2021-05-11
How to Start your Trucking Company in Canada?

In Canada, small businesses are 98.2% of all businesses having fewer than 100 employees. When you add in medium-sized businesses (100 to 499 employees), the percentage rises to 99.8%. Small Business is the engine of the economy and their success is vital to Canada’s prosperity.

There are around 33,843 general freight trucking companies all over Canada. So now, you are going to be part of one of them or if you would like to open up your own company, then You need a plan to make your business a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses.

Starting a trucking business doesn’t require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. So, first of all, you need to put together a spreadsheet that estimates the one-time start-up costs for your business, like fees for licenses and permits, type of equipment you would need, talk to your lawyer for legal fees, cost of cargo and truck insurance, branding, property leases, etc., as well as what you anticipate you will need to keep your business running for at least 12 months (you might also have to pay for rent, load boards, Parking, marketing, and advertising, travel expenses, employee salaries, your salary, etc.). Alternatively, The tractor and trailer are going to cost a lot of money, and registration costs can add a few more dollars to it.

Those numbers combined are the initial investment you will need. Look into financing and try to secure a line of credit. It`s a good idea to save up enough money to cover your first six months of operation.

Once you are done with your finances, you need to plan what type of equipment you need, like Dry Van, Reefer, Flat Bed, Step Deck, or any other trailer type.

Now you need to decide, whether you want to do Short Haul, Long Haul, that too, Within Canada, within USA or Cross Border. We always recommend, that a startup should always go for a 53ft dry van in a combination with short-haul, which is 500 miles(805 km) radius from your origin. The reason behind this is that when you start finding loads for yourself, you will see that the maximum number of loads available in the market is for dry vans and the shorter the distance is more the money you earn as a profit.

The next step will be to Obtain necessary business licenses, permits, and do operational cost calculation. You can reach out to us for detailed information about Authorities and Permits required for your trucking company.

A key factor in operating a successful business is creating a system to track income and expenses. This is especially important in terms of logistics because payments are often received weeks or months after delivery, and it can be difficult to track expenditures while you’re on the road. So, plan your invoicing and finances properly. In case, you do not have a lot of cash in the bank, then take the help of factoring companies for immediate cash flow.

If you need help with Training or with Profit Optimization of your company. Please click below to schedule an appointment with one of our trucking business consultants.You can reach us at info@welocity.ca or call us at 905-901-1601

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