What You Need to Know About Starting a Trucking Business
It is time now for many people to step back and ask themselves ‘is starting a trucking business a good idea?’. Why is this question such a pressing issue at the moment? It largely has to do with the enormous number of headlines in the news as of late involving trucking companies and how much additional business they are picking up due to a surge in demand from people ordering more items than ever before. Pandemic lockdowns has many people wondering is starting a trucking business a good idea, and the question seems to be answered in the affirmative based on the fact that business has never slowed down for trucking companies. If anything, business is booming as of right now, and it shows no signs of slowing down anytime soon. The world is ready to keep ordering more and more goods, and the trucking companies seem ready to step up to literally deliver.
Before you ask yourself is starting a trucking business a good idea again, consider the following factors and recommendations, and then decide for yourself if you are ready to branch out into the broad world of the trucking business.
Accidents Are A Major Concern
There is not a day that goes by that trucking industry leaders aren’t worried about trucking accidents. It is obviously a factor that will always exist in business, but those who run trucking companies want to make sure they know everything there is to know about auto collision repair, and how to train their drivers to avoid these accidents as much as possible in the first place. It is never a comfortable position to be in to try to deal with damaged truck equipment, and it is definitely worrisome when one has to deal with the legal repercussions that could result from such an accident.
There has been an increased emphasis on trucking accidents as of late as there is a massive driver shortage that is leading to less experienced drivers getting more of an opportunity to get behind the wheel than they ever did in the past. This is worrisome to any auto insurance company that is looking to provide insurance to these trucking companies. They know that the less experienced drivers are very likely to make rookie mistakes that more experienced drivers never would. They know that this spikes the chances of an accident occurring, and most don’t want to be the ones holding the bag if that is to be the case. Thus, it is always a good idea to shop around for various forms of insurance from various companies to see who can really step up to the plate and help you.
The Parts Market Is Very Tight Right Now
When you sit down and wonder is starting a trucking business a good idea right now, you need to remember that aftermarket truck parts, and indeed truck equipment of all kinds, is at a premium right now. If you can find a truck dealer that is awash in parts at the moment, then you have found a diamond in the rough. Many companies have to look for parts from sources that they have never considered before. They are going through these back channels even to get things as basic as floor mats for their drivers. It is definitely a situation that few thought they would ever find themselves in. That said, most are making the best of it, and they are pressing forward regardless, hoping to at least make some progress on getting the essentials that they require to get parts moved from one area to another.
Is starting a trucking business a good idea? Yes, if you can get onto the field and fight and scrap for all that you are worth. There are people who are built to be super competitive like this. It is in their nature, and they are not afraid to throw their hat into the ring when it comes to getting what they need for their drivers and beyond. People who fit into that category will easily find themselves in an environment that they love, like a trailer dealer. When they wonder is starting a trucking business a good idea, they need to remember that the competition can actually make the rewards all the greater. With many trucking companies struggling to find the parts that they need and facing other shortages as well, perhaps now is the best time of all to jump into the ring. It is best to get involved in a new industry when the chips are down for other companies, and that is certainly the situation for plenty of trucking companies at this time.
How Is Labor Looking?
As we briefly touched on before, the labor market across the board is very tight right now. This is no less true for someone looking to start their truck driving career. In fact, those in the trucking industry will often tell you that attracting truck drivers is perhaps harder than it ever has been for them in the past. They are trying every trick in the book that they know, but there is some resistance to working in this field at this time. It may be partly because there are so many jobs across so many industries that are open at this time, or it may be simply because many people don’t want to deal with being away from home for extended periods of time. That would seem to play a factor in the difficulty that many are currently experiencing when it comes to hiring distance movers at this time.
Obviously, the ability to hire competent staff is something that one has to weigh into the equation of ‘is starting a trucking business a good idea?’ at this time. They need to know if they are even going to be able to properly staff up any operation that they might try to run. The answer to this question is always going to lie in exactly what the individual is looking to do in terms of creating their trucking company. No two companies run exactly alike, and it is hard to say that labor will or will not respond to certain incentives when they are placed in front of them. The real trick is to try various approaches to see if there are drivers willing to take on certain jobs. The reality is that acquiring staff can be a very localized issue, and it is possible that some owners may have better luck in certain regions than others. Additionally, offering enough incentives to drivers to come aboard may help make it easier to attract that top-flight talent that you are looking for.
Battling The Competition
When you sit down to think about is starting a trucking business a good idea, one thing that you shouldn’t worry about too much at this time is the level of competition. Why is this less of an important factor? Primarily because there is so much work available across the industry at this time. Some people may claim that they have to fight off the competition with a stick, but the truth is that there is plenty of work to go around to the whole bunch. Those who are fighting with their competition can probably just focus on getting into a different segment of the business if they don’t want such stiff competition. That said, most have no problem at all getting business.
The end-user customers are demanding more and more shipments of goods as the economy continues to expand like wildfire. Retailers and many others are seeing no slack in their level of business, so it is not that surprising that the trucking companies that serve those industries are also able to enjoy many fruits of their labor and actually gain a significant amount of new business just from doing what they have always done in the past.
It is always true that working in business can feel like fighting a war, but it is safe to say at this time that your competition should be only a minor concern when it comes to is starting a trucking business a good idea? You do still have to think about it, but it is just a small portion of the total of things you must concern yourself with at this time.
There are some regulatory issues that one must consider if they plan on starting a trucking business. In fact, the trucking industry is among the most regulated industries out there. The government cares a great deal about making sure that goods are shipped from place to place with certain standards put upon them. It is a burden for the trucking companies themselves, but they have no choice but to comply if they are to continue to gain business and work in the industry that they do. After all, it is not like the government is going to suddenly pull back and decide that it will no longer regulate the industry. Given that we know this, it is important to remember the regulatory issues when asking is starting a trucking business a good idea? You do need to think about the extra paperwork you will be required to keep up with to run your business properly.
People don’t always know what they are getting into when they start up a trucking company, and that is why it is so easy for so many of them to go broke. You could also find yourself in those shoes if you are not wise with how you manage the bureaucracy of the government. Don’t let yourself get caught up in these thorny issues. Instead, please consider the regulatory concerns that are a part of doing business in the industry, and make it a top priority of yours to learn as much as you can about these issues and how to combat them as you possibly can before it is too late.
Starting A New Enterprise
We want to leave you with a final thought about is starting a trucking business a good idea? You are the only one who can answer that question honestly for yourself. You know who you are as a person and how you will manage your money and your business. You know in your heart of hearts if trucking is something that you truly have a passion for. You also know if you are able to withstand the heat of keeping up with regulatory paperwork, dealing with truck accidents, and combating competition. We have provided you with a lot of the challenges that are actively present in the trucking industry. It was our intention here to provide you with all of the hurdles that you could face when getting into this industry. On the other hand, there are many upsides to joining the trucking industry that you can enjoy. Do not allow the potential challenges of getting involved in something new scare you off from trying it.
The fact that there are challenges and hurdles to get over means that those who do join the industry are very strong. They are proven warriors who are willing to do what it takes in business to make a difference. Best of all, they are okay with the idea of getting into something that others will not. This often translates to increased rewards at the end of the rainbow for those who are willing to stick it out and do what needs to be done to start up their trucking business.
You have the power in your hands to make a difference in your bottom line and in the future, you wish to build for yourself and your company. Will you take that power and make something great with it? If you are ready to get involved in a very exciting industry that is always changing and always providing new challenges, then you are ready to sign up for the trucking industry. You will not regret it when you finally have the opportunity to make the kind of money you have always dreamed of making.