On the other hand, with your own equipment and employed drivers, you are running your business and have full control over the operations. Investments are required, but final results will depend mostly on your work.
Getting the right equipment
This is where you will invest the most. Very soon, you’ll get yourself into one standard dilemma: to buy or to lease the truck.
It’s hard to tell what is better alternative. It really depends on your position. Maybe, this brief comparison will help you in making decision.
Buying vs Leasing trucks:
- Buying is simple. Leasing is more complicated
- Buying requires higher payments. With leasing you avoid high costs.
- If you are using loan for buying, truck stays yours after last payment. In some leasing options, you are using equipment as long as you are paying fee for it.
So, what should you do?
If you are still undecided, get help from CPA/PFS. In fact, this is probably the best way to reduce risk of making wrong choice. Their services costs, but it will cost you much more if you pick an alternative which you can’t deal with.
Insurance in trucking business
Every year you will be selecting the company and the policy to insure your vehicle. Narrow your choice to companies specialized for truck insurance, and if possible find specialists for your niche.
