How to Start a Forwarding Business in Canada in 2023

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

Index
- 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;

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
InXpress
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
trucks
A class D license
Safe
Goods and Services Tax / Harmonized Sales Tax (GST/HST)
A corporate bank account
Employees
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
Terms of use online
Online Privacy Policy Document
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
Safe
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.

vision statement

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)
Contador
truck drivers
Material Handlers / Yard Guards / Forklift Operators
Customer service agent (receptionist)

Plan de marketing

SWOT Analysis

Fortaleza:

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.

Weakness:

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.

Opportunities:

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.

Threat:

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.

Financial Projection

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.

hire employees

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.

How to Start a Forwarding Business in Canada in 2023 - FlyFromCanada (2023)