Do you want to start an owner operator trucking company? Or you need a sample owner operator trucking business plan template? If YES, then i advice you read on.
The haulage industry is one industry that is very lucrative but requires hard work and diligence. If you are interested in starting a business, you should consider starting your own owner operator trucking company in your city especially if you enjoy driving long distance.
Owner operator trucking company means that you will be self employed and you will be the one driving your truck for commercial purpose or you are operating a small business that helps your customers transport goods from one point to another.
For you to be able to start your owner operator trucking company , you must have the capital required to purchase trucks that are in good shape, and you must apply and obtain commercial drivers license (CDL) from the federal government of your country.
Owner operator trucking company requires moderate startup capital, and the money you can make from the business is dependent on how hard you can work because there will always be clients who will need your service per time. As a matter of fact, most truck operators work round the clock and they hardly find time to rest. The fact that you own and operate the business means that you must do both the marketing and execution of the jobs you get.
Operating owner trucking company has its own advantage and one of the advantages is that the owner trucking operator can either choose to operate as a freelancer without signing retainer – ship deal with any company or they can choose a lease agreement with the company of your choice and be committed to the company for a period of time; such deals are subjected to renewals.
Now let us quickly go through the 7 surefire steps your need to follow to establish your owner operator trucking company from the scratch and then build it to profitability within the shortest time possible;
Starting an Owner Operator Trucking Company – Sample Business Plan Template
In as much as operating a owner operator trucking company can either be classified as a sole enterprise or a small business, it still requires a business plan to be able to effectively operate this type of business. Your business plan will help you map out strategies on how to generate capital to finance the business, your marketing strategy, how to manage the business, and your growth and expansion strategy.
You can also capture you business goal, vision and mission in your business plan. A simple business plan will be fine for this kind of business and you can do it yourself with the help of business plan template. Here is a sample owner operator trucking business plan template you can start with.
2. Enroll in a Commercial Trucking School and Obtain Your Commercial Driver’s License (CDL)
Before you can successfully start an owner operator trucking company, you are expected to first undergo training in an approved commercial trucking school before applying for your own commercial driver’s license (CDL). You would need to sit and pass the exams and the driving test before you can be issued your own commercial driver’s license (CDL).
You can also check up with the local authority to know if you will need special permit to haul certain goods. For example if you live in the United States of America, you would need an endorsement H to be able to transport hazardous materials.
One major area you are expected to spend huge amount of money is in the purchase of your truck. So, you should put plans in place to raise money to finance your business. You can talk to investors, and you can talk to your family members and your friends to help you raise startup capital for your owner operator trucking company.
4. Acquire Your Truck
Since your truck is your major working equipment in this type of business, then you should do all that lies within your power to raise the amount needed to purchase the truck. A brand new truck with large capacity can be expensive and if you don’t have the required cash to purchase it out-rightly, then you can make use of the leasing option to finance your truck.
In case you don’t have the financial capacity to purchase a brand new truck, then you can go for a neatly used and well maintained truck; it is cheaper and it will save you money. The bottom line is that your truck must meet the purpose you are buying it for.
5. Draw Up Business Agreement Document-: The fact that you will be engaged in helping your clients transport their goods from one location to another means that you must prepare a document that will protect you from legal actions that may arise when carrying out your job.
Since, you would need insurance cover, it is still important to ensure that you talk to a lawyer to help you draft an agreement document between you and your clients and you must ensure that it is properly signed before carrying out the job.
6. Develop Maintenance Schedule for Your Truck
If you want to increase the lifespan of your truck, then you must develop maintenance schedule for your truck. The truth is that, if your truck is well maintained, you will spend less repairing the truck. Therefore, you can talk to an auto mechanical to help you prepare a maintenance schedule and ensure that you observe it.
There are loads of companies you can help transport their goods. You can negotiate with shipping companies to get deals from them, you can talk to manufacturing companies, you can talk to wholesale distributors and you can talk to construction companies. The truth is that there is no limit to the haulage contracts you can get if you are hard working and always available.
There you have it; the 7 steps you need to follow to be able to start an owner operator trucking company from the scratch and then grow it to profitability within the shortest time frame.