Getting Started in the American Trucking Industry

Posted by on May 7, 2015 in Trucking | 0 comments

The trucking industry is usually understood to be the lifeblood of a healthy economy. Without an effective system of transporting goods and products, the marketplace will soon come to a standstill. As such, it comes as no surprise that the American Trucking Associations have found that the industry has generated more than $600 billion in gross freight revenues during the year 2011.

Coming into this billion dollar industry can be a challenge, but it can also reap plenty of rewards. Individuals looking to operate their own trucking business can expect steep competition, especially as they are just starting out. However, as the U.S. Small Business Administration (SBA), challenges like this can be mitigated with plenty of preparation. With research and consideration, a new trucking business can be an extremely successful enterprise.

One of the first decisions crucial to starting a trucking business is determining your mode of operations. As the SBA points out, majority of trucking businesses operate in two different ways. Some run their business with a fleet of drivers as their own employees. Others prefer to sub-contract drivers from external companies. The first option gives an owner full control of every aspect of the business, although it can be a struggle for those working on a tighter budget. The second option is less expensive and leaves the business owner plenty more time to handle operations and contracts. It doesn’t afford plenty of opportunity to ensure that drivers are properly trained and their working hours regulated.

Regardless of an owner’s final decision regarding mode of operations, several other challenges will arise as a trucking business slowly gets its first run. One of the common concerns includes financial constraints caused by problems concerning invoice payments. Freight factoring services such as TBS Factoring exist and are able to help trucking business owners solve typical cash flow issues.

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