Learn how to start a trucking dispatch business. These 4 steps will help you succeed in the business.
Becoming a proud owner operator of a truck dispatch service can be extremely rewarding, but the road to success can be difficult. With trucks moving over 70% of all goods in the US and knowing that without dispatchers, commercial truck drivers wouldn’t know where to go, it’s easy to see why the truck dispatching sector is becoming increasingly popular.
To ensure a successful start, you will need significant financial resources and to surround yourself with the right people. But above all that, you will need to have a firm grasp of what companies expect of truck dispatchers.
What does a truck dispatch business do?
Most of the time, people mistake truck dispatchers for freight brokers. Freight brokers serve as the middlemen between carrier services and shippers. At the same time, truck dispatchers work tightly with truck drivers and brokers to ensure that freight is managed properly and the planned trucking route is viable. In addition to arranging transportation for freight, truck dispatchers also provide safety tips to drivers and ensure that all safety regulations are met.
That being said, technically, dispatchers are employed by the carrier. For that reason, it’s a good idea to start building your network early on and inquire whether certain carriers require dispatch services.
Register your business and write a business plan
Now that we have outlined what a truck dispatcher does, it’s time to focus on business technicalities. Nowadays, venturing into business is impossible without a strategy and a plan.
While figuring out how to start a trucking dispatch company, you will also have to think of the name your company will carry and the services it will provide. Will your company provide services to small, emerging businesses, or will you work with the most elite companies?
Expanding on naming your company, we highly advise sticking with simple yet effective options. You can also include your headquarters’s geographical location in your name to give people an idea of where to find it.
Moreover, you will have to decide on the business structure for your company. For example, if you want to tackle all the dispatch duties by yourself, you can opt for a sole proprietorship. LLC is another popular choice for startup businesses. But if you need funding and you have a solid business plan, securing investors and building a partnership will be very easy.
And lastly, you will have to register your business so that your income is taxable and legal. Nowadays, getting your employer identification number is as simple as it gets. All you have to do is open up your web browser and search for the IRS website.
Hire the right people
It’s widely known that for a business to reach optimal levels of productivity and success, the employees must share their vision. However, that’s easier said than done.
You must provide proper training and equipment to build a productive fleet of truck dispatchers. Most dispatch companies operate with CRM systems that allow employees easy communication access and seamless collaboration with the carriers. GPS software that will track trucks you dispatch is also a must, so if you didn’t allocate money for that in your budget, make sure you do.
Furthermore, you should also consider offering your employees an above-average salary and the option to work remotely. Remote work has become the way of operation for an astonishing number of businesses. Luckily, in the dispatching sector, this is easily achieved as all you have to do is provide your employees with the right equipment, such as headphones and portable computers, and proper training.
Obtain the right permits
If you’re not compliant with all the rules and regulations, your business cannot operate legally. Depending on the state, you must obtain different legal documents and permits. So, contact your local authorities to find out what you need to start.
Not having the right permits and operations can lead to hefty fines that might hinder your path to success, especially at the beginning.
Final thoughts
Starting a trucking dispatch business is not easy. You will have to establish a solid work relationship with carriers and ensure that you are using the most advanced technology to ensure seamless operations. If you follow the steps outlined in our article, you can be sure to reach success swiftly.
