Starting a hot shot trucking business is a great way to get into the trucking industry. It requires less capital than other types of trucking businesses, and you can get started quickly. However, there are still some important steps you need to take to ensure your business is successful. First, you need to set up your company with the proper documentation for the IRS and your state.
This includes getting an Employer Identification Number (EIN) and registering your business with the state. You'll also need to get ready for the Department of Transportation (DOT) and obtain your truck and trailer. Additionally, you'll need to get insurance and protection for your business. Once you have all of the necessary paperwork in order, you can start looking for loads.
Hotshot load charts are a great way to find loads that fit your truck and trailer. You can also use DAT load boards to find loads that are posted by brokers who work on behalf of shippers. DAT provides information such as brokers' credit scores and average payment time, which can be useful in making sure you're working with reliable partners. In addition, DAT provides current data on the loading speed of trucks that allow you to negotiate the best prices for hot cargo loads. Another advantage of hot shot trucking is that there is a lower barrier to entry and lower operating costs than other types of trucking businesses.
This makes it easier to get started and allows you to accumulate experience quickly. You can choose to become an owner-operator, which means you own and operate a business with your own Motor Carrier (MC) number or you can lease with another company. In addition, the rules and requirements for operating a hot shot business and a semi-truck business largely overlap, so entering the world of hot shot trucking is the perfect preparation for taking the leap into transporting larger loads (if that's the career path you're interested in). Most hot loads are local or regional, making this type of transport ideal for those looking to spend a lot of free time at home. Finally, one of the best things about the lower start-up costs associated with a hot shot trucking business is that you can probably start with an SBA microloan instead of needing one of the biggest, most complicated, and most time-consuming SBA 7a loans. Overall, starting a hot shot trucking business is a great way to get into the trucking industry. With some careful planning and research, you can be on the road and earning money in no time.