Tips to help managers and owners prepare to make an expansion of their trucking business.
Commercial transportation is a growing industry with no end in sight. Trucking companies can take advantage of this trend by expanding to increase revenue and profitability. Here are a few tips to help managers and owners prepare to make the expansion with more trucks and drivers in the fleet.
Monitor and Master Finances
Trucking company owners must know the ins and outs of their business finances. Start with past spending and determine if any improvements can be made to reduce expenses. Anticipate any changes in costs, including additions because of expansion.
Look at current income and determine if any changes are expected in the next several months to two years. You may be dropping a customer or adding to your roster or even just adjusting the frequency of delivery.
Come up with a plan on how you will reach your goals and how much it will take to get there. In essence, you are creating a new business plan that will take the company to the next level of success.
Commercial transportation is a growing industry with no end in sight. Trucking companies can take advantage of this trend by expanding to increase revenue and profitability.
Develop a Backup Plan
Even with in-depth research and the best-laid plans, unexpected expenses can come up and unplanned situations can alter your cash flow. It’s critical to have a backup plan to pay expenses and keep the company operating normally.
To meet expenses, your backup plan should consist of details on how you will get the necessary cash if you have unpaid invoices. Perhaps you can talk to an investor about extra funds or open a line of credit. Another option if you need quick cash is to apply for a trucking loan with an alternative lender.
Alternative lenders can approve an application and fund the loan in just two or three days once you provide all the necessary information. If you need to pay invoices or salaries, it can be critical to have access to the money that quickly.
It’s easy to get caught up in the old way of doing things if they worked. However, you may find your business operates more efficiently if you try a new method. For example, GPS in commercial vehicles can reduce the time it takes for drivers to arrive at their destination.
Trucking apps can provide information about traffic delays, road construction, weather conditions and even the price of fuel. Electronic logbooks make it easy to enter data that is compliant with regulations. While updating your systems can be costly, you will save money over time. A trucking company loan can provide the necessary funds to help you improve processes, reduce costs and increase profitability.
Increase Marketing Efforts to Find New Customers
Look at your marketing strategy and see what’s working and what isn’t as effective. Consider increasing your marketing efforts to gain new customers. You may post on freight boards or get referrals from current customers.
Billboards and advertisements on trucks and other concrete assets have often been effective. However, you can’t rely on past performance to gauge what’s working now. Take the time to analyze your marketing efforts and find out where you can make improvements to gain more attention to your company. While all of this takes cash, you’ll find it’s worth the cost. Don’t be afraid to use a small business loan for marketing. Marketing is one area you never want to put limits on because it’s what keeps your company’s name out there.
Trucking processes may not always be efficient and effective. Take time to review your current procedures and find where waste occurs. Develop a plan to eliminate or reduce expenses so you can increase profit from your current revenue. For example, you may be hauling loads a longer distance for the same money you would be making with closer customers. Fewer miles means less cost on fuel and other expenses and more money for your bottom line.
Consider a trucking company loan from Fast Track Lenders to help you expand your business as you make changes that will increase your profitability. Go online and apply today to help your company grow.
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