Trucking business is not meant for the faint-hearted. Entrepreneurs in the trucking industry constantly face barraging challenges and tough decisions. Yet the trucking sector presents the opportunities for high yielding businesses even for small operators.
It’s no secret that the market for trucking and work trucks is booming with every passing year. And trust us, if you get the fundamentals right there’s lots of money to be made in the industry.
Of course, you need to crack some nuts before you hit the jackpot!
Are you wondering how that’s going to happen? Follow our strategies, and you are sure to achieve the milestones one-at-a-time for your trucking start-up!
1. Keep it legit
Many people looking to enter the trucking industry are unaware of the fact that it is highly regulated. The Federal Motor Carrier Safety Administration (FMCSA) is the US government authority that governs issuing Motor Carrier and USDOT numbers to trucking companies.
You need to comply with the applicable laws for maintaining the legitimacy of your business.
2. Identify the target market
One of the top strategies from leading business owners in the sector to budding entrepreneurs is to focus on a target market. It is a wise decision to plan and develop your business capacity and services that are dedicated to a niche market. With this approach you can ensure that your operations are cohesive.
Your trucks, equipment and services can be tailored to the specific needs of your clients, earning you a reputation in gold.
3. Financing your fleet
Even small-scale startups require heavy funds owing to the buying cost of trucks. Many financing options are available through banks and financial institutions; provided you are eligible for the big-buck loan, and can adhere to their formalities. You can also consider structured lease – purchase financing options as well. Or you could explore the fast-paced and ever-growing digital market space for offers on used commercial vehicles and construction machinery.
4. Befriend technology
Technology is omnipresent and omnipotent. That’s a universal truth that all startups, especially the ones in the trucking sector need to realize.
Technology will soon dominate the service aspect of your business. Offering services like transportation management systems, freight matching and shipment tracking technologies to the client can be the kick starter to your profit earning goals. If big technology is not on your plate yet, you can always start small with basics like GPS and basic tracking systems.
5. Top the competition
In order to top the stiff competition from other truckers and brokers, your company should quote the most competitive freight charges with a reasonable margin. It is advisable to connect directly with consigners instead of booking them through load boards and brokers. This way you will be able pass on the benefit to clients through reduction in prices.
6. Building a back-end support
You need a dedicated back-office to be the home for your business paper-work and filing. If not a lavish space, you would at least need a laptop with internet and a printer. And some basic book-keeping software is also a must. If the back-end job is too much for you to handle alongside your business operations, you may consider outsourcing or automated solutions.
7. Keep count of business costs
The hard truth about trucking business is that you need hard cash. Fuel expenses, insurance premiums and other miscellaneous spending can altogether ambush you if you do not stay at the top of your cash-flows. Learn about freight factoring companies which allow advances for fuel payments and other services.
8. Building relations
A successful business is built on the foundation of long-lasting customer relations. Great pricing and services are just the tip of the iceberg. You can gain customer trust by ensuring that you factor in client feedback and constantly meet their expectations. Taking cues and suggestions from third-party associates and staff can also make a huge difference.