Small trucking business owners know how tough it is to compete with companies with larger fleets. If you’re looking to expand your small business, you’ll need additional working capital. Loans for drivers are an excellent option for securing capital, and you can use the funds to grow your business. But to get the most of your money, here are six ways you can maximize your working capital and grow your trucking company:
1. Grow Your Fleet
According to the American Transportation Research Institute (ATRI), a research organization engaged in transportation studies since 1954, companies with a large fleet often earn a faster and greater return on their investment.
If you only have one or two trucks, you may end up turning down potential customers, which can ultimately hurt your bottom line. You can use your working capital to expand your fleets so you can take on more jobs and increase your revenue. Even if you’re still a small business, expanding your fleet early gives you a competitive advantage over other small trucking companies.
2. Choose the Right Truck for the Job
Once you’ve decided to grow your fleet, the next step is to choose the best truck for you. Trucks are one of the most significant investments for your trucking company, so here are some of the factors you should look out for when shopping for trucks:
- Weather resistance
- Weigh limit
- Dealership reputation
- Brand new or used
- Power and engine size
3. Check Out Trucking Load Boards
One of the best ways to acquire loyal customers is to meet them where they are. Load boards is an online marketplace where truck owner-operators, brokers, and shippers can search and post for loads. This makes it easier for you to promote your business and build relationships with potential leads specifically looking for trucking services.
As a truck owner-operator, you can use the load boards to search for goods that need to be transported. Here are the following load boards you can check out:
- Trucker Path
- Load Match
- Freight Finder
- Landstar Carriers
- Load Solutions
4. Hire Additional Drivers
When you’re planning to grow and expand your fleet, you need to hire additional truck drivers. However, there are expenses associated with hiring that need to be paid before you can actually hire someone.
Firstly, you may need to shell out cash for hiring costs, such as fees associated with working with recruiters and posting ads on paid job sites. You also need to pay for training, insurance, permits, licenses, as well as personal equipment, and uniforms.
These costs may seem expensive upfront, but your trucking company will benefit from having more drivers in the long run. You can use the additional working capital to pay for these expenses.
5. Pay for Sponsored Media Posts
Aside from load boards, social media platforms also make it easier for you to find and reach out to customers who need transportation services in the future. Facebook, Twitter, LinkedIn, and even Instagram allow you to market your company by posting ads, sharing shipping prices and discounts, and post links to your business website where potential customers can find additional information.
Social media posts are often free, but you can make the most out of your advertising efforts by posting paid advertisements. Prices usually depend on the platform and how long the ad runs, but generally, the social media ads cost around $15 to $200 per day. Creating a sponsored post allows you to target your audience based on their profession, interests, and location.
6. Upgrade Technology
Trucking technology has become more complex over the years. Currently, there are more high-tech solutions available to trucking companies today. Staying on top of these trends and finding the best technology for your business allows you to establish a competitive advantage. If you fail to upgrade, you could end up falling behind the competition, and you could also risk underperforming.
Top trends for trucking companies camera systems, electronic logging devices, electric trucks, self-driving vehicles, and more. These technological advances aim to streamline trucking operations and improve safety. However, these innovations can be expensive, so if you have additional working capital from truck driver loans, it makes sense to invest in trucking technology.
The Bottom Line
Trucking companies are essential to the community. Without them, the costs of moving goods from point A to point B would increase dramatically. For small trucking businesses to survive in a competitive market, make sure that you have access to working capital to quickly grow your business and pursue long-term goals.