Many experts tout the haulage and trucking business to be the backbone of the United States economy. According to Statista, the industry’s market size crossed $730 billion in value, and its compound annual growth rate is expected to reach 25 percent between now and 2027. As of 2020, the sector’s driver population was a little over 900,000, far less than the industry requirement. The sector keeps expanding as consumer needs and volumes grow. Therefore, venturing into the trucking business can never be a missed opportunity. Here are a few tips on running a successful haulage company.
Don’t neglect truck insurance.
According to the Insurance Information Institute, about 32 million uninsured drivers exist in the United States, representing one in eight car owners. Many of these drivers cite several personal reasons why they’re not interested in any of the numerous policy options existing today. However, insurance isn’t just an option if you’re a trucking business owner, it’s a necessity.
Your drivers expose themselves to daily risks using the road; so they need reassurance when the worst happens. Truck insurance can also be a cost-effective way to manage your fleet of trucks. Several fleet insurance providers exist on the market today and finding an affordable truck insurance package can be as simple as a Google search. The type of insurance coverage you get might depend on the number and types of vehicles in your fleet. Comparing multiple truck insurance quotes can be a great way to the best deal on the market.
Make cash flow a priority.
Cash flow is a non-negotiable element in managing businesses of all types and industries. Your haulage company can start with good working capital, but you’ll need consistent cash flow to keep your business for the long haul. You can depend on your cash reserves to settle running costs like salaries, insurance packages, fleet maintenance, however, improving your cash flow is vital. Good management involves making services and payments convenient for customers. This means adopting payment systems like credit card machines with optimum security features for modern customers to make mobile payments.
Improve property tracking and security.
Property tracking can be a great way to ensure fleet security. Knowing where your trucks are at all times makes it easier to deploy support services when drivers get stuck. Luckily, business owners can now track multiple properties remotely from a mobile device.
You can also rely on tracking insights to send real-time insights to customers during distribution and delivery. Real-time tracking and reporting can enhance trust from your clients and contribute to your overall customer relationship management efforts.
Prioritize maintenance and repair.
Fleet maintenance is crucial to your haulage company’s operations, whether you’re using brand new vehicles or used ones.
As a haulage business owner, your trucks are your most important asset, and you need to ensure they’re reliable all year round.
Customers will keep bringing their business to you because they can rely on your trucks to deliver on schedule. Therefore, it’s essential to have a well-resourced maintenance team that procures spare parts from reputable dealers to improve operational efficiency and reduce maintenance costs for the long haul.
Hire and manage effectively.
Hiring your company’s employees can be challenging, especially in a highly-competitive industry like trucking. The best drivers go to companies with effective working environments and conditions. Therefore, it’s essential to keep loyalty bonuses, healthcare insurance, and flexible working hours in your hiring package. These offers entice drivers and motivate them to perform optimally.
Also, ensure to hire drivers who fit your business purpose and culture. They’ll better understand your business’ direction and core values than general hires.
Ultimately, ensure your business evolves with the times after considering all these tips. Find effective technology solutions and new trends in the automotive industry to improve your haulage company’s success chances.