Getting into the Truck Business
Being a great trucker and running a truck business does not fall into the same league of success, because truckers may be good in driving and charting routes but may not necessarily be good businessmen. If you’re a trucker and you also want to start a business on trucking, here are some helpful tips to put you into the right direction.
By investing on the right trucking equipment, even if this is an expensive investment, is putting you into the right direction in starting this kind of business. The next step is to decide if you want to buy or lease the equipment. If your decision is to buy the equipment, allocate an amount for the down payment and the rest of the balance can be paid through a loan. If putting up a down payment to buy the equipment is a financial constraint, then the next option is to lease the equipment. Choose the best options when it comes to renting the equipment and allow the leasing company to offer you payment structures, whether it be structured according to your financial capacity to pay for a longer period or whether it be structured such that you will be owning the equipment after your last payment. Consulting with a professional accountant will help you in your decision-making when it comes to investing on the right equipment.
Once you have ironed out your dilemma on getting the right equipment, the next big step is how to get the right customers. There is an existing online matching system called a load board, which allows shippers and freight brokers to post loads, as well as also allowing truck operators to post their equipment, and through this, you are able to get your first customers. Load boards are jump off points to get started in the business, but the best way to get customers on a long-term basis is to build your customer list by making sales calls, visiting shippers and freight brokers.
Practical and Helpful Tips: Transports
Bid well, so that you’ll be attracting customers and be sure that the price is low enough to earn a profit and remain competitive. So you can determine what would be the right price to bid, know your expenses – maintenance, truck repairs, truck and trailer payments, fuel and labor cost, and by doing so you can compute what would be your profit margin, enough to give a low bid.
The Key Elements of Great Trucks
Operate your trucking business with a well-thought-out back office, especially if you’re running a fleet of trucks. To have your business run on efficiency, your back office should have trained personnel who can do functions, such as settlements, clearances, record maintenance, regulatory compliance, accounting and IT services.
In most cases in running the business, shippers or other customers may pay you on net-40 or net-60 day terms, which means that you will have to wait for two months to be paid on a load that you have already delivered and this will create a low cash flow for your business. In case you have a cash flow problem, why not try sourcing on the freight factoring services, which is a financing company that provides funds to pay for freight bills, drivers’ salary, fuel and repairs and by doing so, you can able to take on new loads.