Start a Trucking Company With One Truck
Go in for the right machinery
Decide which type of truck and machinery you want to go in for stock them in your Company. Decide on the outfit of your truck. You may either do outright purchase of the equipment or take it for a lease for the term you feel appropriate. Some business models like owner operator financing may be a confusing business for new entrepreneurs.
So in the initial stage opt to go in for rentals or lease model. In the outright purchase model, you start your business with the truck or number of trucks you plan to start the business with paying an initial payment. Then you pay the monthly EMI’s regularly and own the same at the end of the loan period. Leasing is also a good option as long as it is a structured one and works out well. It is important to decide whether you want to go in for outright purchase or a lease option
Tap the customer base
Tapping the right customer base is the next logical step. Do some branding activity and create sign boards and banners that advertise about your services. Provide your contact details and mail ID in every advertisement so the customers can get back to you. Initially quote the lowest bid understanding the market range and attract customers. Once a strong customer base is built and the loyalty levels are established, then the value of the brand will automatically increase your cost earning your profit
Managing income Vs Expenses
Understand your monthly operational expenses like repairs, maintenance, fuel cost, loan amounts to be paid, cost of manpower and many other things. Calculate your income accordingly though initially you may need to compromise on your profit margins to win customer base. This will help you manage your business with balanced approach and save you from acquiring loss
Strong Back office processes
Build strong processes that will help you track every aspect of the business meticulously. Build tracking reports and methodologies to be followed so that every aspect of your business is under your control at all points of time
Maintain healthy cash flow
Understand the revenue flow periodicity clearly. While you can get clear cut ideas about cash inflow patterns based on the periodicities, it is tough to anticipate expenses. Repairs and maintenance may arise all of a sudden and cause cash crunch to you. Ensure you plan clearly so you do not get in to a cash flow issue.
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