Getting into business may always seem like a mammoth task. This may not always be true. There are so many people who want to trade, and with markets becoming more open and the customer getting more demanding, the world needs more businesses to enter the fray.
Opening your trucking company is easy only if you know what to do. This is exactly what we are about to tell you in this article.
Here are six great steps that can help you open that successful trucking company.
1. Set Your Rates Reasonably
Set your per-mile rates reasonably. The first step to achieving this is making sure you know how much brokers are offering to their customers. All you need to do is pretend to be one and call them up for rates. Remember, customers will always look for the cheapest prices. The trick to competing with brokers and other independents will almost always hinge on who offers the best price — unless you specialize in niche areas of the industry such as hauling dangerous or extremely valuable cargo.
2. Buy Fuel the Right Way
Many people make the common mistake of looking for the cheapest fuel prices. This may seem like a good thing to do, but only if you know how to do it the correct way. Fuel prices vary because of tax, and in the US every single state has its own tax. So, you will be paying more as you pass from one to the next. The trick is to look for the fuel with the lowest base price.
3. Sign Contracts with Shippers
Sign contracts directly with shippers. Brokers will charge their own fee before signing your service over to their customers. Instead, you could give them some serious competition by selling your product to customers directly – saving money for them, and saving you paying out a commission.
4. Hire Great Employees
Your employees will be the ones who either build or break your company and its reputation. Maintain a small, but energetic and enthusiastic team who knows why they are there. With this sorted, you will also need some nice machines to serve your commercial needs. Having a good fleet can be crucial, so we’ve identified some great options for you on here.
5. Consider an Office and Dispatchers
An actual office is necessary for any trucking company. If your company is small, you could just run your paperwork from the cab of the truck. Doing this would require nothing more than a laptop and some stationary. Otherwise, you need someone to handle dispatch. Signing up with a dispatcher is an important gamble because a good one may contribute to the growth of your company, while a bad choice will damage it.
6. You’ll Need Steady Cash Flow
Every business needs more than a little bit of cash to run smoothly. For small purchases and for items that you must pay for first, before you get the bill to your customer, a decent amount of cash should always be at your disposal. Loans are not recommended, but it would be great if you got hold of a credit-based money lending systems that take a small share of your future profits in exchange for money when you need it.
A trucking company needs a lot of attention, especially toward the well being of your entire fleet, and ensuring that those in charge of it can do their best to save your most precious assets from damage. With a good business plan and dedication, you’ll be just fine.
It takes both time and patience for a business to establish itself in the market. So, don’t panic if you find that you’re not noticed within the first month or year of opening shop. With time and good marketing skills, you’ll soon be the preferred trucking service in your community, and that’s when you can watch your profits soar.