You Can Run A Successful Trucking Company: Here’s How

If you’re a truck driver thinking of starting your own business, or if you just have an entrepreneurial spirit and want to start your own trucking company, you’ll want to proceed the right way. While there’s certainly much to be gained by having your own business, you’ll want to have the right info for starting a successful trucking company rather than a company that’s destined to be an expensive failure.

Make Sure You Have Quality Equipment

No matter how great of a business plan, name or location you have, you’ll need to have it all backed up with the right equipment as you learn how to run a trucking company. Once you’ve compiled a list of all the equipment your company will need, you’ve got to decide whether you’ll be better off renting it all or buying it outright. While buying equipment guarantees you’ll be the owner, you might prefer to lease equipment that’s bound to become obsolete in the next few years. There’s also the fact that you might not be in a financial position to buy what you need, especially if you hope to grow your trucking company as much and as soon as possible.

Identify Your Customer Base

After you’ve decided how to take care of your equipment needs, it’s time to turn your attention to finding customers to deliver to and work with. Load boards are most certainly a great place to start while getting your feet wet, but one of the main problems with these boards is that you’ll probably have to be the lowest bidder. There’s also the fact that you’ll find load boards are quite competitive, making it hard for a new business like yours to get a good foothold.

You’ll be better off splitting your time and focus between load boards and making sales calls to find customers on your own and start forging relationships and business connections that way. Once you’ve managed to prove yourself to customers through sales calls and solid customer service, you could find you no longer need to even think about looking at load boards.

Learn How to Bid and Handle Common Expenses

When it comes to biding, you’ve got to learn how to find the balance between offering customers a good deal and actually making money. This is likely to take some getting used to, so give yourself plenty of time when you’re first getting started.

To help strike an equilibrium, get to know your expenses. For instance, how much do common truck repairs cost? If there are any trucks that will soon need maintenance, how much do you think that will cost? What do fuel prices look like right now, and how might they change in the future? You might also have to charge more depending on where you deliver and how difficult it is to get to your final destination. Always have enough for unexpected emergencies, because there are bound to be more than a few when you least expect or want them.

Don’t Forget About the Back Office

What happens in the background of your business operation is just as vital as what’s going on in the foreground. If your trucking company has more than one employee, you might need office space to keep things running smoothly. If so, decide the size of office you’ll need to accommodate the size of your business, the office equipment you’ll require and what needs to take place in the office.

Should your business grow large enough, you may have to bring on additional employees, like a secretary. Be sure to account for this in your business plan as well as your expenses. In addition to paying a salary, you also have to think about taxes, benefits and the like. Even if you’re just getting started as a single owner-operator trucking company, it won’t hurt to do some research to see what you’ll be expected to handle should you decide to expand.

Anticipate Cash Flow Problems

Even when business is booming, there’s always a chance your business will bust in the future. Rather than wait for that to happen, go ahead and start planning for it now. Something else to consider is the fact that just because you deliver something today doesn’t mean you’ll get paid for it anytime soon; you might have to wait as many as 90 days to receive payment, which can throw your cash flow off track.

Look into freight factoring as a way to keep cash flowing in while still allowing your customers to pay in 40, 60 or more days. This gives everyone the best of both worlds without ruffling any feathers.

There’s a lot to being the owner of any kind of business, but there are special considerations to make when it comes to owning a truck company. Be sure to keep the above info in mind as you get started.

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