Starting a trucking business in the Philippines can be a lucrative business. The trucking industry is booming and there is a great demand for services. If you’re interested in starting a trucking business in the Philippines, here are some tips to help you get started:
1. Create a business plan
Before you get started, it is important to create a business plan. Your business will help you plan, operate, and prepare for the future. Take your time in creating a business plan to help avoid your business from failing.
2. Consider your financing.
Starting a trucking business is lucrative but can also be very costly. The amount of capital you will need will depend on the type of trucking business you want to start. Among the factors you will consider when making an estimate of start-up costs are:
- Size of your fleet
- Equipment you will need
- Cost of fuel
- Insurance
- Maintenance for your trucks
- Payroll for your drivers, employees
- Permits and licenses cost
Once you have an estimate of the start-up costs, you can begin looking for financing options. There are a number of money sources to finance a trucking business in the Philippines. Familiarize yourself with the banks’ business loan terms, private investors, and government grants, so you can choose which suits your goals.
3. Choose the right truck.
There are different types of trucks available on the market, so it is important to choose the one that suits your business needs. Consider factors such as payload capacity, fuel efficiency, and maintenance costs when making your decision.
4. Secure the necessary permits and licenses.
Before you can start operating your trucking business, you need to obtain various permits and licenses from the government. Make sure you are familiar with the requirements so that you can complete the application process smoothly. Among the licenses and permits you need to secure are the following:
- Permission letter addressed to Philippine Economic Zone Authority (PEZA)
- Endorsement letter from a PEZA client or company
- Notarized PEZA Application form
- Notarized Annex “A” Anti-Graft Certificate
- Notarized Board Resolution
- Your company’s list of employees and positions
- Certificate of Registration from the Securities and Exchange Commission (SEC) or Department of Trade and Industry (DTI)
- BIR Clearance
- Mayor’s Permit
- Standard schedule of service rates
5. Find reliable suppliers.
In order to run your business smoothly, it is important to source reliable suppliers of fuel, tires, and other trucking supplies. Establish good relationships with them so that you can get favorable terms and prices.
6. Hire competent drivers.
Your drivers will be responsible for transporting goods safely from one point to another, so it is crucial to hire ones who are competent and experienced. Proper training is also important in customer service, especially the importance of being on time.
These are just tips you can consider when you’re thinking of starting a trucking business. There are many more you’ll learn along the way. Good luck!
