Canadian trucking companies play a major role in the economy because they allow people to access goods from the manufacturers easily. While there are large truck companies spread all over, it does not mean you cannot start your own firm with a single truck. This post will take you through the steps involved in starting your own trucking company.
Create a plan
Every Canadian trucking company must create and present a business plan to the authorities responsible for registration. Hence, you must have a business plan for your company. The plan should clearly state what you hope to achieve. It should include all the strategies you will use to achieve them. It must also show the type of accounts you will service and what you expect to generate in earnings.
Form a limited liability company
A limited liability company is easy to form. This is because there are a few formalities in running the company. It also provides you with a limited personal liability. You will have to produce an article of association in order to form a limited liability company. You will also have to pay a small fee for the registration.
Obtain a commercial driver’s license (CDL)
Unlike the traditional driving licenses, a CDL permits you to drive heavy commercial vehicles. You will have to take a specific driving exam and pay for the license.
Get the right equipment
You do not have to buy several trucks to start a company. One truck is just enough for a start. If you do not have equipment, you can lease or buy using a loan. You will have to make a down-payment and get a loan later. The equipment will be yours once you complete the last payment. The decision whether to lease or buy depends on your financial capability. However, you have to know that the wrong choice could derail your business.
Look for customers
People will not ask for quotes if you do not look for them. Most companies get their first customers from load boards. You can take advantage of such boards and look for good customers. Make sure you price the freight services at competitive rates to attract many customers. However, do not rely too much on load boards. You can also make your own connections through friends or family members.
Avoid cash flow problems
Maintaining a stable cash flow is one of the most common challenges facing a transportation company. You need to ensure the company’s logistics are in order, including security protocols. Problems usually occur because several shippers do not make prompt payments once you deliver the goods. In most cases, you will have to wait for two months to get paid for a load you delivered today. You have to prepare in advance for such scenarios.