Starting a trucking company is exciting — but it’s also risky if you don’t know what you’re doing. Every year, thousands of new carriers get their authority, but many of them shut down within the first 12–18 months. Why? Because they make the same mistakes over and over again.
If you’re planning to open a trucking company, here are the top 7 mistakes to avoid so you can set yourself up for long-term success.
1. Underestimating Startup Costs
Many new carriers think all they need is a truck and trailer. In reality, startup costs include:
- Insurance down payments (often $10,000–$20,000 upfront).
- FMCSA and DOT fees.
- Permits, plates, and registrations.
- Working capital for fuel, maintenance, and payroll.
How to avoid it: Create a detailed budget before you start. Plan for at least 3 months of operating cash flow so you’re not relying on one big load to cover everything.
2. Accepting Low-Paying Freight
When you’re new, brokers may offer you bottom-barrel rates, hoping you don’t know your numbers. Many carriers accept these loads just to “stay moving.” The result? Running at a loss.
How to avoid it: Know your cost per mile (fixed + variable expenses) and set a minimum rate. If a load doesn’t meet your number, don’t take it.
3. Poor Insurance Choices
Some new carriers try to cut corners with cheap insurance policies that don’t provide the right coverage. Others don’t shop around and end up overpaying. Both mistakes can destroy your cash flow.
How to avoid it: Work with a trucking insurance broker, not a general agent. They understand carrier needs and can find competitive rates. Review coverage yearly as your business grows.
4. Not Managing Cash Flow
Even profitable carriers fail because of cash flow gaps. Shippers and brokers often pay on net-30, net-45, or even net-60 terms. Meanwhile, you’re paying for fuel, payroll, and repairs today.
How to avoid it: Use tools like factoring companies, fuel cards, and expense tracking software to keep cash flowing. Always plan ahead for slow weeks.
5. Struggling to Find Qualified Drivers
One of the toughest challenges for new trucking companies is finding the right drivers. Many carriers waste weeks posting on random job boards, paying for ads, or relying on word of mouth — only to get flooded with unqualified applicants.
How to avoid it: Instead of chasing drivers everywhere, use a platform like DriverRoll.com, where you can access thousands of drivers in one place. The best part? You can filter by years of experience, location, endorsements, and more — so you’re only connecting with drivers who are a good fit for your fleet.
This saves you time, reduces turnover, and ensures you’re hiring drivers who meet your safety and compliance standards.
6. Ignoring Compliance
DOT audits, IFTA filings, hours-of-service logs — compliance can feel overwhelming. But ignoring it can lead to fines, shutdowns, or loss of authority.
How to avoid it: Stay organized with compliance software, hire a compliance service, or assign someone on your team to manage all filings and record-keeping.
7. Not Having a Growth Plan
Too many carriers focus only on surviving their first year. Without a growth plan, they struggle to scale, lose competitive edge, or rely too heavily on load boards.
How to avoid it: Think long-term. Reinvest profits into newer equipment, build direct shipper relationships, and diversify freight lanes so you’re not dependent on one market.
Final Thoughts
Most new trucking companies don’t fail because of bad freight — they fail because of bad planning. By avoiding these 7 mistakes, you’ll position yourself ahead of most new carriers and build a company that lasts.
👉 At Trucking Academy, we’ve designed a step-by-step course that walks you through starting and running a trucking company, covering everything from FMCSA compliance to financial management and growth strategies.
Don’t repeat the same mistakes that shut down thousands of carriers every year.
Enroll today in our Trucking Business Course and start your company the right way.