How to Start a Profitable Trucking Business Without Driving

How to Start a Trucking Business Without Driving

Considering how to start a trucking business without driving? Then you are indeed on the right blog. As an expert, I can hit my chest that it is possible to start a trucking business without driving.

When people consider truck driving, they immediately only see semi-truck drivers and their trucks. But behind it all are the individuals in charge of managing the business and maintaining order.

You don’t need to drive or obtain your own CDL to start your trucking business. You may start a trucking business without driving any of your trucks, albeit it comes with its responsibilities.

Now you know it is possible to do so, the focus from now will be “how to start a trucking business without driving” and if the trucking business is profitable.

Is Trucking Business Profitable?

The trucking business directly impacts the economic growth of America. American Trucking Association states that roughly 3.5 million truck drivers transported nearly 72% of freight tonnage in the United States in 2021.

As a result, trucks and transportation businesses will always be in demand. Truckers are essential in controlling supply chain activities and propelling the economy.

You may start with just one unit, which reduces your initial cost. You may expand from a single transportation business to a large one that cares about its customers over time. The trucking business may be pretty profitable if you know what you’re doing.

A trucking business with the correct tools has a great opportunity to grow and succeed. Many current and past truck drivers seek to advance their careers by starting their own trucking companies. Now let’s take a closer look at how to start a trucking business without driving.

How to Start a Trucking Business Without Driving

#1. Determine the Scope of Trucking Business

Starting a trucking business goes beyond hiring truck drivers and sending them to deliver loads. There are quite some questions you need to answer.

Do you plan to transport goods long distances or within your state? Running a trucking firm that distributes across state boundaries has its own set of rules and restrictions.

After all, each state has its unique set of standards for commercial drivers.

It is easier and not a terrible idea for new trucking company owners to stay inside their own state. However, your expansion is constrained, and competition may be fierce.

While cross-state travel is more complex and costly, it allows you to expand and scale your organization. Finally, you must assess your strengths and shortcomings because you are an entrepreneur.

#2. Prepare your Trucking Business Plan

It is OK to start a business, but it is ideal to do so with a business plan. There are several documents to fill out for various permissions, insurance coverage, and even locating clients to fulfill deliveries.

You must decide if you wish to operate a local or long-distance transportation firm. Determine your company’s strengths and shortcomings and how they might be supplemented.

Given that you have already determined that you will not be a driver, you will require a driver to cover that aspect of the business.

To be effective, you must set realistic goals and adhere to time constraints. Set objectives and approach your work with the correct attitude, adaptability, and passion.

#3. Obtain Licenses and Permits

Since you choose not to drive, you will not need the Commercial Driver’s License (CDL), but all your drivers do.

CDL license has three different categories, which are the Class A, Class B, and Class C categories.

Class A and B are divided by limits on trailer gross weight ratings. Tractor-trailer driving is permitted with a Class A license, whereas straight trucks, box trucks, and big passenger buses are allowed with a Class B license.

With a Class C license, you can operate smaller vehicles, such as passenger vans and some delivery trucks. The majority of local truck driving jobs demand a CDL license.

Obtaining federal and state tax IDs is the next step. You need your employer identification number (EIN) to launch and expand your trucking business. It is beneficial for filing taxes and obtaining a company bank account.

#4. Get a location to park your Truck(s)

When your truck is not in use, you will need a location to park it. You’ll want to choose a place that isn’t too expensive and is convenient to your base of operations.

#5. Finance your Trucking Business

Some firms rent vehicles, but the emphasis here will be on financing the truck yourself. To sponsor a truck, apply to a financing business or a bank for a loan to purchase your truck.

Anticipate paying at least $15,000 or more for your truck on average. This might be included in any loans you obtain.

The most excellent strategy is to start with one truck and generate money from it, then increase as your capital grows.

#6. Apply for Federal DOT and Motor Authority Numbers

The numbers are essential for your trucking business to move freight throughout the United States. The Federal DOT number tracks your trucking company’s safety records and compliance standards.

The Motor Carrier (MC) number, also known as the “operating authorization,” is used to determine the sort of trucking business you operate and the items you are licensed to carry.

Once your application is filed and the Federal Motor Carrier Safety Administration verifies your request for permission, you will obtain your MC and USDOT numbers (FMCSA).

#7. Acquire an Insurance

This is one of the most crucial phases in beginning your trucking business since if you skip it, the USDOT won’t permit you to operate.

General liability insurance with a minimum limit of $750,000 and a $75,000 surety bond are the minimum requirements. Keep the insurance card in the truck just in case your driver has to provide proof of coverage.

#8. Hire Drivers

Once you’ve taken care of the paperwork and insurance, you’re ready to begin employing drivers.

There are several approaches you may take to find drivers.
You can recruit them as workers.

With driver shortages causing issues for many trucking firms, you may offer them advantages that will make working for you worthwhile.

Because you treat them properly, they will remain committed to the task.
You may also browse for independent contractors to hire a driver.

Because these drivers are not recognized workers, they are not entitled to benefits such as health insurance.

Many drivers work as independent contractors because it gives them more flexible schedules.

#9. Advertise your Trucking Business

Immediately you establish yourself in the trucking business, the next thing is for you to grow. And you can only achieve growth through strategic marketing.

Billboards, TV commercials, and internet advertisements are all excellent ways to find new clients and drivers.

With so many trucking firms in the sector, it can be tough to distinguish yourself. When preparing your marketing effort, you should identify your market niche.

What distinguishes your trucking firm from the competition? Why should clients select you above others, particularly those already well-known in your field? Finally, what services can you provide that others do not?

Being able to answer these questions marketably will undoubtedly catch new clients’ attention.

Conclusion

If you are considering how to start a trucking business without driving, I guess you have the expert guide towards achieving it.

The trucking business is quite profitable, so if you have the will, the way is right before you.

Frequently Asked Questions: How to Start a Trucking Business Without Driving

Is the Trucking Business Profitable?

Yes, American Trucking Association states that roughly 3.5 million truck drivers transported nearly 72% of freight tonnage in the United States in 2021.

How Can I Start the Trucking Business Without Driving?

Determine the business scope
Prepare your business plan
Understand registration requirements
secure a parking location
Finance your first truck
Apply for Federal DOT and Motor authority numbers
Obtain Insurance
Hire drivers
Advertise

Do You Need a CDL To Buy a Semi Truck?

A CDL is not required to own a semi-truck since the owner and driver might be two separate persons.

Can I Start a Trucking Business with no Money?

You may obtain finance, such as commercial truck loans, to launch a trucking business even if you have no cash.

How Many Trucks Do You Need to Start a Trucking Company?

Don’t be discouraged by larger trucking businesses with thousands of truck drivers and investors to offer to fund. 90% of trucking firms have fleets of six vehicles or fewer; thus, there is room for you to establish a trucking company with just one truck.

FAQs

Is the trucking business profitable?

Yes, American Trucking Association states that roughly 3.5 million truck drivers transported nearly 72% of freight tonnage in the United States in 2021.

How can I start the trucking business without driving?

Determine the business scope
Prepare your business plan
Understand registration requirements
secure a parking location
Finance your first truck
Apply for Federal DOT and Motor authority numbers
Obtain Insurance
Hire drivers
Advertise

Do You Need a CDL To Buy a Semi Truck?

A CDL is not required to own a semi-truck since the owner and driver might be two separate persons.

Can I start a trucking business with no money?

You may obtain finance, such as commercial truck loans, to launch a trucking business even if you have no cash.

How many trucks do you need to start a trucking company?