Trucking Starts Here…
Are you a company driver or owner-operator looking to make big money in trucking?
Let me share with you a little industry secret…
Typically, owner-operators lease on and get their loads from motor carriers. Carriers often get their loads from freight brokers. Brokers, in turn, usually deal with shippers directly but sometimes take their loads from other brokers ("double-brokering"). Therefore, when you haul for a motor carrier, you have at least one-- if not three "middle men" in between you and the shipper.
You could be a company driver and make $0.45/mile. Or you could get your own truck and lease on to a carrier and earn $1.15/mile. Or, you could cut out the middle men and earn the whole rate that shippers pay. Put another way, you could have 75% of the pizza… or the whole pizza pie. The way to make the most money in trucking is to operate as an independent owner-operator with your own operating authority… and work with shippers directly.
As a USDOT Practitioner, I've worked with thousands of truckers just like you through my consulting practice and professional development workshops. I've helped them take the next step in trucking.
So how do you start your own business in trucking? Well, first you need to choose the type of business entity that you will operate under. You could operate as an individual proprietor… but to limit your liability when operating that 80,000 pound semi around the country, you should probably incorporate to protect your personal assets. Visit www.corpauthority.com for more information on corporation filings. Next, you will need to establish an employer identification number with the IRS. See www.taxidauthority.com for help obtaining an EIN.
You will need a $750,000 to $1mm commercial transportation insurance policy, $10,000 to $100,000 in cargo insurance, and USDOT & MC Numbers. Visit www.dotauthority.com, fill out an interstate authority questionnaire, and you'll be issued your numbers in just minutes. Finally, complete the "Quick Quotes" insurance quote request form at www.dotauthority.com/insurance_quote.htm and insurance brokers will begin competing for your business. Once your insurance has been filed under your MC Number and the 10 business-day waiting period is over, your certificate of authority will be mailed to you. Order the License Watch expedited service and your certificate will be faxed to you the day it is issued. For information on getting your IRP apportioned plates, IFTA and road tax permits, call (800) 450-7516. In terms of registering your authority with the states, currently, there is no Single State Registration system in effect so once you get your authority and tax permits you can start operating. From start to finish, you could be operating in just 3-4 weeks. Take DOTAuthority.com's one-day Trucking Success or Intro to Freight Brokering workshop and you learn how to find freight, set freight rates and negotiate contracts. Call (888) 414-1874 for a free DVD.
So, if you really like pizza, get your own authority, be your own boss and make more money!
James P. Lamb is the President of DOTAuthority.com, Inc., a transportation management consulting & training firm serving all 50 states and Canada. Have a Suggested topic for Mr. Lamb? Email: James@dotauthority.com.