Trucking Business Basics #3: Growing Your Trucking Company

In the third post of our series on Starting Your Trucking Business we are going to focus on how to find freight companies worth your while. As with any part of your business plan, the way you source customers now will change as your trucking business grows. The key when starting out is developing a core business with steady customers to give you work experience and a good reputation. Here are some aspects of this process that you want to consider.

Sourcing New Freight Customers

Where do you find new customers? You have a couple of choices. You can work under the guise of larger truck driving companies as a subcontractor. This can lead to customers that are well vetted with the trucking industry. Furthermore, established trucking companies will most likely have a solid reputation that will demand the better paying customers. For a newbie to a trucking business this is the easiest option.

If you are more interested in having more control over your choice of customers you can directly contract them through independent companies. This gives you the opportunity to select haul types, load destinations and customers with whom you are willing to work. Trucking business owners who have experience either as truck drivers, dispatchers or trucking managers, this can be a good direction to take. After all, you have learned the ropes, gained trucking experience and understand how to spot a solid customer, and vice versa for those that are a waste of your energy.

Setting Goals for Growth

As a new trucking company you are apt to want to take on as many customers as possible in order to build your business. This gives you the chance to hone your ownership skills so you can determine what types of trucking jobs you want to follow up with in the next phase of your business. When your business expands you will want to cut back to only focus on those haul types that are most profitable.

Net Pay Periods

When it comes time to get paid by your customers, a head’s up here. Most companies net 30 or even net 60, which means you won’t get paid until 30 or 60 days after the load is delivered. This is an industry standard, so prepare yourself by having enough money to carry your business at least two months in advance. Also, check with your customers beforehand to determine what their payout schedules will be.

Now that you have the tools to take your trucking business plan to the next level, contact us to find out how to save money via commercial truck financing.