With the new year slowly approaching, many are outlining their new year’s resolutions for next year, and one of the goals for most is to start or further expand a business. However, some are unsure where and how to invest their money without risking it all. The trucking/transporting industry is one of the most underrated and unnoticed industries overlooked by many (including investors). When you look at a big rig truck or a moving delivery truck, the curiosity of turning it into a business doesn’t cross our minds, and most people don’t realize how lucrative the trucking industry really is.
FYI: The average truck driver generates over 100K per year.
Let me further explain the importancy of the trucking industry. Over 90% of our food and consumer goods are transported by a semi-truck or a small-medium delivery truck driver, and if you take a good look around you, the majority of what you own such as the clothes you’re wearing, the food you eat, the bed you sleep on, including the computer or mobile device your utilizing to read this article has been transported by a truck. The trucking industry is the backbone of our country and our economy will collapse if we had no truckers on the road. With that being said, the trucking business is a highly profitable industry, and there’s various way you can turn it into a legitimate business.
LOCAL – REGIONAL DISTANCE (SMALL-MEDIUM TRUCK) DELIVERY BUSINESS:
This option is a feasible way to start a business with minimal experience, and without having a CDL (Commercial Driver License) and the vehicle of choice can range anywhere from a box truck or a cargo van. If you’ve never worked as a delivery driver, the best way to approach this business is by starting off small, and connecting with service providers that can provide with the you steady work, where you can make small deliveries without feeling overwhelmed. This is the best way you can obtain the hands-on experience, and have a better understanding of what goes on the everyday operations of this business so that you can grow your company slowly but steady.
Right now, there are awesome delivery providers such as Amazon Flex, GoShare and uShip that pays anywhere from $18-$61 per hour or (uShip) that allow drivers to choose their own pricing. These platforms provide adequate mobile tools to ensure each transaction goes smooth and effectively while setting your own schedule.
LOCAL – LONG DISTANCE (MEDIUM-HEAVY TRUCK) DELIVERY BUSINESS:
This option can be approached in 2 ways, you can either train and obtain a CDL (commercial driver’s license) or you can hire an experienced driver with a CDL. This option is a bit riskier because you’re either going to rely on the CDL driver to haul the loads or if you decide to obtain your own CDL, you’re going to have to find a trucking company that is willing to hire new drivers with little to no experience.
Most trucking companies pay by the mile (for example) let’s say you’re going to drive the truck yourself and get paid $1.50 per mile and drive an average of 3,000 miles per week (x 4 weeks), your gross monthly income is $18,000. However, you will need to deduct cost of gas, insurance, the monthly payment of the truck (if it’s being financed or leased) and any maintenance or trucking fees which can total your expenses anywhere from $5K-$8K+ per month, but you’re still left with a hefty net profit for you to pay your own bills and save money in the bank (FYI: that is the net profit for 1 truck) can you just imagine if you had a fleet of trucks? Think about it…
BUSINESS START-UP COST:
Like every other business, you will have expenses and licenses you’ll need to obtain to get the company going, and if you don’t have the money to buy the truck cash, you can always get a loan. However, if you don’t have the creditworthiness to get approved by your local bank, you can obtain the funds through alternative financing lenders that service to those with little to no credit. These underwriter’s decisions are mostly based on your job security versus your credit FICO score.
✔ File for a Business Entity (LLC or INC) and EIN#
✔ Request Commercial Vehicle Insurance Quotes
✔ Order Some Shirts with your Business Logo and/or Name
✔ Apply for State licenses to operate legally (DOT)
✔ Secure contracts with a trucking company or service provider
These industries are not going anywhere because we depend on them. We need these industries as much as we need a roof over our head, and without the trucking industry, the US economy will dive quickly and the comfortable life as we know it as will be non-existent. Approach this form of business with caution, and make sure to have a business plan outlined to ensure your success.
ABOUT THE AUTHOR:
Truckers Post LLC – https://www.truckerspost.com
We’re the intermediary agent between a borrower and lender, that brings both parties together so that you can obtain the funds needed to start or further expand your business. We have a network of lenders that serve a variety of industries, and credit criteria with various ways to structure your financing options such as Equipment Loans, Leases, TRAC leases, EFA (Equipment Finance Agreements), $1 Buyouts and Working Capital Loans. Our job is to outline your business goals and connect you with the appropriate funding source that fit your business and financial needs.
We’ve set up our process where all borrowers are assigned to their own experienced financing specialist, that will work closely with them until the deal is funded and complete. We don’t charge any upfront fees to begin, and we will not compromise your credit with multiple inquiries.