Is owning a trucking company profitable?
Yes. A well run trucking company can be quite profitable. On average, a general freight trucking company can expect a profit margin of 6% - 8% of revenue. A single truck that is kept busy throughout the year might expect to generate approximately $185,000 in annual revenue. After paying the driver, you could expect up to $15,000 in annual profits. If you are the owner operator, you would get to keep the driver wages as well and increase your overall take home pay.
What is the most profitable trucking business?
Specialty trucking businesses are likely to be the most profitable type of trucking business, but would also likely come with a larger startup cost. You should not only look at what type of truck is most profitable, but which type of truck would have the best percentage return on invested capital. Our trucking financial projection template can help you run multiple scenarios to determine which type of truck might be most profitable for your specific situation.
How much do truck owners make per month?
On average, an owner-operator truck driver could expect to make $200,000 in annual revenue per year, or just under $17,000 per month before expenses. A high performing trucking startup can generate up to $400,00 in annual revenue with a single truck.
You might also consider adding a freight brokerage service to your trucking business which could help you generate additional revenue.
How much money do I need to start a trucking company?
Although you might be able to buy a used truck for $25,000 and be on your way, we recommend that you expect to spend at least $50,000 in startup costs to start a trucking company properly. If you are buying a used truck you will definitely need to have cash in savings for any repairs. You will also need working capital for fuel, food, lodging etc during your first month while you wait to get paid by your customer. It is important to create a cash flow projection before you start your trucking business so that you can determine just how much you will need to get started. Based on our research we found that the typical trucking startup costs range from $12,000 to $250,000.