Just like with any other type of endeavor, starting a hotshot business involves careful planning and investment of your time, money and effort. You don’t want to waste them now, do you? Follow our step-by-step guide to start a hotshot business and you should be on the right track.
1. Understand the business
Many people are confused about the term hotshot or hot shot. It really means any flatbed trailer towed by a medium or heavy duty truck that delivers loads to local, regional or national locations. The tow vehicles are typically midsized-class 3, 4 or 5 trucks with four axles from RAM 3500.
As an owner-operator, the responsibility of running the business lies on your shoulders. While you can work at your own pace, being your own boss means more responsibilities including balancing your finances, maintaining your rig, and finding potential loads.
Before you get started, you need to understand that you may experience financial pressure especially at the onset of the business as you try to get funding to buy your rig and have extra funds for operational costs. If you do operate your business right, the end result will be rewarding.
Is Hotshot Trucking For You?
You can take time off when you want. You can travel places. These are the privileges that you’ll get if you have your hotshot business. However, it could also mean spending more time on the road or missing important family occasions in exchange for more income opportunities. While on the road, most hotshot drivers sleep, shower and eat at truck stops. If you can handle this kind of lifestyle, then you are ready to be a hotshot business owner-operator.
Demand
The US trucking industry has a positive outlook with an expected growth rate of 2.3% per year from 2019 to 2024, according the ATA Chief Economist Bob Costello. However, before starting your own hotshot trucking business, check first the load ratio or density for your area of operation as well as the rates. You would want to be in an area where the demand is at least 18 loads per truck to give you the best negotiating power in terms of rates.
Is Hotshot Trucking Profitable?
Rates per mile (rpm) vary with freight season. Peak season? You’re gonna love it! Save your vacation time during low season. On the average, rpm could be between $1.5 and $2.5. If you log 2,000 for a particular week, you could earn at least $3,000.
Before you can finally enjoy the fruits of your labor, you have to first take into account your operating costs and repayments. The most basic includes cost of fuel, insurance, food and accommodation during trips.
2. Prepare yourself financially.
Starting a hotshot business involves an enormous amount of initial investment as well as operating costs. These are the ballpark figures:
- Pickup truck: $15,000 – $45,000
- Flatbed trailer: $7,000 – $20,000, depending on the overall features
- Other equipment (chains, binders, tie-downs, bungees, straps, etc): Est. $1,000
- Registration (FMCSA, BOC-3, Unified Carrier Registration, Home State DOT, ELD, Others): Est. $1,000
- Insurance: $3,500 – $4,000 downpayment with monthly payment of about $1,000
- LLC (Optional): $400
Secure the requirements
Fleet
If you have a 3/4-ton pickup truck and a flatbed trailer, they are all that you need to get started. Of course, you need to invest in straps, tie-downs, chains and bungees which are essential to secure your loads. As you grow your business, you may find it necessary to purchase different types of hotshot trailers for more versatility on what you can load.
Pickup Truck
- At least 1 ton
- Dual
- At least 9,000 lbs rear axle
- Diesel engine
- Either gooseneck or 5th wheel hitch
Hotshot Trailer (Depends on what you will haul)
- Open with 3- and 4-car wedge-style vehicles
- Enclosed trailer for motorcycles and general cargo
- Flatbed for general cargo and other equipment
- Goosenecks or 5th wheel
When you purchase a truck and a trailer, consider your targeted niche as it will dictate the kind of loads you will haul. Below are common niches you can choose from:
- Medical industry
- Commercial industry
- Agricultural industry
- Manufacturing industry
- Spare parts
- Perishable cargo
- Lightweight cargo
- Heavy duty cargo
Licenses
You don’t need a CDL if your loads are under 10,00 lbs. However, it’s best to secure a CDL so you can also haul heavier loads. All hotshot drivers are also required to file an MC number or operating authority granted by the Federal Motor Carrier Safety Administration (FMCSA).
Other required legal documents include:
- Business License
- Vehicle Permits
- Vehicle for Service Permit
- Proof of Insurance
If you do everything on time, it would take about four weeks to secure an active authority. After registration with the FMCSA, you can expect about 3 days to be put on the register. There’s a 10-day protest period after that. If you filed your BOC3 and insurance sooner, it takes about 6 business days to be active.
4. Be ready to get your first load.
Having contacts with potential load providers will help keep your business going. You can also build your client base by signing up with hotshot load boards. Check online for load boards that fit the equipment you have, loads you want to haul, and locations you want to travel to.
If you plan to get most of your loads from load boards, it’s important to keep in mind that they pay differently. Some may pay you within days while others may have a waiting time of 30-60 days.
Additionally, it wouldn’t hurt if you ask for referrals from companies you already work with. You could also send emails to your targeted companies, advertise by creating a website, and improve your visibility through social media channels.
5. Keep your business running.
Don’t expect to profit immediately after you start your operations. It may take a while for you to recover your initial investment, but as long as you stay passionate with what you are doing, your business will keep on running.
The steps we listed above should give you a general overview on how to start a hotshot business. You may encounter many ups and downs but as long as you are serious about it and have done your own research before getting started, there’s a big chance that you’ll succeed in this industry.
Send me your services to my email please.
Hello sir I have been waiting since November to get started
Now I’m ready
My name i Wilbert Johnson
I have a 55 ft. Car hauling trailer also want do Frieght
Company name Tiffs Auto and Frieght Haulig and Services LLC
My dot# is 3547317
My Boc # is362338521
My MC # IS 1186692
INSURED AND BONDED WITH USAA/PROGRESSIVE INC.
I’m located in RVA area i am not a freight forwarding operation. 804 399 0556
Hello I have a 2015 Pete579 need to be move from one state to another..I would like to know if your company haul this kind of equipment… if so can you contact me or let me know of someone who do…Thank
Hello
Where’s it located? $900 to $1500 driven?
Hey I’m david perez 9109786854 I have f250 superduty 6.2
With 14 long dump trailer 4 foot tall 6 foot wide
I have a one ton Dually and I’m going to purchase a gooseneck trailer.
I have a 2500 diesel ! My truck had a lift cani still use it
Você é português ?
So I am getting loads from a plant, I have a truck that weighs 8800 pounds, if i add any weight to it say like 6,000 pounds would I then need a CDL and the correct tag would be what? You say in article if I am under 10,000 pounds no CDL is required, right? is that the GVWR or the combinations? My partners believe they can haul up to 26,001 pounds and not be considered to having a CDL under that.
If you get a X-3 tag do you have to get a CDL if it’s a pickup but may be pulling a bumper trailer or gooseneck?
Can a person make money if they hire a driver?
If you exceed 10,000lbs combined gvw then you fall under DOT regulations. Once you exceed 26,001 lbs you are required to have a CDL.
I have been a truck driver 18 wheel driver for 52 years I have seen Hot shots come and go. But I have seen lately their rates are much higher than what we are making out here as a 18 wheeler driver. I am very much interested in hanging up driving for a carrier pulling their loads and starting my own hot shot business.
Hello how can i get started in this industry? I have 20 year in trucking. Looking to get into the hot shot business.
You’re an Idiot.
In the small flatbed can I have a 1 car carrier trailer white pickup truck looking for work can you get back to me please I don’t have a website yet
I just get our mc#, DOT# WE HAVE a Dually and a 45 trailer we looking to do a lot of shot
I’m retired with a CDL and wants to hotshot part time , i’m in the process of buying an f350 will that be profitable? If so what’s the best route should I take to get started
Hi George. my company is looking for retired part time hot shot drivers for contract work with truck and trailer (desired, not required) to operate in and around the Yuma, AZ or Phoenix AZ area.
Darryl,
Im intrested is starting up a hotshot business. I have a 2021 2500 Cummings. Havent gotten a trailer yet. Im set up for goose neck and 5th wheel. Im in phoenix area.
I hold a CDL and yes this is true as long as you are not hauling anything over 26,001lbs. as a GVWR you are fine, this means a total weight truck and trailer.
i bought 2 trucks and want to start my own hotshot business. I need trailers and training. me and my partner are ready to train and hit the road. also need advise on a website builder company. call me monday at 601-606-7665
Hi, everyone. I am a website developer and I have made plenty of successful websites for trucking. If you need a website, please reach me out at s.hamidnoor2@gmail.com. I can help you out and provide my portfolio as well for the proof of work. Thank you.
I see you from Mississippi in not from there but I reside.Im trying to get in hotshot as well
I am looking for a job
I’m interested in starting my own hotshot business, I’m 21 I’ve done a couple for my boss as he’s took a couple jobs from a plant we was working at, if anybody has tips as to getting started and finding how to get the cargo to haul, I would have to start small and work my way up as I only have a 1/2 ton pickup to start with any advice and help would be great appreciated
Look for a reliable broker or hell can even find loads on some websites.
I am a dispatcher. Do several hotshots. I can be reached at 409-356-9478
Hey this Sgt. MACK USMc retired interested in getting in the hot shot business i live in Alabama just want to do short trips my number is 904 903 9454
Are there companies that will handle all the paper work required to run a Hot Shot trucking company? My friend has purchase a new diesel flat bed truck and new 40 ft flat bed trailer. He is waiting on one more permit due first week of August. He has everything else done to start hauling, but is not comfortable with all the paper work required. Any advise would be greatly appreciated.
My brother already owns a small trucking company and we have discussed adding to the business. I will be responsible for locating loads and delivering the loads. Is the some sort of software for a laptop that can link you up with all the hotshot loads or is that what a load broker does? Also would like a list of websites that have the list of loads to start reviewing what options , size of loads, distance of loads, etc. just one would website would be great? I have everything else just looking to get rollin!
Interested in this business.
I just retired and am looking to do something different.
Drove trk 20 yrs ago,stopped and never renewed CDL A license.
I have experience in running my own business. Would like to talk with someone with more info.
Thanks
Interested in doing this, is it possible to work for a company first and learn the ropes, than buy a setup latet
I want to do a hot shot I have a 2015 Chevrolet Duramax 2500HD and Im a CDL since 2006
I have ford f550 and goose neck trailer wanting to run hot shot loads.
I just get our mc#, DOT# WE HAVE a Dually and a 45 trailer we looking to do a lot of shot
Hello everyone,
I am a National Guard soldier and very interested in Hot shot business, but I want to work first as a driver, please reach out if you have a hotshot business and you are willing to train me, maybe take me up as an assistant for a couple of trips before I start driving for your business that will be a great deal. If you are that person, please contact me.
I’m a retired CDL trucker for 2 yrs. now. My wife and I have decided to get on the road but as hotshot. I am contemplating getting a small business loan for truck & trailer. We have a F150 4×4 right now and are wondering if there is work out there for 1/2 ton pickups in lue of trying to get loan for upgrade in equipment.
I own a 2019 Ford F350 Super duty, 8 ft bed, single axle and a $7500 20 ft open heavy duty trailer with ramps that fold up, Looking for a Broker to haul farm equipment and single vehicle, to start, can you help me ? I live in Santa Fe NM