How to Start a Trucking Dispatching Business
If you have knowledge in trucking dispatching, then that can be your capital in venturing into a business.
In order to succeed in business, you need to have determination and to know the step-by-step ways on how to start.
It is true that without the existence of dispatchers, commercial drivers will not know their exact destination. Dispatchers give drivers the information they need in load pickup and delivery. Independent dispatchers are commonly tasked to search for the loads and sign contracts with brokers and shippers. The pay depends on the arrangement with the customer or driver. Some dispatchers get a percentage of the load’s revenue, while some get a definite amount per load.
Gain Experience from Trucking Company
If you would like to start up your own business someday, you need to have experience as a dispatcher in a trucking company. With this, you will be able to gain the necessary skills and know-how you need in order to administer your future business successfully. Since there are several state and federal rules that regulate motor carriers, a dispatcher must also have knowledge of the laws and policies that must be followed by their drivers.
Apply for an Employers’ Identification Number from the IRS
It is also important to apply for an employers’ identification number from the Internal Revenue Service, as it will provide you a documentation you need in opening business bank accounts. It will also enable you to separate your business and personal finances. On the other hand, registration with the DOT or the Federal Motor Carriers Safety Administration is no longer required. However, you must learn the regulations for the carriers that are listed on the website of FMCSA.
Loan Board Membership
You also have to sign up for membership on a variety of load boards. They do not just give access to loads, but allow you to utilize the message boards on them to contact small trucking companies and owner operators to offer your business’ services. Basically, trucking magazines have loan board ads which you can use to search for services.
Draft a Contract
You also have to draft a contract for customers that outline your charges and services. Normally, a motor carrier will not choose to sign a long-term contract with a dispatcher because it is a bit inconvenient, but your dispatching contract can be load-to-load. This implies that neither of the two parties is held liable for upholding the business relationship beyond the certain load that the driver is presently delivering. Should you wish to do business with each other again, you can do so even without singing another contract.
Advertise Your Trucking Dispatching Services
The next step is advertising your services. Considering the fact that you are a self-regulating dispatcher, you need to have more loads and motor carriers. A flyer can help you advertise your business well.