Business
How to Successfully Overcome Obstacles in the Trucking Industry
Starting a trucking business can be very challenging, but it’s not impossible. If you’re willing to put in the time and effort, it can be extremely profitable for those who do it well. There are several key secrets to successfully overcoming the challenges of running a trucking business. These include:
Know Your Business
A trucking business needs to have a robust cash flow. The company must pay fuel, insurance truck payments, and other expenses before earning a profit. It would help if you had a clear plan to attract customers to avoid running out of money. It may include finding freight brokers or shippers and building a solid customer list. It may also mean hiring experienced dispatchers or support staff. It should also involve understanding tax regulations and compliance protocols.
Know Your Technology
Getting the best trucking business solutions is crucial to succeed in this competitive industry. User-friendly telematics solutions enable you to track and manage your mobile assets, monitor driver performance and ensure compliance. They also let you file fuel taxes effortlessly, eliminating fines and audit risks. A good ELD device is essential for trucking companies as it helps to streamline workflows, automate daily procedures, eliminate miscommunications and delays, improve compliance and standardize operational communication. Moreover, it lets you make informed decisions and improve productivity.
Know Your Customers
A solid business plan helps you identify your ideal customers and market. It enables you to modify your marketing plan to suit their preferences. In the trucking industry, addressing customer pain points is essential to keeping your fleet busy. For example, posting blogs about trucking rate increases or capacity constraints is a great way to attract new business. You can also use these posts to highlight your services and differentiate yourself from competitors. Also, select dispatchers and brokers meticulously, as they can make or break your business.
Know Your Drivers
If you have a good relationship with your truck drivers, it’ll be easy for you to get the job done. It’s important to understand what your drivers seek in a career and what they need from their employers. It’s also essential to have a robust fleet management process that provides drivers with the information they need. It includes compliance & safety protocols, a structured onboarding experience with read-and-sign forms, and more. This way, you can keep track of all the expenses your business incurs on the road.
Know Your Finances
Getting customers and making money is important for any business. But without the right financial backing, your trucking company could be in trouble. Keeping up with time-sensitive filings is crucial for this industry. It includes IFTA quarterly tax returns, insurance renewals, and registration fees. Having adequate cash flow to pay employees and cover operating expenses is also essential. One way to do this is by factoring companies advancing working capital for trucking businesses. It can give you the flexibility to grow your business.
Know Your Insurance
Dispatchers and brokers typically handle the back office of a trucking company. They connect freight companies with transportation companies and manage a load board to meet the unique business needs of both parties. Whether you form your trucking company as a corporation or an LLC, you must get a USDOT number and Motor Carrier operating authority (MC number). Then, there’s insurance coverage, equipment purchases or leases, and other required filings and registrations. It can be a lengthy process, so plan.
Know Your Market
It’s important to know your market when starting a trucking business. It will help you create a clear business plan and set specific goals for your company. It also helps to understand your industry’s landscape. You can do this by doing a little research on your chosen market. It will give you a bird’s-eye view of the current market landscape, such as how big it is and what opportunities there are for new players. It’s also important to have the right support systems in place. These could be as simple as a load board that makes booking loads quick, a fuel card that saves you thousands on gas costs, or freight factoring services that streamline your back-office tasks.
Know Yourself
Trucking isn’t for everyone, but if you are ready to work hard and learn the lessons of the industry, you can be successful. These eight steps can point you in the right direction. The most important thing is to stay focused on your business and remember that this is a journey for the long haul. So keep your eye on the prize and work to make your business successful!
Harper Harrison is a reporter for The Hear UP. Harper got an internship at the NPR and worked as a reporter and producer. harper has also worked as a reporter for the Medium. Harper covers health and science for The Hear UP.
