Trucking remains one of the world’s most important businesses, and starting a company in this field can reap you some great rewards. But it’s not exactly a cheap business to set up. Here are some of the things you need to consider when it comes to saving money in business development.
Without knowing how much you’re going to be paying, you’re going to have a hard time cutting costs. So make you get down to some budgeting when you’re developing this company. Think about all the costs you’re going to incur: buying vehicle, insurance, equipment, employees, licenses, training, etc. Without a budget, you’ll have a hard time thinking of ways to save in all these areas.
A lot of business owners in this field make the mistake of paying way too much in truck insurance. Of course, you shouldn’t get into this under the illusion that insuring a truck fleet is going to be cheap! But don’t get for the first insurance provider you see, giving up on thorough research because “every option will be expensive”. At the end of the day, while they may all be expensive, there are going to good deals and bad deals. Dedicate a lot of time to researching your options, and make sure you’re always reading the small print.
If you’re dealing with vehicles, then you should probably know by now that vehicle maintenance is absolutely essential if you want to ensure efficiency as well as cutting costs. Allowing your fleet to go without regular maintenance just means that it’s more likely they’ll require expensive repairs soon enough. And make sure you don’t skip out on anything you’re supposed to do regularly. Ever notice how so many trucks are filthy? A lot of owners think there’s no need get their trucks washed, even with convenient options such as the 2 step truck wash system. But not washing a vehicle can result in more damage and a weaker fuel economy.
The more time your drivers are out there on the job, the more you’re paying in labor costs. The longer the routes they’re taking to get to their destination, the more you’ll have to spend on fuel – and, in the long-term, overall maintenance. You need to ensure that close attention is paid to the routes being taken at all time. You can use a combination of planning and tracking, both using GPS. Remember that routes which seem longer in total mileage may take longer and use more fuel due to inclement weather or heavy traffic.
No business is going to do all that great in the costs department if they’re not working with a good accountant. A lot of new business owners may be tempted to take on these responsibilities, especially if they have bookkeeping experience. But it’s really best if you ensure that you have an accounting expert working on your books to ensure that costs are tracked effectively and that funds are being used efficiently. If you want to ensure that your accountant has everything they need, you may want to consider investing in some accounting software made specifically for trucking companies. Yes, odd as it may sound, there is such a thing.