December 6, 2022
Want to get into the trucking business? That’s a profitable niche you’ve picked for yourself. It is also considered the “backbone of the supply chain.” Yet are you prepared to sign up for the speedbumps (both figurative and literal)?
As we head into the new age of technology, it is becoming much easier to set up and launch a business or to come up with exciting new ventures. As a result, quite a lot of people are getting into the trucking business each year. That results in tough competition.
Luckily for you, this competition isn’t hard to beat if you invest in some handy tips that you follow religiously!
Decide which market segment you want to target. There are a lot of trucking segments you can choose from which include, but are not limited to, food trucking, refrigerated trucking, dry vans, flatbed truckers, dump trucks, livestock, and much more.
What is your preferred target audience? What type of trucking business have you always wanted to set up? Since you would have limited resources in the beginning, it is wise to pick a niche and stick to it.
Once you get stronger financially as well as through your market appeal, you can consider diversifying and spreading your wings as a business.
The way you appear to the outside world, especially your target audience, makes a lot of difference. Your conversions are ultimately driven by your online presence as that is the biggest, most important point of interaction you have with your customers.
Invest in your marketing. This doesn’t just mean posting daily or keeping up to date with what your audience is talking about (although that is important too). It means taking your time with the initial things such as the logo design, the brand colours, the website, and all the messaging you link to your brand. Your voice must be unique and it must leave a lasting impression.
The rate you charge per mile also matters. As an owner, you must know the exact rate you must charge your clients to haul a load. This rate should not be too expensive for clients but should also be high enough for you to make a profit and cover all your costs.
These rates must be pre-decided. They should be determined before you call shippers and make your sales. However, you must also know what other shippers are charging just to ensure your prices are competitive.
What are your operating costs? These are the costs you must consider as they determine whether you will make a profit or not.
Start by determining your fixed costs. These stay the same regardless of how many miles you drive. A prime example would be owner-operator insurance, permit costs, etc.
You should also consider your variable costs which would vary depending on the miles you drive. Fuel, for example, would be a variable cost. Maintenance could also be a variable cost (at least part of it) as the older your vehicles get, the more you would need to pay.
The cash flow is the backbone of your business. It decides whether your business is in it for the long run or if it is destined for failure. All your smart ideas are fueled by your existing cash flow, so you must ensure it remains positive.
Clients usually take a couple of months to clear their payments. Despite getting customers, you may not have enough money to get by if you don’t keep track of your cash flow. In the initial years, have a solid strategy for fuel expenditure. For example, at some pumps that supply cheaper fuel than others, the tax added to the final price might make the overall price a lot higher than the alternatives. Keep an eye out for that!
Try to keep enough cash in hand to meet the daily expenses. If you are a startup, explore different kinds of funding opportunities to ensure you always stay afloat when it comes to your cash flow.
A successful heavy-duty truck business isn’t made overnight. It requires years of hard work and money invested. However, the handy tips above might just keep you afloat. The rest depends on the amount of capital you bring to the business as well as the revenue you generate.
Whatever you do, make sure your trucks are well-maintained. You don’t want to be making profits all year round and then wasting them away on expensive repairs caused by cheap parts that could have easily been avoided.
Point Spring offers service as well as top-quality parts that are unmatched by any other in the region. If you are looking for a go-to service provider for truck maintenance or looking for parts that you cannot find elsewhere, Point Spring should be your number-one choice.
