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Things To Do When Starting A Trucking Business

January 21, 2022 by admin0IRP RenewalMC Authority

Trucking companies follow strict regulations from the Federal Motor Carrier Safety Administration to stay compliant. From obtaining MC Authority, processing UCR Renewals, to IRP Plates Renewal.

The trucking industry is one of the most significant and ever-growing industries in the United States. These present business opportunities for many people in the country. Though highly competitive, it has great potential for entrepreneurs that understand the business.

There is so much benefit to running a trucking business. These include: choosing your niche, routes, rate per miles, the companies to work with, and many more. It also provides a perfect combination of freedom and financial success.

But despite all the benefits mentioned above, starting a trucking business is lucrative and capital intensive, with multiple costs associated depending on your business niche. Also, it can sometimes be overwhelming with hurdles and challenges. That is why many people avoid venturing into the business despite the potential benefits they can enjoy.

Do you want to start a trucking business but don’t know where to begin? Global Multi Services highlights a straightforward guide that will steer you in the right direction.

WHY DO YOU NEED TO VENTURE INTO THE TRUCKING BUSINESS?

With driver shortage, increasing freight demand, and rates, you have the potential to make a lot of money by venturing into a trucking business. Aside from the ease of access into the industry, you will also build a sustainable business. But you will need to do thorough research to understand how the industry works. You also need to look for customers and contracts because they do not magically appear.

Here are things to do before starting a trucking business.

HAVE A BUSINESS PLAN

Having a business plan is very crucial when starting a trucking business. Just as a new job requires a fresh perspective and goals, a new trucking business needs an organized plan. A business plan is your fundamental guide and roadmap that determines your success. It is a GPS that gets you from where you are now to where you want to be.

It also helps you articulate your value proposition and shows potential obstacles down the road. Your business plan should include your financial budget, the type of equipment you plan to buy or lease, market niche, and other crucial business decisions.

CHOOSE A NICHE

Targeting the right market niche is crucial when starting a trucking business. Having a niche help streamline your operational processes and resources, optimize your sales, avoid competition with many companies and establish your name in the industry,

PERMITS AND LICENSE

Trucking companies must have specific licenses and permits to operate legally in the trucking industry. The type of permit you need depends on your market niche, base state, the type of freight you haul, and many more.

HOW TO STAY IN COMPLIANCE IN THE TRUCKING BUSINESS

Staying in compliance in the trucking industry requires obtaining several permits. The permits allow you to operate legally as a trucking business and also allow your trucks to transport freights across state lines. Having all these permits prevents you from paying hefty fines and penalties.

Here are permit and renewal processes to stay compliant in the trucking industry.

ACQUIRE YOUR MC AUTHORITY

MC Authority is mandatory for trucking companies operating across the United States. The authority indicates the Federal Motor Carrier Safety Administration (FMCSA) has given the trucking company permission to transport goods on public roads. There are other trucking-related registrations that a new business must obtain. They include IRP Plates, UCR Permit, IFTA Permits, and many more.

OBTAIN IFTA LICENSE

The International Fuel Tax Agreement is mandatory for trucking companies operating across interstate and international borders. Qualified motor carriers must register in their base state and obtain IFTA License with two IFTA Decals. They are also required to file IFTA Fuel Tax Returns quarterly in their base state.

PROCESS UCR RENEWAL

Trucking companies must obtain UCR Permit and process their UCR Renewals annually to run their trucking business smoothly. The Unified Carrier Registration is a federally-mandated program for trucking companies operating interstate and internationally. Trucking companies must apply in their base state and renew their permit before the expiring date to avoid penalties.

FILE IRP PLATES RENEWAL

The International Registration Plan allows trucking companies to operate across multiple jurisdictions using a single license plate. But they must register in their base state to obtain IRP Plates. All registered motor carriers must keep records of the distance covered in each member jurisdiction to process IRP Plates Renewal.

 

 

 

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IRP Plates: How To Overcome Challenges As A New Trucking Company

December 27, 2021 by admin0IRP PlateIRP PlatesIRP RegistrationIRP Renewal

Overcoming the challenges, you face as a newbie in the trucking industry depends on what you know and the revenue your company generates. Trucking is a risky business, and trucks are expensive to acquire and maintain. Plus, anyone with a CDL, a few thousand dollars, and an IRP Plates can haul freight regardless of their knowledge of the business of trucking.

You overcome challenges by having a plan when managing your assets. These include preparing for the unexpected, equipment breakdowns, and covering operational costs while waiting for customers to pay. Having a clear vision of building your company’s net worth also helps you stay positive. Read on as Global Multi services take us through how to overcome challenges in the trucking industry.

Determine Your Rate

One of the mistakes new trucking companies make is allowing others to determine their hauling rates. Allowing your competitors to determine your rate is the first step to business failure. No mechanic will ask you what you’d like to pay to have your truck fixed. They always tell you the amount they are charging. Therefore, do not let someone else set your hauling rates. And the only way to set profitable rates is by knowing how to set the balance.

Register For IRP Plates

Trucking companies must obtain IRP Plate to operate across states line in the country. The International Registration Plan is a reciprocal agreement between the continental United States and Canadian provinces to facilitate the collection of apportioned fees from trucking companies traveling in two or more jurisdictions. They must also register in their base jurisdiction, and failure to adhere to this regulation can lead to hefty penalties.

Strive To Improve

Top trucking companies are always looking for new and innovative cost-saving ideas to remain the best in the industry. They ensure their drivers, dispatchers, managers, and salespeople continuously improve. Therefore, you need to keep researching what will help you become a more efficient hauling company. Stay on top of the trends and news from the trucking industry and other trucking companies.

Track Your Cash Flow

You need to know the cash flow when planning for the future. Do you still have money after paying your bills and one-time expenses? If your company is not profitable, you need to why and what you can do to break even. This means your revenue is equal to your fixed and variable costs. Have a profit margin that funds your company and save some money to get through the difficult times.

Manage Your Risk

It is imperative to calculate the benefits of financing your company and the risks. Can you get a loan, and how much should you borrow? Do you need brand new trucks and equipment to operate effectively? Is putting your property or equipment up as collateral a wise decision? Explore all your financing options to find the right fit for your business. Purchasing new equipment often requires down payments, and the interest can affect your cash flow. Therefore, take a strategic approach to manage your assets and cash flow.

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IRP Plates: Cost-Saving Tips For Your Trucking Company

November 24, 2021 by admin0IRP PlatesIRP RegistrationIRP Renewal

It takes more than knowing how to choose the best routes, on-time delivery, obtaining your IRP Plates, and others to run a successful trucking business. Running a profitable trucking company requires saving more by cutting down your expenses. You need to manage your resources and use them right, control your operational cost while fulfilling deliveries with utmost efficiency.

Managing a trucking business is not an easy task with lots of competition and rising fuel prices. Customers can also be inconsistent with their orders and payment schedules which can affect your turnover. Nevertheless, we do not want a lack of cash flow to stop you from achieving your goals. That is why Global Multi Services put together some cost-saving tips that can help you boost your profits and make your business thrive in the ever-changing world of trucking.

ENHANCE FUEL EFFICIENCY

According to reports, trucking companies spend more on fuel than on any other area of expenses. That means most companies could significantly reduce costs by enhancing fuel efficiency. There are many steps you can take to make these happen. Ensure your drivers understand the value of efficiency by maintaining proper tire pressure, acceleration rates, and many more.

You can also collaborate with companies that offer fuel cards to give you discounts and other benefits at truck stops nationwide. But you need to consider the coverage, savings, and how beneficial; it is for your trucking company before signing up for the program.

GET YOUR IRP PLATES

Saving cost in your trucking business involves registering your company and getting necessary business licenses and permits. Obtaining your IRP Plates and other permits help avoid stopping your truck by the Federal Motor Carrier Safety Administration officials. It helps stay in compliance with the trucking industry regulation and avoid penalties and fines.

You do not have to worry about delays and pullovers. Additionally, running a cost-saving trucking business need proper structure. These allow you to mitigate some risks of unexpected losses and business advantages.

REDUCE TRUCK IDLING TIME

According to the US Department of Energy, idling a heavy truck consumes fuel and increases engine wear even though the vehicle isn’t moving. It is one of the most wasteful yet overlooked habits of many drivers that need to be addressed. Being pulled over to make a quick drop-off or taking a momentary roadside break does not warrant idling.

Trucking companies need to educate their truck drivers about the effect of idling on fuel. But idling can sometimes be impossible to avoid. These include when a truck is stuck in traffic or stopped at an intersection. Nevertheless, there is no reason for a driver to leave a truck idling for no reason.

PLAN YOUR ROUTE

Trucks drivers often have exclusive routes to specific delivery locations. But in some cases, alternate routes may be shorter with lesser delay. So, trucking companies can reduce their cost by planning the most efficient route for each delivery. Checking the weather condition, traffic jams, construction delays, shortcuts, bridges, truck parking, and road limitations will help; make a smooth trip. Thanks to routing software and other apps, drivers now have access to shorter routes, saving fuel and time.

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