2. When Buying A Trucking Company, Check The Size Of The Company… Is It A Small Or Large Trucking Company?
Is it a large or small trucking company? We have all heard the joke about size, does it matter? The honest answer is both: yes and no. Actually, depending on who you talk to the answer is not that simple. When buying a trucking company you need to consider what you are actually able to handle. After all there is a lot to consider. The established company has some things going for it and will be far more convenient than starting a trucking business from scratch.
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Some of these considerations are the actual physical buildings, lots, service areas, warehouse, and/or anything else that was included when you’re buying a trucking company. There might also be an entire fleet of trucks and trailers at your disposal. Plus staff, everyone from drivers, dispatchers, human resources, administration, sales, janitorial, maintenance, and more. You might even have a full inventory of bulk supplies such as tires, mirrors, truck mattresses, or another important parts of truck equipment.
But with all of this comes a few considerations. First are you financially prepared to shell out money to cover all that expense right from the get goes? Are you really prepared to have an operation that big? Perhaps you are and perhaps you are not. If you don’t have a large bag of cash then you might want to start a bit more realistic.
So as you can see, size really does matter. Know what your capabilities are before you consider buying a trucking company. This can mean both what you are physically able to do and what you financially can afford. It goes back to research; you must know your expenses (operational, stuff and drivers salaries, truck insurances, etc.).
3. When Buying A Trucking Company, Analyze Trucking Company’s Safety Rating…
This is another one of those things people don’t understand its importance. A safety rating can make or break a company. If they already have a bad rating you better understand why. Was it something to do with the overall operation and the way it was run or was it something else.
If there was an incident that really was any one’s fault, basically beyond the realm of control, you might be able to work past that. But if it was something within the company itself you need to know that upfront. You better also have a plan of how to correct that immediately. The safety rating will stick with that business (even if you change the name) until there is a significant change to earn a better rating.
One of the first things to do is check your drivers, not only employees but owner operators, and anyone who drives for the business. Because for as long they drive for you, they represent the company and thus your safety rating will be a direct reflection of the drivers.
You will need to get legal advice and support to make every effort to get the safety rating adjusted before you consider buying a trucking company with a bad safety rating. This must be addressed well before you take possession of the business. Often customers and freight brokers won’t work with you until it is fixed. People tend to have a long memory when it comes to negative things, and they will associate your company with it, even if you were not the owner then.
Source: : www.aimgroupcanada.com
4. When Buying A Trucking Company, Check Different States Regarding The Various Companies…
(There Are A Lot Of Trucking Companies For Sale In Texas)
Well, this can be a bit difficult for some. Because the logical thing to do when buying a trucking company is purchase one within a reasonable commute of where you reside. But sometimes this might not be an option, or at least not a realistic one. It would depend on what’s available, how much money you have, and the saturation of trucking companies currently operating in your area.
Of course, there are other options if you have the means to purchase out of state. You can check with real estate agents, business brokers, trucking forums and associations in the state you wish to operate in. Now, some are more open to investors than others but at least you’ll have an option when buying a trucking company.
Now, keep in mind there are several considerations, as with everything in life. But when you are considering buying a trucking company you need to know which field of expertise you which to operate in. For example, if you wish you have a fleet of fuel trucks they might not do you as much good in the farm belt as they would in shale oil fields. So know you target demographic and set up your fleet’s location accordingly.
Source: : www.lkshields.ie
Other considerations are cost. Joplin Missouri won’t be as expensive as St. Louis Missouri. But it goes deeper than just general cost. Taxes are a key consideration as well. The tax rate is another thing to consider when buying a trucking company. Taxes vary from location to location. So not only will state taxes be lower in Kansas than in California but local taxes will vary as well (upstate New York won’t have as high of a rate as New York City).
When it comes to buying a trucking company, one place I will mention for sure is Texas. This state is one of the few with good established trucking companies but unfortunately at the same time it is also the one state where trucking businesses close on a daily bases.
So, if you are looking to buy a trucking business no meter where in our great country then buying a trucking company in Texas will be the right choice for you!
5. When Buying A Trucking Company, Check The Trucking Company’s Overall Assets…
If there was ever a word that makes owners and accountants alike cringe it is this one, but for entirely different reasons. Assets what is it? People often use that word without really understanding its full meaning. I don’t claim to be an English scholar (far from it), but I do know you need to be well aware of the business’s overall value when buying a trucking company. You need to know everything that is included in the sale/purchase.
So then, what is actually meant by assets and its overall value? Just that, when you figure everything out, bundle it all together and add it together, what is included and what is it worth? What is the actual net worth of the whole business? Net worth simply is the combined total assets, excluding exterior liabilities of the company. Gross is the total worth before taxes and such expense have been deducted.
Assets on the other hand can be any one or combinations of many different categories. But should fall under one of these three categories: intellectual property, intangible, and tangible. Some of the basics include actual cash, the physical property/buildings, equipment, trucks and trailers, even patents and logos.
When buying a trucking company you need to know all of these things and make sure they are actually listed in all the legal documents. For example if you were to buy a well-known trucking company but failed to include the logo (on the assumption it was included), you might be opening yourself to lawsuits or be forced to pay royalties to the original owner. This means you need to be well aware of everything they own, and make sure it is all documented and accounted for.
Source: : www.manifesta9.be