Startup cost
$200k–$1.0M
TRUiC Business Ideas
How to Start a Trucking Company
Decision Snapshot
Trucking
Idea Score
46
Profit margin
11%
Break-even
18 mo–36 mo
Time to launch
2 wk–12 wk
Demand trend
Rising
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Full time
Part 1 - How to start a Trucking Company business - Background
Trucking businesses operate in one of a few ways. The first type of trucking business hires a workforce of independent contractors to move goods for other companies. This cuts down on the startup costs of running the business. However, it also hurts the company’s ability to retain loyal truckers since they do not work for the trucking company.
Another way to structure this type of business is to hire the truckers directly. When employees are hired as privately-owned employees, each driver is an employee working directly for the trucking company. This model benefits the truckers because it gives them a steady source of pay and some level of certainty about their job. It also benefits the trucking company because it often results in higher profits, happier, and more loyal employees. However, it’s more costly for the trucking company to maintain in the beginning because it adds to the overhead.
Our guide is in 3 parts:
- Part 1 - How to start a Trucking business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a trucking company?
The average cost for starting a small trucking company is $200,000. A medium-sized trucking operation can cost up to $1 million and a large-scale operation can cost up to $5 million to start.
Aside from the basic corporate structure, your costs will vary according to the type of trucking operation you own. In general, expect to pay roughly $2,500 for liability insurance, permits, and licensing. An office facility and grounds for the trucks will cost about $40,000.
Trucks are expensive. A seven year old used semi truck can cost between $30,000 and $40,000. A near-new truck may cost up to $100,000. If you start with a small fleet, it may cost you around $600,000 to $1,000,000.
Costs for equipping the office with computers, printers, and furniture, telephones, filing cabinets, and other electronics will run about $5,000. Costs for accounting software and CRM, payroll software, and vehicle trackers should average $5,000 to $8,000.
Utilities should cost roughly $3,500.
What are the ongoing expenses for a trucking company?
Ongoing costs include fuel and salaries.
Fuel can vary month-to-month but, on average, it costs roughly $180,000 per year (for long-distance trucks) or $1.38 per mile to operate a truck, according to the annual Truckers Report.
Who is the target market?
Most shipping clients are commercial clients. Within the business-to-business space, clients tend to be manufacturing and industrial.
How does a trucking company make money?
The business makes money by signing service contracts with clients for shipping services. Some companies charge by weight or dimensions of goods being shipped. Other companies set up flat-fee service contracts for estimated weight or volume shipments.
How much can you charge customers?
Shipping contracts can vary by a lot which can affect profits and revenue. Yearly DAT Carrier Benchmark Surveys reveal small trucking companies can average between $16,000 and $20,000 per month in revenue. Owner-operated companies may bring in between $10,000 and $15,000 in revenue.
Average contracts may range between several hundred and several thousand dollars.
How much profit can a trucking company make?
Average profit for the trucking industry is between 6% and 8% of the annual income per truck. This means each truck brings in $100,000 in revenue per year, your profit after all expenses would be $7,000, on average.
The cost of fuel is the largest variable in the shipping industry. Fuel prices can dramatically shrink profits for a trucking company.
How can you make your business more profitable?
Increasing profits is difficult in the trucking business because so much of the profit is driven by fuel costs and truck maintenance. Developing a niche within the industry (like long-haul deliveries) has been proven to be the best way to increase revenue, however.
Day-to-Day and Growth
What happens during a typical day at a trucking company?
A transportation manager or owner is responsible for planning and executing transport strategies and operations. As the owner of the company, you’ll find yourself on the front line organizing and optimizing operations all day, every day.
Depending on the nature of the shipping company, your daily responsibilities might include managing domestic vendors and collecting inbound moves. You may also need to manage shipments between distribution and fulfillment centers.
You also oversee the company’s transportation partners and maintain the required service levels for (inbound) new materials and raw materials shipments. Unless you have a robust accounting and finance department, your job will also involve cost control on operations.
What are some skills and experiences that will help you build a successful trucking company?
To own and run a trucking company, it helps to have experience in this business. If you are starting a one-man company, you’ll also need a commercial driver’s license and experience behind the wheel.
Successful truckers are those who like to work on their own, who can handle long hours behind the wheel, and who enjoy traveling the country.
What is the growth potential for a trucking company?
The easiest way to start a trucking company is to hire subcontractors to ship goods for you. This dramatically lowers the cost because you don’t need to pay for trucks, salary and benefits for drivers, and insurance for the vehicles.
A larger scale operation can be built by hiring drivers directly and making them permanent employees. Using this method, it is possible to expand into many territories, eventually creating a national, or even international, company.
What are some insider tips for jump starting a trucking company?
Finding your first load to haul might be as simple as checking forums like NextLOAD.com or other paid forums and job boards. These forums help connect you to clients that need shipping services. They may not be the biggest clients, but it could help you get started. Once you get a few customers under your belt, you can establish relationships and longer-term contracts.
How and when to build a team
You can start a trucking company with a minimum of one person. A small company is considered to be roughly 10 people. At minimum, you’ll need:
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Chief Operating Officer (Owner)
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Front Desk Personnel
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HR Manager
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Business Developer
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Logistics Manager
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Accountant
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Drivers
As you grow, you can add more drivers to your team and expand operations.
Part 2 - Is a Trucking Company business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Trucking business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Trucking Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Trucking Company business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.