Whether you are hoping to remain an independent owner operator for the foreseeable future or you have visions of a multi-branch dispatch company that provides nationwide service, starting your own transport business requires many of the same steps and considerations. If you’re preparing to start your own biz, here are six things new auto transport Carrier companies should know.
1. Write Your Business Plan
Think of your business plan as a map outlining the trajectory you want to see for your business. What are your goals for the company? What are the challenges you expect to face, either in getting started or in the first couple of years? Who will your competition be and how will you set yourself apart? How much financing will you need to invest to get started, and when do you expect to be profitable? The more detail you can include—and the more potential obstacles you can prepare for—the better.
2. Estimate Your Operating Costs
They say you have to spend money to make money, and that is certainly true—at least to some extent. You’ll always have expenses, both large and small, and the more accurately you can estimate them from the start, the less likely you’ll be to get caught unawares (or underfunded). Be sure to factor in one-time costs, like the cost of a truck, as well as ongoing expenses, such as fuel, taxes and regular maintenance. Don’t forget administrative costs too, like your website, communication tools and accounting services.
3. Set Up Your Business
Formalizing your business structure is necessary for everything from getting the necessary licenses and securing insurance to marketing your business, accepting revenue, and paying taxes. You’ll need to consider which states you’ll be operating in, the number of commercial vehicles you’ll be using, and how many owners, operators or employees you might have. This can help you determine whether a sole proprietorship, partnership or corporation is the right fit for your business.
4. Manage Your Compliance Requirements
The transportation industry comes with many regulations intended to keep drivers safe and trucks on the road. From tire tread depths and equipment standards to commercial vehicle licenses and U.S. Department of Transportation (DOT) requirements, it’s critical that you keep all your Is dotted and Ts crossed. You’ll also want to ensure that your operations are protected with insurance specific to your business and transport vehicles in case of accident, theft, lawsuit or other unexpected event.
5. Find Your Niche
Auto transport dispatch companies can serve a lot of different customers, but no one company can serve them all. Choosing a niche for your business can help you focus on one customer base—and to do it really, really well. The better you get to know your customers and to understand their needs, the better service you can offer them. And that’s a great way to grow your operations in the long run.
6. Grow Your Operations
Once you’ve established your business and found a niche, the sky’s the limit for where it can take you. Growing your company, whether in the number of drivers employed, the number of transports completed or the amount of revenue received, can help you reach the goals you outlined in your business plan—and to set your sights on new goals for growth.
Rely on Super Dispatch
At Super Dispatch, our team is committed to helping you get your operations up and running—and to keeping your business thriving with technology solutions designed specifically with auto transport dispatch companies in mind. Our auto transport load board, Carrier TMS (transportation management system), and other digital tools can help you minimize frustrations and maximize growth.
Ready to see how Super Dispatch can help you move cars faster, smarter, and easier? We’re ready to help! Sign up for your free trial to get started today.
