How to Successfully Grow a Small Trucking Company

trucking company grow

Running a successful trucking company is no mean task—but seeing it grow successfully to meet its changing needs can even be more challenging. Yet, every entrepreneur wants to see their business grow, and you are no exception as an entrepreneur in the trucking industry.

Ideally, the concept of growing a startup trucking company amidst the high competition from more giant enterprises and the operational obligations can be a nightmare. But this should not scare you. A time comes when you need to expand your business for the future.

And this could be the ideal time for you!

Evaluate Your Financial Situation

Although some entrepreneurs often assume that you only need finances when starting up, that’s never the end. The need for more finances is even dire during business expansion, and evaluating your financial situation becomes the first step.

You will need more funds for;

  • More trucks
  • More truck drivers
  • A certified public accountant
  • A freight broker
  • An office assistant
  • A truck dispatcher

Start by taking account of your savings. If your savings do not cover everything you will need to affect the expansion, your credit score and worthiness will be another option. Raise your credit score to a desirable level if it is low to ensure that it can help you secure your desired loan.

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Acquire More Trucks

The size of a trucking company depends on the size of the fleet and the amount of shipping business that it can handle. Thus, acquiring more trucks is an integral component of growing your small trucking business. The number of trucks you will acquire will depend on your financial ability and growth target.

You may choose to go with new or used trucks. But while at it, select automobiles that are cost-effective in terms of maintenance and fuel consumption. You can further save on trucks by utilizing the power of Section 179.

Hire Track Drivers

One of the main reasons why established trucking companies have a competitive advantage over their smaller counterparts is that they can easily attract and competitively compensate highly qualified and experienced truckers.

Many people would trust a friend or family member with a truck. That is in order. But if you do not have a friend or relative worth trusting, job boards are another avenue you can use. Whichever method you choose, hold interviews and ascertain if the candidate has training from a reputable CDL school.

Anticipate Trucking Regulations

Like in most industries, tracking regulations change from time to time. Anticipating new rules and alterations to the existing laws is something you need to expect. Also, you will need Authority if your business is yet to have one.

The Authority is the permission from the Department of Transportation (DOT) and the Federal Motor Carrier Association (FMCSA), which outlines the dos and don’ts in the trucking industry. Failure to acquire this permission will inevitably cripple your growth. This permission is a must-have, particularly if you intend to go nationwide.

Competitively Compensate and Retain Drivers

Due diligence is vital when hiring a new trucker. Try as much as possible not to pick on a candidate whom you will need to fire after just a few weeks or months. Anyway, who wants to go through the tedious hiring process now and then?

One of the best ways to retain your truckers is through competitive compensation. However, as a small trucking business owner-operator, it can be a nightmare to go head to head with the big industry players is a significant challenge. You can still make some effort and give them a conducive working environment. Also, please provide them with compensation insurance in case of a work-related injury.

The above are some tips on successfully growing a small trucking company. You can also leverage modern trucking industry technology to track your fleet, manage your fleet, monitor fuel prices across the region, and monitor your logbooks. Finally, keep an eye on your accounts, join relevant associations, and change your business entity from a sole proprietorship to an LLC, limited partnership, or a cooperative as you deem fit.