For a trucking industry, revenue depends on the miles a truck covers.
A fleet owner needs to continue the process to get paid, and that’s important for finding trucking contracts.
1. Look for Freight Brokers
Freight brokers bridge the gap between truckers and shippers, and this is a good option for those who are starting fresh. Brokers help owner-operators find truck contracts and do most of the work including rate negotiation with the shippers.
2. Hire a Dispatcher for Owner Operators
You can hire a truck dispatching service that helps you connect with shippers and brokers. These dispatchers are also able to offer some administrative services like billing, accounting, and collections.
3. The Power of Load Boards
Load boards for freight operators are another way of connecting truckers directly with the shippers. The load boards make it easier to find truck loads or contracts by providing a vast list to choose from, and most of the task details are explained clearly.
4. Don’t Just Rely on Load Boards
Most of the freight managers depend solely on the load boards for contracts. However, load boards can help you get started, but they provide low-paying loads. And switching multiple brokers may affect your company’s growth.
5. Know Your Target Clients
Before looking for contracts, determine your target clients. Knowing your target clients will help you get a clear perspective on what you want and develop a plan. This step is a crucial one and takes less time.
Here’s how you can define target clients
An established shipper
Well-paying and timely-paying
Having a good reputation
Giving you contract regularly
One thing you should always keep in mind is that finding clients is hard, but retaining them is challenging. Still, you need to work hard to maintain your existing clients by offering them excellent customer service.
6. Find the Well Paying Shippers
Once you know your target clients, you need to look for them. One way is to find the clients through industry alliances with local chapters of your area. Call the prospects and try setting up a meeting. Determine the method they select, the transporters they work with.
7. Connect with Registered Government Contractors
Progressively, the government is registering contractors for its staffing requirements, and the trucking industry is no exception. Along with the federal government, state and local governments also have trucking contracts to fill.
There are several contractors registered with the government agencies nearby. You can get in touch with those and fulfill your trucking needs. It may require a few extra steps, but that’s worth it.
8. Prospecting Freight Contracts
However, it takes extra effort to start, but prospecting can help freight companies find their owner-operators. All you need to do is research the number of shippers in your area and what they ship and where they carry the shipment.
Then you can connect with them either by visiting them or cold calling and introducing yourself.
You can ask them the queries about their freight requirements and prepare to follow up with them as new possibilities may come. Freight prospecting is all about numbers, so continue doing it.
9. Make Networks
Networking is the livelihood for small businesses and startups, including trucking companies.
Get involved in alliances and numerous events to be attended by your shippers.
One of the ideal places to search for the currents trends in the trucking industry is the internet.
You can check the associations, way to join those, and how to meet people.
Meet new people and make connections. These small investments in time can play a significant role in your future.
Most of your contacts can provide you with some tricks and tips to save money for your freight business.
Whatever options you select, keep going strong, and watch your freight business grow.
When you are done with this, many financial institutions are there to help you in providing the capital.
10. Regulate Your Miles per Gallon
Determine the quantity of fuel you are using in your truck. Drive 100 miles once you fill up your fuel tank, then fill it again. Calculate the number of gallons you have used to fill up the fuel tank for the 2nd time.
11. Regulate Mileage Cost
Check the number of miles each trip will take. Multiply the miles a contract requires, by the number of miles covered in the trip. The result will determine the number of miles needed for the deal.
Moreover, specify the quantity of fuel you require. The total amount of fuel you need is determined by dividing the total miles a contract requires by miles per gallon your vehicle gets. Similarly, you can determine the daily cost.
The above points are not only beneficial for getting new freight contracts but can also improve the cash flow.
However, you can also make use of fleet management software to add to the benefits and enhance your chance of success.
How To Successfully Grow Your Trucking Business?
The trucking business is one of the most profitable in recent times, but it’s equally competitive. Several truckers try to get into this business every year, and only a few of them succeed.
The reason could be that some of the people could be great truckers but not good business owners. To know how to run and grow a trucking business is more complicated than knowing how to choose a route and drive a truck.
With every passing year, you, as a truck business owner, may want your venture to grow and compete with other business leaders in the industry. In this post, we have pointed out some important, yet interesting points that will help you successfully grow your trucking business, from one truck to a fleet of vehicles.
1. Choose the right target market
The target market you choose tells a lot about the longevity of your logistics business.
The market/customers you choose determine the equipment you invest in, the rates you quote, and the lanes you can service.
As an owner-operator, you should focus on the markets that large carriers avoid. There is too much competition from large carriers, and other competitors are trying to pull the more manageable loads.
2. Acquire and retain employees
Hiring employees is one of the most important parts of determining the success of your trucking business.
Try keeping your top employees. Try to figure out how to offer benefits to them. First of all, get health insurance that will help them a lot, appreciate them by providing rewards and recognition.
These small gestures help you maintain a long term relationship with your workers. Ultimately, it enhances your business process too.
3. Understand Financing
It’s essential to understand how to use financing as leverage to grow your business. A lot of individuals get scared to borrow capital, but the truth is that when you are building your business, and you want it to happen quickly, you need financing.
And there’s nothing wrong with utilizing funds to grow your business, as long as you are using it in the right way. A lot of business owners lay out money for trailers or trucks, right out of their cash flows, which can be a risk.
There is a lot of equipment financing and leasing products out there where you can lease or finance a truck over a while. In this way, you don’t have to pull the money out of your cash flow.
4. Determine the operating costs
Before saving money, you need to understand your expenditure. Initially, know your regular costs, which include things you always have to pay.
For instance: your permits, insurance, truck payments, etc. Next, evaluate your variable costs, such as fuel and subtract the total cost from your rates, and you will gain your profits. With this, you can set goals for increasing your earnings going forward.
5. Get the paperwork in order
The office isn’t the most visible part of a small trucking company, and thus it can be usually neglected. Especially for small businesses, it’s easy to see the paperwork as a non-essential part of their tasks, which they can easily do anytime. However, well-maintained office tasks equal to a well-run business.
When you continuously monitor things like fuel and routing, also planning, and dispatch tools, it will increase the profitability of your trucking business without the need to increase your load.
By successfully maintaining the office work, you can prevent delays, fines by avoiding mistakes, and spend your precious time to secure your next consignments and enhance your logistics business.
6. Strategize fuel buying
Fuel is a significant expense for a trucking business. Although new owner-operators in the market often make silly mistakes in buying fuel. They think that the low-priced pump price will provide them with low-cost fuel. It can result in the loss of hundreds or thousands of dollars.
The primary issue is taxes. Usual drivers pay fuel taxes in the state where they purchase it. Whereas, truck drivers need to deal with IFTA. These drivers pay taxes as per the fuel use while driving through states, despite where they purchased the fuel initially.
Due to this tax issue, you should get fuel at the lowest base price without considering the pump price. Also, calculate your miles per gallon once you leave the pump.
7. Work directly with client shippers
Trucking brokers find their place in your business in one way or another. While they can be useful for your empty truck, else they could be too expensive.
It’s a great idea if you invest your time in developing a list of direct shippers. It will help you save 10-20% of your load price that you spend on brokerage. If done right, you can create a list of reliable shipping to keep you busy. Once it’s done, charge them a competitive price to what brokers charge and keep everything to yourself instead.
8. Register with government contractors
Government contractors are the most trustworthy individuals for your staffing requirements. They screen through a proper background verification so that you don’t have to face any issue once you register with them. So, avoid local contractors.
Starting a trucking business is easy, but substantially growing, it can be tough. By following the above tips, you can take your business to greater heights, ensuring more solidity and profits. Just make the most out of the opportunities and run a successful business of your own.
Adding to the above points, you can equip your truck with the best fleet management software to add value to the various benefits and boost the chances of your business success.
What are you waiting for? Get yourself in the list of trucking success stories now!