Now is an excellent time to start a transport and logistic company:
The pandemic era supply chain delays and bottlenecks have significantly increased the demand for truck drivers. If you have ever thought about owning your own transport and logistics or moving company, now is the time.
Truck drivers are vital to keeping the supply chains working, and the current labor shortage makes forming an independent logistics company an attractive business venture. Approximately 3.5 million truck drivers are employed in the United States, with 1 in 9 drivers being independent or owner-operated logistic companies.
While trucking schools are experiencing an increase in applicants training for their Commercial Drivers License or CDL, a CDL is often not required to have a successful logistic or moving company. In fact, as long as your commercial vehicles are under 6100 lbs., a CDL is not required to operate that vehicle.
How to start your own transport and logistics company:
The start-up cost for setting up a logistic company is relatively low compared to other businesses, especially those requiring inventory. Therefore, the first decision you would need to make is to determine the type of business that makes the best sense for your specific situation.
A sole proprietor business entity is when an individual owns a business.
A partnership is when the business has two or more owners.
Many transportation companies are structured as a Limited Liability Company, (LLC), or corporation, and each business structure has different legal requirements and fees. Therefore, you will want to do some research to decide which structure makes the most sense for your situation.
Requirements for business licenses vary from state to state. You will want to confirm the license and registration requirements with your state’s Department of Transportation. You will also need to determine if you will be transporting goods within the state only or from state to state.
In many instances, you will need to apply for a US Department of Transportation (DOT) number. You can obtain this number on either the U.S. Dot website or the FMCSA, (Federal Motor Carrier Safety Administration), website.
Check out your competition:
Although trucking companies are in high demand, you will still want to do some research to determine local companies that may compete with you for business. In addition, you will want to study their business model and decide which trucking services you can offer to make your transport and logistic company stand out among the rest.
Choosing the right commercial vehicle for your business:
The main start-up cost for your transportation business would be the commercial vehicle or truck for moving goods.
The type of commercial vehicle you would select for your company depends on the following factors:
- What kinds of supplies you will be transporting,
- The volume and weight of supplies you will be transporting,
- The types of terrains you will be driving over.
Pre-owned commercial vehicles vs. new commercial vehicles:
While the thought of purchasing a brand-new truck or vehicle may sound ideal, the cost of purchasing new is often not worth the price. In addition, with the post-pandemic interrupting the supply, the inventory of new trucks is low. Don’t discount the advantages purchasing a pre-owned or used truck offers.
- The cost of a pre-owned truck is significantly lower than a new truck.
- Many used trucks are low mileage and off-lease from major truck rental companies. Longwood Truck Center is an authorized dealer of off-lease Budget Trucks.
- Most used truck dealers have completely refurbished their commercial vehicles before putting them up for sale. At Longwood Truck Center, we thoroughly inspect a used truck or commercial vehicle before listing a truck for sale.In addition to painting the box truck, we replace the tires with new ones, conduct a full-service oil change, replace all filters, and inspect the brakes. If the brakes are not at least 70%, we will replace them as well.
- Most used truck dealers warranty their vehicles. All used trucks and commercial vehicles sold at Longwood Truck Center come with a warranty, so you can be confident that we will stand behind the vehicles’ condition when you purchase a used truck from Longwood Truck Center.
Pre-owned and off-lease trucks are an attractive alternative to buying new, especially if you are just starting your transport and logistics company. Longwood Truck Center also offers used truck financing, making it easy for you to get started.
Give Longwood Truck Center a call today to discuss which commercial vehicles may be best for your transportation and logistics company. We are the experts in all different types of used trucks and commercial vehicles. We look forward to helping you get your business on the road!