Operating owner in 2021, the trucking industry moved freight worth $723.3 billion, representing 80.4% of the nation’s freight bill. The sudden rise in online purchasing via e-commerce due to the Covid-19 pandemic increased the demand for the products. Many of the owner-operators utilized this opportunity and earned a fortune. This was possible to achieve only because of what they did each day to keep their business growing.
According to 2021 statistics, 8 out of 10 trucking businesses shut their operations within 1st year of establishment. If you plan to start your authority and want to succeed, then start practicing these habits right from today.
1. Understand your operating costs:
Running a trucking business comes with various risks involved. For earning a stable bottom line, you must know how to use the knowledge of costs, especially fixed expenses, to make decisions. It’s not hard to figure out these expenses and puts a lot of money in your pocket, keeping operating owner out from losing the business.
2. Have a maintenance reserve:
Trucks are made up of thousands of components and taking good care of your trucks will ensure longer life and better miles per gallon. Periodic checks and regular servicing are a must. During sudden breakdown, constant cash flow support ensures your business runs with no loss. Set up a separate bank account and fund it with your anticipated maintenance needs.
3. Operating owner keeps accounting books clean:
Accounting is an essential task for evaluating the growth of your business; it helps you understand the basic costs of operations and decide on whether to expand your business, buy or lease a new truck/trailer, hire drivers/ staff for extended support.
4. Choose a trusted dispatcher:
Managing a trucking business along with driving is no easy task. A trusted dispatcher will help you book high-paying loads, negotiate with shippers, generate freight bills, and do other back-office works. Do not refuse to haul heavy loads for a lighter one; heavier loads usually offer more rates per mile. In the trucking industry, we calculate profits in terms of gross revenue. Hence you can rarely make up for the loss of a layover. Knowing your operating costs will guide you to decide on this.
5. Keep a good credit score:
Growing fleet companies always need funds to operate their services or buy an asset. Learning & improving your credit score will qualify you for easier loans, better loan term, protects your finances & give access to cash for growth & expansion.
6. Embrace technology:
Most fleet managers rely on Truck Management System (TMS) software. This includes all the aspects from assigning the loads to scheduling a fleet maintenance program under one roof for monitoring the entire fleet’s performance. It also keeps an eye on the driver’s log history, drug & alcohol tests, and driving style.
At Transport Grid, we aim to provide dispatch services with utmost transparency. Our offerings can be best suited to be your Trusted Dispatcher!
Call us today!
