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What You Need to Know to Manage a Thriving Trucking Company in 2022

What You Need to Know to Manage a Thriving Trucking Company in 2021

Trucking Companies are the essential bridge between numerous processes in the U.S, with over 70% of goods transported via trucks. They transport goods, supplies and equipment, materials and finished products- from suppliers to manufacturers and manufacturers to consumers. The markets would essentially come to a standstill without the trucking business. 

If you are thinking of tapping into this genre, it is full of potential- however, there are several things you need to know in order to make it a success.

Consulting the experts, we have put together their best tips and advice on how to ensure your trucking company flourishes this year;

Determine Your Niche And Tailor Your Advertising To IT

“One important thing that all trucking companies should do is determine their niche and tailor their marketing and advertising to that niche. With so many long-established competitors, you need a way to stand out from the crowd. The newer or smaller your niche is, the less competition you'll have. Another piece of advice: before you launch your trucking business, establish the tools you'll use for organization and everyday task management. This may include applications for bookkeeping, scheduling, sales, driver and office communication, project tracking, and fleet management. In today's world, having your technology figured out in advance is essential to be competitive within the industry.”

Daivat Dholakia, Director of Operations, Force by Mojio

The Business Plan

“The business plan will shape the path of your trucking company business. Without a good foundation, the trucking business can't be successful in the long run. These are the things that you must define before move on from the rough draft stage and start to set things in stone;

  • Business Structure: For a small trucking company, you more than likely will not want to form a full-fledged corporation. That leaves the best choices for business structure as either a DBA (doing business as) or an LLC (limited liability company).
  • Freight Type You Will Haul: This may be the most important aspect as to how your company will take shape. Will you be concentrating on just one niche or try to service many? What kind of revenue per mile can you hope to average with that niche.
  • Equipment: Based on the freight you will haul, you now need to buy the equipment that you will need for doing this type of business properly. Also, you must decide, will you be buying or leasing new or used trucks and trailers?
  • Start-Up Capital: As your vision starts to take shape, you will be able to start seeing the amount of initial investment founds that you will need to start your trucking company business and have it operating at full capacity until the money starts rolling in.
  • Employees: Are you going to have full-time employees to help in your operations, or will you be outsourcing things such as safety, compliance, maintenance, accounting, and accounts payable and receivable. Are you going to be driving as well and running things out of your truck, or are you going to need an office and a truck yard?

“There is obviously more to it than that, but these are the major factors in shaping the rest of the picture.”

Johnny Hartin, Writer and Editor;

Establish A Relationship Early With A Factoring Company, So They Are There When You Do Need Them.

“First off, I would like to note that not all factoring companies are created equal. The best relationship for you to establish is with a factoring company that does not cost you anything if you are not using their services and lets you choose who and when to factor. So plain and simple, if they charge you application fees, per invoice fees, termination fees, credit checking fees, or require you to factor a certain amount each month, walk away. Your business will benefit most from you being in control.

“Working with a factor allows you to take the loads that are best and get paid quickly, not just the ones a few brokers have available, like some quick pay options. A good factoring company will have over 1,000 brokers in their system that they have worked with. One of the most important benefits of working with a factoring company is its ability to help manage your risk. They do this through experience and having credit checking websites readily available. They can also vet each broker against history and other similar brokers.

“Factoring companies also offer back-office support and help. Plus, they provide you with one place to send everything, check invoices, and call to talk to someone who IS ACTUALLY TRYING to get you funded. That way, you can focus on what you do best - driving, being safe, and providing good service - and they can take the headache away from all the back-office chores. Not to mention that many factoring companies will also offer other benefits like a fuel card and trucker discounts.”

Jeremy Robison is President at Tetra Capital, an independent finance company offering easy and transparent freight bill factoring services to trucking companies of all sizes.

Frequently Asked Questions:

Why is finding a niche important in the trucking industry?

Finding a niche allows your trucking company to stand out from competitors, and can reduce competition if the niche is newer or smaller.

What are some key elements to consider when drafting a business plan for a trucking company?

Essential elements include determining the business structure, deciding on the type of freight to haul, choosing the necessary equipment, calculating start-up capital, and planning for employees and outsourcing.

How can technology be leveraged in the trucking industry?

Technology tools can streamline organization and task management in the trucking industry, covering areas such as bookkeeping, scheduling, communication, project tracking, and fleet management.

Why is it beneficial to establish a relationship with a factoring company?

Factoring companies can provide financial stability by paying for loads quickly, managing risk, and offering back-office support, allowing you to focus on core operations.

What are the potential costs to watch out for when dealing with a factoring company?

It's important to avoid factoring companies that charge application fees, per invoice fees, termination fees, credit checking fees, or require you to factor a certain amount each month, as these can increase costs and decrease your control over the business.

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