Did you know that trucking is a nearly $800 billion industry in the United States? That makes it a vital component of the country's economy. A good enough reason is that it's responsible for moving about 70% of the nation's goods.
So if you own a trucking business, your goal should be to improve it to get a bigger slice of the action.
This business strategy guide lists the top tips to help you achieve that goal, so read on.
Track Your Expenditures
The more trucks you have in your fleet, the more clients you can serve and, thus, grow your trucking company.
However, you must prepare to spend about $80,000 on the sticker price of each new truck you buy. Add to that the mandatory insurance on semi truck and trailer fleets, which can be hefty. Don't forget that you also have to shell out money for fuel and fleet maintenance.
If you don't monitor those expenditures, you might spend more on them than your business makes.
That can result in your company running out of cash, kicking the purchase of a new truck out of the picture. It may even cause your business's downfall. Indeed, in one survey, 44% of respondents cited it as the cause of their business's failure.
Cut Back on Fuel and Insurance Costs
Since fuel and insurance are among your business' top cost drivers, cutting back on them can help you save. You can then set aside those savings to help you purchase a new truck and achieve business growth.
One way to reduce fuel costs is to ensure all your vehicles have proper tire pressure. That's because underinflated tires can increase fuel consumption. For instance, a truck with all its tires underinflated by 10 PSI can use 0.5% to 1% more fuel.
As for insurance, check with your insurer if they offer discounts on lump sum payments. Many do as long as policyholders pay their entire year's premiums. While that means paying a significant amount, you can save at least 10% to 20%.
Protect Your Cargo
In 2022 alone, cargo theft crimes in North America resulted in $223 million in losses. The number of incidents from 2021 to 2022 also skyrocketed by 20%.
That should tell you how a single cargo theft case can be enough to put you out of business. After all, you're not the only one who'll suffer; so will your clients and their customers.
If that happens, your clients will likely file a claim or lawsuit against you. That may result in you paying them thousands, even millions of dollars.
Even if you don't get sued, your business could still suffer from a destroyed reputation. If such happens to your transportation business, it may never recover, much less grow.
That makes safeguarding your cargo a top priority. Start by ensuring you vet and screen all your drivers. Invest in GPS technology, too, as this lets you track and trace your fleet.
Time to Improve Your Trucking Business
As you can see, you have many ways to improve your trucking business, starting with cost tracking. From there, you can cut back on some expenses, such as fuel and insurance. Then, you can use your savings to get another truck or market your company better.
Most importantly, please don't forget to protect your cargo. By doing so, you can make your business more credible, which can then attract more clients.
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