The trucking business consulting is a very lucrative livelihood; however, there is lots of competition. Many consultants try to get into business yearly but don’t succeed. This is probably what happens to great truckers without a proper business skill. Knowing how to run and develop a trucking business requires more than just knowing how to choose a route or drive a truck.
Hence, the following tips would get you on the right path to run a successful trucking business consultancy.
Choose the right niche
The most vital step to be a great trucking business operator is to choose the right market niche. This is crucial for small business owners. The niche you choose determines which equipment you would buy, what rate you charge, and the freight routes you can service.
Charge the right rate (per mile)
As a trucking business owner, you have to decide the price you would charge your clients to haul a load. Your rate should be good enough to give you a nice profit and pay for all business liabilities.
You need to know what to charge before you start calling shippers and begin selling. Remember, once you call shippers, you have to be competitive with the charges of brokers.
Know your operating costs
It’s essential you know you’re running in detail. Else, it would be difficult to tell whether you are making a profit or not. Know your fixed costs as they will remain unchanged irrespective of the distance you drive. Examples include insurance, truck payments, permits and so on.
Use proper fuel-buying strategy
Fuel is the most significant expense for a trucking business. However, both new and experienced consultants usually purchase their fuel wrongly. They think that going for the lowest pump price give them the cheapest oil.
Work directly with shippers
Load brokers and boards have a role to play in your business. They are handy when your trucks are empty. However, their service can be expensive. Brokers retain about 10 to 20 percent of the load price.
Run an efficient back office
If you want your business to grow and stay profitable, then you need a capable back office. The significance of the back office become vital when you start employing leased drivers to your business. You can operate your business from the cab of your truck. All you need is an internet connection, a laptop, and a printer.