Do you want to know exactly how much it cost to start a trucking company? If YES, here is a detailed cost analysis for starting a trucking business and raising finance.
Having provided you with a:
- Trucking Industry Overview
- Market Research and Feasibility
- Trucking Business Plan
- Trucking Marketing Plan
- Trucking Business Name ideas
- Trucking Business Licenses and Permits
- Cost for Starting a Trucking Company
- Trucking Service Marketing ideas
We will consider how much it cost to start a trucking business from scratch including the operating costs.
There are few factors that influence the start – up cost of a trucking business. Some of the factors that has the capacity to shoot – up the start – up cost are the cost of your truck / trucks (new or fairly used), maintenance cost and of course renting or leasing an office facility with enough space to accommodate the numbers of your trucks.
How Much Does It Cost to Start a Trucking Company?
When it comes to starting a medium scale trucking business in the United States, the following expenditure should guide you;
- The Total Fee for incorporating the Business – $750.
- The budget for Liability insurance, permits and license – $2,500
- The Amount needed to acquire a suitable Office facility with enough parking space for our trucks for 6 months (Re – Construction of the facility inclusive) – $40,000.
- The amount required to finance the purchase of the first set of trucks – $800,000
- The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
- Cost of accounting software, CRM software, Payroll Software, and Car trackers et al – $7,000
- Other start-up expenses including stationery – $1000
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The Cost of Launching your official Website: $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500
Going by the report from market research and feasibility studies, you will need about $1M to set up a medium scale trucking business in the U.S. The estimated cost of starting a small scale (owner – operated) trucking business in the United States of America is $200,000 and above. But if you choose to start with just one truck and perhaps fairly used truck it could be lower.
The estimated cost of starting a large scale trucking business in the United States of America is from 5 Million Dollars and above. Please note that the total cost will depend on the numbers of trucks you intend starting with and the numbers of employees that will be under your payroll.
Financing the Trucking Business
It is important to clearly state that there are several fantastic business ideas that are still lying fallow simply because the owner of the idea cannot generate the required capital to finance the business. No doubt raising start – up capital for a new business is perhaps one of the major concerns for entrepreneurs; it can be challenging raising capital to launch a business idea.
Your idea must be workable and promising for your investors to consider investing in your business and for the bank to consider giving your loan.
If you are ready and determined to start your trucking business, the first thing to put in place before sourcing for start – up capital for the business is to draft a detailed business plan; a plan that will clearly state how you intend managing the business, marketing your services and of course making profits.
With such business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan. There are several options when it comes to raising money to finance a start – up business. Some of the options are;
- Raising money from personal savings, sale of personal stocks and belongings (gold, silver, jewelries et al)
- Raising money from investors and business partners
- Applying for loan from bank
- Applying for business grants and seed funding from donor organizations
- Sourcing for soft loans from family members and friends.