How do you improve your trucking business and prepare for the future?
- Make use of factoring to increase cash flow
- Find alternative sources of funding for stability and expansion
- Keep track of your expenses
The trucking business in the Philippines, just like Japan surplus, is profitable. In fact, there are numerous trucking business operations that are starting up and getting into the market just like you. But, while thousands of new trucking companies get registered every year, many of them tend to fade away as soon as they lose that first, tough bout with their competition, from newer companies to larger, established corporations.
If you are planning to start a trucking company, or if you already are running one, it is important for you to make the necessary investments right now so you don’t end up failing like the others. Take note of your competitors, implement the appropriate strategies against them, and grab your market share. Here’s how you can improve your trucking business and prepare for the future:
Make Use of Factoring to Increase Cash Flow
Even the most seasoned trucking businesses can find it difficult to plan for a generally uneven cash flow and count on future income. Your clients, even the most dependable ones, will tend to pay around net-60 terms, which means that you are going to have to wait for a couple of months to receive their full payments.
This can bring you a lot of headaches once you are managing your accounts receivable, not to mention how this is going to also be a problem when dealing with investment or debt. The solution for this lies in finding the right source of dependable factoring; in other words, the process of converting accounts receivable to cash by selling collectible income.
It is important for you and your trucking business to find a factoring company that knows that knows the specific demands your business faces. The factoring company should also have the necessary financial resources to help you achieve your goals for growth.
Make sure that the factoring company you choose has experience in offering services to the transportation and trucking industry. By doing so, you can ensure that they will be well-versed with this type of factoring and they may even be able to offer recommendations based on your unique plans. In addition, these companies also tend to offer extra perks such as tire discount programs, free load boards, and other practical benefits.
Find Alternative Sources of Funding for Stability and Expansion
In order to prepare for the future, the cash flow of your business should be consistent. However, if your cash flow is tied up in other necessities, it can be hard to find the necessary funds for further improvement. This is especially true for newer trucking businesses since they tend to have trouble securing capital from traditional business sources. For this reason, a number of alternative options for funding are usually available for small businesses.
If you are looking to expand and improve your trucking business, you should consider looking into popular funding options. One such option is a working capital advance which is based on future business activity rather than collateral. Working capital advances can be particularly advantageous when your company faces an important investment decision or an emergency. This is because they can be obtained easier than traditional funding from banks and other similar financial institutions.
Keep Track of Your Expenses
You are probably already aware of the importance of monitoring mileage and day-to-day operations when it comes to improving your trucking business. However, there are still a lot of things that you can do in order to keep track of your expenses. You might just be surprised to find out new ways to save more with just a little bit of creativity. Here are a few ideas to help you get started:
Plan ahead for new jobs
If you are just starting your trucking company, try choosing a specialty or a niche early on. You can still choose your specialty once you are established as long as you do it as soon as you can. You should then invest in both training and experience. Specialties like refrigerated trucks tend to be more lucrative.
In addition, pay attention to what industries are on the rise and which are offering low-cost jobs. This will help you go to where the money is and make more with the proper load management.
Watch your competitors
When you start a new job, take a look at trip sheets in order to see how the other truckers are performing. Then, work on how you can be better than them in order to get more jobs.
Match the load to the truck
Your mileage is not going to improve if you keep wasting a lot of horsepower on a light load. In fact, it might even create additional expenses in the future!
It is normal to make mistakes during the course of running and maintaining your trucking business. However, the secret to improving your company and preparing for the future is to learn from your mistakes and make the necessary changes.
Remember, the trucking industry is always changing, now faster and more rapidly than ever before. It is up to you to do the right things today and not have to worry about your assets like Japan surplus in the Philippines down the line.