Up until today, the trucking industry is still booming, attracting investors and aspiring entrepreneurs all over the world. According to the forecast reported by theAmerican Trucking Association (ATA), the volume of goods transported by trucks will increase by 3.4% annually for five years.
While this may seem a good opportunity, running a truck business is not as easy as it seems. It’s more than just having the equipment ready. You need to solidify your strategies, especially with your financial decisions. Also, it also requires a lot of paperwork and legal procedures.
To help you get started, consider the following tips below:
TIP #1: Create your Operational Plan
The trucking industry has a broad spectrum of business that includes dump trucks, freight-forwarding, moving company, courier, truck leasing, van delivery, towing, hauling services and many more. Determine how you want to operate your business. Focus on one niche before expanding your services.
TIP #2: Get the Right Manpower
You cannot start your business without enough workforce. Start with office staffing before hiring drivers and operators. Once you have established a standard process around the office, it would be easier to begin the operations. Consult a legal expert to ensure you’re complying with all the requirements.
Some of the things you need to prioritise are proper wages, tax policies, and business registration.
TIP #3: Prepare your Budget
At this point, you should be on top of your finances. Consider hiring an experienced financial consultant to help you allocate your resources accordingly. Prioritise the significant equipment, including trucks, mechanical tools, and safety devices. You should also build a strategy to keep better cash-flow. Take note of the operational costs for your staff and other expenses.
TIP #4: Get the Right Equipment
Getting the right equipment for the trucking business can be tedious. To begin with, it requires a lot of money. For truck freight, however, it’s best to start with a single unit. Observe how the rate goes. Usually, the freight rates fluctuate on a weekly basis.
Another thing to consider is whether to buy brand-new or second hand. There are pros and cons to this. As long as you’re dealing with a reputable shop for truck trailers in NZ, then there’s nothing to worry. Just make sure to inspect the unit before making transactions. If possible, bring an experienced mechanic with you.
Tip #5: Build Your Network
Just like any other business, you need to find ways to promote your brand. Other than bidding and door-to-door meetings, consider investing in digital marketing. Today, this has been an effective way to promote your product and services and expand your network reach.
Tip #6: Get Insurance
In transportation services, liability insurance is mandatory to cover potential damages or injuries during operational hours. While there are many agencies providing truck insurance, make sure to check the coverage. You can also ask for more information from the local authorities to ensure you comply with all the requirements.
Following these tips should help you jumpstart your trucking business. Again, this industry requires a lot of hard work and dedication. Just like any other investment, you need to be prepared for the challenges in the future.