If you’re like most trucking company owners, you’re always looking for ways to expand your business. After all, a larger company means more revenue and more profit. But expanding your trucking company is not a decision that you should make lightly.
The trucking industry is worth around $700 billion . It’s a growing industry, but one that has a lot of competition. There are about 500,000 long-distance trucking companies in the country, and each is competitive and unique from the rest.
You must consider several factors before taking the plunge if you want to expand your business. Here are five things you need to have before expanding your trucking business.
The first thing you need when considering expansion is increased revenue. Without a significant increase in revenue, it will be difficult to finance the expansion of your business. Therefore, you’ll need to have a solid plan in place for how you will generate more revenue before moving forward with any expansion plans. Here are some ways to gain extra income in trucking.
Take Up Last-Mile Deliveries
Last-mile deliveries are getting all the attention nowadays because of the e-commerce boom. Retailers are looking for trucking companies to handle the final stage of their deliveries, which can be a great way to generate extra revenue for your company.
The key to making last-mile deliveries work has a well-organized system. You need to know which routes are most efficient and how to manage different types of deliveries. You should also add a fleet of vans or even bicycles to your business if you want to succeed.
Partner with Retailers
Another way to get increased revenue is by partnering with retailers. You can provide them with transportation services; in return, they will give you a percentage of their sales. This is a great way to get consistent revenue, and it can be very profitable if you partner with the right retailers. Just make sure you have a contract in place to protect both parties.
More Trucks and Drivers
You’ll need more trucks and drivers if you want to expand your trucking company. This can be one of the most daunting aspects of expansion, as it can be challenging to find qualified drivers. You’ll need a robust recruiting process to quickly find and hire quality drivers.
Training is also one way you can get more drivers. You can offer training programs to new or experienced drivers who want to join your company. This will help you attract top talent and grow your business.
More Warehouse Space
If you’re expanding your company, chances are you’ll need more warehouse space to accommodate the increased volume of shipments. Make sure you have enough space leased or owned to handle the increased business without issues.
Improved Technology Systems
As your company expands, your technology needs will change as well. For example, you’ll likely need an updated software system to handle your business’s expanded scope. You’ll also need to implement newer technologies in your trucks. Here are some essential technologies you should utilize for expansion.
Improved Fuel Tanks
Fuel is becoming even more expensive by the minute. So you should install a diesel auxiliary fuel tank on your trucks to alleviate this problem. This fuel tank can store an extra 100 or 200 gallons of diesel, which can help your drivers save a lot of money on fuel. It’s also helpful during emergencies.
On-Board Weighing Systems
An onboard weighing system is a must for any trucking company that wants to improve its operations. This technology can help you save time and money by preventing overweight loads. It can also help you avoid getting into accidents.
Automatic Tire Inflation Systems
An automatic tire inflation system is a great way to improve the safety of your trucks. This system will keep your tires properly inflated, which can help prevent blowouts. It’s also a great way to improve your fuel economy.
Improved Customer Service Processes
As your company grows, it will become more challenging to provide the same level of customer service you can now. That’s why it’s important to have improved customer service processes in place before expanding your company. By automating some processes and hiring additional customer service representatives, you can ensure that your customers will continue to receive the high level of service they’ve expected—no matter how much your business grows.
Expanding your trucking business can be a great way to increase revenue and profits. But it’s not a decision that should be made lightly—there are several factors you need to consider first. By following the tips above, you can ensure that you’re prepared for expansion and set your company up for success.