Trucking: Starting a New Motor Carrier Company, extreme overkill, trucking insurance

Question
Hi.  We're interested in starting our own carrier company.  We know that we need to get an MC Number and State Permits, but beyond that and the obvious (getting drivers), we don't know really what needs to be done.  This is pretty vague, but any advice you might have would be greatly appreciated.

Answer
Hi Jennie.

Sites like www.dotauthority.com will get you legal with DOT/MC numbers, IFTA stickers and such.  Contact your states Department of Transportation for tags and ask about other requirements.

You'll need cargo, liability and cargo insurance.  Sites like www.ooida.com can lead you to good trucking insurance companies.  Make sure you shop around.

Loads can be found from brokers through the phone book or sites like www.getloaded.com.  Of course, nothing beats sales.  Go out and drop a business card off at local businesses that may need your services.  That's where the great loads come from.

The biggest piece of advice I can give you is to write up a business plan.  You need to know what your income and expenses will be.  Where do plan on getting loads?  What type of equipment will you need and purchase?  Should you buy new or used?  What areas will you cover?  There are many, many questions you need to answer.  Without a good business plan, your days in trucking will be numbered.

I can't stress this enough!  I just had a friend who just filed for bankruptcy with his trucking company.  He was very successful, but I noticed that he didn't keep an eye on his drivers, or loads.  He just bought three new trucks last year.  They have every bell and whistle and are extreme overkill for what he needs.  All of this combined, led to his company's downfall.  It's a shame because it could of been avoided.  Sure, we all want to own a fleet of new Peterbilts with chrome and lights, but this is a business too.  Starting out, be humble, and realistic.  Know your expenses and keep them as low as possible.  Sounds easy, but too many people don't follow that rule.

The Owner-Operator/Independant Driver's Association (www.ooida.com) is a great organization that you should use to your advantage.  They have a wealth of information and can help guide you in the right direction.

Study everything hard.  Ask questions from everyone you can.  Visit websites and chat on forums.  Most truckers will be happy to share information with you.  Starting a company is the easy part.  Running the company is what will be the challange.  With your homework done, you'll be a step ahead!

Good luck!

Bob Stephens