Are you looking to start a hot shot trucking business? If so, you may be wondering how much it will cost to get started. The cost of starting a hot shot trucking business can vary depending on the size of the platform, the type of vehicle you use, and the cargo loads you carry. Fuel costs are also a factor, as well as the need for a Commercial Driver's License (CDL). Additionally, it's important to consider the cost of setting up a separate business account and investing in assets with a high resale value.
When starting a hot shot trucking business, it's important to have a basic Class D license if you're carrying less than 10,000 pounds of cargo. You don't need particularly heavy chains for your vehicle, as the weight will never be high enough to require something too thick. It's also important to keep your company's finances separate from your personal account in order to make filing taxes and tracking income easier. The coronavirus pandemic has caused an increase in e-commerce transactions and has presented growth opportunities for the trucking industry, including hot shot trucking.
This means that now is a great time to enter the market and start your own business. To finance your business, bank and SBA loans are probably the best options, other than friends and family. When starting a hot shot trucking business, it's important to consider the competition in the market. There are many popular companies offering similar services, so it's important to refine your concept in order to stand out from the crowd.
You can do this by focusing on areas where there is a lack of service in your local market, such as green transportation or long-distance transportation. Overall, the risk of investing in a successful hot shot trucking business is low as more than 80% of the investment goes towards buying assets with a high resale value. Additionally, increasing your driving experience in a hot truck while your CDL matures can make it easier for you to qualify for insurance if you decide to jump to a semitrailer.