Starting a truck driving business can make you a lot of money very quickly, this is why you should consider how to start your own truck driving business.
There will always be a high demand for the movement of goods from one location to another. Truck drivers are the people that we all rely on to get us all of our packages, Because transporting businesses are in high demand, this industry is highly profitable.
Luckily, this post covers the first steps you need to know before you start your very own business.
What is a Truck Driving Business?
When starting a trucking business you should consider what sort of goods you should move. A truck driving business in Australia will transport goods from one place to another. Oftentimes, when considering how to start a transportation business involving trucks you can tailor your service to different clients.
Types of Truck Driving Businesses
There are a few different types of truck driving businesses, for example a removalist business can come within the scope of this. Additionally, Drivers can go interstate and also transport livestock. It is important for you to consider what sort of goods your trucking company wants to transport.
Getting Started: The Pre-Planning Steps
Research
Doing your research early on will ensure that everything is in order, when you launch your business. When starting a truck driving business you are going to need equipment and tools, so understanding what you will need and how much it will cost is a good place to start. You should also do your research to find the best deals to optimise the profitability of your business.
Another important factor to research is the cost of your services. In determining your price, you must look into your competitor’s charging rates. Ideally, the cheaper your services the more inclined customers will be to contact you. However, you must be careful not to make your services too cheap for two reasons. Firstly, you need to make sure that you are making a profit. Secondly, you do not want customers to assume that your prices are low because the quality of your services are compromised.
Equipment
When starting a truck driving business, you should consider how to start a truck driving business with one truck. You can start small and grow from there, owning a truck is the best way to get started.
Develop a Truck Driving Business Plan
Excellent planning will often lead to success. Using your research, you should develop a formal business plan to guide your business. This might include your:
- Business objectives and goals
- Business structure
- Target market
- Competition
- Marketing strategy
You can always seek assistance from a professional accountant or business lawyer to assist you with this, if you aren’t confident in developing a business plan yourself. It’s important to revisit and review your business plan regularly.
Determine your Business Name
Now you need to decide on a business name. Once you decide on your name, you can check the availability of the business name you have chosen.
If the name is available, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia.
Determining your Business Structure
You will need to decide on a business structure to establish your business plan. Consider whether you will operate as one of the following.
- A sole trader is someone who owns and operates a business under their personal name.
- A partnership is when two or more people come together to form a business.
- A company is when you register your business as a separate entity from your personal affairs.
You should contemplate which structure will work best for your business goals. It is important to know what the legal ramifications are of each structure and how they can affect how you operate.
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Registering your Business
You need to register for a few things in order to make your business official. For instance:
- A business name
- An Australian Business Number (ABN) to help the Australian Tax Office (ATO) and customers identify your business.
- It would be good practice to also register your business as a company (ACN) so you can benefit from limited liability.
- Register your Tax requirements.
- Ensure that all relevant licences or permits are valid.
Source Insurance
Insurance is the most important step when setting up your business. It is imperative that you protect yourself and your business from any legal action. Firstly, you will need a type of public liability insurance, this will be beneficial for you and your business when customers or staff experience injuries on site or otherwise.
Public liability insurance from insurance companies such as BizCover can help you protect your property and your employees from damage or injury.
Additionally, you will want to ensure you have worker’s compensation set up for these instances. Finally, you will need a form of coverage for all your equipment to protect against loss, damage or theft.
Hire Employees
You will want to consider hiring additional staff to help ensure that your business runs smoothly, especially as it expands. You will need to decide how many employees you are looking to hire and what type of employment they will receive. Will they be full time, part time or casual workers?
You will then need the appropriate employment agreements drawn up and signed. There are different types of employees that you can hire, learn more about how they may affect your business in the Webinar below.
Marketing Your Truck Driving Business
Now all you need to have a successful business is working on appropriate jobs. When considering how to advertise your truck driving business in Australia to help you attract individuals or companies in need of truck drivers. You may want to implement a strategic marketing plan to cover all your bases. This will allow you to gain insight into your target market.
It will also be beneficial in helping you understand what is the most effective marketing method to reach your target market. Some marketing methods you may choose to use include starting a social media page or putting an advertisement in your local newspaper. Another simple and effective approach of reaching new customers is through word of mouth.
Having an online presence is important even for construction companies. Using websites like Shopify or GoDaddy can help you create a well-established business so that your customers can easily find you. Additionally, you should set up and maintain a website which means you need to consider any website terms and conditions to ensure that your customers are safe.
Considering the Law
Heavy Vehicle Licence
For a driver to be able to drive a truck, a specific heavy vehicle licence is needed. There a a few different classes that you can apply for depending on what you need. Each class has minimum requirements you must meet to upgrade your licence to the next class. These requirements vary depending on the licence class. They are as follows:
- LR – Light Rigid – small buses or trucks;
- MR – Medium Rigid – medium rigid trucks or buses;
- HR – Heavy Rigid – heavy rigid trucks or buses (including articulated buses);
- HC – Heavy Combination – heavy articulated vehicles; and
- MC – Multi Combination – B-doubles, prime mover, low loader dolly and low loader combinations, road trains.
Requirements to Transport Certain Goods
Transporting goods like, food, waste and goods classified as dangerous requires specific requirements. It would be best practice to consult the Australian Code for the Transport of Dangerous Goods by Road & Rail to ensure you meet the appropriate standards.
Workplace Health and Safety Requirements
Every truck driving business must comply with general work health and safety regulations. You will also need to consider:
- traffic management; and
- fatigue management; and
- load management for drivers; and
- roadside operations; and
- working with dangerous goods and hazardous substances; and
- working alone.
Legal Documents you will need
To get up and running, you should consider these legal documents so that you can protect your business. Some documents you should consider include:
- A Services Agreement can outline the service you provide so that your customer can know what to expect.
- A Employment Agreement can outline your employee’s responsibilities and their obligations to your business.
- A Tax Invoice allows you to create a formal request for payment and ensure your records are up to date.
- A Job Safety Analysis provides a structured way to assess and document the risks associated with particular worksite tasks or activities.
- A WHS Policy outlines the obligations of a company’s management and its employees towards workplace health and safety.
How Lawpath Can Help
At Lawpath, we can help guide you through starting your own truck driving business. One of our Experienced Lawyers can provide you with all the legal information and requirements necessary for your business to succeed.
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