Moving people and products has always been a profitable venture, especially if the cargo arrives on time and in good condition. And trucking stands out as a profitable opportunity for those who want to move into logistics since an owner-operator can start with their own vehicle and realistically expand to a fleet. In short, it is easier to set up and run a successful trucking company than any other type of logistical business. Here are a few tips on how to run a successful trucking company.
Know Your Niche
If you’re starting a trucking company, the ideal business model is moving into a niche that is underserved. Are you a long distance moving company or local mover? Are you transporting fragile cargo or refrigerated perishables? Understand your intended market so that you know your customers. Now you’re only marketing to those who will ever hire you and you won’t buy equipment you won’t use.
Have the Right Equipment
If you want to be successful, you need the right equipment for the type of jobs you’re taking on. Don’t try to haul people’s personal possessions in trucks that won’t protect them. Don’t try to carry glass to a construction site in a vehicle that is almost certain to damage it en route. Don’t try to carry temperature sensitive items in a truck that doesn’t have climate control. Conversely, if you know your customers and have the top of the line vehicles that fit their needs, you can advertise to them based on that fact. For example, moving vans that are designed to make it easy for people to roll their own loads in and fasten them to the walls is a selling point over trying to use standard delivery trucks for moving.
Consider the Costs
Knowing your expenses is a minimum in any business because you have to charge enough to cover your base expenses plus management costs. Any good trucking business will run the back office efficiently to keep overhead as low as possible without hurting quality or customer service. What many fail to do is consider the costs that become the baseline expenses of the business.
While trucking has better financial margins that some other businesses, failing to consider the literal costs can kill your business. Buying eco-friendly vehicles that cost 30% or more upfront and require more money to repair when they break down may not be the best choice when you’ve got tight financial margins and you may not get extra business in exchange for that “green” label. You may want to lease trucks, trailers, and equipment as you expand into an area instead of buying them so that you don’t end up sinking money into equipment you rarely use. You may want to rent forklifts and extra parking instead of buying equipment and land. Or buy used trucks from TruckXpress so that you have vehicles perfect for a long haul, while the built-in bathrooms in TruckXpress vehicles minimize how long truckers have to stop for essential business.
If you want to run a successful trucking business, make sure you follow the tips above. Know your niche so you only buy equipment you need that fits what your customers expect. Have the equipment to do what your customers need you to do well and control your costs by being careful about what you buy.