If you’re interested in starting or investing in a trucking business, you won’t have to drive your trucks.
If that excites you, you must read through this article as we discuss ways to invest in a trucking business without having to drive.
We will be looking at truck investing for passive income.
How to Start a Trucking Business Without Driving
Many people ask, How can I invest in a trucking business without driving? The information provided gives you all the tips you need.
When trucking is being discussed, only the driving aspect of the business tends to be the focus.
However, the business is a lot more than that. In other words, trucking involves much more than driving, as there’s an administrative side that ensures operations go smoothly.
Make Money in Trucking Without Driving
When it comes to investment in trucking, quite a several steps must be followed. These include having a plan in place and determining the startup costs.
Other steps include choosing your trucking business model, sorting out insurance, choosing a niche, and meeting all registration requirements.
Financing the business, hiring qualified drivers, marketing, and finding loads are essential steps required to launch your business.
You’ll also need to manage your fleet, finances, and customers.
With these steps carefully followed, you should be able to start your trucking operation.
i. Have a Plan
A business plan serves as a blueprint with which to organize your operations.
With this document, your chances of success are greatly improved. Essential components of the trucking business plan include the executive summary, business description, and market analysis & strategy.
Other sections include the marketing & sales plan, competitive analysis, description of management & organization, and description of products & services.
Your plan should include an operating plan section, financial projection & needs, and exhibits & appendices sections.
ii. Working out the Startup Costs
One of the critical requirements for investing in trucking involves startup costs.
Here, the costs needed to launch your operations must be determined to guarantee a smooth take-off. As always, sufficient financing is required to make the business a reality.
All expenses must be captured in working out trucking business startup costs.
Such include purchasing equipment, trucks, office space, registration costs, tracking software, marketing costs, and a whole range of others.
Identifying all of these expenses gives you an idea of what’s needed.
iii. Choosing your Trucking Model
Choosing between franchising and starting a trucking business from scratch is something you’ll need to do.
Trucking franchises offer a much easier way to own a business while using the franchisor’s business model and brand. You also get comprehensive support from the franchisor.
Examples of trucking franchises include Metropolitan Movers, Pack It Movers, Two Men & a Truck, and many others.
However, if franchising isn’t attractive to you, consider investing in a trucking business from scratch. This requires a great deal of work but can be highly rewarding.
iv. Sorting Out Insurance
Insurance is a necessity for every trucking business.
It’s also one of the requirements for receiving a USDOT approval. Getting insurance for a trucking business can be pretty expensive.
The last insurance policy attracts a surety bond of $75,000.
v. Choice of a Niche
What trucking niche are you most interested in?
This is also a factor when it comes to making investment decisions. Some niche examples include intermodal trucking, household movers, truck franchise, and less-than-truck carriers.
More niche categories include shed delivery, pipeline service, livestock hauler, and RV hauling. Going with a franchise that’s more suitable for you works to your advantage.
vi. Meeting all Registration Requirements
Registering a trucking company is an essential requirement without which you cannot operate legally.
Now there are state and federal registration requirements to be met. Examples of these include the EIN issued by the IRS, DUNS number, MC/DOT number, and BOC-3.
Filing for FMCSA is another crucial requirement to launch your operations. It’s necessary to figure out what these registration requirements are to ensure complete adherence.
vii. Financing the Business
This stage of investment involves funding your business idea. You’re expected to have identified clear paths towards funding the business here.
There are many funding options: BlueVine, Fundbox, SBA trucking loans, OnDeck, and Lendio, among others.
viii. Hiring Qualified Drivers
Because you don’t want to drive your trucks, you’ll need to hire qualified drivers.
These drivers can be hired either as full-time employees or as independent contractors. Each type has its pros and cons. You’ll need to go with what serves your needs bests.
A commercial driver’s license (CDL) is essential for your drivers. This is a requirement for all commercial drivers.
Without this, driving any commercial vehicle the truck is a part of will be illegal.
Here, you want to spread the word about your trucking business.
Establishing one isn’t enough, as potential clients need to be informed about the business’s existence. This is a continuous process that guarantees continued growth.
A wide range of marketing strategies should be deployed to sell your business. These include building a website, mounting billboards, TV & radio ads, and social media marketing.
These channels help guarantee wider reach, thus creating much-needed awareness.
x. Finding Loads
At this stage, you’ll need to find your first load. This can be a lot more challenging when starting a new one.
However, one tip for getting your first load is to work with a freight broker. Like freight brokers, trucking consultants also have a wealth of knowledge on where to get your first load.
You must work with these experts by following all the information for a successful launch.
xi. Manage your Fleet, Finances & Customers
Proper management of your operations is key to success.
This covers various aspects of the business, such as the fleet, finances, and customers. Effective management helps guarantee future growth and patronage.
These are steps for investing in trucking without driving. With the thorough and careful implementation of the strategies discussed, you’re well on your way to running a thriving business.
I hope you understand how to get into the trucking business without driving.