How To Start a Haulage Company With Just One Lorry

If you’ve always wanted to be your own boss and have a passion for transport, starting a haulage company could be the right move for you. Running your own business allows you to decide what loads to haul, which clients to work with, and how often to work — but it also means your income is no longer a guaranteed salary. Your success will depend on your determination, business skills, and ability to manage costs effectively.

If your goal is to start a haulage company with just one lorry, this guide walks you through nine key steps to set up for success.

Why start your own haulage business?

Owner-drivers typically earn significantly more than employed HGV drivers. However, once fuel, insurance, maintenance, and other operating costs are deducted, profitability depends on how well you manage your cash flow. For experienced drivers with a strong work ethic and business mindset, starting a haulage firm brings clear advantages:

• Independence and flexibility: You decide your working hours and which loads to take.
• Growth potential: Expand by adding more vehicles and drivers.
• Career progression: Transition from driving yourself to managing a fleet and focusing on business growth.

With planning and focus, learning how to start a haulage business is achievable. Here are the nine steps to follow:

Get experience

If you don’t already hold the right qualifications, the first step is to gain experience. You’ll need an HGV (Heavy Goods Vehicle) licence — Category C or C+E, depending on the vehicle. Many owner-drivers begin their careers as employed drivers, learning the industry, regulations, and best practices before striking out on their own. Practical experience on UK and European roads is invaluable.

Choose a business structure

Register your company in a way that suits your needs. In the UK, the most common structures are:

• Sole trader: Simple to set up but leaves you personally liable.
• Limited company (Ltd): Offers liability protection and potential tax efficiencies.
• Partnership: If you’re starting with someone else.

Many haulage businesses operate as limited companies for liability protection. You’ll need to register with Companies House, appoint a director, and obtain a Unique Taxpayer Reference (UTR) from HMRC.

Pick a business name

Your business name should be unique, memorable, and relevant to transportation. Check availability with Companies House and make sure the domain name is free for your website. A strong, professional name helps you stand out in a competitive market.

Register your business and obtain licences

The haulage industry in the UK is tightly regulated. Before you can operate, you’ll need:

• Operator’s Licence (O-Licence): required to operate lorries over 3.5 tonnes. Issued by the Traffic Commissioner.
• Goods Vehicle Licence: for running HGVs.
• Driver CPC (Certificate of Professional Competence): ensures professional standards.
• Tachograph and Working Time Directive compliance.
• Vehicle Excise Duty (VED): annual road tax for HGVs.
• Insurance: including motor, goods in transit, and public liability cover.
• ADR certification (if carrying hazardous goods).

Depending on your operation, you may also need permits for international work under the International Road Haulage Permits system or the ECMT permit scheme.

Create a business plan

A detailed business plan is crucial. It should include:

• Executive summary
• Company overview
• Market and industry analysis
• Target customer base
• Competitive analysis
• Marketing and sales strategy
• Operations and compliance plan
• Financial forecasts

Financial planning is especially important in haulage, where operating costs are high. Budget for lorry purchase or leasing, fuel, insurance, maintenance, and tolls. Plan your cash flow carefully — late payments are common in UK logistics, and poor working capital management is a leading cause of failure in small transport firms.

Secure startup funding

Launching a haulage company requires significant capital. New lorries can cost upwards of £100,000, while leasing a used vehicle may still exceed £2,000 per month. Funding options include:

• Bank loans and asset finance: traditional but often require a strong credit profile.
• Government schemes: such as the British Business Bank’s Start Up Loans programme.
• Invoice finance: Sell your unpaid invoices to release cash immediately. This is particularly useful in haulage, where 30-90 day payment terms are common. The Funder manages collections to offload this administrative burden and allow you to focus on running your business.
• Invoice discounting: Similar to invoice finance, but without collection services included. This keeps transaction fees lower and allows the haulage company to establish direct communications and foster healthy relationships with customers.
• : where the lorry itself secures the loan.

Banks typically regard the haulage industry as volatile, and therefore avoid financing startups in this sector. Instead, specialty financing options, such as invoice finance, invoice discounting, and ABL are widely used by UK hauliers to maintain steady cash flow, cover fuel and wage costs, and reinvest in growth.

Stay compliant

The transport sector is heavily monitored. Ensure you meet all ongoing obligations, such as:

• O-Licence undertakings and record-keeping.
• Vehicle safety inspections and maintenance schedules.
• CPC renewals.
• Tachograph reporting.
• HMRC VAT returns and tax filings.

Non-compliance risks fines, lost contracts, or even losing your licence.

Set up fleet and cost management

Even with just one lorry, managing fuel, maintenance, and compliance efficiently is vital. Invest in fleet management software to track vehicle health, fuel use, and expenses. Fuel card programmes can help with discounts, security, and reporting. Over time, these tools will save money and keep your business competitive.

Build your customer base

Finally, focus on growth. Diversify your client list so no single customer accounts for more than 20% of your income. Build relationships through:

• Load boards
• Freight forwarders and brokers
• Networking events and industry associations (e.g. RHA, Logistics UK)
• Referrals and partnerships with other carriers
• Online advertising and social media presence

Above all, prioritise customer service. Use transport management systems (TMS) to give clients visibility of shipments, monitor on-time deliveries, and build a reputation for reliability. That’s how you grow from one lorry to a successful fleet.

Conclusion

Starting a haulage business in the UK with one lorry requires planning, compliance, and strong financial management. With determination and the right funding support, you can grow from a single operator into a thriving fleet.

Contact us today to discover how our flexible funding solutions help UK hauliers secure steady cash flow, manage costs, and grow their businesses with confidence.

Key Takeaways

• Starting a haulage business in the UK with one lorry requires planning, compliance, and strong financial management.
• With determination and the right funding support, you can grow from a single operator into a thriving fleet.
• This guide walks you through nine key steps to start a haulage company and set yourself up for success with just one lorry.