A trucking company is a business that deals with the land transportation of large amounts of raw materials finished goods, and works in progress. This usually occurs between manufacturing facilities and retail distribution centers, warehouses and retail distribution centers, seaports and warehouses, etc.

It is important to know how many Canadians work in the trucking sector. The sector employs over 302,000 truck drivers or 2 percent of all Canadian employment. It is also projected that the company will grow and the demand for staff will increase significantly.

In Texas, 1.1 million employments, $62.7 billion in labor income, $91.6 billion in gross state product, and $7 million in state and local tax receipts are all supported by trucking each year. The trucking market in Texas is projected to grow at a CAGR of 4 percent by 2027.

Steps on How to Start a Trucking Business in Texas

  1. Conduct Market Research

If you are starting a trucking business in Texas, you would need a market analysis to be capable of maximizing revenue from the industry. The first phase in conducting market research for your trucking business should be to develop a market-based research question that is consistent with your business purpose and objective.

You should look for information that will help you maximize your business, and also give you an insight into what your potential market will be looking for in a trucking company. The research will provide you with information that will help you run your trucking business with ease.

a. Who is the Target Market for Trucking Business?

The target market for a trucking company is retailers who need to move their inventory from one place to another including construction firms, e-commerce companies, merchants, warehouse operators, manufacturers (of food products, furniture, spare parts, and home appliances, among others), households moving from one apartment to another, corporate organizations relocating from one location to another, and governmental organizations needing to move light goods.

b. Is the Trucking Business Profitable in Texas?

The trucking industry is profitable in Texas. According to the figures available, the sector generates $62.7 billion in labor income, $91.6 billion in gross state product, and $7 million in state and local tax receipts.

c. Are There Existing Niches in the Industry?

In the trucking industry, there are already established niches which include;

  • LTL or Partial Truckload
  • FTL or Full Truckload
  • Flat Bed Trucking Service
  • Refrigerated Trucks or Reefer Trucks
  • Intermodal Freight Shipping
  • Expedited Trucking Service
  • White Glove Service.
d. Who are the Major Competitors of the Trucking Business in Texas?
  • Palletized Trucking Inc. Trucking Company
  • Dart America (Dart Trucking Company, Inc.)
  • Edwards Transportation Co.
  • CKJ Trucking
  • Timco Logistics Systems
  • Poly Trucking
  • Smith Oilfield Services
  • Texas Trucking Co., Inc.
  • Pate Trucking
  • Energy Transport LLC
  • Core Trucking Company
  • Munoz Trucking, LLC
  • Continental Express Inc.
  • Lone Star Transportation, LLC
  • Basse Truck Line Inc
  • Summit Transportation
  • Roehl Transport, Inc.
  • Extra Mile International INC Trucking Company
  • Double Diamond Transport, Inc.
  • Bee Trucking, LLC.
e. Are There City or State Regulations or Zoning Laws for Trucking Businesses in Texas?

Yes, there are state rules and zoning laws governing the trucking industry in Texas, and operators in this sector are expected to comply with these laws in the state where their company is based.

f. Is There a Franchise for Trucking Business?

There are franchising options for trucking companies. Here are some of them;

  • TWO MEN AND A TRUCK
  • BlueGrace Logistics
  • United Shipping, Inc.
  • SUPPLY POINTe
  • Craters & Freighters
  • Worldwide Express
  • AIT Freight Systems
  • United Charis Transport LLC
  • InXpress
  • Unishippers Global Logistics LLC.
g. What Do You Need to Start a Trucking Business in Texas?
  • A feasibility report
  • Business and marketing plans
  • Business licenses and permits
  • Different sorts of trucks
  • A class C or D license
  • Insurance policy
  • EIN (Employer Identification Number)/Federal Tax ID Number
  • A bank account
  • Employees
  • Operational capital.
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a trucking business are;

Creative Trucking Business Name ideas
  • Theodore Sammie© Trucking Company, Inc.
  • Elijah Chariot® Trucking Company, LLC
  • James Charlse© Trucking Company, Inc.
  • Henry Lucas® Trucking Company, Inc.
  • Benjamin Herman™ Trucking Company, Inc.
  • Harper Williams™ Trucking Company, LLC.
  • Oliver Twist© Trucking Company, LLC
  • Noah Acme® Trucking Company, Inc.
  • Liam Rowland© Trucking Company, Inc.
  • Ava Dominion© Trucking Company, Inc.
  • Josiah Greatness® Trucking Company, LLC
  • Emma McIntosh® Trucking Company, LLC
  • Charlotte Peterson™ Trucking Company, LLC
  • El Shalay© Trucking Company, Inc.
  • Perry Parker® Trucking Company, Inc.
  • Famous Transport™ Trucking Company, Inc.
  • Willie Ruxton™ Trucking Company, Inc.
  • Papa Stevens© Trucking Company, Inc.
  • Jonah Elliot® Trucking Company, LLC
  • Ethan Blues™ Trucking Company, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for a Trucking Company in Texas?

There are a number of possibilities when it comes to business structure, which includes sole proprietorship, partnership, limited liability company (LLC), and corporation, the majority of enterprises in this industry choose an LLC as their legal structure for their business. This is because every business needs an LLC in order to defend itself in court.

b. Steps to Form an LLC
  • Choose a name for your LLC
  • File articles of organization
  • Choose a registered agent
  • Decide on member vs. manager management
  • Create an LLC operating agreement
  • Comply with other tax and regulatory requirements
  • File annual reports.
c. What Type of License is Needed to Open a Trucking Company in Texas?
  • General Business License
  • A Class C or D License
  • State Permits
  • Signage Permit
  • Operational State Facility Inspections for your parking.
d. What Type of Certification is Needed to Start a Trucking Company in Texas?

In Texas, starting a trucking firm is a business that does not require any license.

e. What Documents are Needed to Open a Trucking Company in Texas?
  • DBA
  • EIN
  • Business and Liability Insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval
  • Certificate of Incorporation
  • Commercial Driver’s License (at least a Class B CDL)
  • Employment Agreement
  • Operating Agreement for LLCs
  • Insurance Policy
  • Contract Document.
f. Do You Need a Trademark, Copyright, or Patent?

If you intend to start your own trucking company, there may not be a need to register your trademark or other intellectual property. The structure of the business enables you to manage the firm without having to take legal action against anyone who utilizes your intellectual property without your permission.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Trucking Company in Texas?

The startup costs for a trucking company are not usually fixed because of a few variables. It can cost anywhere between $50,000 and over $1 million. Note that the price might increase, depending on your goals and aspirations for the company.

b. What are the Costs Involved in Starting a Trucking Company?
  • Business registration fee – $750
  • Expenses for obtaining licenses and permits – $4,300
  • Marketing promotion expenses – $7,580
  • Insurance – $2,400
  • Rent and furnishing – $125,000
  • Trucks – $1.2 million
  • Operational costs for the first 3 months (salaries of employees, payments of bills and software renewal fees et al) – $25,000
  • Miscellaneous – $2,000.
c. What Factors Determine the Costs of Opening a Trucking Company in Texas?
  • Size of the trucking company (number of trucks you want to start the business with)
  • The selection of a location
  • Licenses and business permits
  • A business consultant’s and an attorney’s fees, respectively
  • Costs associated with the trucking company’s branding, promotion, and marketing
  • The price of outfitting the trucking firm’s facilities
  • The insurance policy’s premiums are paid for
  • How much it will cost to register the business
  • The expense of hiring and educating the workforce
  • The price of purchasing and modifying the uniforms for the employees
  • Expenses associated with the trucking company’s grand opening.
d. Do You Need to Build a Facility?

Creating your own parking lot and administrative office will pay off even though it is not necessary to develop a new facility for your trucking company. The fact is that if you are building or upgrading a facility, you will have the opportunity to design a space that conveys your business goals and vision.

e. What are the Ongoing Expenses of a Trucking Business?
  • Gas and lubricants
  • Utility bills (phone bill, internet subscriptions, signage and software renewal fees et al)
  • Employees salaries
  • Maintenance of trucks
  • Insurance
  • Marketing and branding costs.
f. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $68,000
  • Admin and HR Manager – $48,000
  • Transport and Logistics Manager $48,000
  • Marketing and Sales Executive (Business Developer) – $42,000
  • Accountant $38,000
  • Truck Drivers – $36,800
  • Material Handlers/Yard Spotters/Forklifts Operators – $28,000
  • Customer Service Officer (Receptionist) – $26,100
  • Security Guard -$24,000 Per year.
g. How Do You Get Funding to Start a Trucking Business in Texas?
  • Loans from banks
  • SBA-backed loans
  • Financial assistance from family and friends
  • Crowdfunding
  • Personal savings.
  1. Write a Business Plan

a. Executive Summary

The El Paso-based Willie Ruxton© Trucking Company, Inc. is a recognized and authorized trucking company. The trucking, hauling, and transportation business established to serve numerous sectors is Willie Ruxton© Company, Inc. The expertise is in offering complete supply chain solutions.

Willie Ruxton™ Trucking Company, Inc. is committed to providing top-notch service, making sure that goods are delivered safely, and acknowledging and promoting the professional growth of each individual within the company. Giving customers attention is what we strive to do.

We maintain competitive prices, customer delight, and retention by attending to all of their demands. We are devoted to taking care of the needs of our workers, and as well make effort to ensure their safety.

b. Products and Service
  • Large-scale land transportation of raw materials, commodities in progress, and finished products, from manufacturing facilities to retail distribution hubs, as well as from ports of entry to warehouses and other locations.
c. Mission Statement

Our mission at Willie Ruxton™ Trucking Company, Inc. is to provide safe professional transportation services while utilizing skilled staff, cutting-edge information systems, a modern, and well-maintained fleet. This will ensure that your valuables arrive at their destinations on time.

Vision Statement

In order to provide all our customers with reliable transportation services at affordable prices, it is our vision as a trucking company to be dedicated to this goal.

d. Goals and Objectives

Delivering value through excellent service is the goal and objective of any trucking company. Building a sizable contact list of freighters in the shipping, rail, air, and trucking sectors is necessary for this. Note that a network to plug into is essential.

One of the most important aspects of the business is contacting these organizations on behalf of your freight clients and settling transport and delivery costs. For clients in need of warehousing services, collaborating with their network is also important.

e. Organizational Structure
  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Transport and Logistics Manager
  • Marketing and Sales Executive (Business Developer)
  • Accountant
  • Truck Drivers
  • Material Handlers/Yard Spotters/Forklifts Operators
  • Customer Service Officer (Receptionist).

Marketing Plan

a. SWOT Analysis

Strength:

  • Outstanding operational history
  • Focus on the details
  • Accurate estimations without any additional fees
  • People with training and experience
  • Ample storage space
  • Outstanding customer reviews
  • Dependable and effective service and trucks.

Weakness:

  • Not enough current customers to immediately reach capacity.
  • Our facility will need to be built, as well as trucks and vans, thus we will require a loan. The owner is new to large-scale marketing.
  • The proprietor is currently operating the company alone and will be responsible for overseeing construction and expanding the current operation.
  • Insufficient economies of scale.

Opportunities:

  • Texas sees an increase in shipping and online sales
  • Enhance the clients you already have
  • A new market is being opened, and new services, technologies, and online markets
  • Families are migrating from one apartment to another in high numbers
  • Upsurge in production and warehousing operations, upsurge in the transfer of commodities between locations.

Threat:

  • Until loans are repaid, profitability declines
  • The first year will be difficult financially while we establish our clientele and settle the debt
  • Competition in the region can get tougher
  • Employee management takes time, money, and effort
  • The transportation department may decide to adopt regulations that might stifle new companies and change their regulatory status.
b. How Do Trucking Companies Make Money?

Trucking companies make money by charging clients for moving their goods from one location to another, and also by advertising their trucks and providing short storage facilities for them.

c. Payment Options
  • Payment with cash
  • Payment via credit cards/Point of Sale Machines (POS)
  • Payment via online bank transfer
  • Payment via check.
d. Sales and Advertising Strategies
  • Let people know about your trucking company by sending introductory letters and brochures to businesses that are involved in manufacturing, retailers and warehouse owners, families, and other important stakeholders in and around the city.
  • Use your friends and relatives to spread the news about your business.
  • Print up flyers and business cards and place them in key locations such as offices, public spaces, railway stations, etc.
  • Post information about your business and the services you provide on noticeboards in locations such as seaports, business districts, neighborhood coffee shops, etc.
  • Publishing a brief or classified ad about your business and the services you provide in a local newspaper or other media.
  • Make use of referral systems like agencies to draw clients who might require your services.
  • Promote your company in appropriate periodicals, newspapers, tv, and radio.
  • Participate in pertinent expos, seminars, business fairs, and other events to promote your services.
  • Use a direct marketing strategy, encourage word-of-mouth advertising from customers, and join local business and industry associations to promote your offerings.

Financial Projection

a. How Much Should You Charge for your Product/Service?

Most trucking companies charge an hourly rate that usually includes a moving truck, all the equipment, miscellaneous materials, and the movers. The more moving helpers or trucks are needed for the move, the higher the hourly rate will be.

b. How Much Profit Do Trucking Company Owners Make a Year in Texas?

As of November 23, 2022, the average truck owner-operator profit ranges from $90,589 to $111,947.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the trucking company (numbers and sizes of trucks owned)
  • The types of related services and products offerings (warehousing and advertising et al)
  • The location the trucking company is covering
  • The management system of the trucking company
  • The business approach of the trucking company
  • The advertising and marketing strategies adopted by the trucking company
  • The number of years the trucking company is in business.
d. What is the Profit Margin of a Trucking Company Product/Service?

The profit margin of a trucking company is not usually fixed, it could range from 15 percent to 25 percent.

e. What is the Sales Forecast?
  • First Fiscal Year: $320,000
  • Second Fiscal Year: $800,000
  • Third Fiscal Year: $1.2 million.
  1. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for a Trucking Company in Texas?
  • The demography of the location as it relates to manufacturing, warehousing, eCommerce activities, and shipping
  • The demand for the haulage services offered by trucking companies in the location
  • The purchasing power of businesses and the residents of the location
  • Accessibility of the location
  • The number of companies, and owner-operated trucking businesses in the location
  • The local laws and regulations in the community/state
  • Traffic, parking, and security et al.
b. What City is Best to Open a Trucking Business in Texas?
  • San Antonio, Texas
  • Austin, Texas
  • Houston, Texas
  • La Porte, Texas
  • Fort Worth, Texas
  • Dallas, Texas
  • Grand Prairie, Texas
  • Laredo, Texas
  • El Paso, Texas
  • Terrell, Texas.
c. What Equipment is Needed to Operate a Trucking Company?

You should have the money set aside to buy a forklift, loaders, pallets, crates, etc. Additionally, you will require PCs or laptops, an internet connection, a phone, a fax machine, and office equipment (chairs, tables, and shelves).

  1. Hire Employees

You should hire a chief executive officer (you can play the role), an administrative and human resources manager, a transport and logistics manager, a marketing and sales executive (business developer), an accountant, truck drivers, material handlers/yard spotters/forklift operators, and a customer service representative (receptionist).

  1. Launch the Business Proper

No trucking company opens for business without first hosting an opening party to formally launch the business. A low-key party rather than a big one for everyone in the neighborhood where your trucking company will be located can be the better option if you have a limited amount of money. The idea is to formally inform your community’s residents that your trucking company is open for services.

a. What Makes a Trucking Company Successful?
  • To start the business, pick a good site and trucks
  • Hire only qualified, competent, and reliable personnel
  • Prior to the trucking company’s official launch, host an open-house party
  • Be thoughtful about how you handle marketing and sales
  • Encourage your trucking company’s customers to spread the news about your services
  • Utilize all channels, both online and off, to advertise your transportation business.
b. What Happens During a Typical Day at a Trucking Company?
  • The company is open for business today
  • The vehicles have been washed, cleaned, and are prepared to pick up and deliver items
  • Customer requests are received, scheduled, and/or addressed
  • Truck maintenance is performed
  • Maintenance of the website and marketing
  • Administrative tasks include ordering supplies
  • Trucks return to base
  • The company is closed for the day.
c. What Skills and Experience Do You Need to Build a Trucking Company?
  • Good driving skills
  • Knowledge of customer service
  • Skills in logistics and material handling
  • Interpersonal skills
  • Business management abilities
  • Negotiation abilities
  • Experience working in the transportation and logistics sector
  • Experience leading teams
  • Experience running businesses
  • Experience utilizing logistics and transportation software.