Starting a haulage business can be a lucrative career. If you already own a truck or tractor-trailer, you are well on the way to starting a new business. With a haulage business, you can haul any type of equipment to nearby locations, including construction equipment, heavy machinery, or local loads.
It is a simple truck driver business you can start in days. Owning a business comes with the advantages of a flexible schedule to set your own hours – and be home with your family when it’s important.
What Is a Haulage Business?
A haulage business is used to transport any type of goods via road or rail. This can include everything from clothing to vegetables to heavy equipment. Haulage can be between any two endpoints, including between suppliers and large consumer outlets, factories, warehouses, or depots.
How Does a Haulage Business Work?
A haulage business works by hauling any type of goods. Most professionals will choose one or two niches where they can become known locally, such as heavy equipment, or moving loads of goods.
7 Steps for Getting Your Haulage Company Started
If you’re ready to start working for yourself, there are just a few simple steps. Here’s what you need to start a hauling business:
Step 1: Write a Business Plan
Writing a business plan will include the guiding principles of the business, including the mission and vision. A few elements to include in the business plan are:
- Target customers
- Current market opportunities
- Projected pricing
- An analysis of strengths, weaknesses, opportunities, and threats (SWOT)
The business plan can include simple projections of income and expenses with various expected volumes of business.
Step 2: Identify Your Niche
A niche is important for a haulage company as with time, you will become the go-to person for that niche. Building a reputation for exceptional service in one or a limited number of areas is better than several areas. This will help to differentiate you from competitors. Possible niches could include:
- Livestock
- Waste disposal
- Parcel delivery
- Vehicle transport
- Construction transport
- Heavy machinery transport
- Garden supplies transport
Step 3: Decide on the Size and Type of Fleet You Want To Build
It is wise to start small and build your business from there. That can mean starting with a single pickup truck or a single tractor-trailer. A smaller fleet means lower overhead costs. With time, you can increase vehicles and hire drivers.
You will also want to decide on whether you’re using petrol vehicles, diesel, or more eco-friendly vehicles. The size and type of fleet will also be determined by business goals and services offered. It’s possible to build a fleet with a variety of vehicles, but it is usually better to start with one type of truck.
Step 4: Choose a Location
As with real estate, business location can make a difference in load opportunities and future success. You will need an operational base for storage as well as vehicle maintenance.
Factors to consider include:
- Proximity to major road routes
- Proximity to major centers of commerce or cities
- Real estate cost
- Number of local competitors
- Areas of opportunity in your desired niche
Step 5: Work Out Your Associated Costs
Knowing your upfront costs is crucial to starting and running a successful business. Taking into account costs such as any regular costs as well as one-time upfront costs. These include:
- Staff wages
- Vehicle purchase costs
- Estimated maintenance
- Rent or mortgage costs
- Fuel
- Insurance
- Training
- Vehicle cleaning
When starting a business, having a firm understanding of expenses is essential. The more thorough and detailed projected costs are, the fewer surprises you’ll get down the road.
Step 6: Be Aware of Your Legal Obligations
Thoroughly research legal obligations and consult a local lawyer to prevent unexpected problems down the line. You should be aware of any legal obligation you need to abide by specific to the industry and your state to legally operate.
It’s important to check local obligations in all states you plan to operate. As a basis, you’ll need:
- Vehicle insurance is mandatory
- Public liability insurance
- Professional indemnity insurance
Step 7: Obtain a Funding Source
You will likely need funding to start your haulage company. The largest single investment in a haulage business is in purchasing vehicles. Do some research on where you can get financing and weigh your options.
Possible funding sources include:
- Small business loans from banks or credit unions
- Private investment
- Personal savings
- Payment plans or rent-to-buy purchase plans
In addition to purchasing trucks, there can be options to lease a truck to get started until you can secure a funding source to buy one or more vehicles.
Putting It All Together
Starting a haulage company takes some time and planning, but has the potential to build long-term wealth. Many of the largest trucking companies in the country started as small haulage businesses. As large shippers raise haulage fees, there are openings for small businesses to capture a market share. If you’re a self-starter and want to fill a niche in haulage, following the seven steps here will launch your new career as a trucking business owner.
FAQ
A road haulage business can be lucrative because truck owners can use the equipment they already have to haul machinery or any other type of load. If you build up a fleet with multiple drivers, a haulage business can be lucrative.
How much cash you need will depend on current circumstances and business goals. If you have a regular pickup truck, you can start a small haulage business. If you want to acquire one or more tractor-trailers there are options to both buy or rent vehicles to get started.
You can start your own trucking business with no money by securing a small business loan. It may also be possible to rent a tractor-trailer or to start a business with the truck you currently own.
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