Having your own company requires attentiveness and responsibility. If you have leadership qualities and start-up capital, then you can open a truck dispatching business. Draw up a detailed work plan, identify personal and financial needs, assess possible risks — these and other points should be considered before starting your company.
Useful Things for Successful Business
Your own business allows you to have your own business and get more profit than working for a company. You will be able to plan your work week by paying attention to other important things. It is important to study the specifics of your dispatching business to know how to make it profitable and successful. You need to know all the points and details of such work or hire a specialist.
Consider Your Financial Condition
When starting a business, you need finance. This can be your savings or a loan. Investments are needed to buy a car fleet, pay taxes, collect documents, rent an office, and so on. It is also important to keep in mind the spare amount you may need for emergencies.
Get a Commercial Driver’s License (CDL)
Here, truck dispatcher services must attract customers with their legality and reliability. Your company must be licensed so you need to be tested (class A). The required set of documents is needed for:
- legal activities;
- trust from the customer;
- insurance and tax organizations;
- your safety.
Consider Personal Goals
You need to understand that running your own truck dispatching company requires more of your time and attention. Business is round-the-clock tasks and checks that need to be monitored. Company owners have less free time for rest, family, and friends. You can hire people and check their work. But starting a wealthy business is difficult and limits you in many ways
Drawing up a Business Plan
You have a rough work plan that you will go through before starting a truck dispatching company. There are many things to think about: business cards, advertising to attract customers, a website, projections of expenses and income, a list of personnel, goals, possible solutions to problems, and more. A detailed business plan will help you have a roadmap, understand the purpose of your dispatching company, monitor its financial situation, and find solutions in emergencies.
File for a USDOT number
Your business must have a personal U.S. Department of Transportation (USDOT) number. It is necessary to collect documents to legalize your truck dispatching company as a proven transport service. You can get such a number from the FMCSA. Such a document will allow you to be a reliable company even for interstate routes.
Buying or Renting a Truck
This is where you need to consider your financial situation. You can start a dispatching business by renting multiple trucks with drivers. If your finances allow you to buy your car fleet, then it is better to purchase vehicles, getting truck loans is also a good option when you are just getting started. Prepare documents for garage maintenance and think about the safety of your group of drivers along the way. Find out information about driving behavior on the road and explain it to your team.
Dispatching Business Creation
The documents are completed and you have a detailed plan, now you are ready to start a business. It can be an LLC or an individual entrepreneur. Find an office not only to register your legal address but also to provide clients with space to get a contract.
The vehicle fleet and drivers are ready, the site is working and attracting customers, advertising has been launched and office equipment has been purchased. Do not forget to pay attention to buying insurance to protect your dispatching company from possible risks. This can be insurance of business, personal property, cargo, protection against road accidents, and so on.
Get Your Trucking Authority
Another important point is getting a personal motor carrier (MC) number and a USDOT number through the FMCSA. This will give your clients more assurance that you are a reliable dispatching service. Also, government checks will be easier if you have such a document. This number identifies you in the system as a “for hire” carrier.
Successful Businessman’s Features
You need to think not only about income from your truck dispatcher services but also about expenses. Net profit should be around 20-25%, the rest of the money goes to maintain the dispatching company’s activity. Employee salaries, truck maintenance, taxes, advertising – these are costly for every month. Leave about 10% of your profits to deal with emergencies and be ready for possible risks.
As the top manager and the first responsible party of the transport service, you must be attentive, patient, stress-resistant, and diligent. Starting your own dispatching business is a difficult process that will be profitable. All the challenging situations fall on the shoulders of the owner of the transportation company. If your qualities allow you to run logistics or dispatching business, then do it carefully considering all the points.