7 Ways to Grow a Trucking Business Faster Next Year

7 Ways to Grow a Trucking Business Faster Next Year

/0 Comments/in , , /by

With the year winding down to a close, here are seven ways that you can “tune up” a trucking business for growth in the New Year.

7 Things that Can Help with Growing a Trucking Company

Whether you want to call them year-end to-do’s or New Year Resolutions, here are seven things you can do as the year comes to a close to position your trucking business for growth next year.

7 Ways to Tune-Up a Trucking Business for Growth Next Year

1. Taxes and Expenses

Now is the time to make sure that you have set aside what you need for tax payments for the year (month, quarter, etc.) Review the past year’s receipts, invoices, bills, and bank statements for potential tax write-offs.

It is also a great time to contact your tax accountant (or make an appointment with a local tax specialist for a consultation) to find out whether there is anything you can do now to minimize tax obligations or maximize the amount you hope to get back after filing your taxes next year.

2. Marketing and Advertising

What kind of marketing did you do in the past year to grow your trucking business? What worked well or what failed to produce a return? By identifying where your orders are coming from and taking steps to improve customer retention, repeat business and referrals, you will know where to invest marketing resources and money to grow faster next year.

Some of the questions that can help you determine whether to invest money and resources in marketing in the New Year include:

  • How do new customers usually find out about my trucking business?
  • How are competitors getting new business?
  • What characteristics do my most profitable customers have in common?
  • Based on these buyer profiles, where can I expand or launch marketing and advertising to help reach these buyers?

3. Industry and Government

Not only will you help your trucking business but you may even be able to help guide the future of the transportation industry by becoming more aware of the issues facing the industry and getting involved in organizations or by lobbying your local, state, and federal to express your concerns and opinions. Subscribe to a print or digital publication that can keep you in the know about what is going on in the trucking industry as far as best practices, rules, fees, and regulations.

4. Year End A/R Factoring Tune Up

If you are not already factoring freight bills, this would be an ideal time for you to reach out to a top transportation factoring company like ours to find out whether factoring freight bills would help improve your business.

Factoring freight bills allows truckers to get back on the road and take on new trucking business more quickly, since you get immediate access to money you have earned without waiting for customers to pay. We would be happy to provide you with a free, no obligation quote for factoring services, even if you are currently factoring your A/R (accounts receivable) invoices with another transportation factoring company.

If you are already factoring freight bills with another Factor, the end of the year is a great time for you to get a no-cost, no-obligation comparison from us to make sure that you have the best invoice factoring program in place relative to your organization’s financial needs.

5. Customers and Prospects

The holidays give you an ideal time to reach out to current and past trucking customers to find out whether your trucking business is doing a good job for them or ask how you could serve them better. This may even uncover new opportunities with existing trucking clients. In addition, take this opportunity reach out to your past customers to ask for referrals or let them know about any customer referral or returning customer rewards you offer.

6. Business Plan

If you have never taken the time to put your trucking business plan in writing, this could be an ideal time to do so. Having a trucking business plan on paper provides you with a snapshot of what your business looks like today as well as a vision of what you want it to look like tomorrow. You can even download a free business plan template from bplans.com to make writing your plan easier.

If you do have a business plan in writing (especially if it has been a while since you reviewed it), the year end is a great time to review and refresh your plan. Benchmark how you are doing (or did) compared to the goals laid out in your plan and update it with your current position and goals for next year.

7. Employees, Vendors and Peers

If you are a trucking owner-operator, you may not have staff, but you probably still have a vast network of peers, vendors, suppliers, brokers, and other contacts in the industry. The year end is a great time to reach out to these valuable stakeholders and let them know what you plan to do in the New Year to grow your trucking business, so that they can do a better job of helping you reach your goals.

In addition, this might be a good time to review vendor and supplier contracts. Double check that they are fulfilling the obligations they laid out, touch base on anything that isn’t going as well as you would like, or even reach out to other vendors for competitive quotes. It is not always about the lowest price! To grow your trucking business faster, you need to be sure that you are receiving a good value for what you spend to do business.

While we cannot believe that the year is almost over, nevertheless the year end provides a good opportunity for many carriers and owner-operators to assess how the year has gone, execute year-end checklists and look for ways they can improve their business in order to be more profitable and grow in the New Year.

5 Ways Invoice Factoring for Trucking Companies Speeds up Growth

5 Ways Invoice Factoring for Trucking Companies Speeds up Growth

/0 Comments/in , , /by

Factoring is a financial tool trucking companies can use to strengthen operations and grow faster. Here are five ways invoice factoring for trucking companies speeds up growth.

Factoring for Trucking Companies Fuels Growth in 5 Ways

We have yet to work with a freight factoring client that did not want their business to grow. Invoice factoring is one of the tools that is particularly well-suited to the trucking industry, especially for those that want to add more trucks to their fleet, take on new business more quickly or attract the attention of larger shipping clients. If you will forgive the pun, the one thing we have found to be true about all of our freight factoring clients is that they are on the move. Here are five ways invoice factoring for trucking companies speeds up growth.

5 Benefits of Factoring for Trucking Companies

1. Freight Factoring for Trucking Companies Eliminates Cash Flow Slow-Down

Growing companies need consistent cash flow to meet operational needs, take on new business, make needed repairs or invest in new equipment. Our clients commonly cite slow-paying customers or customers with extended terms as one of the reasons that freight factoring is beneficial to their trucking business.

2. Factoring Invoices Facilitates Competitive Advantages

By extension, getting payment on customer invoices within days (or hours) or when they are issued – without waiting for customers to pay – can create an instant competitive advantage for a trucking company. Since slow-paying freight customers or customers with extended terms no longer affects their cash flow, they can extend better payment terms that can help them bring on new accounts.

3. Factoring Freight Bills Frees Up Working Capital

No business can grow without access to working capital. If working capital is locked down in customer receivables, it cannot be put to work to pay operating expenses, meet payroll, cover the cost of taking on new business or be put to work to add new trucks to the fleet. Lack of cash flow can stall your growth; access to working capital lets you reinvest in your business more quickly!

Trucking companies that factor invoices get almost immediate access to the working capital that could otherwise be locked down for weeks – or even months – while waiting for customers to pay. You can calculate how much working capital may be tied up in your receivable invoices using our freight factoring calculator.

4. Factoring Invoices Provides a Trucking Company with Financial Leverage

Not only does factoring freight bills give you the ability to become more attractive to potential customers, it also gives you leverage with suppliers and vendors. With working capital in hand – instead of locked down in customer receivables – you can negotiate more favorable terms and savings.

This type of cost savings means improved profitability for your trucking business. The amount you save with vendor quick-pay discounts could even be far more than the factoring fees needed to speed up cash flow.

5. Factoring Freight Bills Reduces Operational Costs

Saving money with vendors and suppliers is only one way that factoring produces a cost-savings for a trucking company. In addition, operational costs associated with bookkeeping for accounts receivables and any associated collections activities are reduced – or even eliminated altogether.

In addition, trucking companies that factor without recourse (non-recourse factoring) can also reduce or eliminate their risk from bad debt, since the factoring company assumes the credit risk.

Freight Factoring Companies that Put You Driver’s Seat

Freight factoring (or invoice factoring) refers to the act of selling freight bills and/or customer receivable invoices to a factoring company. Using factoring for trucking companies means the carrier does not have to wait for customers to pay. They can make instant reinvestments that allow them to get back on the road and take on new business, add trucks or leverage their availability and reputation to serve bigger freight accounts.

Every factoring program is a little bit different. Our goal is to provide freight factoring services tailored to the unique needs of your business. We want you to be able to retain more control and eliminate any unpleasant surprises. Our factoring agreements include favorable terms like:

  • Low freight factoring fees
  • Competitive advances
  • No long-term contracts
  • No monthly minimums – factor only when it’s right for your trucking business!
  • Small invoices welcome – factoring for trucking fleets of all sizes!
  • Spot factoring and micro-factoring
  • Fast funding options
  • Credit checks to vet new customers and set limits
  • No application or due diligence fees
  • No hidden administrative fees to drive up the cost of factoring
  • Professional customer service with an assigned account manager
  • Non-recourse factoring for additional financial protection
  • Non-notification white-labeled factoring options

It’s free and easy to apply to see if freight factoring makes financial sense for your trucking business. Complete an application or request a quick quote and you could go from approval to funding in a matter of hours.

  • Average monthly invoices / sales or amount of single invoice to factor

 

16 Ways to Run a Lean Trucking Business + Infographic

16 Ways to Run a Lean Trucking Business + Infographic

/2 Comments/in , , /by

Running a lean trucking business could put more money back in your bank account and allow you to grow more quickly. Here are sixteen strategies that can help you get a better return on the money you spend. 

Maximize Working Capital By Running a Lean Trucking Business

Business owners that adopt a lean business strategy set out to spend less overall by ensuring that they are getting measurable value – and the most value possible – out of each dollar they spend on business operations.

The bottom line? Adopting a leaner business model could mean faster growth for less money. Below you will find sixteen ways to run lean trucking business operations in order to get more from each dollar you invest in growing your business.

Before you do, it is important to point out that lean businesses are not just organizations that try to cut costs.

Cutting costs outside of a business growth strategy could easily result in lost business when items that enhance the customer’s experience – and perception of the value of the goods or services of the business – are slashed.

A lean business model is an operating strategy that both:

  • strives to eliminate waste in product and processes, while also simultaneously
  • strives to satisfy customer wants and needs

A better understanding of the idea of a lean trucking business model might be the idea of creating more value for customers using fewer resources. It is about maximizing the value of each and every dollar spent in running and growing a business. The Lean Enterprise Institute shares a multi-step process for creating lean business operating tactics that boils down to this:

  1. Identify specific value prized by your customer
  2. Identify all the steps or inputs it takes to create that value, and eliminate any unneeded components
  3. Make the stream tighter; make the value-creating inputs occur in as tight a sequence as possible to get it to the customer as quickly as possible

While it might sound simplistic, tracing back all of your business processes to their elemental components might be difficult. Luckily, we found an Entrepreneur Magazine infographic (scroll down) which identifies sixteen ways to run a lean trucking business and make your company more efficient and profitable.

16 Ways to Grow Faster By Running a Lean Trucking Business – Infographic

1. Go Without

When it comes time to make a purchase or a hire, take time to be sure that it is necessary and eliminate the possibility that there are less expensive ways to fulfill the need.

2. Lead by Example

It can be difficult to get employee buy-in for a work environment that is too cold in the winter and too hot in the summer (for the sake of saving money) if you aren’t working in the same conditions. If you want others to remember to turn off lights and equipment when not in use, be sure they see that you are doing it too.

3. Source Creatively

You might be able to trade for goods or services with other companies at a lower cost than buying comparative goods or services outright. Network with other local business owner and Chamber of Commerce groups so that you can source more creatively. As a bonus, you will also be earning local goodwill as you create mutually beneficial networking relationships with other organizations.

4. Get Things in Writing

Eliminate unpleasant surprises by asking to have the details of your agreements with vendors, suppliers and clients spelled out in writing.

5. Recycle and Resell

Rather than throwing out old equipment or furnishings, see if there is someone willing to buy them from you, or whether some of the materials (such as metal) could be redeemed at a recycling center for money. Every penny recouped by recycling or reselling counts!

6. Max Out Available Discounts

Save money by taking advantage of discounts available to your company in business networking groups, industry purchasing groups or memberships in business office supply stores or big box retail centers.

7. Take the ‘Petty’ Out of Petty Cash

Petty cash funds are often made available to make it easier for staff to make change or to go out and buy miscellaneous supplies. In a lean business, there is no such thing as a “petty” – or unimportant – line item. Keep track of petty cash and any other slush funds and establish accountability.

8. DIY as Much as Possible

If you can save money by creating your own forms, printing and cutting your own business cards, picking up local supplies rather than paying for delivery and making repairs and renovations yourself, you may be able to shave lots of dollars off the operating budget. And do not forget to tap your staff, because they may have skills or connections that can be leveraged to help you grow that you aren’t yet aware of.

9. Ask Why

Take nothing for granted! Before re-upping or when auto-renewal windows arrive, make sure you are asking whether it is still essential to your business and taking the time to explore competitive quotes.

10. Hire for Core, Outsource or Train for Extras

Before hiring or refilling a position, consider whether you are hiring to a core business need or might be able to reduce costs by outsourcing or spreading tasks out among existing staff.

11. Waste Not

Save by buying in bulk when you can, printing on both sides of your paper, using waste paper as scrap for taking notes or phone messages, refilling print cartridges and other penny-saving practices. Pennies can add up fairly quickly when everyone is getting the most out of supplies and equipment on hand.

Going paperless and storing backup documents remotely can also help you cut office supply costs immensely over time, since you will not need to purchase as much paper or ink or storage units.

12. Get Professional Help Where It Matters Most

The cost of legal, marketing, accounting and other expertise might seem expensive, but it might be a drop in the bucket compared to the pitfalls you might encounter if you don’t pay for experts when it comes to doing your taxes, reviewing contracts, submitting trademarks and copyrights, writing business plans and completing other business activities.

13. Keep All Your Receipts

You may be unaware of all of the different business expenses that qualify, so to make sure you can take advantage of all deductions available to you, keep all your receipts, at least until tax time! You can save money and time by investing in a system for digitally scanning and storing all your receipts, eliminating the need to print and store vast amounts of single records of transactions and saving time by filing them digitally for easy retrieval when needed.

14. Use Plastic Money Strategically

Some credit and debit cards or banking activity can help you earn rewards, miles, and other perks. Look around for those that offer the type of rewards that would benefit your organization most and use your cards strategically.

15. Negotiate Everything

Ask vendors and suppliers for discounts on cash or early payments or negotiate for longer payment terms that will let you keep working capital on hand longer, whichever is more financially beneficial to your organization. Also, find out how factoring invoices with a top freight factoring company can put you in the driver’s seat when it comes to negotiating with vendors or extending better terms to your own customers.

We offer great freight factoring rates even to single truck and small fleet trucking companies, including small invoice, spot factoring and micro factoring programs that let you maximize the benefits of factoring only when it is best for your trucking company.

16. Buy Used Instead of New

Craigslist, newspaper classifieds, eBay and second-hand stores all make it possible for you to buy office furnishings, supplies and other items at a lower cost than new items usually require. Likewise, watch for local going out of business sales, surplus auctions, and other events where you may be able to save exponentially on the equipment, supplies and furnishings your business needs.

Featured image,  @5m3photos via Twenty20

infographic lean business