How To Start A Dispatch Company in 2023 [Step-by-Step Guide]

How To Start A Dispatch Company in 2022

You’ve come to the right place if you want to learn how to start a dispatch company but don’t know where to begin. The flexibility and independence of remote employment appeal to many of us. Less time is required commuting; you have greater control over your schedule when you work from home. Those who have the requisite drive and desire can flourish in this workplace, and they may even see an improvement in their quality of life. Even though starting a new business remotely might be difficult, it can also be rewarding. An untapped business option for entrepreneurs and remote workers to generate significant revenue is dispatching. It could be a terrific new job for you if you’re very organized and prepared to do lots of studies. Information about how to launch your own dispatching business in detail is discussed in this article. Since it is intended for total novices, the fundamentals in a straightforward manner are provided. This article starts by answering general inquiries like what a dispatching business is if it can be run from home, how much money you can expect to make from doing this, what the anticipated start-up costs are, and so on. After that, the procedures are given for establishing this firm, such as obtaining the necessary licenses, funding, marketing, and business entities. It is ended with a discussion of some information about the dispatching company so you can get a realistic idea of what it takes to launch this kind of company.

What Is A Dispatching Business?

A dispatching company controls freight, which could be a sole proprietorship operated by a single trucker or a larger corporation with a fleet of trucks, on behalf of a carrier. This company locates cargo for the carrier by employing load boards, relationships with shippers and brokers, and other techniques for securing loads. In the end, the truck dispatcher deploys drivers and plans routes after conducting negotiations for the load. It’s crucial to understand the distinction between freight brokers and truck dispatchers. While a freight broker operates as a go-between between shippers who need their cargo delivered and carriers who are willing to do so, a truck dispatcher only works on behalf of the carrier. A truck dispatcher may exclusively represent carriers, although freight brokers represent both parties.

Home-Based Dispatching Business

Dispatching is a business that may be conducted from home because the duties include finding cargoes on a computer, negotiating and calling with shippers, and managing different administrative tasks including setting up routes with drivers and recordkeeping. However, to do this, some essential tools, such as a phone, computer, and printer, are needed and a suitable area in your home to run the business.

What Do Truck Dispatchers Get Paid?

With a low end of $20,500 and a high end of $273,500, independent truck dispatchers earn an average of $66,012 per year. That’s a large range, and how much money you make will depend on several variables, including the rates you charge carriers, the number of carriers you represent, the number of loads you offer, and your marketing and other running costs. A portion of the money made from each cargo that the dispatcher locates for their clients is taken as payment. While some dispatchers might charge a fixed fee, the majority will ask for a percentage, which is normally between 5% and 10% for each load.

What Skills Are Needed To Work As A Dispatcher?

A wide range of abilities and knowledge is required for this area of employment. You must have strong time management abilities first. Along with managing your workload and schedule, you’ll also need to coordinate the schedule of the drivers you collaborate with to adhere to client deadlines or requests. Additionally, you’ll need to be well-versed in administration and well-organized. Because you will be working remotely, communication skills are especially essential for this position. You must be in contact with trucking firms, drivers, and customers. Since maintaining excellent communication with these groups remotely will probably offer some difficulties, you’ll need to be very proficient at doing so and managing any problems swiftly and responsibly. Let’s examine some of the duties a competent dispatcher will perform:

  • Trucking businesses will be provided with suitable freight loads by dispatchers. By coordinating with clients and haggling on pricing, they do this.
  • Schedules for truck drivers are handled by truck dispatchers. The job includes scheduling pick and drop times and handling schedule changes.
  • Additionally, dispatchers will probably be in charge of many different administrative duties. The management of payments, the processing of invoices, and the updating of records are a few examples.

What About Qualifications Or Legal Authorizations?

You must possess all the certifications and training necessary for qualified trucker dispatchers in the US if you want to work as a truck dispatcher. The dispatcher’s permit must often be obtained from your state’s education department. Additionally, the market is competitive and complicated, so having professional experience is probably very beneficial. Before launching your company right away, take a look at the truck dispatcher training programs offered by nearby organizations or firms. Additionally, several websites provide training or courses on dispatching vehicles from home. Independent truck dispatchers also need to be properly insured. If you use your drivers and trucks to carry freight, insurance is essential. However, if you operate as a contractual dispatcher for an outside trucking firm, you should also ensure that you have personal liability insurance. Last but not least, research the legislation governing dispatching permits in your state. Local governments oversee the sector, and many demand that dispatchers possess the necessary licenses and authorizations to conduct business in the state.

How To Launch A Dispatching Company?

In comparison to many other businesses, truck dispatching has inexpensive startup costs of $1,000 to $2,500. It is because this kind of business can be run from home using standard equipment. You will require specific tools and equipment to launch a truck dispatching service. These include a phone, printer, computer, office supplies, online TMS and load board subscriptions, and a variety of other items.

Computer – Depending on the model, you could spend anywhere from $300 to $1,000 on a decent computer. However, the majority of people will be able to ignore this expense.

Printer – A basic printer may be purchased for $150 to $300, though if you hunt around you may be able to find ones for less.

Telephone – If you do, you ought to have a unique business line. You may obtain one through Google Voice for roughly $10 per month.

Overall, you might anticipate paying about $500 for these expenses, while the extent and marketing can increase that sum.

Online Courses – If you decide to spend money on a dispatching course, your costs will go up a little. Several online programs I have found cost between $150 and $400, despite that I have found seminars for around $20.

Transportation Management Software – It is a crucial tool for maintaining order in your truck dispatching firm because it organizes all of your dispatch information. This kind of software often costs $100 to $200 each month.

Due to the lack of many of the features, Connect Team is supposed to be a less expensive alternative for truck dispatchers while still providing several solid solutions for managing your company effectively. Plans range in price from $30 to $100 as of this writing.

Office Essentials – These items include pens, staplers, paper, and so forth. You’re bringing up $20 in total.

Searching load boards is one of the finest ways to locate loads for your clients. Investing in a reputable load board subscription can help you identify the greatest and highest-paid loads. An entry-level subscription to a load board will cost you about $40 per month.

Steps To Start A Dispatch Company

After examining what this kind of employment is likely to entail, let’s examine how to launch a truck dispatching business. Here are some pointers and methods for successfully launching your business:

1. Get Trained

It’s always a good idea to have a thorough understanding of the business and its functions before you begin any significant endeavor. Firsthand experience is one of the finest ways to do this. Therefore, working for a freight broker or truck dispatching company may be a better way to gain experience as a truck dispatcher. The trends of the dispatch industry will be taught to you, along with how to use a load board, bargain for loads, plan effective routes, and more. Additionally, the process will pay you. Naturally, once you understand how it all functions, you’ll be able to go it alone. You can consider enrolling in a truck dispatching school if you don’t have the time or willingness to complete this preparation work. There are options available, and a quick Google search will provide you with several possibilities. A course will never, in my opinion, replace real-world experience, but it’s undoubtedly far preferable to going into business blind.

2. Obtain The Necessary Licenses

Although you won’t typically need a specialized or formal license to work as a truck dispatcher, if you plan to run a commercial firm, your state may demand that you obtain a standard business license. To be confident of what you’ll need, you should verify your state and local legislation. If you run a freight brokerage company, the situation is different. FMCSA (Federal Motor Carrier Safety Administration) must provide freight brokers that work in interstate commerce their broker authority; they must also adhere to other stringent regulations.

3. Set Up Dispatching Company 

  • Choose A Name And Logo For A Company

The first step in starting your truck dispatching company is choosing a name and logo. For help creating a logo, visit and search for some of their logo templates. Although it’s a free choice, you’ll have to make the logo templates fit your preferences. You can spend a little money and outsource this if you would rather have a more ready-made solution.

  • Create A Website

Don’t skip this action. Simply put, your company needs a website if you want web searchers to locate you. You don’t need to spend a lot of money or have a difficult time setting up your website. You may find a lot of resources to aid you with this. In reality, Google provides a free platform to create your initial business profile website.

  • Add A Listing For Your Dispatch Company

Getting your new company listed on Google is also crucial. This can be accomplished by adding it to Google My Business. It makes it possible for residents looking for a dispatching company to find you.

  • Create A Business Entity

For your dispatching company, you might wish to create a business entity. Most of the time, creating a business entity can assist in protecting some of your assets kept outside the business if the company is sued. You can employ a lawyer to help you if you want to invest in creating an LLC, corporation, or another business organization, or you can use the online tools available to you to create your company entity. Check out my comprehensive guide on starting a business for a table comparing the various business entities.

4. Open A Credit Card And Business Checking Account

The name of the dispatching company should be on a checking account you open. Ensure that account is used to process only business-related income and expenditures. If you own a formal legal body, such as a company or LLC, this is especially crucial because you don’t want to mix personal and corporate finances. Because if the business entity is thought to be a fraud because you did not treat it as a separate legal entity, you run the danger of losing the liability protection. While starting a new dispatching service, credit cards can be quite beneficial, especially if you need to expand or face unforeseen costs. First off, especially for young companies, they are more frequently common to apply for than lines of credit. Even if you don’t want to use the money, it is great to have it on hand in case you do. Second, it’s a great way to improve your company’s credit rating, which will be helpful if you ever need to apply for a loan to support a project like business expansion.

5. Purchase Requisite Hardware And Software

You will need to buy specific tools and subscriptions, as we described, and we went into great depth about what you’ll need. To ensure a successful launch, look for great deals and put everything up correctly.

6. Promote Your Enterprise

The success of your firm depends on a solid marketing strategy. If no one is aware of your business, you might as well close it as nobody will be purchasing anything from you. Online marketing is a must in today’s business. If you’re not sure where to begin, try these things:

  • Create a Google My Business profile so customers seeking your industry can discover you. If people appreciate your company, you need to encourage them to submit positive reviews for you there. There is a direct correlation between a company’s revenue and the number of online evaluations it receives.
  • Create a fantastic website that drives customers to your company. You can utilize the free Google website we discussed earlier, and if you want to get people to visit your website (and become customers), you might want to employ an online marketing specialist to help you optimize it for traffic and leads.
  • Join Yelp for business and make yourself discoverable to customers. They are a very well-known company, therefore many individuals turn to them while looking for nearby companies. To find out more, look at the list below.
  • You can purchase online ads from other websites and social media platforms in addition to Yelp (Facebook, etc.)

Word of mouth is an excellent strategy to generate business if you have contacts in the trucking industry. Ask individuals to recommend you by getting in touch with them. You can also perform how your rivals are marketing their goods or services and take note of what they are doing. In the end, you should try out several marketing techniques because you might be surprised by what is most effective.

7. Set Up Your Insurance

If things go wrong in your firm, as a dispatcher, you’ll want to be sufficiently secured against claims. Therefore, it is crucial to have the proper insurance for your company. A general business insurance coverage can make sense even if you won’t need the cargo insurance and the same liability your carriers must carry since you won’t be driving the trucks.


If you’re unsure about how to start a dispatch company, learn about the industry and the regulations. After that, you can choose whether to start a home business, lease an office, or work for a dispatch company. Here are the seven easy steps you can take to launch your truck dispatching company, along with some helpful advice on how to put each one into practice.

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