The trucking industry is involved in the distribution of goods around the world. The trucking business is the most widely used method of transporting goods, from manufacturer to retailer. In fact, according to statistics from the US Department of Labor, about 70% of everything you enjoy at home, school or work is transported by a truck.
A trucking business can start with a single truck or thousands of company-owned trucks. So how can you grow this type of business from a single truck to thousands of trucks that are used to transport all kinds of goods around the world?
Consequently, three things are necessary to run a successful trucking business: finding cargo, moving trucks from one location to another, and handling all the essential details for the first two requirements to be met successfully. These requirements sound easy but incredibly, even large companies fail because what appeared to be small details went wrong. What are the things to do if you want to grow your commercial trucking business?
1. If you want to grow your commercial trucking business, you must create a trucking business plan that defines the specific things you want to do about your business. This is important when you are starting a trucking business and much more if you want to expand your operations. If you already have one, consider updating your current business plan to accommodate the new business goals.
2. Consider the different financing options available to trucking companies. For any business to keep running, it requires continuous cash flow. Trucking companies actually require more money compared to other traditional companies. They need money for their drivers’ salaries, for fuel and repairs, and for many other operating expenses.
If you have limited funds, to make an advance purchase of additional trucks, some start-ups use leasing to own a truck. The downside to doing this is that control of the truck remains with the carrier where you rented the units. Trucks remain in the name of the carrier until you make your last payment.
Another financing option for larger companies is freight factoring. Typically, trucking company owners are challenged to wait two months before their transportation bills are paid. This is often the cause of limited cash flow from the business, which can lead to the business closing if no financing options are available. If the trucking company has a lot of accounts receivable, you can use freight bill factoring to get immediate money for your bills, like paying your drivers and fueling your units.
3. Finding loads to transport should also be your goal if you want to expand your business. This process can often be frustrating if you are relatively new to the industry. One way to find cargo is to check cargo boards on the Internet. This is an easy and efficient way to find transportation jobs, as you can strategize where you want to transport the transportation and return with another load on the trailer. Finding freight forwarders is a more traditional approach to finding freight. These brokers have many connections in the transportation industry that can help you get your business moving.
Expanding your trucking business requires careful planning, a lot of money, and a lot of cargo to haul. With these tips as a guide, you can start expanding your business and increasing the number of trucks from one to over a thousand.