Hot shot trucking involves cargo that is usually small and rushed. Many companies hire a contract driver to complete just one run because of this. Starting a business like this can be complicated and might require quite a bit of start-up money. But if you talk to a financial planner and an attorney, both of whom are knowledgeable in interstate commerce and motor carrier regulations before you begin.
The first step is to apply for a U.S. Department of Transportation number online at the Federal Motor Carrier Safety Administration website. Submit an application for operating authority as a for-hire motor carrier at the same time.
Then you need buy bodily injury and property damage insurance to cover you as a for-hire motor carrier. You might want to get business liability, self-employment or medical insurance to protect yourself and your company if an accident or other problem occurs. Once you receive your USDOT number, request that your insurance agent files proof of insurance with the FMCSA because you can't file yourself.
Once that's all finished, designate a process agent to accept service of any legal summons or documents related to your business. You need one in each state where you have an office or that you pass through.
Lastly, seek hauling contracts with local manufacturing businesses, agricultural producers, warehouses, and large stores. Contact freight brokers in your area or use Internet boards that list jobs. Ask for referrals from companies you work with and advertise by creating a website, sending mailers to targeted companies and networking at conferences or through social media sites.
That is the outline of it when starting a hot shot truck business. We also need an accurate ROI tracker against a challenging field.
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