Well, although it should not be a long-term strategy, load boards seem to give a boost to new trucking companies these days.
Every now and then, load boards can become extremely competitive. Yet, in order to achieve to get the best customers from load boards, you will have to bid rock bottom prices.
On the other hand, what makes load boards be a short-term strategy is the fact that they provide one-off loads.
So, as you can see, a new trucking company can use load boards only to get started.
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Moreover, just incorporated trucking companies can as well try to build their own customer list by making sales calls- that is to say by making their small call center that will generate leads with the best customers.
Nevertheless, if a trucking company is continuously showing dedicated work and on-time/safe transportation, then it will for sure build a list of shippers that will become their loyal ones.
In addition, load boards besides for finding shippers can be as well used for finding freight so that your trucking company can start hauling.
Thanks to load boards, trucking companies these days have created and established relationships with a lot of shippers and brokers.
Know Your Expenses
An essential point for starting a trucking business and making it a successful one is knowing your expenses.
At the very beginning, you will start making plans about your finances, but you should make sure that your bid will be enough high to be competitive but on the other hand to be a profitable one as well.
Tip: Once you send a truck driver to deliver loads, make sure that you never leave him without a load to get back home. That way you will make sure that you won’t encounter any deadhead miles.
Avoid Any Cash Flow Problems
In general, every now and then trucking companies experience cash flow problems.
But, that does not have to be the case with your trucking company. What you should do straight after you incorporate your trucking company is to avoid any cash flow problems. Just run the trucking company in a smart way.
Hence, what you should be alarmed about is that some shippers are not giving quick pays. It is what makes trucking companies have cash flow problems.
So, cash flow problems for a trucking company start with a shipper who is not giving a quick pay, and all that coupled with the expenses that a trucking company has for fuel and repairs leads directly to a situation where a trucking business is spending more money than making.
This, of course, is a bad thing, especially for a new trucking business.
Yet, once a trucking company gets into a situation with cash flow problems it can run out of cash – which later on leads to another bad situation- your competitors stealing your customers.
Thereupon, the best way that a new trucking business can avoid any cash flow problems is through implementing freight bill factoring. It is the smartest way that new trucking companies can take in order to manage their cash flow.
Save Money On Fuel
As I mentioned in the previous sub-heading, a new trucking business should be constantly alerted about its cash flow.
So, since fuel can be up to 40% of a trucking company’s operating expenses, straight proportionally it can cause cash flow problems.
Thereupon, trucking company owners should pay attention to reducing fuel costs and saving money out of it.
For example, the very first step that a new trucking business can take is to get a fuel card. Fuel cards are helping trucking companies to manage as well as to control their fuel purchases, while at the same time-saving money at the pump.
All in all, regardless if the trucking company owner will choose to use fleet fuel cards or he will choose to use smart fuel cap, he will at the end enjoy benefits such as fuel management tools.
How can a trucking business become known?
It is quite simple, with the power of branding.
Well, once a trucking company finds its place in the trucking industry, it should start building its profile. Since we are living in an era where everything is digitalized, straight proportionally it would be beneficial for trucking companies to build an online presence.
Moreover, it is recommendable for trucking companies to make their own sites, because that way they will be able to attract potential customers by informing them how they can provide help. As well as what type of transportation services they are offering.
As I mentioned, with the power of the internet and social media, trucking companies can easily become known.
But what can add up to the success of trucking companies and to become known is the impeccably performed transportation services that they provide to their customers.
Hypothetically, by now you have completed the previous points, which means now you want to focus your trucking business on attracting more customers. That is to say into gaining experience.
Yet, as well by now you have learned many important aspects of the trucking industry, such as are the following ones:
- How to book, pick up and deliver loads;
- What lanes are the most popular;
- The Hours of Service laws;
- Driver regulations;
- The real view of the breakdowns and repairs;
- What your truck drivers are facing with on a daily basis;
- What the traits of a good trucking business are;
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So, by being aware of these important aspects of the trucking industry, a trucking company owner can implement it into practice, and by that attract more customers. And straight proportionally gain more experience.
Manage Your Business Well
Starting a trucking business and making it successful requires managing the administrative aspect impeccably as well.