Starting any business is not much of a hassle as it is to maintain an existing one. In the beginning, everyone has the funds to buy all the necessary stuff for the business.
We sure know how to enjoy any profit that comes along. That is where everybody makes a mistake. Maintaining a trucking business can be very hectic and stressful but it can be done smoothly by following a few tips. Regular biennial update, maintenance of vehicles, and up-gradation are to name a few. After all, a businessman has to think ahead of time. As they say, expect the best and prepare for the worst. Here are a few tips on how you can maintain your trucking business and increase profit over time.
1. Regularly Update Your Legal Requirements
One of the most important things to consider is regular updates of your legal documents. Most often people forget biennial updates of the United States Department of Transportation (USDOT) number and Motor Carrier (MC) identification number. It is a legal requirement from the Federal Motor Carrier Safety Administration (FMCSA). The US dot number needs to be updated every two years, otherwise, you might lose your license to own a trucking company. You also might want to regularly check your Licence and insurance policies as well to avoid any trouble.
2. Regularly Service Your Vehicles
It is always a smart choice to buy new vehicles when starting a business instead of buying used ones. New vehicles may last longer with minimal issues.
Always make sure that you regularly change Motor oil. It’s better to have a log sheet where you can keep a record of your last oil change, brake maintenance, tires up-gradation, and everything a vehicle needs to perform efficiently. Make sure your drivers take their allotted vehicles regularly for the service. A little neglect might end up in reduced efficacy of the vehicle’s performance.
3. Know When To Let Go Of An Asset
Your commercial vehicles are the assets of your trucking business. While it is crucial to maintain vehicular performance, in the end, it is just a machine. And machines have a life too. Know when your vehicle is about to reach its maxima, smartly let it go off at a better price. Delaying may end up in a loss. When a certain vehicle starts to ask for maintenance more often, you should know it’s time to get rid of it. Invest in new vehicles. This way you can reduce unnecessary expenses.
4. Find Fuel-cutting Strategies
Always look for improved technologies. Invest in vehicles that may be expensive at the time, but will give you better profit over time. Fuel shares the major share of expenses. Look for fuel-efficient vehicles. An average truck consumes around 30 to 40 liters of fuel per 100 kilometers. When the weight of freight is increased, this mileage can increase up to 38 liters every 100 kilometers. This can cause a huge strain on your economy.
5. Keep Yourself Updated
When running a business in a highly competitive environment, such as a trucking business, it is better to keep an eye on the market. Look for how your competitors are upgrading their business. Try to introduce new services. For instance, upgrade your vehicles with GPS and let your client know when to expect their package. Offer better service at a decent rate.
Look out for new clients in the market. Make strategies to grab as many loyal clients as you can. Commit to fair service and see your business flourish.
6. Maintain A Smooth Cash Flow
Cash flow can be a very strenuous issue in the trucking business. Brokers and loaders may take days to pay. This might keep you rushing towards paying your staff. One way to avoid this problem is to ask in advance. Calculate your fuel price and rate per mile. Establish a certain percentage as advance payment. For instance, you can ask for 30% or 40% of your payment in advance. The remaining can be paid once the package is delivered. This way you can always pay your hired staff on time without any hassle.