How To Start A Trucking Company With No Money?
by Subha Ghosh Starting a Business 27 December 2022
How to start a trucking company with no money? If this is something that you have been searching for, then you have reached the right place.
Considering the fact that the last two years after the pandemic of 2020 left a lot of people jobless and unemployed, there is absolutely no doubt that most of the people started looking for new jobs. And while that is true, one company idea that gathered a lot of attention and saw a lot of success was the trucking company.
If you are someone who wants to start a trucking company but with little or no money, you will find this article to be of help. Keep reading this article till the end to learn more…
How To Start A Trucking Company?
Before telling you about the ways of starting a trucking company with no money, let me brief you a little about how to start this company in the first place. So what are the things that you will need, and what are the things that you need to do?
Follow the steps in order to start your trucking company:
1. Have A Plan
The first and the most important thing that you need to take care of is the plan. This acts as a structure for you to go ahead and follow./ it makes sure that you are not facing any additional problems while you are running the company. It also makes sure that you are able to focus on what is important for the company. This, at the end of the day, helps to grow your business.
2. Take Care Of The Registration
The next step that you need to take care of is registration. This mainly has a lot of paperwork that you need to take care of in the process of making your business run. This is also the step where you are supposed to choose the name of your business. Make sure that the name you select is unique and is able to define your business the best.
3. Get The Necessary Licenses
It is extremely important that you take care of the papers and other legalities. And one of these things is the license. There are a number of liabilities and challenges that trucking companies face, and that is the reason why you should take extra care in getting the insurance policies and business licenses sorted before getting into trouble.
The International Registration Plan is also another important permit that you need to get. This one, in particular, allows much heavier trucks to cross the state lines. Again, keep a check on the community guidelines for trucking companies in your state.
4. Get The Truck
The next step, and one of the most important steps to take in starting your own trucking company, is choosing and getting the right truck for you. There are a number of things that you need to keep in mind while choosing your truck. Here are some of the things that you need to consider before making a decision:
- Cab style
- Weight limit
- New or used
- Condition of the vehicle
5. Take Care Of The Funding
Last but not least, on the list of the things that you need to do to start your trucking company is taking care of the right funding. Having your own startup is a huge thing and definitely an accomplishment that you can be proud of.
However, what a lot of people do not think seriously before starting the company is the money that you constantly need to pour in to make it work for the initial years. That is the reason why you need to take care of the funds.
How To Start A Trucking Company With No Money?
Now that you know about the fundamentals, it is time for me to tell you about the ways of starting a trucking company with no money or very little money. So, put on your seatbelts and keep scrolling!
1. Rent A Truck
While you might want to buy a brand new truck, you need to understand that the price of the truck will go up if it is a new one. On the other hand, if you buy a used truck or rent a truck, the cost of everything will go down automatically.
2. Commercial Truck Loans
If you are someone who wants to start their own trucking company, you must have heard about the commercial truck loans. This is the easiest thing that you can do. And technically speaking, if you do not have a lot of money at home, applying for a loan might as well be the best thing that you can do.
3. SBA Loans
The next one is the SBA Loans. These are extremely popular for having some of the lowest interest rates. On top of it, they are also known for having high loan totals. This loan is from the Small Business Administration. This loan helps cover the start-up costs and meet the immediate financial needs of the company. Some of the major advantages of having an SBA Loan are longer repayment terms, large loan amounts, competitive rates, and much lower fees.
4. Learn About The Grants
Last on this list is the thing that can help you save a lot of money while starting your trucking company. And these are the grants. This is also one of the easiest things that you can do to start your company with little money. There are a number of government grants available in the money that can help you financially to start your company.
Some of the popular grants are the NASE (National Association for the Self-Employed) Growth Grants, the Nav Small Business Grant, The Amber Grant, and the grant from the Department of Veterans Affairs. You can also take part in contests like the FedEx Small Business Grant Contest to win up to $50,000.
How Much Does It Cost To Start A Trucking Company?
Now that you know what are steps that you need to take to start a trucking company and even know what you should be doing if you want to start a trucking company with little or no money, it is time for you to learn about something important. And that is, how much does it cost to start a trucking company?
Frankly speaking, the cost that it takes to start your company will depend on a lot of things. From the condition of the truck to the number of trucks that you are willing to start your company with, almost everything dictates the finances and the requirements of the company.
According to statistics, a commercial truck costs as much as $80,000. This means that you will need a fairly good amount of capital in order to start your business. However, the price of the vehicle is not the only thing that serves as an important factor in your business.
Other things are the cost of registration, business licenses, permits, and the money it takes for the maintenance of the truck. According to the SBA, truck companies take nearly $106,000 on average to start their business.
Wrapping It Up!
Trucking is one of the most lucrative business options at the moment. However, there are a number of things that you need to keep in mind before starting this company, if you are someone who wants to start a trucking company with no money, it is best to try considering some of the loans that the government provides.
In case you want to know the answer to how to start a trucking company with no money, I hope that this blog has been of help to you. If there is any other way in which I can be of help to you, feel free to let me know in the comment box below.