How To Increase Cash Flow After Starting a Trucking Business
Sometimes new owner-operators think they will have instant trucking business success, without considering the costs that go into managing a trucking business.
But if you are running a trucking business, you can’t fake it until you make it. You have to know what you’re doing or you can lose tons of money.
Learn where to cut costs in order to help your operation stay afloat in the trucking industry.
How to increase cash flow
1. Cut down on Fuel
Fuel is one of the biggest expenses in the trucking industry. It’s ironic because you can’t operate without it.
The first step to saving on fuel is to slow down! Go about 10 mph slower than usual, accelerate slowly, and gradually slow down. Aggressively accelerating and slamming on the breaks can really burn fuel.
Also, avoid out of route miles! Use a program like ProMiles to find the quickest routes for trucks. ProMiles will also show you the cheapest fuel rates around your location so you can figure out the best place to fill up.
Another great tip is to reduce idling time and avoid traffic. Take the backroads during rush hours or drive early in the morning or at night to prevent having to deal with congestion.
2. Cut down on Maintenance Costs
Don’t skimp out on basic scheduled maintenance. Get your oil changed, replace your belts, check your AC lines, rotate your tires, etc.
Doing this upfront will keep your trucks in working condition for a longer amount of time so you won’t have to replace them. Plus, this will reduce your risk of break downs on the side of the road.
You’ll save much more in the long run by taking care of vehicle maintenance on a regular schedule.
3. Save on Food and Lodging
You can get rid of another major expense by opting to sleep in your rig instead of in motels. Also, you should consider packing food and beverages for your trips.
Buy your own groceries and snacks before hitting the road. Buying your favorite items in bulk can actually provide major savings. Plus, you won’t have to buy expensive fast food meals every time you get hungry.
4. The Wrong Trucking Software
In order to manage your trucking business and track your expenses, you will need a solid trucking management software. There are tons of programs out there to choose from, but not every program includes everything you need.
Also, some programs are extremely overpriced. Shop around to find your best option. Make sure the program has good dispatching software, expense tracking, account reporting, driver communication, an app, and more.
TruckLogics is the complete trucking business management solution at the best price. We make it easy to create dispatches, provide driver settlement, track profit and losses, complete check calls, and much much more. Sign up for your free 15-day trial to see how TruckLogics can enhance your trucking company today!