How to Start Your Own Truck Driving Business
Are you thinking of starting a truck driving business? Learn how to get registered, become a popular brand and promote growth in your business.
IntroductionStarting a truck driving business can make you a lot of money very quickly. This is because there will always be a high demand for the movement of goods from one location to another. However, you need to remember that there are plenty of great truck drivers out there. What will differentiate you from the others is how you establish your business. Read below for more insight on how to start on the right foot.
Get the QualificationsTo get started, you need to ensure that you obtain the correct type of permits and licenses necessary for the type of vehicle that you will be driving. As this differs from state to state, visit your local transport registration facility to get started.
Register Your BusinessYou will need to have your business registered. Generally speaking, you need an Australian Business Number (ABN). This is a unique code that will allow you to trade within Australia. Several business owners prefer to register their business as a company instead of a sole trader. There are a number of benefits of doing so. This mainly revolves around debt management and liquidation of the business. Before making your decision, it is suggested that you read up on the differences between a sole trade business and company. If you choose to set up your truck driving business as a company then you will need to register for an Australian Company Number (ACN).
Get a TruckThere are a number of considerations that need to be factored in when getting a truck. Will you be buying or leasing it? Will you opt in for a new or used one? The truck you choose must be in direct correlation with the niche that you choose to focus on. This will influence its size, look and engine. Do your research before settling for a truck and make sure that a mechanic has it checked before you put pen to paper.
Find Your NicheAs a truck business, you can either choose to be a business that can transport any kind of good, or you can focus on one particular niche. It is suggested that you select one niche. This will allow you to specialise in that market and will save you time, research and money needed to purchase necessary extras to ensure that the wide range of goods are transported safely from one location to another.
Market Your BusinessSetting up a great business is pointless if no one knows about it. You need to ensure that you spend ample time and resources getting your business’s name out there. Develop a marketing plan that suits your niche. There are a number of avenues to do so. This includes putting your business name in the Yellow Pages and True Local. More importantly, with the increased prevalence of internet usage it is suggested that you have a social media presence. Having a platform on Instagram, Facebook or Twitter, will guarantee that your truck driving business is on the map. You may also find that setting up your own website suits your particular needs.
Sign Up for InsuranceIt is vital that you have a contingency plan set up. Not only will this give you peace of mind, but it will ensure that both your business, truck drivers and others on the road have access to health services when needed in an accident. There are four main types of insurance that you should apply for:
- Primary Liability– when you are at fault, this type of insurance will cover you for any damage or injury caused from the accident;
- Physical damage– this will cover any damage caused to the truck when the accident was not your fault;
- Cargo– this type of insurance will cover any truck damage due to an accident and/or theft. Be careful to read this insurance policy as it will detail the maximum value of goods it will cover in a claim;
- Non-Trucking Use – this will cover you when you get into an accident and the truck is not carrying any stock
Hire New DriversIf you would like to expand your operations then you will need to hire new drivers. Be sure that all of your staff have the correct licenses and that your insurance policy extends to them as well. You may find our contract template useful in your expansion.
ConclusionAs seen from above, starting a truck driving business requires a number of steps – from registering your business, to choosing your niche to hiring employees. It is strongly recommended that you have a budget so that you are constantly weary of your financial position.
Youstina is an intern at Lawpath as part of the Content Team. She is a final year Law and Social Science student (majoring in development and culture) at Macquarie University. She is interested in legal technology and policy development.