The trucking industry continues to prove to be one of the most profitable businesses in the country. Each year, more and more people are going into the industry. However, only a few of them survive. This is due to the fact that a lot of them fail to study and learn more about the nature of the business and industry.
That is why you need to know the basics of starting a trucking business before opening your doors. If you’re considering a start-up trucking business, and you need adequate financing to do so, now is the time to look at your funding options.
According to a recent report put out by the American Trucking Association, the trucking industry brings in$700 billion in revenue annually. Knowing how lucrative the business is, it’s no wonder a lot of people are investing their money in it. But, like many other businesses, it’s not an easy one to manage.
So, how do successful trucking companies do it? Here are some of the tips you need to know that will help you succeed in your trucking venture:
1. Have a Business Plan at the Ready
All businesses, the trucking industry included, always need a business plan to guide them in running their business. It’s the roadmap you’ll use in leading your business to success. If you’re a start-up company, this is extremely important as it will get you through the toughest first few years. Your business plan is what will turn your vision into reality.
In making a business plan, your short-term and long-term plans should be mapped out. Remember to keep your goals measurable, realistic, and attainable. Additionally, you should also include your marketing plans, products or services, and financial plans along with projections in your business plan.
2. Calculate Your Operating Costs
Knowing your operation costs is crucial to running a business. That being said, you have to find the right financial management strategies that will let you keep track of all your expenses. Insurance, equipment, fuel, office utility costs, rent, and other materials in your business should be accounted for. This way, you’ll have an idea of how much you should charge for your service without losing money or overcharging your clients.
3. Know the Rules of the Trucking Industry
If you want your trucking company to prosper long-time, you also have to abide by the rules of the industry. For instance, your truck must pass the CSA standard set by the government. This means that it should be properly maintained and operated by a qualified and trained driver. Failure to abide by the rules can result in penalties, or worse, business closure.
Moreover, your trucks should also have an Electronic Logging Device or ELD. This is primarily used to track the number of hours your truck driver or operator has worked each week. Trucking company owners must make sure their drivers comply with the rules when running their business.
4. Be Sure to Use the Right Fuel-Buying Strategy
Fuel is the largest overhead expense that every trucking company incurs. However, a lot of companies often take a wrong approach when buying fuel. They think they can save more if they buy fuel at a cheaper pump price. This couldn’t be any farther from the truth, and they could end up losing thousands of hard-earned dollars because of it.
Instead of looking at the pump price, trucking companies should look at the base price of fuel. You can get this by subtracting the tax from the fuel price. Whatever option is the cheapest should be your fuel of choice.
Other than that, trucking company owners should also consider applying to belong to a fuel card program. Since fuel purchase are a big part of their business, they will receive a lot of discounts and deals by applying for a membership.
5. Know What Financing Options are Available
Starting a business in the trucking industry is an expensive investment. Whether you’re starting with one truck or a large fleet, you need to have access to business loans that help you cover the start-up costs and day to day expenses.
The first few years may be challenging since your aim is to gain your investment back. You should even be prepared to successfully deal with cash flow issues that can sometimes incapacitate a business if not addressed immediately.
However, by talking with a qualified financial expert, you can become fully informed of the different financing options available for your company’s current needs. There are a number of trucking business loans available that can help you in the start-up phase of your trucking company.
Build Your Trucking Company Using Startup Trucking Business Loans
Starting a trucking company is not an easy feat. But with the right amount of knowledge of the industry and startup trucking business loans…
It’s easier than you think to successfully grasp the reins of your own trucking business. Simply follow the tips above and you will be well on your way to securing a bright future in the trucking industry.
Article Submitted By Community Writer