Trucking Business Pitfalls to Avoid
Did you know that more than 70% of all domestic freight is transported by trucks? This shows that there is a massive potential for trucking businesses to succeed with plenty of clients on offer. Of course, running a trucking business is not always easy as some issues can arise along the way.
Here, we will talk you through some of the trucking business pitfalls that you should avoid. Keep reading if you’d like to find out more about these common issues.
Cash Flow Issues
One of the most important things that you need to consider in any business is your cash flow. You cannot overextend yourself but sadly this is what many trucking businesses have to deal with all of the time. There is a long list of things that need to be paid for including the trucks themselves and the fuel as well as the drivers. How do you pay for this? The best solution is trucking business loans which can come in very handy. Make sure to consider this to avoid this common pitfall.
Another common pitfall that trucking businesses have to deal with is when they do not pay attention to compliance. There are some important rules and regulations set out for truck drivers and there are some fines that come along for those who do not comply. If your driver has two or more moving violations or has had a DUI, then they should not be working for you as a rule of thumb. Don’t fall into the trap of hiring anyone to avoid this common pitfall.
Cost Per Mile
Finally, you will find that many trucking businesses fail to calculate the real cost per mile when starting off. You need to give accurate quotes or else you are going to lose money along the way. Never make any kind of quote before taking some time to work out your cost per mile and then figure out how much more you can charge on top of this. You should also add costs for maintenance and tolls to this before promising any kind of price. Don’t fall into this trap, work out your pricing per job and this will help you out a lot along the way.
As you can see, there are many pitfalls that trucking businesses face every single day. If you want to try to avoid these common pitfalls, then you should make sure to follow the advice that we have given you here in this article. Think about the cost per mile and how this affects your overall pricing strategy. You should also take an in-depth look at the rules and regulations to ensure that your business is compliant.
If you can follow this advice, then you should be able to get your trucking business on track and avoid these pitfalls. Trucking businesses have a lot of potential so get the funding, start your business and you’ll soon be successful.