4 Ways To Manage Your Trucking Company Start-Up Costs
Posted on: 1 August 2018
Starting a trucking business is an excellent business idea. However, if you're not confident in what you're doing, the process can also be quite expensive. Keeping your cost manageable during your businesses start-up is a goal you can accomplish; you just need the right tools. Learn what cost-busting mistakes you should avoid when starting your company.
Truck Purchase
Your truck is the most critical component in your business plan. However, this factor does not mean that you should hurriedly go out and purchase a truck. You can actually save yourself a great deal of money and stress by leasing semi trucks at first. The leasing process is far less expensive than purchasing a truck. Additionally, should you discover the truck is not equipped to meet your needs, you have options for quickly getting out of one truck and leasing another one.
Calculating Projects
Take your time when calculating your first projects. Sometimes, new owner-operators will simply look at the offer provided by the customer; they fail to also look at their expenses as well. For example, the proposal for a cross-country haul might seem like a lot. However, once you factor in your fuel, missed opportunities, and your other road expenses, your profit might not be as significant as you thought. Sit down and calculate all your expenses to ensure the offer is worth your while.
Safety Requirements
Ensure you do not overlook any safety requirements. The Department of Transportation does not take kindly when a trucking company is in violation of any safety protocols, even if you are a new business owner. For example, if you plan to haul glass occasionally, make sure you also have a glass handling certification. Not only will a violation lead to fines and other penalties, but it could also affect your ability to do business.
Route Planning
Plan your routes with precision. No matter the destination, every path you take should make sense. For example, if you're making a journey out of the state, but there is another customer along the way that also needs a delivery, plan the route so that you can also pick up the load for the second customer. With this level of planning, you're basically handling two customers with one route. If you fail to plan this way, in this instance, you will find yourself doubling back and wasting time and money.
Don't make these mistakes with your business. Make sure you do your part to avoid these and any other potentially costly mistakes.
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