The trucking industry is involved in the distribution of goods worldwide. The trucking business is the most common method used in the transportation of goods, from the manufacturer to the retailer. In fact, according to statistics of US Labor Department, about 70% of everything that you enjoy in your home, school, or job is hauled by a truck.
A trucking business can start with just one truck to thousands of trucks owned by one company. How, then, does one grow this kind of business from a single truck to thousands of trucks used to transport all kinds of goods throughout the world?
Accordingly, three things are necessary in running a successful trucking company: finding freight, moving trucks from one location to another, and handling all the nitty-gritty details so that the first two requirements occur successfully. These requirements sound easy but unbelievably, even big companies fail because the what-seemed-to-be-little-details went wrong. What are the things that you need to do if you want to grow your commercial trucking company?
1. If you want to grow your commercial trucking business, you have to create a trucking business plan that defines the specific things that you want to undertake 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 company’s new goals.
2. Consider different financing options available to trucking companies. For any business to keep running, continuous cash flow is required. Trucking companies actually require more money compared with other traditional businesses. They need money for the salary of their drivers, for fuel and repairs, and for many other operating expenses.
If you have limited funding, to make an upfront purchase of additional trucks, some start-up companies resort to leasing to own a truck. The disadvantage of doing this is that the control of the truck remains with the carrier where you leased the units. The trucks remain under the name of the carrier until you made your last payment.
Another financing option that bigger companies opt is the freight bill factoring. Normally, trucking company owners are faced with the challenge of waiting for two months before they are paid for their freight bills. This is often the cause of the company’s limited cash flow, which can cause the business to close down if no financing options are available. If the trucking company has plenty of receivables, you can use freight bill factoring so that you get immediate money for your bills suck as paying your drivers and fueling your units.
3. Find loads to haul should also be your goal if you want to expand your business. This process can oftentimes be frustrating if you are relatively new to the industry. One way to find freight is by checking freight boards on the Internet. This is an easy and efficient way to find hauling jobs since you can strategize where you want to carry the haul and come back with another freight in the trailer. Finding freight brokers is a more traditional approach to search for freight. These brokers have many connections throughout the transportation industry that can help you get your business moving.
Expanding your trucking business takes careful planning, a lot of money, and plenty of freight to haul. With these tips as a guide, you can start your business expansion and grow your number of trucks from one to more than a thousand.