How to be a Trucking Industry Leader?
The trucking industry forms the backbone of the US economy. Believe it or not, the trucking industry generated revenue of $726.4 billion in 2015 and takes care of around 70% of the freight in the country. This gives us an idea about how integral the industry is to the USA. Without this industry, the economy of the country can come to a halt. At the same time, these statistics are exciting for those wanting to get into the American trucking business and build an empire with trucking. With the growing economy in the United States, the trucking industry can continue its dominance as an industry, also increasing opportunities for successful trucking business and an increase in employment opportunities for the Americans.
What does a Successful Trucking Company Look Like?
What does a successful trucking company look like? The two pillars that the trucking industry is based on are– service and satisfaction among customers. Reason? Well, it is your customers that are keeping your truck engines running.
If your trucking business is customer-centric, you sure are on the path to success. Be its prompt service, great prices, or personalization of services.
Each customer is different and offering them custom-made services goes a long way in creating a brand for yourself and gaining the loyalty of customers. Loyal customers can take your business from ground level to heights of success.
Competitive and Affordable Rates
When customers come to you, they are sure to look for affordable rates and compare them to your competitors. So, offering competitive rates helps boost your trucking business and make it successful.
With growing technological integration in all industries, the American trucking industry is no different. A successful trucking business is tech-savvy, uses technology to make processes simple, quick, and efficient.
Any successful trucking business focuses on customers but gives slightly more importance to keep their employees happy. The backbone of any successful trucking company is its happy employees, and this translates into happy customers.
A Constant Flow of Cash
Every successful company needs to have a constant flow of cash into the business. Preferably, this flow of cash must be from the business it is doing, and must be used to grow the business.
How to Build an Empire with Trucking?
Now that you know what makes a successful trucking business, here’s how you can build an empire with trucking.
Have a Strong Business Plan
The first thing you need in order to build an empire with trucking is a 10-year business plan that helps you determine what kind of fleet you’ll need, when and what equipment you need to purchase, and the number of drivers and other support staff you will need to keep the company running.
Have All the Necessary Permits and Licenses
With the business plan in mind, if you wish to grow in your trucking business and create an empire, you must have all the necessary permits and licenses at all times. You must have an established process that ensures the renewals of licenses on a timely basis so that, at any given time, your business complies with all the laws and regulations of the land.
Assess Your Trucking Fleet
After you’ve got all your licenses and permits in place, you need to determine the size and capacity of your trucking fleet to make sure you can build an empire of your trucking business. You need to also determine whether you wish to purchase or rent your fleet and this is dependent on your budget. Some pointers that can help you assess your fleet are:
- Your working budget
- Your short-term goals
- Availability of equipment
- Management of your fleet
- Inventory control
Networking and Building Contacts to Get Freight to Carry
Now that your fleet is ready, the next thing you need for building your trucking company is customers. This can be achieved through marketing, promotions, advertisements, and networking. These contacts will give you the freight for your fleet to carry.
Keep Track of Your Expenses
In order to make profits, you must keep track of your expenses. You must track your most common expenses that include– fuel costs, fleet costs, driver salaries and benefits, employee salaries, labor, marketing costs, and other unforeseen expenses.
Expand Your Customer List
Apart from routine marketing and promotions, you need to have a dedicated team that works on increasing your customer list by cold calling, emailing, etc. This needs to be a continuous process for your existing customer list. The best way to have a continuous flow of customers is by tie up with a freight brokerage.
Keep Track Of Your Cash Flow
Any successful business, including a trucking business, needs to have a constant cash flow. However, cash flow problems can come unexpectedly and your business must be secure enough to take these hits, without disrupting it. You need to keep an eye on how much money you have in hand, how much is the expected outflow, and the estimated inflow in a given time frame.
Establish a Process That Ensures Fuel Efficiency
One of your biggest expenses in the trucking industry is fuel. The cost of your fuel is not under your control. However, inculcating healthy fuel habits in your company can make your fleet fuel-efficient and cost-effective.
Your start in the trucking industry may be small yet, there is nothing that can stop you from being the industry leader. All you need is a clear vision, some processes in place, and a supportive team. For more on the ‘how’s’ and ‘whys’ of the trucking industry in the USA, visit TruckBook.