Nibletz Staff
The trucking industry is worth a lot of money, and forging a little corner of the market for yourself can be incredibly lucrative. However, it is also an extremely competitive environment, and many trucking startups with big dreams of success end up in failure after a year.
To avoid becoming part of these statistics, you’ll need to learn a little about the golden rules of trucking businesses. These simple steps will set you up nicely, ensure you are controlling your costs, and help you transition from a startup into a viable business with plenty of potential.
Market research
Before doing anything like investing in trucks, make sure you know who you are targeting. Establishing your market is a critical part of the early stages of your startup, as the market is so competitive. Many newcomers to the industry get their first customers from a load board, but the problem with these is that they are almost impossible to run at a profit.
Develop a niche
The best way to go is to work out a niche for your trucking company – a focus on fashion or refrigerated foods, for example – and start contacting relevant manufacturers and making sales calls. It’s hard work – but it will be worth it in the end as you can establish some excellent long-term relationships with clients. The most important aspect of developing a niche is that it eliminates a lot of the competition, so you will be able to spend less time involved in price wars and more time focusing on establishing better relationships.
Invest in logistics
Running a successful trucking company is all about keeping a close eye on your costs and ensuring you offer your customers the best deal. It’s a tricky balance to strike, but one thing that can g9ive you the edge is a grounding in logistics. Logistics is, in effect, the planning of routes to ensure you are always using the cheapest path from A to B. It’s a subject worth investing in as much can go wrong, from sending out half full trucks to taking less than optimum routes.
Find a reliable fuel supplier
Fuel will be your major expense and your biggest concern. According to New Era Fuels, it is essential that you find a bulk fuel delivery company who is reliable and can offer same day deliveries to ensure the smooth running of your business. Make sure that you are keeping costs down as much as possible, too – with fuel price fluctuations occurring on an almost daily basis, a little knowledge of the oil industry might go a long way to helping you find the best deals. A few pence on the mile in either direction could have a significant impact on your business, so you’ll need t be in a position where you can account for sudden rises and falls in fuel price.
Encourage safety
Finally, make sure your drivers are all doing their jobs in a safe manner. Under pressure, drivers can often speed, or go too long without breaks – and it is essential that you allow them to drive safely. Investing in tracking software can help, as it will show you they are sticking within the speed limits and taking regular breaks.
