What is hotshot trucking? At the Simplest hotshot trucking is a type of trucking that involves hauling smaller loads at a faster pace. These loads are typically transported using a smaller truck, such as a pickup truck or a small flatbed trailer. Hotshot trucking is often used for time-sensitive deliveries, such as those required by construction projects or other businesses.
Hotshot trucking can be an excellent option for those looking to get into the trucking industry. It is a relatively simple way to get started and does not require a lot of experience or training. Additionally, hotshot trucking can be a great way to make extra money as an owner-operator. If you are interested in starting the hotshot trucking Business, you should know this question; what are the hotshot Trucking Requirements?
How to Start a Hot Shot Business?
Here are the few steps you need to follow from start to end if you want to start your hotshot trucking business.
Step #1: To start a hotshot trucking company, you’ll need to get your finances in order.
When you start a hotshot trucking business, you need to check what equipment you have and what you need to buy. This includes having enough money to cover the startup costs, such as the cost of a truck, insurance, and permits. You should also make calculations of your cash, and you should have that much in your bank to make your hotshot trucking business profitable.
It is also essential to calculate how much you will pay yourself and what will be the breakeven point and how much profit can make you successful. It would help if you also had advanced systems and tools to maintain and record expenditures, invoices, transactions, and other important information. You may need a loan or an investor. You should have a business plan to convince the investor of that purpose.
Step #2: Choose a specialty
There are many different types of hotshot trucking businesses. You will need to choose a specialty that fits your skills and experience. For example, you could specialize in hauling construction equipment or delivering time-sensitive medical supplies. Alternatively, you could choose to focus on one particular type of loads, such as oversized loads or oversize cargo.
There are different kinds of trucks and trailers for different types of loads. Most of the hotshot trucks are more significant than the trailer. These have different classes: 3, 4,, and 5.
Class 3 is used for medium-duty trucks with a weight limit of 10001 -14000 pounds. Contractors and last-mile delivery drivers are used this; you can also use this for lighter hotshots.
Class 4 is used for heavy-duty trucks, and the weight limit is 14001-16000 pounds. This truck is used for hauling construction materials, oil field equipment, and other larger hotshots.
Class 5 is used for the heaviest trucks with a weight limit of 16001-19500 pounds. This truck is used for hauling very large and heavy hotshots.
You can also use the small trailers for your hotshot business. These are very light in weight and used for lighter loads.
- Bumper pull trailers are used for small and medium-sized hotshots. They can haul less than 10,000 pounds usually.
- Gooseneck trailers are used for the larger hotshots. They can haul more than 10,000 pounds and up to 40,000 pounds.
- Tilt deck trailers are used to haul heavy equipment. They can haul up to 18,000 pounds.
- Lowboy trailers are used to haul very large and heavy hotshots. They can haul up to 60,000 pounds.
- Dovetail trailers are used to haul hotshots with heavy equipment. They can haul up to 40,000 pounds.
Other specialized equipment is used in the hotshot trucking businesses, such as winches, chains, and tarps.
Step #3: Get the proper Commercial Driver’s Licenses (CDL) and permits
Before you can start operating your hotshot trucking business, you will need to obtain the proper licenses and permits. Depending on the type of hotshot trucking business you plan to operate, you may need a commercial driver’s license and a permit to haul oversized loads.
You will need to take a written exam and a skills test to obtain your commercial driver’s license. The written exam will test your knowledge of the road rules, while the skills test will require you to demonstrate your ability to operate a hotshot truck.
Once you have obtained your commercial driver’s license, you will need to obtain a permit to operate your hotshot trucking business. Depending on the state in which you plan to operate, you may need to obtain a permit from the Department of Transportation or the Public Utilities Commission.
In some states, you may also need to obtain a surety bond, which will protect your customers if you cannot fulfill your obligations.
Step #4: Create an LLC
You will need to create a limited liability company (LLC) or a corporation to protect your assets. This will shield you from liability if your hotshot trucking business is issued.
You will need to file the proper paperwork with your state’s secretary of state to form your LLC or corporation.
Step #5: Obtain an EIN.
Once you have done With LLC, you will need to obtain an employer identification number (EIN) from the IRS. You will use this number to open a business bank account and file your taxes. You can apply your EIN Here.
Step #6: Open a business bank account.
Once you have done with LLC and have your EIN number, the next step for your hotshot business is to have a bank account. It will help you to keep your personal and business finance separated. This will be very helpful at the time of tax. Moreover, it will help track your expenses and tell you whether your hot shot trucking business is profitable or not. You may go to online banking, which is very helpful in tracking.
Step #7: Get a motor vehicle record (MVR).
A motor vehicle record (MVR) is a record of your driving history. You will need to obtain an MVR from your state’s department of motor vehicles.
The MVR will show any accidents or violations you have been involved in and any points that have been assessed against your driver’s license.
You will need to maintain a clean MVR to operate your hotshot trucking business. You can check your MVR here.
Step #8: Obtain a Transportation Workers Identification Credential (TWIC).
Having Transportation Workers Identification Credential is not an essential Hotshot Trucking requirement.
A Transportation Workers Identification Credential (TWIC) is required to transport hazardous materials. You will need to obtain a TWIC from the Transportation Security Administration.
You will need to undergo a background check and fingerprint to obtain a TWIC.
Step #9: Apply for a Department of Transportation (DOT) number.
Unlike others, this step is a quite complicated step, but you have the options. You will need to apply for a Department of Transportation (DOT) number from the Federal Motor Carrier Safety Administration.
You will need to provide information about your hot shot trucking business and your commercial driver’s license and insurance information. You will also need to pass a DOT physical and drug test.
You can also lease another company so that they can add a number to your truck. They lease your vehicle from you. This is the easiest way to go.
Otherwise, you need a DOT number to run your Hotshot trucking business.
Step #10: Get a DOT physical and medical card.
You will need to obtain a DOT physical and medical card to operate your hotshot trucking business.
You will need to have a physical examination by a certified medical examiner to obtain a DOT physical.
You will also need to have a medical card, which you can obtain from your state’s department of motor vehicles.
You can find a list of certified medical examiners here.
Step #11: Purchase or lease the right truck.
You will need to purchase or lease the right truck for your hotshot trucking business.
You will need to consider a few things when purchasing or leasing a truck, such as the type of truck, the size of the truck, and the features you will need. You will also need to consider the truck’s price and the monthly payments. Owning a truck is not having to pay monthly installments. It should be a one-time payment and keep you away from monthly installments. Most truckers initially lease the truck and then transfer it to the owner when they have a finance or stable business.
Step #12: Purchase the necessary equipment.
You will need to purchase the necessary equipment for your hotshot trucking business.
This includes things like tarps, chains, and binders. According to the DOT Regulations, you may also need to buy lights, flags, safety triangles, or fire extinguishers.
Step #13: Get the right level of insurance
You will need to get the right level of insurance for your hotshot trucking business.
You will need to consider a few things when purchasing insurance, such as the type of coverage, the amount of coverage, and the deductible. You will also need to consider the price of the insurance and the monthly payments. It would help if you had different kinds of insurance when you are in the Hotshot trucking business—Insurance to protect your LLC and vehicle insurance. An agent who provides you with the details can guide you in a better way.
Step #14: Prepare your Truck.
You will need to prepare your truck for your hotshot trucking business. This includes washing the truck, checking the fluids, and checking the tires.
You will also need to ensure that the truck is clean and organized. This will help you keep your truck in good condition and avoid problems when you are on the road.
Step #15: Set your Rate-Per-Mile (RPM).
You will need to set your rate-per-mile (RPM) for your hotshot trucking business. Your RPM will depend on a few factors, such as the type of truck, the size of the load, and the distance you will be traveling. You can use this calculator to help you set your RPM.
Step #16: Find Hot Shot Loads.
You will need to find hot shot loads for your hotshot trucking business.
There are a few places where you can find hot shot loads, such as load boards, classified ads, HorizonGO, and brokerages. You can also find loads by networking with other hotshot truckers.
Step #17: Use Invoice Factoring to Get Paid Faster.
You will need to use invoice factoring to get paid faster for your hotshot trucking business.
Factoring is when you sell your invoices to a factoring company at a discount to get the money you are owed immediately. This is a great way to get paid faster, as it can take 30-60 days to get paid by a shipper.
You will need to consider a few things when choosing a factoring company, such as the fees, the terms, and the advance rate. You can compare different factoring companies here.
How do you start a hotshot business? Begin by establishing your company’s financials. Ensure you have all the necessary documents when meeting with the IRS and your state. Prepare for DOT inspections by having your truck and trailer ready. Then get insurance and protection, so you can start hauling freight immediately. Use a hotshot load board to locate your first and every load, and you’ll be hitting the road in no time.