Things you must do to grow your trucking business
Starting and running a trucking business is no small task. Although the trucking industry generates over $700 billion every year, there’s stiff competition. Larger trucking businesses have more trucks which means they can hire drivers quickly, offer aggressive pricing, and get better discounts from suppliers. However, you can still grow your company and compete with the big boys. Below are a few things you should do to grow your business.
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Keep up with technology
As a trucking business owner, you have a lot to do on a daily basis. Fortunately, you can use technology to manage your finances, organize your business, navigate the road better, and reduce stress. For instance, you can use GPS to choose the best routes.
Buy and store fuel correctly
With nearly 54 billion gallons of fuel being used every year, fuel is probably the biggest expense you will face. Therefore, you need to make sure that you purchase fuel in a cost-efficient manner. Many truckers tend to buy fuel like normal drivers, which means they pay tax depending on the state they purchase the fuel. However, truckers are taxed differently when it comes to fuel. Because truckers deal with the International Fuel Tax Agreement, they pay tax on the fuel used regardless of where it was bought. Therefore, to cut on costs and grow your business, you may want to buy fuel in bulk with a cheap base price and store it correctly in commercial oil tanks.
Hire the right drivers
While a small trucking business poses a few challenges, it’s often difficult to find the right drivers. In fact, there is a shortage of experienced truck drivers. Therefore, you need to hire experienced truck drivers and do everything possible to retain them. There are different costs that are associated with recruiting new drivers, such as hiring recruiters and posting adverts on paid job sites. You may also incur additional expenses for insurance, licenses, union costs, personal equipment, and other costs. However, while these costs are steep initially, your investment will pay off eventually.
Know where to get loads
The toughest part of running a trucking business is finding loads. To start with, you can use load boards. This approach allows you to choose the most suitable loads for your equipment, and you get to choose your preferred routes. However, loading boards won’t help you grow your business. They’re highly competitive, which will force you to charge lower rates per mile for your preferred routes.
The ideal strategy to grow your business is to find trucking contracts with shippers. Therefore, start making sales calls and build lasting relationships with your shippers. While it may be hard work, it is very fulfilling, and it’s the only way to succeed in the trucking industry.
Unlocking your business growth as a trucking business with less than 100 trucks can be challenging. Large fleets can outperform, outpace, outhire, outbuy, and out lobby your business. However, you can still grow your business by keeping up with technology, buying fuel in bulk, hiring experienced drivers, and creating relationships with direct shippers.
