As the marketplace continues to expand, the demand for an effective way of transporting goods from different points all over the country also grows. This is why the trucking industry plays a vital role in today’s economy. It’s also why the industry has room for people looking for a new business opportunity.
This isn’t to say that coming into the trucking industry is without challenges. With the American Trucking Associations reporting that the industry made over $600 billion in primary shipment revenues for the year 2011, you can expect some stiff competition at the start of the game. Still, there’s a way to move past these initial road blocks and drive ahead of the game. With proper research and preparation, you can start your own trucking business and move toward success.
As you’re beginning your journey in the trucking industry, you will have to consider a few key factors and make important decisions. The first thing pointed out by Entrepreneur’s Business Idea Center is the startup cost. Starting a trucking factoring company will likely set you back around $10,000 to $50,000 in startup costs. While you’re expected to profit over $50,000 per year, keep in mind the rising cost of fuel and other additional expenses.
The first major decision you’ll need to make is on the approach you’ll take in handling your business. You’ll have two options here. First, you can choose to subcontract drivers that will work on the accounts you secure. You can also choose to purchase one or two vehicles and have your own drivers work on your transportation accounts. The first option will cost you less, but leaves you without full control of operations. The opposite is true for the second option.
You should also prepare to face some of the most common challenges faced by those already in the industry. For example, a typical issue faced by truckers involves complications regarding invoice payments and cash flow. This could mean that you’ll need some outside help and would have to consult with trucking factoring companies. Familiarize yourself with such concerns and determine your options according.
The success of a business venture can never be rushed, with a few road blocks at the start of the game. But, most of these challenges can easily be solved with proper preparation. Take the time to consider these points to see your trucking business thrive.