5 Tips For Operating A Successful Trucking Company

The bloodstream of any economy, including Canada and the U.S., is most usually facilitated by efficient logistics and trucking services.

In both North American countries, more than 70% of all goods are delivered by trucks, in either raw material form or finished for final consumption. Because of that, for the good health of any country’s economy, it’s critically important to maintain an uninterrupted flow of goods and other supplies, even during the time of crises and lockdowns such as the COVID-19 pandemic.

The above suggests that trucking services may be highly rewarding, but at the same time, it is a competing niche of businesses. Driving a truck may earn a big buck but turning drivers into businessmen requires a whole lot of other qualities and knowledge.

So, if you’re dwelling on the possibility of starting a prosperous trucking business, whether it is LTL or FTL freight or below, you can find our five tips on how to run a successful trucking business to improve your chances of beginning a profitable operation

5 Incredible Tips To Help You Out Operating A Successful Trucking Company

1. Find An Available Market Segment For Service

The initial activity that will give your startup trucking business an excellent prospect may be choosing among the available market segments to service. Due to vigorous competition, making the right choice is essential to provide sufficient earnings to finance the whole business.

As a general principle, the main interest of new entrants in the trucking business should be the niche of markets that large tracking companies sidestep. For example, tailoring more individualized transport to meet particular client needs may be a winning strategy.

2. Create A Business Plan

Next, to run a successful trucking business, you should know that enthusiasm is not the only factor to decide upon. A precise and more detailed business plan is needed based on the following inputs:

• Your market niche will determine the type of vehicles and tools needed (car transporter, van; tanker; forklift, trailer, etc.)
• Determine the right weight among reliability of the powertrain, the manufacturer, costs for maintenance and repair, and longevity of the vehicle, as the appropriate structure can lower the costs.
• Examine the requirements for licenses and permits or special endorsements (frozen food, agricultural products or radioactive materials, etc., all require different permits and approvals.)
• Make detailed plans for financing operating costs (salaries, tires, oil, and fuel, among other things.)
• Your geographic region operation will serve to determine related licensing/permit needs, mainly if it includes international tours.  

The business plan should be projected for five years to realize where the business will stand at any point in the future.

3. Get Your Trucking Business Insured

Next, you need commercial truck insurance to cover your business, vehicles, and drivers. It is a legal requirement, and it conveniently protects against various risks such as loss of cargo and liability against third persons and drivers. It can also provide temporary truck rental to ensure continuing services.

The insurance policy of your trucking company is essential for the customers to assess the risk level they are dealing with. In addition, proper or full liability coverage is needed to assure clients and regulators of your ability going concerned.

If you have any troubles regarding the process of obtaining the complicated policies and paperwork for your trucking business, you can always seek help from one of the professional ALIGNED insurance brokers to guide you through the main aspects of insurance related to new truck companies.   

However, the cost of the insurance policy, i.e., the monthly premiums, are determined based on the size and type of trucks used, the cargo that is being transported, the number of drivers for the particular vehicle and their driving records, as well as any specifics of the nature of materials and route used.   

4. Secure Law And Safety Compliance

As hinted a couple of times, logistics and transportation sectors are highly controlled and organized by competent bodies that impose strict rules and regulations to alleviate risks and enhance security on and off the roads. Failing to comply with all these regulations on registration, insurance, gas emissions, etc. may incur significant fines for the companies. That’s why strict legal compliance is required and needed to perform well in this sector.

5. Get The Best Drivers

For new trucking companies, it’s crucial that in the recruitment process, the company needs to go through the history and motivation of the candidates, their driving habits, etc. to choose the most disciplined ones.

After all, the drivers are the ones that are exposed as representatives of the company and they need to perform well in order for the company to carry out the required level of services. The prudent policy for trucking companies would include motivation and benefits for the drivers such as healthcare, bonuses, insurance against accidents, and much more to maintain high job satisfaction levels and performance that can contribute to faster company growth.

Final Words

Following the above five steps can make you a successful owner of a new trucking company. The transportation industry is an engine of distribution channels for raw materials or final goods in any economy, especially in developed ones such as the U.S. and Canada. After all, trucking is a large industry and anyone can tap into the sector with appropriate positioning.

To run a prosperous trucking company you need to have an excellent fleet, an insurance policy in place, and a great team that will carry out the required service level both behind the driving wheel and at the back-office seats.

Read Also:

• 10 Questions To Ask Yourself Before Choosing A Trucking Company To Work For
• Out For Delivery – What Do You Mean By This Logistics Term?
• 6 Facts About The Invoice Factoring Industry