Common Mistakes New Authorities Make (And How to Avoid Them)
Starting a trucking business with a new MC authority is exciting, but the learning curve is steep. Many new carriers make preventable mistakes that cost them money, time, and sometimes their entire business. Learning from others' mistakes helps you avoid the same pitfalls.
Avoid Costly Mistakes
Our team guides new authorities through the challenges of getting started.
Mistake #1: Underestimating Operating Costs
The most common mistake new authorities make is not understanding their true operating costs. Many focus only on fuel and truck payments, missing dozens of other expenses.
Costs New Authorities Often Forget:
- Insurance – Often $1,500-$3,000+ monthly for new authorities
- Maintenance and repairs – Budget 5-10% of revenue
- Permits and licensing – IFTA, IRP, UCR, and state permits
- Factoring fees – 2-5% if using factoring services
- Tolls and scales – Add up quickly on certain routes
- Accounting and legal – Professional services cost money
How to avoid: Calculate your total cost per mile before accepting any load. Know your break-even point and never run loads below it.
Mistake #2: Accepting Every Load Offered
New authorities often feel desperate to keep moving. This desperation leads to accepting loads that lose money or strand them in bad locations.
How to avoid: Be selective. A load that pays below your operating cost loses money no matter how badly you want to stay busy. Waiting for the right load beats running at a loss.
Mistake #3: Poor Cash Flow Management
Trucking is a cash-intensive business. Waiting 30-45 days for payment while covering daily expenses catches many new authorities off guard.
How to avoid: Start with adequate cash reserves (3+ months of expenses). Consider factoring to accelerate cash flow. Budget conservatively and build reserves during good weeks.
Mistake #4: Neglecting Broker Relationships
Some new carriers treat every load as a one-time transaction. They miss the value of building ongoing relationships that lead to better opportunities.
How to avoid: Follow up after loads. Ask about other lanes. Be professional and reliable. Our dispatch services help carriers build these relationships faster through our established broker network.
Mistake #5: Ignoring Deadhead Miles
Empty miles cost money without generating revenue. New authorities often accept loads without considering the deadhead required to get there or find the next load.
How to avoid: Factor deadhead into every rate decision. Build lane expertise so you know where backhauls are available. Work with dispatchers who plan routes strategically.
Mistake #6: Skipping Broker Credit Checks
Not all brokers pay reliably. Hauling for a broker who doesn't pay means working for free—and new authorities can't afford that.
How to avoid: Check broker credit scores before accepting loads. Use load board tools that show broker ratings. Ask about payment terms before committing.
Mistake #7: Trying to Do Everything Alone
Many new authorities resist getting help, thinking they can figure everything out themselves. This often leads to expensive lessons learned the hard way.
How to avoid: Work with experienced professionals. Our new authority support program exists specifically because we know the challenges you face and how to navigate them.
Frequently Asked Questions
What's the biggest mistake new authorities make?
Underestimating costs and accepting loads that don't cover operating expenses. This leads to a slow financial death that many don't recognize until it's too late.
How much money should I have before starting?
Ideally, 3-6 months of operating expenses in reserve. This provides cushion during the startup phase when income is unpredictable and expenses are high.
Should I use a dispatch service as a new authority?
Many new authorities benefit significantly from dispatch services. Professional dispatchers help avoid common mistakes and accelerate the learning curve through their experience.
How long until most new authorities become profitable?
It varies widely. Some become profitable within months; others struggle for a year or more. Avoiding the mistakes in this article significantly improves your timeline.
Disclaimer: Results vary based on carrier experience, equipment, lanes, and market conditions. The information provided is for educational purposes and does not guarantee specific outcomes.
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