Though trucking is extremely profitable, the competition is ruthless. This is why starting a trucking business can be an extremely risky venture. This is also why some truckers are discouraged before they’ve even started, and many of those who dare to start still fail. This is likely due to the fact that starting your own enterprise needs you to be a good businessman, not just a good trucker.
Knowing what it takes to launch and maintain your business is crucial if you want to succeed. We’ve asked some of our most successful clients who started small and developed an empire to answer some of the most usual questions, such as:
– How to get the necessary equipment,
– How to get financing for a commercial truck,
– How to find the customers, and most importantly,
– How to keep the wheels rolling.
In our previous article we talked about the trucking side of things, and this time we will cover what goes on behind the scenes of every successful trucking empire.
How to Run Your Office?
As much as getting your truck financed and obtaining clients and contracts may be important, you will be running your business from the office and not your truck. You will need to have a plan for a back office depending on the size of your enterprise. Naturally, a single owner-operator requires a smaller back office than say a fleet. Carefully plan your moves and make sure they are efficient enough not to hinder your progress.
How to Keep the Money Flowing?
Owner-operators who start their own company encounter cash flow problems sooner or later. You can trust the Murphy’s Law and be certain that this issue will hit you when you least expect it and at the worst time possible. This often occurs because most clients don’t offer quick payment, but rather pay what they own every 40 to 60 days. This means you may be forced to wait up to two whole months to get paid for a load you delivered just now.
On the other hand, expenses like fuel and repairs won’t wait that long. If your business is rapidly expanding, the expenses can often beat the revenue to the punch. This will put you in an ugly position where you cannot accept a load until you get a payment as your competition vultures over your clients and contracts. You can make sure cash flow problems are in check through freight factoring. This service provides an advance on your pending bills. A factoring company can help you keep your business rolling while you wait for the completed contracts to be paid out.
How to get financing for a Commercial Truck?
This goes without saying, but to start a trucking business you need a truck first. This is usually the first and most challenging obstacle towards starting your own business. After you’ve looked at a few local dealerships and found the perfect truck you are going to need to start out with, the next step is to decide if you are going to pay up or look for commercial truck financing. Go Capital is here for future owner-operators looking to start their own business. With our help, you can get the equipment you need for a prize that will not hinder the further goals you need to achieve if you want to get your business going.