How Much Does it Cost to Start a Trucking Company? | VIDEO by Apex

How Much Does It Cost to Start a Trucking Company?

How Much Does It Cost to Start a Trucking Company?

Are you trying to figure out how much it costs to start a trucking company? We can’t give you a simple answer, but for a more detailed breakdown, head over to this article.

If you’re trying to figure out how much it costs to start a trucking company, you might be getting a ton of conflicting information. We wish we could be the ones to give you a simple answer, but the truth is figuring out the costs to starting a trucking company is kind of like trying to predict the weather.

Hi, I’m Sherry with Apex Capital let’s get into this forecast. There are a ton of factors that impact the costs of starting a trucking company.

Things like:

  • the state you’re registering your business in
  • what kind of cargo you want to haul
  • and hauling across state lines or only within your state

That’s why it’s hard to nail down exactly how much it’s going to cost for you to get started. What we can tell you, is that most trucking companies spend $10,000- $20,000 to start a small trucking company. Before you let that scare you off, let us break down where all that money goes.

The first costs you need to be prepared for are these required filings and registrations to get your trucking company started.

Thanks, Sherry. If you’re ready to start your trucking company but don’t have to time to fill out and then keep track of the necessary paperwork, let the Apex Startup Program help! We will complete the registrations and filing for you so that you can focus on building a successful business. Once we learn about the plan for your future trucking company, we can even give you better estimate of what it will cost. Give us a call at 855-211-0929 to get started today.

This just in! We got word that those are just the costs of getting started. Once you’re running your trucking company you’re also going to have to plan for the ongoing costs.

You can’t make money in the trucking industry without spending some, too! The costs of operating your trucking company will fall under two different types of costs – variable and fixed. Knowing the difference between them can help you forecast for the financial climate of your trucking company.

Fixed Costs

Fixed costs are expenses that consistently occur, like your monthly truck and insurance payments. Those payments are generally the same every pay term so budgeting for these expenses is usually simple.

Variable Costs

Variable costs are expenses that are well, varied. They’re not happening at the same time each month or charging the same amount. These are things like fuel, maintenance and repairs, meals, and lodging. Variable costs are harder to anticipate compared to fixed costs. But after operating a few months, you should be able to estimate your variable costs.

Is all of this information making you feel like you got caught out in the rain without an umbrella? Don’t worry! If you budget and prepare for your trucking company, you’ll have a better chance at saving for a rainy day.

You might not be able to predict the weather, but if you know the cost per mile and operating ratio for your trucking company can you can predict your trucking company’s profit.

Cost per Mile (CPM)

Find out your cost per mile by dividing your costs by the number of miles you drive. Mastering this calculation shows you the cost of operating per mile driven. But it will also help you know what freight rates to look for when booking loads.

Operating Ratio

Your operating ratio tells you if you’re operating at a profit or loss. It’s calculated by dividing your expenses by your revenues.

Are you ready to start a trucking company now and don’t want to do it all yourself? We can help. Give us a call at 855-211-0929 or get started here.