A trucking company is a business involved in the transportation of large quantities of raw materials and finished goods by land, typically from factories to retail distribution centers or from warehouses to retail distribution centers, or from the seaport to the warehouse, etc.
There are many Canadians who work in the trucking industry. The industry is estimated to employ more than 302,000 truckers, representing 2% of all Canadian workers.
In Canada, the local trucking industry market is projected to grow by 4.9% in 2023. Between 2017 and 2022, the market size of the local trucking industry in Canada grew by 5.0%. Available data shows that, in terms of revenue, the long-haul trucking business in Canada will be worth $27.2 billion by 2023.
Steps on how to start a trucking business in Canada
- Conduct market research
- Choose a memorable business name
- register your company
- Cost analysis and budget
- write a business plan
- Plan de marketing
- Financial Projection
- Set up your shop/office
- hire employees
- Launch the right business
Conduct market research
To optimize Canadian trucking business revenue, you would need reliable market analysis. Creating market research questions that align with your overall business objective should be the first step in the market research process for your trucking company.
In this regard, you should look for information that will give you reliable information about what your potential market will look for in a trucking company, information that will help you run your Canadian trucking business with less stress, and information that will help you grow business at the same time. profitability in the shortest possible time.
The. Who is the target market for the trucking business?
- construction companies
- e-commerce companies
- Warehouse Traders and Operators
- Retailers who want to move their merchandise from one place to another
- Manufacturers (food products, spare parts, furniture manufacturers, household appliances and others)
- Families who would like to move from one apartment to another
- Corporate organizations that would like to move from one office to another
- Government agencies that have reason to move light goods and materials from one place to another.
B. Is the trucking business a profitable business in Canada?
Yes, the trucking business is very profitable. Available data shows that in terms of revenue, the long-haul trucking business will be worth $27.2 billion by 2023.
w. Are there existing niches in the industry?
Yes, there are existing niches when it comes to the trucking business and they are;
- Truck LTL or partial.
- FTL or complete truck.
- Platform truck service.
- Refrigerated Trucks or Reefer Trucks.
- Intermodal Cargo Transport.
- Expedited Transportation Service.
- White glove service.
d. Who are the main competitors?
- Transporte J&R Inc.
- Paige Logistics Ltd.
- N&N Logistics Inc.
- transport arrow
- McKevitt Trucking Limited
- Brian Kurtz Trucks Ltd.
- Searcy Trucking Ltda.
- Skelton Truck Lines
- The ERB group of companies
- JADE TRANSPORTES LTDA
- J & R Hall Transporte Inc.
- harris transport ltd.
- payne transport ltd
- D4 Logistics Inc
- United World Transport
- Links 3PL Inc.
- Doug Coleman Trucks Ltd.
- Ivan Armstrong Transportes
- Wildwood Transporte Inc.
- transportation n service inc.
It is. Are there any municipal or provincial regulations or zoning laws for trucking companies in Canada?
Yes, there are provincial regulations and zoning laws for trucking companies in Canada, and participants in this industry are expected to work within existing regulations governing similar businesses in the province where their business is domiciled.
Please note that the Canadian federal government regulates the transportation industry in Canada. The federal government requires each trucking company to comply with local laws in its home province. A trucker needs to take ten hours off a day.
A trucker can only drive for 13 hours every day. After 14 hours of work in a day, it will be illegal to continue driving a truck.
F. Is there a franchise for the trucking business?
Yes, there are franchise opportunities for a trucking company, and these are some of them;
- Blue Grace Logistics
- Craters and Freighters
- express world
- United Shipping, Inc.
- SUPPLY POINT
- United Charis Transporte LLC
- between charge
- Unishippers Global Logistics LLC
- AIT Cargo Systems.
- TWO MEN AND A TRUCK.
gram. What does it take to start a trucking business in Canada?
- A feasibility report
- Business and Marketing Plans
- Business licenses and permits
- A class D license
- Goods and Services Tax / Harmonized Sales Tax (GST/HST)
- A corporate bank account
- Operating capital (for current expenses)
Choose a memorable business name
When looking to start a business, before you start filing the necessary documents with the constituted authorities or starting your website, you need to think of a name by which you will be recognizable. It is essential that the name you create is easy to pronounce, unique and easy to remember.
Some of the attractive business name ideas suitable for a trucking company are;
Creative Ideas for Truck Business Names
- Truck Boss © Trucking Company, Inc.
- Winnipeg Star® Trucking Company, Ltd
- Mercury Bright© Trucking Company, Inc.
- Logistics Solutions® Trucking Company, Inc.
- Trucking King™ Trucking Company, Inc.
- Sharon Line™ Trucking Company, Ltd.
- Squeaky trucks © Trucking Company, Ltd
- Justin Trucks® Trucking Company, Inc.
- Star Trucks© Trucking Company, Inc.
- Concord Randel © Trucking Company, Inc.
- Joe Spotless® Trucking Company, Ltd
- Moses Trucks® Trucking Company, Ltd
- Rise Up™ Truck Company, Ltd.
- Rally Round © Trucking Company, Inc.
- Justin Ben® Trucking Company, Inc.
- Fort Hornby™ Trucking Company, Inc.
- Aylmer Guys™ Trucking Company, Inc.
- Strathroy Green © Trucking Company, Inc.
- Joel Jamez® Trucking Company, Ltd
- Etobicoke Team™ Trucking Company, Inc.
register your company
El. What type of business structure is best for a trucking company in Canada?
You have four alternatives for business structures in Canada, but the corporation is the one most people in this industry consider. Because a corporation has limited liability, the owners are not responsible for the debts or liabilities of the business.
Additionally, you must be incorporated to do business with governments or other companies, and business income can be distributed in the form of dividends or salaries, allowing you to minimize your tax liability.
Please note that all Canadian businesses are required to register their names with their respective provinces or territories, with the exception of sole proprietorships that use only the legal name of the owner without any additions (except in Newfoundland and Labrador, where companies are not required to register their names). corporations or sole proprietorships register their names).
B. Steps to form a corporation in Canada
- Whether you are a federal or provincial/territorial incorporation, register your company.
- Contact the Canada Revenue Agency to open a corporate income tax account and obtain a federal business number (CRA).
- In all other Canadian jurisdictions where you wish to conduct business, register as an extra-provincial or extra-territorial corporation.
w. What type of license is needed to start a trucking business in Canada?
- General Business License
- A class D license
- provincial licenses
- signaling permit
- Operational facility inspections for your parking lot
d. What type of certification is required to open a trucking business in Canada?
You do not need any certification to start a trucking company in Canada.
It is. What documents are required to open a trucking company in Canada?
These are some of the basic legal documents you must have if you want to legally run a trucking company in Canada;
- Goods and Services Tax / Harmonized Sales Tax (GST/HST)
- board permission
- Civil and business liability insurance
- A class D license
- State Permit and Construction Approval
- Certificate of incorporation
- business license
- Business plan
- contract document
F. Do you need a trademark, copyright or patent?
If you plan to start a trucking business in Canada, you probably don't need to apply for trademark protection or intellectual property protection. This is true because the nature of the business allows you to run it successfully without having to take legal action against anyone using your intellectual property.
Cost analysis and budget
El. How much does it cost to open a trucking company in Canada?
There are a few factors that can affect the initial costs of starting a trucking business, so they are not all created equal. But generally, it will cost anywhere from $50,000 to over $1 million to set up a trucking company in Canada, and this amount can easily increase depending on your business goals and ambitions.
For example, the price of a truck depends a lot on its size, and light trucks in classes 2 and 3 cost between $25,000 and $45,000. Class 4 medium trucks cost between $35,000 and $50,000. Class 5 medium trucks cost between $45,000 and $70,000.
B. What are the costs involved in starting a trucking company?
- The total fee to register the company in the United States of America: $750.
- Legal expenses for obtaining licenses and permits, as well as accounting services for a total of – $1,200.
- Marketing promotion expenses (2000 flyers at $0.04 per copy) for a total of $80.
- The cost of hiring a business consultant (including writing the business plan): $4,500.
- Insurance coverage (general liability, workers' compensation and property damage) with a total premium - $12,400.
- The cost of logistics software, accounting software, CRM software, and payroll software: $3,500
- The cost of renting a facility (long-term lease): $105,600.
- The cost of remodeling and installation of premises – $20,000.
- The cost of buying trucks: $300,000
- Telephone and utility deposits will cost - ($2,500)
- Operating cost for the first 3 months (staff salaries, bill payments and others) – $50,000
- The cost of launching an official website: $1,200
- The cost of our Grand Opening Party – $3,000
- Miscellaneous – $2,500.
w. What factors determine the cost of starting a trucking business in Canada?
- The size of the transport company (number of trucks with which you want to start the business)
- The choice of location
- The necessary licenses and permits.
- The cost of hiring and paying a business consultant and lawyer
- The cost of branding, promotion and marketing for the trucking company.
- The cost of furnishing and equipment of the transport company.
- The cost of the insurance policy covers
- The cost of registering the company.
- Cost of recruiting and training your staff
- The cost of purchasing and customizing uniforms.
- The cost of opening the road transport company
d. Do you need to build a facility? If yes, how much will it cost?
Essentially, you don't need to build a new facility for your trucking business, but if you have the funds, it might be worth creating your own parking lot and back office. The fact is that you will have the opportunity to design a facility that properly reflects your goals and overall business vision if you are building or renovating a facility.
It is. What are the ongoing expenses of a trucking business?
- gases and lubricants
- Utility bills (internet subscriptions, phone bills, software subscriptions and renewal fees, etc.)
- employee wages
- truck maintenance
- marketing costs
F. What is the average salary of your team?
- Director of Operations (Owner) - $68,000 per year
- Administrator and Human Resources Manager - $48,000 per year
- Transportation and Logistics Manager $48,000 per year
- Marketing and Sales Executive (Business Developer) – $42,000 per year
- Accountant $38,000 per year
- Truck Drivers - $36,800 per year
- Material Handlers/Yard Guards/Forklift Operators - $28,000 per year
- Customer Service Officer (Receptionist) - $26,100 per year
- Security Guard - $24,000 per year
gram. How do you get financing to start a trucking business in Canada?
- Raise money from personal savings and sell stocks and personal property
- Raise money from investors and business partners.
- Sell shares to interested investors
- Apply for a loan from your bank/banks
- Submit your business idea and apply for business grants and seed funding from the government, donor organizations and angel investors.
- Source subsidized loans from your family and friends.
write a business plan
The. Executive Summary
Trucking Company Highland Trucks™, Inc. is a licensed and registered trucking company headquartered in Regina, Saskatchewan. Highland Trucks™, Inc. Trucking Company is a trucking, trucking and transportation company designed to serve multiple industries. We specialize in providing complete supply chain solutions.
Trucking Company Highland Trucks™, Inc. is dedicated to providing excellent service and ensuring items are transported legally and safely. Our goal is to give our dear customers our full attention. We maintain competitive pricing, customer satisfaction, and retention.
B. Products and services
- Transportation of large quantities of raw materials and finished goods by land, typically from factories to retail distribution centers and also from seaports to warehouses and beyond.
w. mission status
Our mission at Trucking King™ Trucking Company, Inc. is to ensure that your items reach their destinations in a reliable and timely manner by providing professional and safe transportation services using highly trained personnel, state-of-the-art information systems, and a modern fleet and well maintained.
Our vision as a road transport company is to commit ourselves and guarantee safe, efficient and reliable transport services for all our clients at competitive prices.
d. Goals and objectives
The goals and objectives of a trucking company are to transport goods from one place to another.
Is. Organizational structure
- Director of Operations (Owner)
- Administrator and HR Manager
- Transport and Logistics Manager
- Sales and Marketing Executive (Business Developer)
- truck drivers
- Material Handlers / Yard Guards / Forklift Operators
- Customer service agent (receptionist)
Plan de marketing
- Excellent operating history.
- Attention to details.
- Accurate estimates with no hidden costs.
- Experience and trained professionals.
- Extensive storage facility.
- Excellent customer testimonials.
- Reliable and efficient trucks and services.
- There are not enough existing customers to operate at full capacity immediately
- The owner is new to large scale marketing
- We will need a loan to build our facilities and buy trucks and vans.
- The owner currently runs the business alone.
- Lack of economies of scale.
- Growth in shipping and e-commerce activities in Canada
- Leverage existing clientele
- Online market, new services, new technologies and of course the opening of new markets
- Increase in the number of families moving from one department to another
- Increased movement of goods from one place to another.
- Increased production and storage activities.
- Loans decline in profitability until paid off
- The first year will be financially tight as we acquire customers and repay loans.
- Competition in the area may increase
- Employee management requires time, money and effort
- The Department of Transportation can change its regulatory status and decide to apply strict regulations that can throttle new business.
B. How do transportation companies make money?
Trucking companies make money by charging customers to move their goods from one location to another.
w. Payment options
- Payment by bank transfer
- payment in money
- Payment through credit cards
- Payment by online bank transfer
- payment by check
- Payment by mobile money transfer
- Payment by bank slip
d. Sales and advertising strategies.
- Let people know about your trucking company by sending introductory letters and brochures to companies involved in manufacturing and other key stakeholders in and around your city and province.
- Use your friends and family to spread the word about your business.
- Print flyers and business cards and post them in important places like offices, libraries, public spaces, train stations, etc.
- Post information about your business and the services you provide on bulletin boards in places like seaports, business districts, neighborhood coffee shops, etc.
- Place a summary or classified ad about your business and the services you offer in a local newspaper or other outlet.
- Use referral systems, such as agencies, to attract clients who may need your services.
- Promote our company in appropriate periodicals, newspapers, television and radio.
- Attend exhibitions, seminars, trade shows and other relevant events to promote our services.
- Use a direct marketing strategy, encourage word of mouth from satisfied and dedicated customers, and team up with local businesses and industry associations to promote your offerings.
Him. How much should you charge for your service?
In general, most trucking companies charge an hourly rate that typically includes a moving truck, all equipment, miscellaneous materials, and movers. The more helpers or moving trucks required for your specific move, the higher the hourly rate.
B. How much profit do trucking business owners make per year in Canada?
It depends, but the available report shows that, on average, a trucking business owner should generate more than $146,250 per year or $75 per hour, assuming a consistent clientele.
w. What factors determine the amount of profit to be obtained?
- The capacity of the trucking company (number and size of trucks it owns)
- The types of related service offerings (storage and advertising and others)
- The location of the transport company.
- The management style of the road transport company
- The commercial approach of the road transport company
- The advertising and marketing strategies adopted by the trucking company
- The number of years the trucking company has been in business
d. What is the profit margin of a trucking company?
The profit margin of a trucking company is not fixed. It can vary from 25 to 65 percent, depending on the distance of the merchandise to be transported.
It is. What is the sales forecast?
Below is the sales forecast for a trucking company. It is based on the location of the company and other factors related to these new companies in Canada;
- First fiscal year:$ 320.000
- Second Fiscal Year:$ 680.000
- Third Fiscal Year:$ 920.000
Set up your shop/office
The. How do you choose a perfect location for a trucking company in Canada?
- The demographics of the location, especially as it relates to manufacturing, warehousing, e-commerce activities, and shipping.
- The demand for transport services offered by road transport companies in the locality
- The purchasing power of local merchants and residents
- location accessibility
- The number of trucking companies and trucking companies on the site
- Local laws and regulations in the community/state
- Traffic, parking and security and others
B. What is the best city to open a trucking business in Canada?
- Toronto, Ontario
- Montreal, Quebec
- Calgary, Alberta
- ottawa, ontario
- Edmonton, Alberta
- Winnipeg, Manitoba
- mississauga, ontario
- Vancouver, British Columbia
- Brampton, Ontario
- Hamilton, Ontario.
w. What equipment is needed to operate a trucking company?
You must be prepared to buy forklifts, loaders, pallets and boxes and others. Likewise, you will surely need computers or laptops, internet service, telephone, fax, office furniture (chairs, desks and shelves), among others, and all this can be achieved with reasonable use.
When it comes to hiring employees for a standard transportation company, you should plan to hire a competent CEO (you can fill this position), Human Resources and Administrative Manager, Transportation and Logistics Manager, Marketing and Sales Executive ( business developer), accountant, truck drivers, material handlers/yard guards/forklift operators, and customer service officer (receptionist).
Launch the right business
Today, no trucking company opens its doors without first planning a housewarming party to formally establish the company. If you are on a budget, you may choose to have a housewarming party instead of a big housewarming party.
The deal is that by successfully launching your trucking business, you will be able to formally notify the residents of your community that your trucking business is open for business.
El. What makes a trucking company successful?
- Choose a good location and reliable trucks to start the business
- Hire only competent, hard-working and trustworthy employees.
- Host a big open house party before officially opening the trucking company
- Be deliberate with your sales marketing approach
- Encourage the use of word of mouth to promote your trucking company.
- Take advantage of all available online and offline platforms to promote your trucking business
B. What happens during a typical day at a trucking company?
- The business is open for the weekday.
- The trucks are washed, cleaned and ready for the collection and transport of goods.
- Customer requests are fulfilled and scheduled or fulfilled
- Scheduled truck maintenance is performed.
- Website marketing/maintenance
- supply order
- administrative duties
- The business is closed for the day.
w. What skills and experience do you need to build a trucking company?
- good driving skills
- customer service skills
- interpersonal skill
- Skills in logistics and material handling.
- Business management skills
- negotiation skills
- Work experience in the transport and logistics sector.
- people management experience
- Experience in business administration
- Experience in managing logistics and transportation software.