The transportation sector is one of the few industries that is expected to grow at least 2% next year. That makes it a great opportunity for those who want to break free from the rest and start their own business.
What will you need?
First, you’ll want to obtain your business license and operating authorities or, as most call them, performing rights.
Why do I need performing rights?
You will need your rights of movement to be able to transport goods. The government requires you to obtain a license, as do the companies with which you do business. Without the required operating rights, you will not be able to start your business. For more information on the operating rights required to start your business, visit 411 transportation solutions link located at the bottom of this page.
The next step would be insurance.
You will need to insure your vehicle(s) and purchase cargo liability insurance. Be sure to shop around for the best prices. Rates are coming down and if you decide to hire owner operators you may want them to purchase purchase insurance. Buying insurance is a great idea. Reduces the cost of your insurance deductible in the event of an accident. When I started a forwarding company, I required all drivers to purchase this insurance and deducted the cost from their payroll each month. I would definitely suggest looking into this, it’s always better to be safe than sorry and it’s inexpensive. If for some reason you have an accident in the first year of starting your business, you don’t want to have to close the doors because your insurance deductible was two high.
How much will this cost me to start?
Starting your business doesn’t have to cost a fortune. You can start your business for as little as $2,000 or less. That is how. Start your business from home; use your own computer, internet and your own vehicle. If you already lease a vehicle, be sure to change it to your business name so you can properly lease it at the end of your business year, as well as your internet, phone, etc. You will need to purchase a printer/fax machine; You can find them cheaply at your local store. Next is a phone line, this is very important as this will be the lifeline of your business. I suggest products like Magic Jack, where there is a low fee per year that is very cheap. Once your business is up and running and making a profit, you may want to find a store or office from which to run your business and install a more sophisticated phone system. Most of your initial cash will be obtaining your operating rights and insurance. The way to save money is to apply to your authorities yourself or buy a business package that supplies everything you will need. If you go to a consultant, it could end up costing you anywhere from a thousand dollars and more!
Where will I find loads?
Start with the contacts you already know; dispatchers and companies for which you have made deliveries. Your current or former employer may not like it, but chances are they started the same way. If you don’t have any contacts, start with charging boards. There are many areas where you can find cargo; Here are a few. load boards; there are many out there, some are free or offer free trials. You can also contact freight brokers, send them your information, and be sure to tell them where your vehicles are located to transport goods. Also contact other carriers and post your vehicle(s) online to let companies know what’s available.