Trucking is one of the most profitable industries in the United States. Small trucking companies and the drivers who work for them are constantly making contributions to the economy. Are you thinking about getting into the trucking industry and starting your own business?
After you get your business plan sorted out (equipment, drivers, business license, etc.) there are still a few things to keep in mind that can boost your business. Check out our tips below to running a successful trucking company:
When you first get started, it might be hard to find the amount of loads you’re looking for. That’s where online load boards come in. You can find both free and subscription-based load boards with just a quick online search. These are a useful tool because they help you create and establish relationships with brokers and shippers that you might not have met otherwise. In time, when your customer base expands, you can establish direct lanes to create a more stable income.
Checking Customer Credit
Running credit checks on your customers before delivering a load is a good way to achieve the peace of mind that your customers will pay regularly. Subscriptions to credit services can add up, however. When you factor with CoreFund Capital, we provide you with free customer credit checks.
Knowing Your Business Expenses
It’s always important to know your business expenses. Be sure to track things like maintenance costs, equipment repairs, insurance payments, fuel, office expenses, employee salaries, and any other monthly expenses you may have. Using a bookkeeping software and digitally tracking your expenses is one of the easiest ways to do so, but ultimately as long as you’re comfortable and it gets done, choose what works best for you. Knowing exactly how much money it costs for your business to run successfully helps you figure out the minimum amount per mile you need to charge in order to make a profit.
Saving Money on Fuel
Did you know that fuel can account for up to 40% of a trucking company’s expenses? When you factor with CoreFund Capital, our fuel card program can help. Discounts on fuel will definitely add up and allow for you to budget that excess money elsewhere in your business (or set it aside for any emergency expenses).
Managing Cash Flow
If you find yourself needing financing, being a small or new business doesn’t have to be a determining factor in your approval. As an alternative to traditional bank lending, factoring provides you with the cash flow through you need by selling your invoices to a factoring company (And get this – CoreFund won’t ever penalize you for being a start-up or growing company). Instead of waiting anywhere from 30 to 90 days for your customer to pay their invoice, factoring companies will advance you a percentage of your load when you deliver it, so you can have the operating cash you need for your business expenses.
If you’re looking for more information or are ready for CoreFund Capital to help keep your trucking company moving, reach out today here or give us a call at 800-405-5464.