What Does It Take to Successfully Launch a Trucking Company?

Many owner-operators are taking the leap from hauling shipments by themselves to multiplying their earning by launching trucking companies of their own. Some see the need to fill in regional gaps that are not covered by larger carriers. Others want to leverage their relationships with local businesses to help everyone in the area achieve success. Still, others see opportunities to do things differently, and employ the lessons they have learned from working with other fleets to introduce innovation to the trucking industry. No matter the reason, launching a successful trucking company has its own set of challenges, but the rewards that come with overcoming those initial hurdles can lead to long-term success.

So what does it take to start a trucking company?

1. Brace Yourself for Permits and Paperwork

Every new business needs to perform some administrative legwork, from choosing a corporate structure to obtaining a tax ID. However, trucking companies require paperwork beyond what other businesses require. Trucking companies need to apply for a Motor Carrier Operating Authority (MC Number), permits to operate a trucking company, as well as all of the registration involved with building a small fleet. Many new trucking companies get caught in a holding pattern when they try to navigate these forms for the first time. City, state, and federal agencies have no problem rejecting forms without any explanation of what is needed, sending trucking company owners back to square one. Additionally, looking things up online is less than helpful, because for every question there are at least three solutions, and maybe one will be correct. Fortunately, there is a way to manage all of the forms and permits without any of the hassle. Single Point Capital’s start-up program takes care of the support and administrative process involved in launching your new trucking company. We will even waive administrative fees for owner-operators who use our freight bill factoring services.

2. Insurance Costs

While every business needs liability insurance at some level, trucking companies have much higher costs. Vehicles need to be insured, and trucking businesses are seeing higher premiums because of so-called “nuclear verdicts” that have been issued in the past against other carriers, well before they even launched their companies. As a result, the upfront cost of insurance for new trucking companies can be prohibitive. For these reasons, Single Point Capital provides deferred insurance services. We will cover up to 50% of the upfront costs and spread out the balance over weeks to ensure new trucking companies can get off the ground without experiencing a strain on finances.

Cash Flow

3. Finding Shipments

After getting all of the forms and permits filled out correctly, as well as insurance, new trucking companies need a way to generate revenue. Local business connections only go so far, and trucking companies need to find shipments that offer good rates. Single Point Capital provides comprehensive load boards and dispatching with the best rates in the industry. Beyond shipments, we offer insurance certificates, personal accounts managers, credit checks on shippers and brokers, and more. Whether your trucking company specializes in refrigerated shipments, flatbeds, or a little bit of everything, Single Point Capital’s dispatching services have you covered so you can generate revenue with top rates.

4. Maintaining Cash Flow

Taking tons of shipments at great rates is wonderful, but if customers, shippers, and brokers are on staggered payment schedules of 30, 60, or even 90 days, cash flow can grind to a halt. Cash flow is crucial for new trucking companies so they can cover overhead, make payroll, meet their quarterly IRS obligations, and more. Instead of waiting a month or longer for payments, Single Point Capital accelerates cash flow for new trucking companies. Our freight bill factoring services turn unpaid invoices into cash and make funds available within a single day. This allows new trucking companies to focus on shipments and growing their operations instead of chasing down clients for payments on outstanding invoices or performing collections. Our freight bill factoring services include personalized account managers, credit checks on customers, and software so you can track payments and expenditures.

Launch Your New Trucking Company

If you want to take the next big step and launch your own trucking company, talk to the team at Single Point Capital. We will offer our services and expertise to get you up and running quickly, so you can start generating revenue with your own fleet.