The trucking industry plays a crucial and important role in a healthy economy. After all, the market relies on having an efficient transportation system in order to deliver goods and products from one destination to the next. As such, entering into the industry can be a good business decision for some. According to the American Trucking Associations, the American trucking industry is especially successful—having generated about $600 billion in total freight revenues for the year 2011.

Individuals who want to be part of the trucking industry can expect substantial rewards and tight competition. As a result, the U.S. Small Business Administration (SBA) urges people who want to start their own trucking business to do their research and consider their options. Determining the details of the operation is the only way to ensure that a new trucking business will succeed.

One of the first considerations to be made when entering the trucking industry is the mode of operations. According to the SBA, a trucking business can operate in two distinct ways. One way is for a business to hire their own drivers and invest on their own fleet of vehicles. This method gives the owner full control and insight on every aspect of the trucking business, but will obviously require a larger budge. Another way is to sub-contract drivers from an external company, leaving the owner in charge of handling operations and contracts. This method will be less expensive, but will limit the owner’s control of their own business.

Aside from making considerations about the mode of operations, owners will also have to face other challenges as soon as they start their trucking business. According to the website of TBS Factoring, one such problem involves financial complications caused by issues with invoice payments. Trucking business owners will have to consider consulting with a freight factoring service in order to properly solve any cash flow issues.

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