We talk a lot about those who run their own trucking companies, but fleets are not the only cog in the supply chain wheel. That’s why more recently we have discussed freight brokers, telematics, logistics, OEMs; we touch on all topics here at the QuickTSI Blog! Today, we continue that trend with a look at mobile tech shops.
With technology creating all sorts of new ways to do business in the trucking sector, innovation is happening at a rapid clip. Today, we see the rise of mobile techs like never before. And for those who want to operate in a potentially lucrative career and get out of the shop and onto the road, consider opening your own field operation!
Consider that the average cost to tow a broken-down big rig runs in the thousands of dollars. For heavily damaged rigs or rigs involved in accidents, you may be looking at tends of thousands of dollars in unexpected costs. No fleet operator or owner wants to be stuck with that kind of bill, especially if they will already have an accident on their hands to deal with.
And while preventative maintenance is so important – we’ve talked about it quite a bit – there will inevitably be a day when a breakdown occurs and one of your rigs requires assistance out on the road. Unfortunate things happen and sometimes a mechanic is just what’s needed. Fortunately, we live in an era when a mechanic can come to a broken-down truck, rather than the truck requiring a tow back to the yard.
Yet, starting a new business is never easy, no matter what business you are getting into. Starting a business at the cutting edge of industry – that seems even more daunting. But you can do it! We’ve got your insider scoop on how to start your own mobile repair shop.
Start with the Legal Stuff
Obviously, when you want to start a new company or operation, you must make sure you have the proper licenses in place. You need to make sure you are legal. This is the boring stuff, but it is also the stuff that can get you put out of business if you do not pay close attention to it.
We understand it may seem daunting, but all you must do is ensure you have the right paperwork in order. And if you are already a shop owner it is very likely you already do have much of what you need in order. But still, you may be missing something. Mobile repair shops have specific licensing requirements. And while it does vary by city and state, much of it is pretty uniform across regulatory agencies.
Generally, when opening a mobile repair shop, you must make sure you get whatever business license or business tax form your municipality or state agency requires. You will also need to obtain an EIN number from the IRS, which is free and only takes a couple of minutes on their website to obtain. You should also need to obtain a reseller’s permit from your state, which you can use to buy bulk parts at wholesale prices.
Obviously, the huge topic here is insurance. What you wind up paying in insurance costs will largely depend on the size of your company and the types of vehicles you use to get the job done. Either way, insurance is mandatory, so make sure you do your research before choosing an insurance provider.
Let’s Talk Location
When it comes to setting up your own mobile repair business, the old adage “location, location, location” still applies. After all, you must determine your range. How far do you want to go to reach your customers? Most mobile repair shops choose something around 50 or 100 miles or somewhere in between.
Distance is important because it influences how much you spend on fuel, insurance, and general wear and tear on your vehicles. You will need to make an important decision on location. You might think it is okay to operate out of your current location, and you may be right, but you must make other considerations.
Take weather as one example. Heavy snowstorms might make it near impossible to reach a stranded rig. The climate of the territory you plan to service is important. There are areas in Nevada and Southern California where trucks can easily overheat. Winters cause fuel lines to freeze and oil to thicken. Weather and location go together when setting up a business plan.
Also consider employment when deciding where to set up your mobile repair shop. There has been an ongoing diesel technician shortage in the trucking industry. Where will your competition be stationed? Will you be competing with guys nearby for the same pool of technicians? You may want to set up in a rural area where you are the only provider around. Wouldn’t it be nice to keep this business to yourself?
Consider How You Run It
Sure, it sounds great to start a new business, grow something for your legacy, and maybe make some money along the way – but there is a lot to it. To be a business owner, you must operate with certain ethical guidelines. You must police yourself and your organization when it comes to doing a good job.
Always remember that when it comes to making a profit in any business, you must consider three important things.
- Do the job right and never cut corners
- Run your business in an ethical fashion
- Choose an open market
Completing the first two factors is easy. They are completely within your control. As long as you and your employees do good, ethical work and treat your customers well, you will already be ahead of the game.
But an even more important consideration is the market you set up in. You must make sure you are not offering a product or service in and saturated market. Consider the thousands of miles of empty roads and highways across the country and pick your market wisely!
What Are the Costs?
Obviously, the number one question facing anyone who wants to start their own business is how much it is going to cost. And while it varies with almost any business you create, there are at least some definite expenditures you can prepare for. For example, you will need to plan for:
- Your truck, whether it be one or multiple
- Parts for immediate inventory
- Fuel
- Truck parking
- Necessary tools
- A billing system
- A call forwarding/answering service
While we aren’t able to provide you with specific legal advice, we can tell you it would be good to form an LLC or S-Corp. These days you can easily hire a lawyer or even do the paperwork yourself at some DIY legal forms shops in your local city or town. Forming an LLC or corporation can be somewhat pricey in the United States, averaging anywhere from $250 to $800 depending on where you are and the type of business you want to set up.
Also make sure you hire a good accountant. Are you going to be paying quarterly taxes? Who will figure out your deductions and associated financial decisions? Running a business is beyond a simple run through Turbo Tax. You must make sure all your financial details are in order.
In all, you are likely looking at anywhere from five to six digits to start your own business. This is especially true if you want to operate with a larger vehicle and a large parts selection. Fortunately, if you set everything up correctly and operate ethically, you shouldn’t have too difficult of a time making your money back.
Still, even with all the financial cards in order, there is still a lot to consider. From what kind of truck you buy to how you set up your back office. You can’t simply start a mobile repair business without addressing every single factor. Join us next time in Part II of our series on starting your own mobile repair shop, where we will discuss vehicle particulars, back office needs, and so much more!
from Quick Transport Solutions Trucking Blog https://ift.tt/2Uk0ROM
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