What are the things you should consider before starting a trucking business?
- Be ready to call the shots
- Create a sound business plan
- Consider your finances
- Secure a client base
- Prepare the needed documentation
Have you been employed by a company to run their trucking department? Have you been hired to drive a vehicle such as an Isuzu truck in the Philippines? If yes, then you know that it could sometimes get stale and unsatisfactory, especially since your employer is the one who is always in charge. But if you’ve been there long, then chances are you have gained sufficient knowledge to run your very own trucking business.
Of course, doing so comes with a couple of challenges. You are after all taking some risks to go into this venture. To give you a bit of an insight, here are some of the things you should consider before starting a trucking business:
Do You Have What It Takes?
A trucking business is not as simple as delivering goods from one place to another. First off, you must have access to a truck, be it rented, leased, or brand new. Then, you have to determine if you, yourself, are indeed ready to venture into the business world.
You have to keep in mind that running a trucking department is very different from running your own trucking company. This means that you have to be prepared to call the shots and make the important decisions; you would have to weigh in all avenues available to you before anything else.
Do You Have a Business Plan?
Possibly the most important thing to have when starting a trucking business is a sound plan. Think carefully about the future of your business. Come up with how much you expect to earn, when you expect to break even, and where to look for trucks for sale. The Philippines has many start-ups that have subpar business plans. Because of this, a lot of them tend to fail within their first two years.
Try to make your business plan as detailed and polished as possible. Researching about your target market and develop your trucking business’ unique selling point can help establish your company as an up and running one to look out for.
Do You Have Financial Backing?
Trucking businesses don’t start off cheap, particularly if you want to own your own trucks. There are many trucks for sale in the Philippines that can be worth investing in, the most common of which are Isuzu trucks. The Philippines also has many financial institutions that can help when you’re in need of financial assistance.
Also, availing insurance for your trucks is essential because it can help a lot with its maintenance fees. Investing in this and other financial assistance can have a great return on investments when your trucking business gets rolling.
Do You Have a Client Base?
Your trucking business will never be successful without a lot of clients under your belt. Make business cards and give them out in places where you might find potential clients. Looking for places, where your services are needed, is a great way to start; be sure to hand out your business cards to truck stops and industrial zones as well. It is also a good idea to create your own website to have a presence on the internet. Once you have a number of clients, try to ask them for referrals.
Do You Have the Needed Permits?
Once you are ready with the previous points, it’s now time to submit all the needed requirements to actually start your trucking company. Check them out below.
- Present all the necessary documents:
- Request Letter addressed to director of Philippine Economic Zone Authority (PEZA)
- At least 1 Endorsement Letter from a prospective PEZA company/clients
- Notarized Application Form (from PEZA)
- Notarized Annex “A”-Anti-Graft Certificate
- Notarized Board Resolution allowing the filing of the application and the designation of representative
- List of employees with their positions
- Bio-data showing the Personal History Statement of Principal Offers
- Audited Balance Sheet
- For partnership and corporation, submit a Certificate of Registration from SEC; for single proprietorship, submit a Certificate of Registration from DTI
- Articles of Incorporation
- Certificate of Registration or BIR Clearance
- Mayor’s Permit
- Permit to Operate from Philippine Port Authority
- List of clients not from PEZA
- Standard Schedule of Service Rates
- PRC Certificate, ID, and BOC Accreditation
- Common Bond with Bureau of Customs
- List of trucks
- Copy of Franchise of LTO
- OR of Vehicles
- List of drivers
- Certification of No Derogatory Record from Security Services Department
- Copy of Provisional Authority
- Pay the Application or Filing Fee
- Pay the Franchise Fee
- Original copy of Surety Bond
Keeping in mind these considerations when trying to start a trucking business can help you go a long way in the industry. Luckily, the trucking industry in the Philippines has been predicted to grow by around 9% in the next 3 years. Because of this, maybe starting your own trucking business now can be a good investment for the future.