Small trucking business owners know how difficult it can be competing with the larger fleets out there. There are certainly advantages that come with having more trucks, like being able to offer more aggressive pricing, hiring on more drivers, and getting bigger and better discounts from suppliers. What can you do to grow your small business to compete with these larger ones? Let’s talk about it!
Use providing the best service you can to your advantage.
This sounds easy, but sometimes the little things really do pay off. Since you’re a smaller company, you’re nimble, ready to work, and you have fewer clients. Being able to treat each client like they are your most important one will build a relationship that gets you a client for life. The key is to create relationships, not just clients.
Be realistic with your growth plan.
Sit down and figure out what you’d like to do to grow your business. Then, using your business’s data, calculate how much capital you’ll need to reach your goals. Don’t forget to figure out how long reaching these goals will take. It’s important to remember to be realistic when setting these growth goals, because if you start setting unattainable goals with super short time frames, you’ll most likely end up being disappointed.
Understand how to use load boards.
Truck load boards, sometimes called freight boards, are a great way for your company to find loads. Fleet owners and truckers use these boards to search for loads that need to be moved. These will prove to be a helpful tool if you’re looking for more loads to generate more cash for your growth plans.
Stabilize your cash flow and get fast access to working capital.
A pretty decent cost comes along with delivering a load, but freight invoices often go unpaid until well after the date of delivery. Larger companies don’t need to worry about this, but if you’re a smaller fleet, you often find yourself needing cash quickly to fuel your trucks and pay your driver. The solution? Freight factoring. With factoring, a third-party factor purchases your outstanding invoices. You then get a cash advance on the balance of the factored invoice, minus a small percentage taken by the factor as a fee for their service. They take on the collections duties and get you the cash you’re owed quickly, rather than you having to wait until the job is completed (and sometimes beyond that). Many other benefits come along with factoring. At CoreFund Capital, we also offer an EFS fuel card service, free invoice auditing, and complimentary client credit checks.
There are tons of other ways to grow your trucking business, don’t be afraid to get creative and set yourself apart from the crowd in a positive way. These tips are just a few of the considerations we think are important to think about when you want to start your growth. Check back on our blog for more tips and tricks for growing your business, creating more working capital, and more!