Of course, it is possible to own a trucking company in the USA and never get a Commercial Driver’s License. However, there are some considerations & responsibilities that are there to be met in order to get a CDL or if you are not getting a CDL there are some things that you need to look out for especially and this will help you when you are out there in the world of trucking.
Legal Requirements
Trucking company owners do not require a CDL but rest assured, anyone you plan to hire will need one. Your role as an owner will therefore be to establish the business in addition to its day to day management.
For instance, that involves obtaining appropriate federal licenses including the USDOT number and Motor Carrier (MC) authority – respectively, enabling your company to operate lawfully and move freight across state lines. You will also have to cater for business insurance as this is something that any trucking contractor requires.
Advantages of Not Needing Them To Hold a CDL
Lack of own CDL is advantageous in that it lets you stay as a distant operator and not get involved in the day-to-day truck operation, which entails the actual delivery of the goods for your trucking firm. On some level this could have been one of the smartest things any potentially brilliant business individual has ever done if he or she never wanted to drive the big rig. Most of the successful large scale entrepreneurs in trucking business including Alix Burton of Good Energy Worldwide have never driven any truck or acquired a CDL in their life.
Another advantage is the fact that you can spend your time prospecting the business, hiring more employees and fostering customer relations than having to be on the road yourself. Although they can help you scale more quickly if done right this splitting of roles can be beneficial.
The Challenges
However, there are issues and if, for instance, you have never operated a trucking business before, then finding and managing the drivers maybe a hard task. They may exploit your ignorance on the industry by including extra costs in the running of the truck or stall in the delivery of goods. Some tasks might prove to be difficult to manage unless you have been a truck driver yourself, for instance, it can be difficult to assess the credibility of what the drivers are telling you or even solving problems. Additionally, most insurance providers want you to have a driver under your employment before they can get your company on board. This is most probably going to increase your overheads because you will be expected to pay salaries even when your company has not generated any income.
Focusing on Business Operations
If you don’t have your CDL, then your main responsibility will be business planning, safety compliance, recruitment, and finances. It’s your responsibility to ensure that all the drivers are observing federal laws and regulations, the drivers are in possession of all legal requirements, and all the freight is delivered on time. Some of the matters that you should tell in your business plan are how you will source for funds to purchase the trucks, how you will obtain all necessary permits and registrations including the FMCSA filing and BOC-3 filing. As a matter of fact, it is a perfectly plausible scenario to run a trucking business without having a CDL though this is going to be more of establishing solid operational foundations. Ensuring that you have the correct drivers on board, knowing a lot about the many aspects of the industry, and avoiding a collision with federal and/or state legislation will be among the most significant factors in your success.
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