Although the trucking business can be extremely profitable, it can also be one of the most competitive industries out there. Aware of the potential for profit, several would-be entrepreneurs try to get their foot into the industry, and year after year, they end up failing. Although these people may have been fully capable truck drivers, they did not familiarize themselves with the key points necessary in opening up their own business. We’ve highlighted a few of these key points below. If you’re thinking of owning a small trucking business, be sure to learn what's required before taking any committed steps.
Should You Start a Trucking Company?
First off, we would strongly recommend that only those with some experience in the trucking industry endeavor to own their own truck driving company. Even at that, there are several questions you must first ask yourself before thinking about starting your own small trucking business: Is your trailer and your equipment either all or mostly paid off? Do you have a list of potential customers lined up? Do you have employees in mind? Have you prepared a business plan and calculated the cost, income and expense projection of doing business? If the answer is yes to all of the above, then perhaps you’re ready to start talking about opening up your own trucking company. If not, you may still have a long way to go yet.
Hidden Costs of Truck Driver Training
Becoming a truck driver requires a specific educational program from a reputable truck driving school. In most cases, students are expected to pay an all-inclusive fee to the school they are attending, and that fee, as its title implies, will include all of the projected costs, from the very first day of school, right up until graduation. Other programs will offer a more scattered payment system where the student pays for the necessities as they proceed with the curriculum. In both cases, it is possible for the student to be overcharged if they are not sure what they’re getting from their education. We recommend having a thorough conversation with a student advisor in order to clearly outline every aspect of a program and each individual cost that goes toward it.
Over the Road vs. Local Trucking Jobs
For truck drivers who have been working on the long road for a while, local trucking jobs might seem relatively tempting. Really, it all depends on perspective. Long-distance jobs tend to pay more. However, they come with the obligation to spend an extended amount of time away from home. Local trucking jobs essentially guarantee that you’ll be home every night. That said, certain local jobs tend to demand that the driver will be available to work weekends, and you’ll have to wake up extremely early for work. Consider your own personal position when deciding between these two types of trucker jobs.
Because the trucking industry is an extremely competitive field, truck drivers looking to become small business owners need to first make sure that they are ready for the long, demanding commitment that lies ahead of them. Truck drivers looking to own their own business must determine how their business will operate; follow the standard steps to start a business; comply with all trucking-related permits, forms, and business licenses; obtain the necessary business insurance requirements; locate and purchase the proper equipment to get the business started; and build up a client base to obtain transportation contacts. Think you can handle all that? Then you just might be ready to open up your own trucking business!
FAQs
Running a trucking business can be extremely profitable and earn you a decent living. However, you need to go into it with your eyes wide open as it can be a cutthroat business where profit margins can be reduced by competitive pressures.
Is the trucking industry a good investment? ›
Projections indicate steady growth for the industry, with a predicted 28% increase in freight tonnage for truckers by 2032. With this increased demand comes a clear indication that the trucking business is still profitable for those willing to take on the challenge.
How profitable is owning a trucking company? ›
An owner-operator who owns a company and manages operations can earn a take-home pay of $2,000-$5,000 a week, while an investor can earn a profit of $500-$2,000 or more per truck each week. Job posting companies offer slightly different estimates.
Is it worth it to own your own semi truck? ›
How Much Money Can You Make Owning an 18-Wheeler? Owner-operators in the United States generally make well over $100,000 per year. However, keep in mind that this doesn't mean you will take that much money home with you on a yearly basis.
Can you be a millionaire from trucking business? ›
The trucking industry is a multi-billion-dollar industry that rewards very generously those who earn it. So, a trucking company can turn into a tremendous success. And it can make you a Millionaire in just 2 years. Or, if mismanaged, it can become your worst nightmare.
Can you become a millionaire from a trucking company? ›
A 31-year-old woman started her own trucking business with no money and made $1.4 million one year later. Here's how she did it. Brittany Traylor said she didn't need much capital to start her own trucking company in 2021. Through brokerage and dispatching, her business generated $1.4 million in revenue last year.
What type of trucking makes most profit? ›
Let's take a look.
- Luxury Car Hauling. Luxury car hauling proves the logical point that you get paid more to deliver cargo that cost more. ...
- Hazmat Hauling. Hazmat hauling is another highly profitable niche to get into. ...
- Tanker Hauling. ...
- Over-sized Load Hauling. ...
- Mining Industry Trucking.
The trucking business has been slow in 2023 due to several factors which includes ongoing supply chain disruptions along with an unstable economic environment.
What type of trucking is in the most demand? ›
Tankers Truckers
The cargo might or might not contain hazardous materials. Driving liquids is one of the most difficult cargo to transport, but tanker truckers are the most sought-after drivers.
Is it hard to own a trucking company? ›
A trucking business isn't hard to start, but you will have some unique requirements that most business owners do not. First, you'll need to get your commercial driver's license (CDL). You'll also need to perform the following tasks when you start a trucking company: Get your CDL.
As you learn how to start a trucking company, you'll discover that the most time-consuming part is the paperwork needed to fulfill many requirements outlined by the FMCSA. The good news – it may be time-consuming, but thankfully, it's not difficult to complete.
Can you write off a semi truck? ›
The IRS considers a semitruck to be a qualified non-personal-use vehicle. This means you can claim all the actual expenses of operating the vehicle, including: Depreciation.
How much can you make owning one truck? ›
How Much do Fleet Owners Make per Truck? The average fleet owner can generate roughly $70,000 in profit per truck.
What is the average profit per semi truck? ›
A trucking company known as Cargo Transport Alliance has an average gross per truck of about $5,000 to $7,000+. In that company, An owner-operator may take home around $2000-$5000+ weekly, while an investor can make a profit of $500-$2000+ per truck weekly.
How much does the owner of a small trucking company make? ›
Trucking Business Profitability
The average owner operator trucking business can generate $103,000 in annual profit after expenses.
How much does a small trucking business make? ›
A trucking company makes anywhere between $2,000 to $5,000 a week in the United States. An owner/operator can expect to make this in a week, while an investor in a trucking company can expect to earn between $500 to $2,000 per week.
