The trucking and logistics industry presents numerous opportunities for anyone looking to start a business.
If you want to start a trucking business, there are a few things you’ll need to know. First, there are over 700,000 trucking companies in America, so you’ll have to figure out your niche. Secondly, you’re going to need to obtain a significant amount of funding to pay for a fleet and trucking equipment.
In this post, we’re going to help you get an idea of how much it’s going to cost to start a trucking business. You’ll need to be prepared when you start meeting with lenders, so keep reading and get your finances sorted out.
There are a lot of logistics you have to sort through before starting your trucking company. You need to have a commercial driver’s license, a US DOT number, a motor carrier number, and registration.
These are just a few of the permits and certifications that you’ll need to think about. Each permit comes with meager business fees, but when you add everything up, it’s going to cost you $2,000 for each truck in your fleet.
You’ll also have to register your trucking business and obtain a few types of business and vehicle insurance. Each truck is going to need about $10,000 in insurance per year to keep it on the road. The cost is influenced by the age of your business, how many miles you’ve put in, the age of your trucks, and your drivers’ records.
Purchasing Trucks and Trucking Equipment
Speaking of trucks, you won’t have much of a trucking company without a fleet of trucks and all the equipment your drivers need. One new semi-truck costs anywhere between $80,000 and $150,000, with the more expensive cabs having living spaces and more technological features.
You can also buy used trucks for a fraction of the price, or lease your trucks for around $2,000 per month. This is cheaper in the short term but becomes less cost-effective over time.
If your trucking company is going to thrive, you need to outfit your trucks and drivers with the right equipment. The most important items here are fleet tracking, logging technology, dynamic routing, and cameras. Expect to pay a few thousand dollars for each truck to be outfitted with the right equipment.
Paying for Maintenance
It can be difficult to budget for truck maintenance, but one thing is for sure, your trucks are going to need work. Whether you’re doing short or long-haul trips, there’s going to be a lot of wear and tear on your fleet, so you’ll need to have a mechanic on retainer to keep them maintained.
The most common wear and tear on trucks are on the brakes, air lines, and electrical systems. Some say that you need to budget about $15,000 per year for maintenance on a single truck.
To Start, a Trucking Business Is Not Cheap
If you want to start a trucking business, it’s not going to be cheap. What we’ve discussed here makes up the bulk of startup costs, but you also have to think about hiring drivers and office employees, in addition to renting an office and keeping the lights on.
That being said, if you know what you’re doing, a trucking business can be incredibly lucrative. Starting is the hardest part, but once you’ve got traction, you’ll nullify most of these costs.
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