What are some little-known ways you can improve your trucking business?
- Get the correct equipment
- Choose your customers
- Bid competitively
- Run your office efficiently
- Manage your expenses
If you are someone who has recently purchased Japan Surplus trucks in the Philippines, you are probably thinking of starting, or even already own, a trucking business. Growing a successful trucking business takes a lot of dedication and hard work. While the trucking industry can be very profitable, it is incredibly competitive. It takes a disciplined approach to take the right actions and make the right decisions, which is why many truckers that try to get into the business every year end up failing. This often happens to people that may have been great truckers but are not necessarily good business owners. Knowing how to run and grow your trucking business takes more than knowing how to choose the correct route or how to drive a truck. These little-known ways to improve your trucking business should help point you in the right direction and make you a better business owner:
Get the correct equipment
You obviously need to have the proper equipment for your trucking business. Getting the correct equipment is the first, and perhaps, the most expensive decision you will have to make. Once you have selected the right equipment and parts, you now have to decide whether you want to buy them brand new or through a Japan Surplus dealership in the Philippines. Buying trucks for sale in the Philippines, especially Japan Surplus trucks is fairly straightforward; you place a down payment and finance the rest with a loan. You own the equipment as long as you make the payments and after the last payment, the equipment is yours free and clear. Leasing the equipment, while it can also have lower payments in some cases, can be a little more complicated. You can structure leases just like rentals where you pay a monthly fee for using the equipment. Other kinds of leases can be structured so that you can own the equipment after the last payment.
Choose your customers
Many new truck business owners and operators usually get their first shipping customers from load boards or online groups dedicated to trucking projects. However, using a load board is not a viable, long-term strategy. Load boards are very competitive so you need to bid rock-bottom prices, leaving you little room for profits with this kind of pricing. To make things worse, load boards do not always provide long-term client relationships but instead provide one-off loads. As a result, you are often on the look for new clients. The intelligent way to run your trucking business is to use a load board just to get your foot in the door. Meanwhile, you should start making sales calls and building your own customer list. While building your own customer list can be a lot of work, it is the smart way to go because you can eventually build a list of shippers who can become repeat customers. These customers will then become your most profitable clients.
Know your expenses, bid competitively
When you start out, you must bid low enough to be competitive but high enough to be profitable. The only way you can put such a bid is to know all your expenses. These can be the costs of truck repairs, truck and trailer payments, maintenance, fuel, and most importantly the cost of your work. Remember to always factor in the cost of your efforts. For example, pulling a load through a congested metropolitan area like Manila should cost more because it adds difficulty. Finally, remember to find a nearby load or head straight home once you deliver the load because the cost of deadhead miles can easily consume your profits.
Run your office efficiently
Successfully improving your trucking company requires an efficiently-run back office. The type of back office you have depends on the size of your business; a small fleet has more back-office needs than a single owner-operator. Find out how you want to run your back office and go through the processes to make sure that they make sense. Those with the most efficient process are the ones that grow and end up successful. If you plan to own a fleet, small or large, you need to begin to develop the mentality of a business owner.
Manage your expenses
Most trucking businesses are going to experience problems with cash flow at one time or another, especially when it comes most Japan Surplus truck providers here in the Philippines. You can almost always assure that these problems are going to arrive at the worst time. These problems often happen because many shippers do not offer quick-pays. Instead, they typically pay their dues on net-40 to net-60 terms. In other words, you are going to have to wait up to two months to get paid for a load that you delivered today. Fuel, repairs, and other expenses, on the other hand, happen regularly. Your expenses can get ahead of revenues if your trucking business is growing rapidly and you may end up running out of cash and not pull loads until your clients begin payment. While this is happening, your competitors can easily steal your customers.
Many successful truck business owners and operators do not let the day-to-day operations overwhelm them by making sure that they have everything in order. Moving cargo and loads involve a lot of effort and coordination. While you might think many of the tips mentioned above can be a little tedious, it is also necessary. Having a good process for handling your operations is important if you want to improve your trucking business.