These are heady times for trucking companies. Are you benefiting? It is times like these when we need to take advantage and pad our bottom line. Being a business owner is hard work, but it is also hugely rewarding. To succeed, business owners and the people who run their company must be committed and resilient. This is how people come together as a team and build something from nothing.
Owning and successfully running a trucking company is no exception to the rule. We can’t think of anything more fulfilling than having a fleet you’ve poured your heart and soul into achieve success and grow. Okay, maybe one thing: Imagine your trucking company becoming more than just a large fleet, imagine it becoming a legacy for your family that gets passed down through future generations. This is about creating generational wealth for your descendants.
Fortunately, here at the QuickTSI blog, we are here to give you information about growing your trucking company. You might hear time and time again that you can’t make money in the trucking industry. Don’t believe it. Why? Because there are companies all over the country doing it every day. So, how are they successfully growing their businesses? How can you make your trucking company one of them? As we love to say, let’s dig a little deeper.
Take a Methodical Approach
We’ve written before about what it takes to start a trucking company; what you will need and when. But how about what it takes to grow a trucking company. You’ve gotten out of the gate, now what will it take to get you to the next level? Start with a comprehensive look at information management. Running a trucking company means you will have to juggle a lot of information. From loads to insurance, analytics, taxes, fuel and other expenses, there is a lot to consider.
Think about growing a trucking company like a set of building blocks and a business plan as the first block. One of our recent blog posts specifically covered trucking company business plans. Are you ready to write one?
A business plan creates a solid foundation for your nascent fleet because it sets the vision and goals you have for your company and helps you establish a system to help you accomplish those goals. If you don’t have a business plan, don’t worry! It’s not too late to write a business plan. If you do have a business plan, revisit it. Does it outline your plan for success? Familiarize yourself with your goals and make business decisions that are aligned with those goals.
Consider Freight Factoring as a Solution
Time is money, especially in the trucking industry. So, if you’re trying to properly manage costs to grow your fleet, you also need to properly manage your time. The question is: Where can you save time? Look at your processes. Ask yourself the following questions:
- Do you wait to bill your customers because tracking down the paperwork from your drivers is a battle?
- Are you tired of spending time trying to collect from your customers and wish someone could do it for you?
- Is it increasingly difficult for you to keep up with government regulation compliance tasks because the daily grind has you too busy?
If this sounds like you, then you’re going through some growing pains. Companies of all stripes reach this point at some point in their development cycle. It is not unique to trucking companies. You’re at the point where you can’t do it all yourself. This is where finding a support system comes in. Don’t hesitate to ask for help.
Sometimes the best paying loads are also the loads that take the longest to pay. It’s just the nature of the business. Imagine being able to take the loads you want and get paid the same or next day it delivers. You can do this through freight factoring. Do you need more equipment to secure a large contract? Freight factoring providers offer cash flow solutions to qualified clients when they need additional capital to grow their businesses.
How to Find Help for Your Trucking Company
There is a tipping point in every new trucking company where growth stalls and doing the same things you’ve always done doesn’t work as well anymore. This is when having a support system for your business is necessary. Don’t worry, a support system is more than just bringing more people on. It isn’t just about more employees. It can also mean purchasing products, software, or services that help you with the important tasks that make up your day-to-day operations.
Most motor carriers need support in the areas of dispatching, document and back-office, task management, collections, recruiting, and truck driver retention. Hiring someone to handle these areas of your business is always an option, but there are other solutions if you’re not ready or can’t afford to hire more employees.
Consider third-party vendors to help your trucking company grow. There are a variety of services out there that will help you run your trucking company more efficiently. Things like dispatching services that find, book, and dispatch out loads or transportation management systems (TMS) that streamline your paperwork management. These products and services help with one area of your trucking company operations, but it’s best to look for solutions that provides support for multiple areas of your trucking company.
Partner with comprehensive trucking vendors that allow their clients to:
- Run free 24/7 credit checks on potential customers.
- Check status of payments, invoice aging, and fuel card balances.
- Store documents such as Authority, Insurance and W9’s online for easy access.
Focus On Your External and Internal Customer Base
If you have happy truck drivers, it does double duty for your trucking company by lowering your turnover and creating good relationships with your customers. It probably goes without saying that creating a good relationship with your customers is good for your business. Getting contracted dedicated lanes means you get reliable and steady work. It’s the ultimate goal and can kick start your trucking company’s growth. But if you aren’t focusing on your customers, you won’t realize that growth.
To secure the most lucrative freight contracts, you need to diversify your customer base and figure out what types of freight or loads work best for you and the type of operation you run. Load boards are good at helping new owner operators find available loads.
Once you determine what you like to haul you can begin to network with your customers to gain their attention and, over time, trust. Be open to opportunities when they present themselves if they align with your business plan. Are you hauling freight that pays fast rather than pays well? Don’t make compromises in home time or pay if you don’t have to.
What’s one thing that keeps customers coming back to any business regardless of the industry? Great customer service. Trucking companies set themselves apart from each other by the levels of service they offer. It might seem simple but if your trucking company has a reputation for being reliable and responsive, then you’re light years ahead of your competition.
Who is on the front lines of your trucking company that represents your business? Your truck drivers! Truck drivers represent your brand too, so how do you keep them happily hauling for you? Many trucking companies have incentive programs for their truck drivers, from gift cards for safe driving records to fuel savings rewards.
Focus on Industry Intelligence
The last, but not least, part of growing a trucking company is keeping up with the trucking industry. There are prosperous times and challenging times in trucking. You need to be ready for the good and the bad. Being ahead of or aware of trends in the market will go a long way for your fleet. To stay informed, subscribe to industry publications, newsletters, or blogs and get the latest news updates sent to your email inbox or mailbox. Spend time learning more about what is going on in the industry.
The best way to learn valuable lessons in business is by talking to others within the industry. Joining local or national trucking associations, forums, and social media groups, and even attending various truck and tradeshows will help you meet and network with other business owners who can give you advice. Don’t hesitate to be outgoing, that’s how you’ll get people’s attention.
Keeping up with the market and trends isn’t the only thing you need to have a handle on, you also need to be up to date with the latest compliance and regulatory requirements. Being placed out of service, getting issued a fine, or failing an inspection can sometimes be the breaking point for a trucking company that they never recover from.
Truck driver retention is one of the biggest issues for growing trucking companies, make sure that you’re focused on providing not only good work conditions for your truck drivers, but ones that compete with your competition. Partner with the right vendors, use financial tools like freight factoring, and treat your truck drivers well and you’ll be set up for success!