Are you trying to decide whether to start a transportation company? This can be a lucrative business with no shortage of growth opportunities.
There are almost 1 million for-hire carriers in the United States. This is in addition to over 83,000 motor carriers and over 800,000 private carriers.
Before you start a transportation business, you need to learn the best way to do it! Read on to learn how to start a transportation company and earn a living in this sector.
Pick Your Business
After you’ve made the important decision to start a business, you need to pick the business. You will be a key member of the logistics industry if you decide to open a transportation company.
For example, operating a semi-truck or a fleet of vehicles will help you move products throughout the country. This is a crucial part of the supply chain in the United States and one that has an impact on millions of people each year.
Obtain a Federal Tax ID
Before you can operate a for-profit business lawfully in the United States, you need to apply for and receive a federal tax ID. Think of this identification as a kind of Social Security Number for your business.
You can apply for this number, which is also known as an Employer Identification Number (“EIN”), on the IRS’s website. Once you receive the number, you can use it for business purposes with customers, distributors, and banks.
Develop a Business Plan
Before you can receive financing for your new company, you will need to develop a well-written business plan. Think of a business plan as your road map from the earliest stage of your company through its maturity and profitability.
Your business plan should identify your goals for the business and how you intend to reach them. This includes more than just putting down ideas on paper. You need actionable steps you will take to achieve them and be profitable.
Apply for Financing
If you are like many people, you will need financing from a bank or other lender to begin bringing your business to life.
To apply for a business loan, you will need the company’s EIN, ownership documents, and financial information. Sometimes, you may not be able to qualify for a business loan until you have a paper trail that shows you are on the right path to profitability.
Put Your Plan in Action
Put your business plan into action by registering your business with the state where it will be based. You will also need to read up on how to get a DOT license for your transportation fleet.
Transporting items on highways in the United States requires you to have proper DOT licensing or you can receive fines or suspensions.
By having the licenses you need, you can focus on hiring the best people and becoming the profitable business you would like it to be one day.
Learn How to Start a Transportation Company
Learning how to start a transportation company is an important part of being an entrepreneur in the logistics industry. Follow these steps to begin making your dream a reality now.
Whether you are starting a new business or just learning more about how to be a better employer in today’s competitive job market, there are helpful resources online for you.
Check out the blog posts in the “Jobs & Career” section for other tips and tricks to begin using today