A trucking business is a big investment and it has the ability to drain your pockets even further when you consider maintenance of the vehicles and fuel fees. Nevertheless, if done properly then you can turn quite a healthy profit. Here are some of the top ways you can make your trucking business more profitable.
Support the Right Market
Trucking in itself is an industry but there are many different markets that you could still work for. While you are smaller, you should consider focusing on smaller niches which the big brands won’t touch. You might be able to pick up a lot of business this way.
Remember that some goods may only have a demand at certain times of the year. However, if you choose to haul fresh produce and meat, you may find that there is less competition and more consistent work throughout the year. Your market will dictate what types of trucks you will get to accommodate the goods. It won’t be easy to switch and change things out.
Slim Down the Operating Costs
Your operating costs are often what dictates whether you have a profitable business or not. They can often be split into two categories; fixed costs and variable costs. A fixed cost is something like your insurance where you know that the monthly running cost won’t change. A variable cost would be something like fuel.
You should then be able to work out your total cost per mile and use it along with your rates to work out your profit. If the final figure is not as healthy as you would prefer, there are many ways to help you improve it.
Start by improving efficiency in the office. The right trucker may be able to do all his paperwork himself with a little extra help. If you need to move certain things around or switch insurance policies for a better deal until your profit margins begin to grow, you should definitely think about doing it. Business is a balancing act and you never know where you may be able to gain a little profit if you take a cut elsewhere.
Take Out a Loan to Expand
If you need to expand quickly, for example if you need to buy a new truck, consider taking out a loan so you can start earning at a higher percentile faster. Lending Express trucking loans are tailor-made for truckers and will help you get the cash you need quickly.
You should not think that taking out a loan is in any way putting yourself at risk of major debt. Businesses up and down the country regularly take out loans to help themselves meet the costs of their expenses. It is a valid way of securing yourself the funding you need to make your business flourish.
These are just some of the ways you can work towards turning a healthy profit for your trucking business. Take a look at your expense books and see where you can make a savings today.