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THINGS TO CONSIDER WHEN STARTING A TRUCKING BUSINESS

October 17, 2022 by admin0EPN Number

TRUCKING BUSINESS

Starting and running your trucking business is an exciting step in your trucking career. It allows you to be your boss, make more money, pick your loads, and choose when you want to take time off. However, this business is not for everybody. There are many things you have to consider before jumping into the industry. Running a trucking business in today’s world is all about research and strategy. Before investing money in trucking, you need to understand essential regulations governing the industry and the permit you need. These include EPN Number, MC Authority, UCR Permits, truck permits for Oregon, industry compliance, and many more.

With so many questions to answer and things to explore, running a successful trucking business can sometimes become difficult. To ensure you do not find yourself underneath the rubble of questions, here are things you should know before running a trucking company.

UNDERSTAND THE COST

The first thing you should pay attention to is the fact that you need a lot of money. The business is not always a cheap investment because it requires many upfront costs to pay before operating. They include the cost of trucks, licenses, plates, insurance, and permit fees. You must understand these costs before your business starts making money.

KNOW HOW THE MARKET WORKS

There is so much more to trucking than just hiring drivers and delivering loads. It requires handling quite many things at one time, and marketing needs to be one of your foremost priorities. You must ensure your customers know who you are and why you are the best in the business through proper marketing. Social media channels are some of the best platforms to promote your business. You can also hire digital marketing agencies to ensure you do not lack in any area.

 THE INSURANCE YOU NEED

Trucking companies are required to have a variety of insurance policies. These protect both the drivers and the public. These policies can be costly, so it is essential to consider them in your overall budget when starting a trucking company. Some insurance policies include commercial auto liability insurance, cargo insurance, truckers’ liability insurance, and many more.

KNOW THE TRUCKING REGULATIONS

Knowing the regulations that apply to your area before starting your trucking company is paramount. These will help prevent any headaches down the road and ensure you operate within the law.Some of the most common regulations include the following:

 

  • Limits on how many hours a driver can work
  • Restrictions on the types of cargo a truck can transport.
  • Getting a permit to operate across New Mexico
  • Obtaining IRP&IFTA and others.

THE TYPE OF DRIVERS YOU NEED

Your drivers are one of the most crucial parts of running a trucking company. They are responsible for transporting freight safely from one location to another. So you must have a team of qualified drivers on board. They must also be familiar with the rules guiding the trucking industry. In addition, their driving record, driver’s license, and insurance coverage must be good. Plus, they must have an EPN Number.

HAVE A SUCESS STRATEGY

Becoming a pioneer in your niche requires a proper strategy. While you might be able to get your business off the ground and get through the first few years, continuous success needs accurate planning. These include everything from the initial phase and upfront cost to risk assessment and preventive and maintenance services. These solid plans get you through the hurdles year after year. Success also means having the right goals in your mind. These steer you in the right direction through an anchor point.

FINAL THOUGHT

Running a trucking business is rewarding, but it is not an easy one. Also, taking the time to do thorough research and plan will help avoid common pitfalls that new businesses face.

 

TIPS FOR STARTING YOUR TRUCKING BUSINESS

September 15, 2022 by admin0New Mexico Permit

TRUCKING BUSINESS

Are you thinking of starting your trucking company? While getting into the industry is not difficult, continuous operation can be challenging without the right approach. Regular operation requires meeting all the state and federal requirements. It also involves obtaining U.S. Department of Transportation licensing and permits. These include IRP Plate, New Mexico Permit, Kentucky Permit, and IRP Plate Renewal.

The trucking industry is a big game both locally and internationally because everything we use daily is hauled and delivered across various destinations. Freight demand has also sow higher, and many companies are desperate for truckers that can transport goods across and outside the United States. These demands are also the result of a massive shortage of truck drivers, creating problems with the supply and distribution of freight.

The trucking industry is also hotly competitive and dominated by high-ranking trucking companies. So how do you enter this rapidly evolving industry? Luckily, Global Multi Services is here to help answer that question. We understand the challenges of setting up a trucking company in the current business climate and the need for expert and relevant information. Read on for a road trip through the top tips to starting your trucking business.

 KNOW THE COST

Having a basic understanding of finances is helpful when launching any start-up business. These also apply to starting a trucking company. You must have a source of capital to start your transport business, and there are multiple options. They include banks, investors, and bootstrapping.

 

  • Operating cost

It is essential to consider specific expenses associated with the industry. Having a budget for operation and maintenance avoids downtime and increases cash flow. Operational cost includes license and permit fee, toll expenses, truck maintenance, fuel, truck repair, and many more. Also, invest in a secure location and other security features, such as trackers.

 

  • Marketing cost

While marketing may not seem important at this stage, it is paramount to budget for this expense as your company grows.

 

  • Insurance cost

Having insurance is mandatory for all trucking companies. Primary auto liability and general liability insurance should be the very minimum. You can also include coverage for physical damage, cargo, medical payment, and reefer breakdown coverage.

 CHOOSE A NICHE

While purchasing the right trucks and trailers leads to efficiency and speed of service. Choosing a niche will help you have a clearer idea of the type of truck you need and how much loan to apply for when you approach banks. It also structures your repayment plan while setting your interest rate more accurately.

 KNOW THE NECESSARY PERMIT AND LICENSE

Owning a trucking company comes with the challenges and liabilities of having all the required licenses and permit policies mandated by your state of operation. The Federal Motor Carrier Safety Administration and Department of Motor Carriers ensure trucking companies adhere to the industrial regulations. So, you must apply for your MC Authority, Motor Carrier permit, IFTA Permit, New Mexico Permit,  UCR Permits, and Unified Carrier Registration. These licenses and permits often require yearly or quarterly renewal, which could mean extra fees. The regulations vary by state, so consult your state’s guidelines to know what you need to stay on the right side of the industry regulation.

 EMPLOY THE RIGHT DRIVERS

The components of your business, besides your vehicles, are your drivers. Therefore, it is essential to recruit qualified and experienced drivers. Quality drivers boost productivity, elevate your business reputation and build customer trust. Your drivers must obtain the relevant licenses before driving intrastates and interstate. They also need constant training to handle driving in hazardous situations, like storms and heat waves. Avoid issues with the Federal Motor Carrier Safety Administration and the Department of Motor Vehicles by investing in experienced and excellent drivers.

 

REASONS TO START A TRUCKING BUSINESS

 EARN MORE REVENUE

According to statistics, running your trucking company makes you more money when compared to working as a company driver. There is no maximum on how much you can make as an owner-operator. Your earnings vary significantly based on your business model. Therefore, have a solid business plan and save money on operating costs.

 WORK ON YOUR SCHEDULE

One of the beauties of owning a trucking company is having the ability to get home when you want. You choose when to get loads, the route to take, who you work with, the cost, and how often you get home. You decide when to get home for important events and commitments. Having this freedom is beneficial not only for you but also for your friends and family.

TAKE UP NEW CHALLENGES

Working as a truck driver for another company for more than ten years can be exhausting, and everyone needs a new pace. Owning a trucking business is a way to stay in the industry you love while taking up new challenges and more responsibility.

ESTABLISH A FAMILY BUSINESS

Many truck drivers start a trucking company to have a family business. People want to leave a good legacy for their kids with lots of revenue. So, starting a business with their spouse, friend, or family member makes that possible. Being a team helps them make more money and run more miles.

FREEDOM AND FLEXIBILITY

Having a trucking company avoids having someone boss you around. You pick your loads, decide who you want to work with, make your own business decisions, etc. But, this freedom comes with a lot of responsibility, and it is up to you to decide if you are ready to handle these responsibilities.

IN CONCLUSION

The trucking industry is competitive, but with persistence and motivation, you will achieve success. Remember, problems and delays can crop up anywhere, but being transparent with your clients about what’s happening will stand you in good stead.

 

 

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MOTOR CARRIER PERMIT: HOW GOVERNMENT ENSURES SAFETY IN THE TRUCKING INDUSTRY

April 29, 2022 by admin0Motor Carrier Permit

The trucking industry plays a significant role in the economy of the United States and makes it possible for business owners to transport their goods and materials. However, they are subject to many regulations to ensure public safety. These include obtaining a motor carrier permit, MC Authority, and many more.

The trucking industry is complex, and many branches of government regulate it at the federal and state levels. The Federal Motor Carrier Safety Administration is the agency regulating interstate trucking practices. It is a sub-division of the U.S. Department of Transportation. Therefore, a basic understanding of how the industry works ensures your trucking company complies with the regulations. Read on as Global Multi Services explain how the government ensures safety in the trucking industry.

ESTABLISHMENT OF AGENCIES

Several agencies within the government impact the transportation industry. They include the Department of Transportation, Federal Motor Carrier Safety Administration, and National Highway Traffic Safety Administration.

The Department of Transportation is the primary regulatory agency for transportation in the United States. It is the largest and most recognized agency influencing the industry. It also ensures the country has the safest, most efficient, and modern transportation system. These boost the country’s economy, productivity, and global competitiveness. Other agencies within the DOT make sure the trucking industry continues to run efficiently.

ROLE OF FMCSA

The FMCSA regulates the interstate trucking industry by enforcing safety rules, driver qualification, and licensing. They create safety regulations for commercial motor carriers and are responsible for developing standards to give commercial driver’s licenses. They also ensure the safe operation of large commercial vehicles to prevent traffic-related accidents, injuries, and fatalities. These also include regulating Hours of Service (HOS) and safety programs.

THE ROLE OF NHTSA

The National Highway Traffic Safety Administration reduces death, injuries, and economic losses caused by motor vehicle accidents. They achieve this by doing extensive research to understand driver behavior and traffic safety. NHTSA investigates safety defects in motor vehicles and provides safety standards. They also enforce vehicle performance standards and fuel economy standards.

IN A NUTSHELL

Federal and state governments influence the transportation industry through safety regulations and funding. The Department of Transportation also improves the quality of life in rural and urban communities across the United States by ensuring safe driving practices.

Global Multi Services is a trucking permit company that provides motor carrier permits, IRP Plates, IFTA permits, and other mandatory licenses for trucking companies. Associate your business with a trucking permit company that knows every detail and is up to date on changes in industry regulations.

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