How to Launch a Trucking Company
The trucking business may be profitable, not because it’s a simple operation of knowing how to drive a truck, but it takes management skills and know how on how to run a trucking company, and knowing how competitive the trucking industry can be, following these strategies will help launch the business on the right track.
Start with proper training and requirements
Look for a training provider that can effectively afford proper training skills to your hired drivers in multiple disciplines, that are related to truck driving, and choose carefully which of these training providers have a package deal that includes training, licensing and insurance for the drivers.
Acquire the necessary equipment
Get advice on where and what to buy or lease the best equipment for your trucking business, such as a well-maintained fleet of trucks and accessory, either brand new or second-hand but has warranty, and work this over to a financing company, that can help you provide the money to purchase or to lease the equipment.
The tricky part in the trucking business is how to outbid your competitors with the right pricing without sacrificing your profits and operational costs; that’s why learn the ropes, seek good advice, study the market well, and know the accounting procedures so you can come up with the proper pricing bid, such that you’ll have continuous job requests, as well as substantial remuneration to pay your drivers and staff.
Build up good credit reputation
Your initial investment in putting up a trucking business can be a costly one, and unless you have enough money to sustain the first few years of your business operations, sooner or later you will be confronted with low cash flow; therefore, establish a line of business credit and other such measures of credit supply and manage your payments well to your creditors, so this should help you tie up for the starting years in the business.
Stick to the best customers
Usually, for a newly-opened trucking business, the first start-up customers are those from a load board of shipping companies, but this should not be overly relied on, as load boards are extremely competitive and bidding is difficult because you are forced to bid on rock bottom prices, which leave room for little profit; therefore, load boards should be short-termed service and start establishing for long-term customers by advertising your business, make sales calls and build your customer list and make good on your service and commitment. To be able to gain repeat business orders, your company must be fully oriented on being on time for delivery, so strict scheduling practices must be adhered to; responsive to customers’ requests; knowledgeable on the kinds of treatment for the kinds of goods to be delivered; and friendly to customers, by educating your employees on proper customer service.
Cited reference: The Key Elements of Great Services