? etc.
The type of equipment you should get will depend on what you plan to haul. I could tell you to buy a certain truck and trailer, but it may not fit your needs for the loads that you carry. If there are a lot of new homes, thus, a lot of lumber being hauled, a 48' flatbed may work. If you plan on hauling equipment to those job sites, you'll need a drop deck. Figure out what your market is first.
Start of fees can also vary, but you can drop $20k really quick. You'll need to have a nice size down payment for a truck (even with excellent credit, since your new). On a used truck, it can run $5k to $10k. Then, you need that all important trailer, permits & plates, DOT number, insurance, and misc. supplies like tarps (if flatbed). You'll also need to pay for a driver, fuel and all expenses before the first checks come rolling in. If it's in construction, certain construction companies may only pay every 30 or 60 days!
Not to scare you, but it's no small thing to start a company. You can do it, but be smart. Look for used equipment, write up a business plan and do some research. Go to sites like www.ooida.com, www.layover.com, and www.etrucker.com to do some research. These sites also have great forums for posting questions. Once you have a business plan together, now try to get a small business loan and the SBA can help you with that.
Good luck!
Bob Stephens
