How Trucking Companies Make Good Money

Trucking Companies Make Good Money

WorldExecutivesDigest.com | How Trucking Companies Make Good Money | With the increasing demand for the transportation of goods, now is a good time to start a trucking business. 

Although profitable, the trucking industry is also competitive, with small businesses to larger companies having a wealth of options in terms of shipping their products to the market. It’s why success in the trade is reserved for people who are willing to take the risks. One should understand how to keep the overhead costs low, attract and maintain clients, and manage cash flow properly. 

In this article, we are covering topics such as why the trucking industry is profitable and exactly how trucking companies are raking in good money. If you’re looking to enter the trade, UsedVending.com showcases used semi trucks for sale

Why is a Trucking Business Profitable? 

Trucking services are always in high demand. The trucking industry in the US generated over $700 billion in 2017 with trucks accounting for the transportation of more than 70% of all goods within the country. The majority of these goods are food supplies in grocery stores. If this isn’t any indication, trucks are essential for the shipment of valuable goods from place to place, hence the consistent demand for trucking services. 

Trucking businesses are continuously improving their services. As the volume of goods being shipped grows, so does the number of trucking services availablemore fleets and drivers are being hired to keep up with the demand. In 2018 alone, more than 7 million people were hired by trucking companies, accounting for 5.8% of all full-time workers in the US. But, besides this steady growth, trucking companies are also improving their services in order to provide faster and tracked deliveries and this is where technology comes into play. 

Technology is further minimizing the risks in the trucking business. The introduction of locators and GPS trackers has enabled functions like live tracking, keeping customers informed and allowing them to track their parcels real time. In the case of business owners, this has helped them predict order completion more accurately. 

The growth in cargo, continuous improvement in trucking services, live tracking, and all the other innovations applied in the trade are contributing to the rise of revenue in the trucking industry. But, while profit margins are projected to see further growth in the future, the secret to success in the business involves hard work and commitment. 

How to Make Money from a Trucking Business 

Regardless of the business you’re looking to start, it’s a good idea to develop a business plan. As a trucking company, your framework should include the type of vehicles and other equipment you will havewhether you plan to purchase brand new or secondhand units, or lease them. Professionals at Simplex Group suggest companies to have an advance plan for the recruitment and training as well as the insurance coverage of their trucks. All these factors would give you the idea about the costs associated with starting a trucking business. 

Keep Track of Your Expenses – Tracking your cash flow, the profit and loss of your business, is essential in understanding how much it costs to operate your business and whether it is profitable. It is also helpful in figuring out where you can cut down on costs and particularly in setting a budget for the fixed costs such as insurance payments, maintenance and repairs, fuel, salaries, and office expenses. 

Save on Fuel – Fuel costs take up as much as 25% of your budget. But, there are several ways to cut down fuel consumption: investing in energy-efficient vehicles, observing speed limits, turning off the engine when the car is idle, and planning your trips accordingly. These efforts should result in big savings on fuel as well as labor costs. 

Get Help – This may sound like an unnecessary expense, particularly when you’re just starting, thinking you could handle the paperwork and chasing your clients for payment. But, having an assistant to do all this can free up your time, allowing you to focus on growing your business. They should be able to handle your billings, collections, customer service and even marketing so you can spend your time on operations.  

While there’s no definite answer as to how much you can make by owning a truck business, it is no doubt a profitable industry. But, it will all boil down to the level of risk you want to take and understanding how to increase your profit. 

When you’re thinking about jumping into the trucking industry, it’s going to take a lot of research and real-life experience to determine what’s right for you. Nevertheless, these steps should help you on the way to success. 

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Joie Mojica

Joie is the passionate writer and blogger of UsedVending.com. She enjoys writing and works at an amazing pace. Blessed with two adorable boys, she dreams of creating a successful career online. She also loves to write about parenting, home and family life, technology and gaming, as well as beauty and health.