Even with the rise in fuel prices, the trucking business can prove to be extremely profitable if you get it right. Of course, anything that is profitable always tends to be competitive also, which is why we have seen an increasing amount of new trucking startups come into a fold; many of which fail.
To run a successful trucking business requires more than just an in-depth knowledge of how to drive efficiently and how to pick the right route. It requires you to have your business head screwed on tight and know what it takes to increase revenue. To help you with this, we have come up with some advice to point you in the right direction and help you successfully transition into a business owner.
- Equipment Is Crucial
This is one of those areas that separates the trucking business from other businesses; your equipment is the most expensive outlay you are likely to have. That’s not all either because you have to choose what equipment, whether you want to buy or lease and equipment that is going to help you save money and improve your brand. It isn’t just commercial trucks we are talking about, either. It is choosing a wheel washing system that will allow you to recycle water and a loading bay that won’t set you back a fortune. So work out what you need and then figure out what it brings to your business.
- Growing Your Customers
When you are first starting out, the best way to get new customers is to use a load board. However, it is imperative that you have a focus on making sales calls too. The reason for this is, well, load boards are competitive and that means your bids have to be low and that means your profits will be slim. So make sure you are trying to build a client list outside of load boards, clients that will be long-term partners and repeat customers. By doing this, you should easily double the amount you earn per truck.
- Know Your Costs
It is impossible to bid sensibly if you don’t know what your costs are. You could bid too high to be competitive or you could bid too low to make a profit. That is why you need to work out what your running costs are, such as fuel, maintenance, repairs, trailer hire and time costs. It can also be beneficial to take out commercial truck insurance to protect your business from any financial loss in case of an accident or theft related to trucks transporting goods. It is also worth considering the journey and destination. After all, a trip through a congested area will be a lot more effort than a rural delivery, so factor this into your costs too.
- Boss The Back Office
The more automated you can make your business processes the more efficient your business will run and that is what affects profits. Of course, if you are starting out with just one truck then your back office needs won’t be as demanding as having a small fleet. Either way, having a simple booking process, top notch inventory tracking tech, GPS tracking and accounting software all play an important part in how quickly you will grow as a business. The other major area to focus on is your employes. Getting them to love you has a huge impact on your success, while they will also play a big role in your marketing strategy. Anyway, as a general rule, the more automated your back office, the less time spent in your business and the more time on your business.
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