Small Business Adminstration:
Starting a trucking business link
From the site:
Due to the growing marketplace, its a common necessity for commercial goods and products to be moved to a new city or state. This need creates a great opportunity for new transportation businesses and as a result the trucking industry is an extremely competitive field. Because the competition is steep, save yourself time, money, and energy by thoroughly researching the industry before you jump in. If yo-re considering opening a trucking business, use this guide to help you get started.
Determine how your trucking business will operate.
Trucking businesses operate by bidding on and fulfilling transportation accounts and contracts. Most trucking businesses usually operate in one of two forms- the difference lies in how they acquire drivers to fulfill their accounts and contracts:
- Sub-contracted drivers: Under the first option, you run your business using sub-contractors as drivers. Although you, as the business owner, run the business and receive the contracts, your drivers are not actually employed by your company. This option cuts down on start-up costs, insurance costs, and required equipment. On the other side, this option gives you less control over your drivers and cuts into your profits.
- Privately-owned drivers: Under the second option, you privately run your business and all operations. You use your own equipment, pay higher insurance prices, and hire a fleet of private drivers as employees. This option gives you total control over your business and its employees, and promises the most return on profits. On the downside, this option requires a great deal more start-up capital and operating costs.