How to Start a Successful Grain Hauling Business
The grain hauling business is red hot right now. The need for feed is not likely to slow down anytime soon, and grain hauling is a fairly accessible niche even if you have limited starting capital. It is still a niche with special considerations you’ll need to prepare for, however, and any successful trucking business starts with a plan. Let’s take a look at a few things you’ll need to know and do before you start in this sector.
Know the Industry
Your first job is to make sure that you understand the industry you’re getting into. First of all, you should know that you will not only be working with farmers. A large portion of your clientele will come from warehouses, manufacturers, and retailers who may want to move feed from one place to the next. So, when looking at which demographics you’re going to target, try to make it all-encompassing.
Analyzing the Competition
On the other hand, you should also be known for providing a specific service so you can make a niche for yourself. For instance, many are looking for grain haulers that can do cross-state and cross-country trips, and if there is virtually no one offering this kind of service where you are, you could be able to monopolize the niche.
Looking at Additional Costs
Know that it’s easy to find a used truck for transporting grain and feed. You could even lease a vehicle if you want to. But know that there are many additional costs you’ll need to think about.
You’ll need to invest in all sorts of insurance such as general liability insurance and trucking liability insurance. You may need to invest in non-trucking insurance on top of that to protect you if you’re using the truck for reasons that are not related to your work.
And, since we’re speaking about specialized loads, you will also need to look for additional equipment. You might need to look at railcar and grain unloading systems. This is something you’ll need to look into as feed can solidify because of humidity, a common issue in the industry.
Be Prepared for the Challenges You’re About to Face
The grain hauling and trucking industry, in general, has a lot of regulations you need to abide by, and you have to be aware of those before you start. Violating these regulations could ruin your business at the start, and it would be a shame to lose it because of your ignorance.
You also have to prepare for things such as instability in the markets, especially in times like these. Commodity prices also affect your operating costs as well as fluctuations in the price of feed, so make sure you look into that as well.
These are all things you will need to know before you can start a profitable grain hauling business. Make sure that you know what you’re getting into, and don’t hesitate to speak to a few people who are familiar with the industry before making the jump.