Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on November 4, 2021 Updated on November 28, 2023
$25,700 – $203,200
$115,000 - $942,000 p.a.
Time to build
1 - 3 months
$58,000 - $188,000 p.a.
Recovering post-pandemic shutdown, Growing
The demand for transporting goods is strong and constant, which makes trucking big business. If you are a truck driver, or even if you’re not yet, you could start a lucrative trucking business of your own. It could be a great opportunity for you to take advantage of the market, and work for yourself.
Of course, starting any kind of business takes a lot of work. The key to success is gaining the requisite knowledge and moving patiently through the development and launch process, as detailed in this step-by-step guide.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Starting a trucking business requires significant time, money, and effort. Before you jump in, it’s a good idea to educate yourself so you avoid the most common pitfalls.
Pros and cons
Every business has its pros and cons, which you should weigh to decide whether a trucking business is a good fit for you.
Here are some basic pros and cons of starting and running a trucking business.
Travel to interesting places
Work independently and make your own hours
Getting started is relatively simple and straightforward
Job security is high, as trucking services are always in demand
Marketing will be required to build a reputation
It might take a year or two to make significant money
Potential for unhealthy lifestyle and fatigue
Trucking industry trends
The trucking industry is highly sensitive to economic fluctuations. When commerce is up, the trucking industry flourishes. During economic downturns when consumers make fewer purchases, there are fewer deliveries and trucking suffers.
How much does it cost to start a trucking business?
The startup costs for a single-vehicle trucking business range from about $25,000 to more than $200,000. To start with a fleet of trucks, you would of course need much more capital.
You will need several key items to successfully launch a trucking business, starting with:
Semi-truck and trailer
Mechanic’s tools for on-the-road repairs
Setting up a business name and corporation
$200 - $200
Licenses and permits
$200 - $300
$5,000 - $10,000
Business cards and brochures
$200 - $300
$1,000 - $3,000
Initial marketing budget
$200 - $500
Truck and trailer
$15,000 - $175,000
$500 - $3,000
Heavy vehicle use tax and permit
$100 - $600
US Dot number
$300 - $300
CDL training and license
$3,000 - $10,000
$25,700 - $203,200
How much can you earn from a trucking business?
Your profit will vary depending on whether your business is a one-person, one-truck operation, or has a fleet of trucks and several drivers.
The average truck business owner-operator makes $1.55 in revenue per mile and drivers average 121,500 miles per year, according to industry advisor American Truck Business Services. But if you can drive 75,000 miles your first year, you should make gross revenue of just over $115,000. Expenses generally take about half of your revenue, and include fuel, maintenance, insurance, food, and lodging. This would leave you with a profit of about $58,000.
As you build a reputation, you might acquire more trucks and hire drivers, with each driver reaching the industry average of 121,500 annual miles. If you employ five drivers, your gross revenue would be around $942,000, but your profit margin would drop to 20%. You’d still make a profit of $188,000.
What barriers to entry are there?
There are some real barriers to entry for a trucking business, including:
Expensive to get started, with high ongoing costs
Much time and money spent building your brand
Adapting to life on the road
Related Business Ideas
If you’re still not sure whether this business idea is the right choice for you, here are some related business opportunities to help you on your path to entrepreneurial success.
Now that you have a good idea of what’s involved in starting a trucking business, you might want to hone your concept in preparation to enter a competitive marketplace.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Why? Identify an opportunity
Research US trucking and look for industry needs and weaknesses. Maybe there’s a certain kind of freight that is short on committed drivers. You could start by calling trucking firms and asking if they’re looking for drivers — this is a good indication that that line of work offers a real opportunity.
Once you have built a proven track record, it will be easier to get new clients and repeat business, which will be key to your business success.
What? Determine your products or services
Determine if you want to specialize in a certain industry or in a certain region of the country. Keep in mind, a bigger driving range will likely mean more opportunities.
How much should you charge for trucking services?
When you are just starting out, you may have to charge a lower-than-average price until you build a reputation. On average, owner-operator drivers make $1.55 per mile. But to command that price you will need to first make a name for yourself through industry experience.
Research trucking services in your area to determine the best prices for your market.
Who? Identify your target market
Your target market will be just about any company with goods to transport. A good way to start is to research which businesses transport the most goods and then give them a call offering your services at a discount. If you do a stellar job, you should be able to retain them and gradually increase your price to the market rate.
Where? Choose your business premises
In the early stages, you can operate your business from home to keep costs in check, assuming you have space for your truck. But as your business grows, you may need to hire workers for various job roles and rent out an office. Find commercial space to rent in your area on Loopnet, Craigslist, Crexi, and Commercial Cafe.
When choosing a commercial space, you may want to follow these four rules of thumb:
Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed
Step 3: Brainstorm a Trucking Company Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
The name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “trucking” or “transport”, boosts SEO
Choose a name that allows for expansion: “OnPoint Logistics” over “Refrigerated Transport Solutions”
Avoid location-based names that might hinder future expansion
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Step 4: Create a Trucking Business Plan
Every business needs a plan, a rough outline that helps guide a startup through the launch process while maintaining focus on key goals. A business plan is also crucial for helping potential partners and investors understand your company and vision:
Executive Summary: A high-level overview of your trucking business, emphasizing its objectives, market niche, and growth potential.
Business Overview: Introduction to your trucking company, focusing on freight transportation services regionally or nationally.
Product and Services: Description of services such as long-haul or short-haul trucking, specialty transport, and logistics solutions.
Market Analysis: Insight into the trucking industry, demand trends, and the needs of potential customers in various sectors.
Competitive Analysis: Evaluation of the competition in the trucking industry, including their services, pricing, and market share.
Sales and Marketing: Strategies for attracting clients, such as partnerships with manufacturing companies, digital marketing, and client referrals.
Management Team: Information about key team members, highlighting their experience in logistics, business management, and transportation.
Operations Plan: Overview of operational processes, including fleet management, route planning, and maintenance schedules.
Financial Plan: Financial projections, including startup costs, operational expenses, pricing strategy, and revenue forecasts.
Appendix: Supplementary documents like vehicle purchase agreements, insurance policies, and client contracts.
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Step 5: Register Your Business
Registering your business is an absolutely crucial step — a prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s done, you have your own business!
Choose where to register your company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to trucking.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Choose your business structure
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your trucking business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC)– Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate on a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Step 7: Fund your Business
Securing financing is your next step and there are plenty of ways to raise capital:
Bank loans: This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Self-fund your business via your savings or the sale of property or other assets.
Bank and SBA loans are probably the best option, other than friends and family, for funding a trucking business.
Step 8: Apply for Trucking Business Licenses and Permits
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your trucking business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Step 10: Get Business Insurance
Business insurance is an area that often gets overlooked but is vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business, and your life.
Here are some types of insurance to consider:
General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.
Step 11: Prepare to Launch
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Essential software and tools
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software such as prophesy, ezloads, and tenstreet to find and hire qualified drivers, manage billing and payments, simplify communication, and more.
If you are unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.
Develop your website
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Starting a trucking business can be a lucrative venture, but success requires more than just owning trucks. To stand out in a competitive industry, consider these effective marketing strategies:
Targeted Social Media Advertising: Leverage social media platforms to run targeted ads, focusing on the specific industries and regions your trucking services cater to, showcasing your reliability and efficiency.
Client Testimonials and Case Studies: Collect and showcase positive testimonials from satisfied clients, and create case studies highlighting successful deliveries or unique challenges overcome, building trust and credibility.
Fleet Branding: Adorn your trucks with eye-catching branding and contact information to serve as mobile billboards, increasing brand visibility as they travel through different regions.
Strategic Partnerships: Forge partnerships with businesses in related industries, such as logistics companies, manufacturers, or distributors, to tap into their networks and gain referrals.
Offer Loyalty Programs: Implement a loyalty program for repeat customers, providing discounts or additional services for consistent and long-term partnerships, encouraging customer retention.
Attend Trade Shows and Conferences: Participate in industry-specific events to network with potential clients, showcase your services, and stay updated on industry trends and opportunities.
Geo-targeted Online Advertising: Utilize geo-targeted online advertising to reach businesses in specific regions, ensuring your marketing efforts are directed towards areas where your services are most in demand.
Educational Content Marketing: Develop informative content, such as blog posts or webinars, addressing common challenges in the logistics industry, positioning your business as an authority and attracting potential clients.
Optimize Google My Business: Ensure your Google My Business profile is complete and optimized with accurate information, encouraging positive reviews and improving your online visibility in local searches.
Invest in Driver Training Programs: Establish a reputation for having well-trained and professional drivers by investing in ongoing training programs, highlighting your commitment to safety and reliability.
Focus on USPs
Unique selling propositions, or USPs, are the unique characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your trucking business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your trucking business could be:
Low per-mile rates and a focus on value-based pricing
Newer trucks and equipment
Family-owned business with great customer service
Guaranteed reliability and speed
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a trucking business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working as a truck driver for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in trucking. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
Step 12: Build Your Team
You may not need to hire any employees straight away if you plan to start small and use your home as your office. But as your business grows, you may add more trucks and find a need to hire staff. Potential employees for a trucking business include:
Customer Service Rep – Speak to clients and solve issues
Marketing Lead – Social media marketing, SEO
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Run a Trucking Business – Start Making Money!
The trucking industry may have been severely impacted by the Covid-19 pandemic, but the long-term trend is still positive, according to the American Trucking Associations. So if you’ve been planning to buy that truck and get into business, act on it now.
In your first year, it’s a good idea to create a niche for yourself to jumpstart your word-of-mouth marketing. But as a trucking business owner, however, you probably will not want to stick with one niche for long. You’ll want to be available for a broad variety of transport services.
You’re now ready to start your entrepreneurial journey in the trucking industry. Good luck!
Trucking Business FAQs
How do I start a trucking business with just one truck?
With one truck, you’ll be an owner-operator and a one-person show. It’s a lot of work — you’ll do your own sales and marketing, manage operations, and drive the truck — but the rewards are all yours.
Are trucking businesses profitable?
The profit potential in trucking is solid, with most owner-operators making at least $58,000 in a year. With five trucks and drivers you could push your profit up to nearly $190,000.
How much money do I need to start a trucking business?
Start-up costs range from $25,000 to $200,000 for a one-truck operation. The key to keeping start-up costs down is to find and buy a reliable used truck.
What is the best trucking business to get into?
The best trucking business to get into depends on factors like your experience, resources, and target market. Consider segments such as long-haul trucking, local delivery, refrigerated transport, specialized freight, or freight brokerage.
How can I attract potential clients to my trucking company?
To attract potential clients to your trucking company, build a strong online presence, network with industry professionals, provide excellent customer service, and offer competitive pricing and value-added services.
How can I manage fuel costs and optimize fuel efficiency for my trucking fleet?
Manage fuel costs and optimize fuel efficiency by training drivers on fuel-efficient techniques, maintaining fleet vehicles, optimizing routes, utilizing technology, and implementing smart fuel purchasing strategies.
What are the requirements for hiring and managing truck drivers for my business?
Requirements for hiring and managing truck drivers typically include verifying driver qualifications, ensuring safety and compliance, implementing recruitment and retention strategies, utilizing fleet management software, and providing ongoing training and performance management.
How to Start a Trucking Business
Decide if the Business Is Right for You
Hone Your Idea
Brainstorm a Trucking Company Name
Create a Trucking Business Plan
Register Your Business
Register for Taxes
Fund your Business
Apply for Trucking Business Licenses and Permits
Open a Business Bank Account
Get Business Insurance
Prepare to Launch
Build Your Team
Run a Trucking Business - Start Making Money!
Trucking Business FAQs
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