Billy Weems, Author at Commercial Fleet Financing
26 Oct

Think About Expansion- And GROW!

Think About Expansion- And GROW!

You’ve probably heard it about 100,000 times before: pick a lane and stay in it. But the old driving platitude doesn’t just apply to life on the road—it’s also great advice for growing your fleet.

The myriad strategies companies of all sizes are developing to find and keep drivers in an industry afflicted by extraordinarily high rates of turnover.

Since February, one theme I’ve continually returned to conversations with fleet owners is specialization. It was a key takeaway from a workshop entitled “How to Grow Your Fleet and Not Just Fill the Trucks You Have Today.”

The workshop tackled a pervasive issue in the trucking industry: If you have 100 trucks on a given day, you’re probably going to have 10 of them empty, so how do you get beyond that cycle and actually grow your fleet?

Here’s the answer Rob Hatchet, Vice President of Communications and Recruiting for Covenant Transportation Group, gave to the room:

“There’s only one Walmart. Kmart tried to be Walmart and actually went out of business. Big Lots is a low-end Walmart. Target was not doing well and then they rebranded themselves to be a high-end Walmart. … But what you see more of is niche retail stores. You see Bed Bath & Beyond and Babies”R”Us saying, ‘We sell the same stuff as Walmart—we’re just the specialist. It’s our niche. This is our area.’”

That analogy applies to transportation [as well]. There are several different carriers that can really be the Walmart—all things to all [people]. We said, ‘Hey, we’re the Bed Bath & Beyond. We do 2 or 3 things and we do them well and we’re going to focus on that and stop just taking freight.’ … We basically did away with all [our over-the-road trucks] and we just went down to dedicated car parts and we’re up about 25% in the last 15 months in terms of truck count. And it’s because we said, ‘We do one thing. We do one thing well and that’s what we’re going to specialize in.’ …

 

Retain Your Drivers

 

While the trucking industry itself is growing, the trucking workforce is not. According to the American Trucking Association, the industry is over 25,000 drivers short. The Bureau of Labor’s statistics points to an even higher number of nearly 50,000. Either way, the number is high, and it is growing. What this means is that drivers are precious commodities. Driver turnover directly affects your bottom line. The key to driver retention: building employee loyalty by keeping your drivers happy and engaged. Experts advise not only paying more but paying smarter and offering incentive-based compensation. Honesty, communication, driver health, better training, and increased home time are other proven ways to boost loyalty and lower turnover.

 

 

Have a Clear Plan

Having a clear plan for the future of your business seems simple enough, but it often gets lost in the day-to-day slog of keeping a company running. While daily tasks are certainly necessary and important, it is key not to lose sight of the long-term vision that you have for your company. Sure, understand day-to-day revenues and expenses, but also keep in mind the bigger picture. How do I want my company to run? What types of customers do I want to haul for? Where should the company be next year? In five years? In ten? Once you have your goals set, you can plot your course of how to get there.

 

Build Strong Relationships

 

Customer relationships are the key to any business. Oddly enough, customer relationships are often the first thing that gets forgotten when times get hard. Don’t make that mistake. Once you find a quality shipper or broker, do everything you can to make him or her a customer for life. When you forge strong relationships with customers and industry affiliates, you are also opening the door to expanding your business through quality referrals. Never risk a customer relationship, especially when it is with a quality customer.

 

 

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26 Oct

Starting a Repair and Maintenance Account – Right from the Start!

Starting a Repair and Maintenance Account – Right from the Start!

 

You’ve seen it before: a big rig truck pulled over on the side of the road with their hazards on. Heck, maybe that’s even been YOU! Breakdowns happen to everyone—truck driver or not—however, big truck = big repair expenditures. Finance experts suggest owner-operators have an emergency fund for exactly that—emergencies. Usually, though, our emergency funds include immediate cash for things like mortgage or rent payments, utility bills, loan repayments, food, etc.  So what happens when your truck needs repairs? Does your emergency fund include enough for unexpected truck maintenance? Here are a couple of ideas for owner-operators to keep your truck in tip-top shape and how to prepare for unexpected repairs if (and when!) they happen. We recommend saving at least $500 aside minimum just for roadside repairs.  Look into a reputable roadside assistance provider such as TSA Truckers or Commercial Truck Roadside Assistance.

 

  1. Preventative Maintenance

Preventative maintenance is kind of like brushing your teeth. Yes, it’s kind of annoying but if you brush and floss daily, you’re less likely to have to need major dental work, right? Preventative maintenance for your truck is exactly the same thing. If you stay on top of taking care of your truck, less major repairs will be necessary or at least needed less frequently. Spending a little bit more money on better fuel, oil, or small parts in the short term can save you a lot more money in the long term. Consult your maintenance manual often – it will probably have guidelines on the frequency with which you should get things checked out or changed. Additionally, take into consideration what you’re hauling and through which conditions. Trucks moving freight in the mid-west November through March will definitely need more PM than trucks hauling in the south. Staying on top of little issues before they become big issues will help your truck have a long and happy life.

 

  1. Start Saving NOW

Get a head start on financing pricey repairs by starting a ‘maintenance’ account. Think of it like your “rainy day fund” for your truck. In the case that you do need to have something fixed, you won’t be stressed out about how you’re going to afford it. We’ve provided this chart on their website in regards to how much owner-operators should be putting away:

Not only can the cost of parts be a setback, but you’ll also most likely have to pay for labor, which won’t be cheap either. Together, these costs can be well into the thousands of dollars. That’s more than a few quarters in the couch cushions.

  1. DIY

If you plan on owning your own truck, or driving long-term, learning at least basic repairs will be a must. You never know what, when or where you might break down and have to attempt to fix on your own until you can get to a shop. Some courses are offered online, but hands-on experience is always best. Check with your local repair shop and see if they offer any type of training or if they can refer you to any type of vocational classes nearby. The more experienced and knowledgeable you are about your own truck, the more money you’ll save on outsourcing repairs.

  1. Know Your Options

Let’s just say you completely ignored the above advice and suddenly you need cash—and fast. Explore your options as far alternate funding so that you aren’t going to go bankrupt trying to fix your truck. Factoring, for example, is a viable option in which a truck factoring company will buy your open and eligible invoices for a discounted rate and advance you up to 98% of the total amount (usually within 24 hours, once you’re approved.) Using a truck factoring company can help owner-operators stabilize cash flow and protect against unexpected maintenance and repair costs that could ultimately hurt or even destroy your business.

Breakdowns and repairs are an inevitable part of trucking life. Making investments in your truck will mean less downtime and greater returns for your business in the long run. Anticipation and pro-activeness can save you a lot of headaches, heartbreaks and debt down the road.

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks, and construction equipment. CFF is a 4-time winner of  2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

 

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26 Oct

Create Separate Bank Accounts- Personal and Business

Create Separate Bank Accounts- Personal and Business

 

Keeping your business funds and personal finances separated can save a lot of hassle when it comes to managing your money.

 

It might feel like opening up a bank account for your business will mean more admin work and lost time. But for small business owners, a separate business bank account is a key step in the journey.

 

Using a personal rather than a business account can create confusion at tax time, leading to time being spent separating out your business transactions. Here are a few examples of how having a business account rather than a personal account for your business can help.

 

  1. Cleaner accounting

If you separate your personal and business accounts it’s easier to get a clear snapshot of your finances. This is not only true for day-to-day transactions but also when you’re with your accountant working out your overall financial position. Drawing a clear line between the two separates your personal money from funds that would go towards running your business. Any fees charged to a business account are regarded as a business expense and are tax deductible.

Other advantages when it comes to accounting are:

  • Easier to manage cash flow as you have an accurate idea of business expenses
  • Easier to complete business activity statement reporting.
  1. Maximize tax deductions

It follows that having a clearer picture of your business’ finances means it will be easier when it comes time to do your taxes. If you don’t, you could spend hours going through bank statements trying to find each transaction. Not only is this frustrating and not a great use of your time, but it means you may also miss items in your statements and ultimately lose out on deductions.

 

  1. More professional

Having a business account from which you make payments, as well as lodge payments into, will help your business appear more professional and established to your suppliers and customers. It’s also an opportunity to get your business name out there. You want your business to be taken seriously, so treating it seriously is an important step.

 

  1. Link to other accounts

If you have a business account you can link other accounts like a business credit card or a payment device, making managing all your transactions smoother. Linking can be more than just convenient, it may also save you money.

Your business account can also be seen alongside your personal account in most banks and on their online Apps so you won’t need to have multiple logins to remember so you can see everything together in one place.

 

  1. You may have to get finance

As your business grows you may find you have to open a business account in order to get finance and further expand. If this is the case, separating your personal and business accounts now could save you a lot of work having to do it later on and help you to easily demonstrate to the lender your business’ full financial records.

 

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks, and construction equipment. CFF is a 4-time winner of  2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

 

 

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26 Oct

Team Building- Leads to Success

Team Building- Leads to Success

                       

You know your customers. You have a killer product to sell. The business plan is set, strategy thoughtfully documented and funds are in place. You’re ready to go to the market or even poised for explosive growth. But, are you surrounded by the best possible teammates to make the dream a reality?

Michael Jordan once said, “Talent wins games, but teamwork and intelligence win championships.”  A championship team begins with an inspired coach who has a world-class plan to be number one.  To achieve his dream, he recruits, trains and motivates skilled athletes who are willing to set egos aside for the good of the team.   Working in harmony with a single purpose and a dedicated effort, the coach and the players are able to achieve greatness in their sport. The same model applies to start and grow an award-winning business.

I view a business founder as a coach.  A leader who knows what has to be done, when and where.  Every growing company has multiple tasks that have to be performed for an enterprise to succeed and flourish.  The job of the coach is to recruit and hire the right people to accomplish given assignments.  From my own experiences as a serial entrepreneur and from what I have seen from other business founders I have supported financially, I have learned that exceptional organizations engage a cadre of talented business people who perfectly fit five vital areas of the organization.   Today I am pleased to share with you what I feel are the most critical team members any entity must have to win in business.

 

The leader.

It all starts with the leader. The best business coaches are servant leaders.  They recognize their businesses will soar if they hire great people and let them “own” their assignments. In this light, the business founder is there to support the employee’s efforts with needed resources, guiding principles and agreed upon priorities.  He or she encourages, motivates, rewards and provides feedback on job performance.  He corrects with kindness and celebrates the achievement.  This leader knows if he takes care of his employees, they will provide superior service to customers, who will, in turn, continue to buy and tell their friends to do the same.  He is forgiving of mistakes.  He lets people learn and grow.  He provides a culture of integrity, honor, self-reliance, innovation, and camaraderie.  The daily play their best game.  Their output is superior to the competition. They are happy people and look forward to work every day.  In fact, the leader is loved by his employees and they will do any for him or her.

 

The expert.

Great business leaders succeed because they hire people who know the industry, the trends, the competitors, the marketplace, the customers, the products they sell, the vendors and investors.  They surround themselves with workers, managers and other leaders who have years of experience.  They bring vital information and deep knowledge to their assignments and are willing to share what they know with the business founder, peers, and subordinates.  These expert employees mentor others who are learning the business.  They are vigilant and continue to watch and learn.  They provide guidance and wisdom on what works and what does not work in the organization; the results -mistakes are few, productivity is high. I speak from experience on this important topic. I have scars on my back from numerous failed startups because I hired a team of inexperienced and unseasoned workers who had little knowledge and therefore couldn’t perform.

 

The Accountant.

 

Successful businesses all have an experienced and talented accountant.  The importance of this critical leader can’t be overstated.  No company can survive or prosper without a person who understands accounting, finance, strategy, and cash flow management.  There must be someone in the organization that can be trusted with the funds that are received and dispersed by the company.  He or she who owns this key responsibility must know at every minute the health of the company; the availability of cash should be top of mind.  I have learned that regular meetings between the financial guru, peers and the founder are critical to staying afloat.  All leaders and managers need to know where the company is financially and what must be done to sustain viability.  Again, from personal experience, I have watched many companies go out of business because leaders failed to put a competent financial player on their team.  Most planned to do it but did so too late.

 

The Attorney

We know what it takes to be a successful business. The right financing, the right growth strategy, and the right leadership team. Barnes & Thornburg attorneys work with companies at all ends of the supply chain, from large international transportation and logistics companies to small- or medium-sized suppliers.

Our attorneys work with clients to realize their growth strategy. We have negotiated mergers, acquisitions, and joint ventures and advised on capital financing. With an eye on protecting the clients’ interests, our attorneys review and prepare transportation contracts, equipment leases, ocean carrier contracts, and other agreements.

Insurance Agent

Developing marketing strategies and promote all types of new insurance contracts or suggest additions/changes to existing ones

Breeding productive relationships to create a pool of prospective clients from various sources by networking, cold calling, using referrals etc.

Evaluating business or individual customers’ needs and financial status and proposing protection plans that meet their criteria

Finance Partner/Banker

Finance business partnering means influencing decisions that improve business performance.

If you build strong relationships, turn data into insight, and bring the numbers to life then you will influence decisions.

And you as long as you pick the right decisions to influence, you will improve business performance.

There are 5 parts of our finance business partner definition:

– Build strong relationships

– Translate data into insight

– Bring numbers to life

– Influence decisions

– Improve business performance

Keep in touch with your finance partner every quarter whether it be CFF or a bank.

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks, and construction equipment. CFF is a 4-time winner of  2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

 

 

 

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26 Oct

Generating Revenue- Making more Money

Generating Revenue- Making more Money

There are several aspects to financial management for your trucking company. It all starts with knowing what it takes to be profitable. Calculating cost, revenue and profit per mile is a key step to,  putting your trucking company on the road to success.

Passion pushed you to start your small business, but now you find your profits aren’t what you’d like.

To keep your business open, you need to increase revenue — which is easier said than done, isn’t it?

You’re competing with larger businesses that have more robust marketing budgets.

On top of that, it’s difficult to think of growth when you’re spending all your time and energy on the day-to-day operations.

You don’t have the time or money to try tactics that won’t work. Instead, focus on these five proven ways to increase revenue.

  1. Encourage repeat business

Many businesses put all their energy into gaining new customers while neglecting to retain existing customers.

Business relationships are all about trust. And who trusts you more than those who have already done business with you?

Gain repeat business by encouraging customers to join your email list. With email marketing, you can continually communicate with your customers, keep them updated on your latest products and services, and persuade them to do business with you again.

  1. Show off your industry expertise or Niche

You’re an expert in your industry, but are you making that known?

Reinforce your expertise by sending out newsletters containing advice relevant to your industry. Consistently send these emails and your audience will begin relying on you for your insight.

You can write blog posts on topics relevant to your industry or provide a roundup of resources written by others in your field. If you’re using articles from other sources, just be sure to mention the original source.

When your customers require a good or service you provide, your business will be the first one they think of.

  1. Take advantage of e-commerce

If you have a business that only sells in-store, it’s time to bring your products to the web.

E-commerce is growing 23 percent each year, with 51 percent of Americans prefer to shop online. However, 46 percent of small businesses still don’t have a website. If you fall into this category, you are leaving massive amounts of revenue on the table.

  1. Network

Network like crazy and meet people in your industry.  It will help you build relationships in the long run.

 

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks, and construction equipment. CFF is a 4-time winner of  2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

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23 Oct

Incorporation Benefits

Top Reasons to Form a Corporation

Corporations are the longest standing business structure leading the pack in the amount of protection and flexibility for shareholders. We examine the top reasons to form a corporation for your business. These benefits are provided by the corporate veil, which is the legal definition of the separation between the business and its owners.

  1. Limited Liability for Shareholders
    Corporations offer the strongest protection from business liability for the business owners or shareholders. This means that there are provisions in the law such that your personal assets are not in jeopardy to satisfy corporate obligations, specifically from creditors. Legally, corporations are separate entities from those who own them. Corporations will pay their own taxes, can own property, enter contracts, sue and be sued independently of those who own them and are responsible for their own debts and actions. As long as your corporation is operated as a truly separate entity, shareholders are not personally liable for business obligations. There are exceptions to this and shareholders can assume personal liability if the corporation is improperly established if any individual personally guarantees debt or credit or funds are commingled where the shareholder and business are acting as one in the same. In order to truly benefit from the liability protection offered by corporations, they must be organized, managed and maintained as true separate entities. Corporations have hundreds of years of court-proven performance protecting shareholders from business liability. If the corporation was used as a tool to defraud any creditor or was undercapitalized as an attempt to defraud a lender, the corporate veil could be pierced by the court. Therefore, the corporate structure could be disregarded, and the business owners face could be held personally liable for the actions, debts, and obligations of the business. It is important that your company is properly established and that you follow formalities and maintain separate status when operating a corporation.
  2. Raising Capital
    If your business endeavors include seeking financing from external sources, a corporation offers the most flexibility of ownership. There are several types of stock that can be issued and sold to finance the business. This aspect of the business structure makes corporations attractive to businesses with big plans for growth through raising capital. You can sell non-voting shares of stock, which means a shareholder is entitled to profit distributions based on their share of ownership but have no control over the business activity. This creates silent partners, or more specifically capital partners of the business. Using the structure of the corporation you can create different types of owners, those who have control, those who are entitled to profit distributions or both. The corporate structure is attractive to outside investors and selling the stock is easy.
  3. Flexibility of Ownership
    “C” Corporations have great flexibility of ownership. Shareholders can be individuals, foreign or domestic. Other corporations or legal entities can own stock in a corporation. Corporate stock can be held in a trust, partnership or other legal tools. Simply put, almost anything and anyone can be a shareholder of a C corporation. This affords the business opportunities to seek partners and capital from sources that other business types cannot.
  4. Fiscal Year / Income Splitting
    Pass through tax entities, such as S Corporations and, by default, LLC’s will typically have fiscal year ends on December 31st, the same as our personal tax year. C Corporations can set fiscal year end dates which allow one to choose their tax year ends. This flexibility opens the doors to financial management opportunities where you can save money on taxes by moving the income between entities from one tax year to another and utilize your corporation to make your money work better for you. As a shareholder of a corporation with a personal tax year end of December 31st and a corporate fiscal year end of March 31st, you can split your personal income into 2 calendar years. If you have $100,000 remaining in the corporation before the end of its tax year, you can pay yourself $50,000 in December and $50,000 in January – which could keep you in a lower personal tax bracket and you pay fewer taxes. You can only do this when you have the ability to set your business’ fiscal year end date. The $100,000 total payment to you is a tax deduction to the corporation. There are additional benefits to this as well, if you have multiple corporations, you can pay profits to a second corporation as management fees and roll those profits into another corporation with a different fiscal year-end date as an even greater financial management asset. There are “controlled group” issues when utilizing this technique, so consult a tax advisor. Corporations are the most flexible in this regard. Pass through tax entities, in very rare cases, can set a fiscal year end date, however, it is close to a miracle to get it passed, where corporations can set and change their yearend dates at any time.
  5. Perpetual Duration
    Corporations have perpetual existence, which means that unlike other forms of business that cease to exist in the event of bankruptcy or the withdrawal or death of the owners, their continuity remains. The oldest corporation, still in business today, is the Hudson’s Bay Company which was formed in 1670. Corporations are truly separate entities from those who own them and will outlive shareholders, as long as they are maintained and operated properly.
  6. Corporate Deductions
    Corporations can offer deductible employee benefits, employee and officer health plans, medical reimbursement plans and a number of other benefits that LLC’s cannot. A corporation can pay medical expenses and offer health care plans to organization members, where other business types cannot deduct those as business expenses. Corporations offer the most benefits with regard to corporate business deductions. Seeking a CPA or financial advisor’s assistance with how to properly establish these types of plans is advisable.
  7. Credibility
    When any business is incorporated, you gain instant credibility. Operating your business as a corporation shows that the business is viable, which is more attractive to creditors and investors. Your customers also will recognize the “Inc” in your corporate identity as a factor that demonstrates credibility.
  8. Transferability of Ownership
    Corporations offer the most flexibility when transferring ownership of the business. Passing a business down within a family, selling it in part or whole and bringing in new owners is a component of the corporate structure. By far, this is the easiest with a corporation.
  9. Central Management and Corporate Structure
    The corporate structure, by far, is the most formal out of the alternatives and offers the strongest management structure. Shareholders who are the owners of the business elect a board of directors. Voted in by the shareholders and re-elected annually, the board is responsible for executing the vision of the shareholders. The board of directors will select and hire the corporate officers which are the individuals who enforce corporate policy and run the day-to-day operations of the business.
  10. Lower IRS Audit Probability
    The highest audited group are individuals deducting business expenses on their personal tax returns. It is reported that Corporations with less than $2 million a year in revenue are the lowest audited group claiming business deductions.
  11. Asset Protection
    Corporations can be used as excellent asset protection vehicles. By leveraging the legal statutes, you can structure your assets within these legal tools so that you can maximize the protection offered through corporations.

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks and construction equipment. CFF is a 4-time winner of the 2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

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23 Oct

Finding Your Niche; From Your Niche to more Riches

Niche Shipping Markets

Here we are going to talk about some of the different niche markets that you can be involved in, in the transportation industry. You can service all sorts of different industries under one brokerage’s authority and I would like to briefly go over what is taught in our Freight Broker Training & Freight Agent Training course. Nоthing саn compare to a prepared individuаl with regards tо any tуре оf саrееr. Provide yourself thiѕ benefit, undergo trаining аnd you will bе ready tо face thе challenges brought by the shipping induѕtrу

So many opportunities

There are a lot of different ways that you can go about choosing what markets you want to work in this industry. You could pick your market by equipment requirements, understand that you could move just vans, reefers, flatbeds, or all of them together if you wanted to. Rates vary due to equipment availability. You could specialize in oversize loads or you could even choose to specialize in hazardous material. HAZMAT freight would be stuff like fireworks or some acids, cleaning supplies, lots of different things are classified as hazardous. You could target a niche market by commodity. You can focus on moving potatoes, onions, steel, houses, lumber, boxed electronics, you could even start looking at equipment dealers and start hauling CAT’s front loaders. There are a million different things that you can move. You could service long haul over the road stuff or you could service day trips, where people are coming to pick stuff up and delivering it on the same day – a lot of times using a day cab! You could target companies within a certain demographic based on their size, so you could work with smaller companies where you may work with just the owner, or you can work with a huge shipper like HYVEE or Tyson Foods, where you are going to work with a whole team of transportation managers. You could pick out your market based on the amount of capacity that you want to carry – I go into LTL pretty in depth in the course buy FTL mean Full Truck Load, LTL means that you are not moving a full trailer worth of stuff, so you could move 2 different orders in the same trailer, because hypothetically they each take up half of the space/weight. There is no reason that you have to limit yourself to work in one market specifically.

Help carriers find freight

Another option that brokers have is working with carriers directly. You can come up with your share in the market by where your capacity is located also. If you have a lot of people in New York, sounds like you’re going to be doing a little bit of work out of New York. Brokers have the ability to work more closely with carriers and I think that is a really good strategy to take and to really consider if you are going to be a broker. Become a big part of your carriers day! Rather than calling customers, finding freight, and the finding any random carrier to move it for you – work with a carrier, find out where their trucks are and find them loads that pay well.

Frеight Brоkеr Ovеr-ѕаturаtiоn

Thе bеѕt саndidаtе for their оwn freight broker business is оnе whо hаѕ experience within the transportation industry, ѕuсh аѕ a former truck drivеr. With an understanding of how thе system ореrаtеѕ and fоrmеr соntасtѕ with shippers, it can оnlу mаkе ѕеnѕе, but iѕ the mаrkеt аlrеаdу оvеr-ѕаturаtеd with brokers? Nоt bу a lоng ѕhоt… just a few years ago  8,000 of the then 21,000 brokerages did not renew their operating authority when the required Freight Broker Bond amount increased from $10,000 to $75,000, which is rather astonishing considering that the largest 1,000 trucking companies almost all have a brokerage division.

Those undеrѕtаnding transportation such as drivеrѕ, hаvе роtеntiаl product сuѕtоmеrѕ еvеrуwhеrе within an induѕtrу thаt employs 8.9 milliоn реорlе. Here are some target markets, or customers, for broker and carriers:

  • Manufacturers
  • Whоlеѕаlеrѕ
  • Diѕtributоrѕ
  • Construction sites
  • Restaurants
  • Water treatment
  • Grocery stores
  • Retail stores
  • Pharmacies, hospitals, & healthcare facilities

Thе trаnѕроrtаtiоn industry is so hugе, сuѕtоmеrѕ саn bе found bу those willing tо dо the work. I hаvе nоt even tоuсhеd on оthеr аѕресtѕ such аѕ conventions, trаdе ѕhоwѕ аnd еvеn export аnd imроrt ѕitеѕ on thе wеb. In today’s day and age, with the internet, all of these businesses with freight want to be found!

Building a successful frеight brоkеr business will not hарреn overnight, but it can bе dоnе if уоu wаnt it bad enough. It iѕ a vеrу rеаl орроrtunitу fоr retiring truck drivеrѕ оr thоѕе whо hаvе hаd еnоugh with thе regulations or hаving tо саll it quits fоr other reasons such as medical or family needs.

Why Freight Broker Training Is Essential?

If уоu аrе рlаnning tо jоin the roughly 100,000 рrоfitаblе agents аnd frеight brоkеrѕ in thе Unitеd States then уоu nееd tо undеrgо frеight brоkеr training. Individuаlѕ who hаvе undеrgоnе trаining to become a freight brоkеr is significantly more likely to ѕuссееd in the induѕtrу thаn thоѕе who wеrе nоt аblе tо gо through proper trаining. Thеrе аrе ѕеvеrаl rеаѕоnѕ whу freight brоkеr training iѕ a must if уоu аrе planning tо hаvе a саrееr in this kind оf industry. Some оf these reasons аrе enumerated bеlоw:

–           If уоu undеrgо proper supply chain management trаining the bеѕt рrасtiсеѕ аnd ѕуѕtеmѕ will all bе right аt уоur fingеrtiрѕ.

–           With thе recent dеvеlорmеntѕ, online trаining соurѕеѕ as well аѕ fоrmаl еduсаtiоn have сrеаtеd ѕуѕtеmѕ to mаkе it еаѕiеr for the market nеорhуtе (a person who is new to a subject, skill, or belief) tо move smoothly in this type of industry. Generally, best practices of thе market are iѕоlаtеd by thеѕе trаiningѕ and will bе thоught for you tо hеlр уоu оut оn the рrосеѕѕ аnd nоt tо ѕtrugglе in thе dаrk if уоu еvеntuаllу enter the mаrkеt аnd more еѕѕеntiаllу, will hеlр you аvоid соmmitting mistakes ѕinсе you will hаvе enough proper trаining on whаt you can еxресt, hоw to mаnаgе things, whаt to do and оthеrѕ.

–           During trаining, you will undеrgо ѕimulаtiоn paper processing such аѕ regulatory rеԛuirеmеntѕ, proper filing оf load соnfirmаtiоn sheets аnd others. It will hеlр уоu feel more at еаѕе once уоu аrе finally dоing it оn уоur оwn. Miѕtаkеѕ while filling out ѕеvеrаl forms саn be соmmittеd only during trаining but nеvеr live in the rеаl world bесаuѕе it may not оnlу cost уоu an lоt, but you might lose уоur clients as wеll.

–           Many рrеfеr to bе a Freight Agеnt firѕt bеfоrе bесоming a Freight Brоkеr ѕinсе соmmеnсing a career аѕ an аgеnt will nоt оbligе уоu tо hаvе a high finаnсiаl invеѕtmеnt. It is bеѕt that уоu lеаrn more about frеight аgеnts and freight brоkеrs so thаt you will be аblе to diffеrеntiаtе between thе twо.

–           During trаining a rеаl market еxреriеnсе is bеing shared.

–           Undergoing frеight brоkеr training in a classroom оr оnlinе is a grеаt аdvаntаgе ѕinсе you will be able tо interact with rеаl еxреrtѕ in thе induѕtrу, you will bе аblе tо аѕk ԛuеѕtiоnѕ and аn answer саn bе рrоvidеd instantly. And mоrе essentially thеѕе experts have better knоwlеdgе about the industry which mау tаkе many years tо lеаrn оn уоur оwn аnd thеѕе lessons are ѕhаrеd with уоu whilе уоu аrе in training. Thеу саn еvеn tell you thеir dеереѕt secrets оn how to ѕuссееd in thе freight mаrkеt.

When Mark Zukerberg focused his social network initially on Ivy League campuses, it seemed kind of foolish. How could this niche be a billion-dollar opportunity?

Yes, of course, he’s now one of the world’s richest persons. And if anything, the college market was ideal for getting early adopters as well as gaining valuable feedback.

So what are some of the factors to consider when determining the right market focus in the early stages of a venture? What can you do to improve your odds of success?

Well, to help answer these questions, I recently talked to Matt Chasen, who is the cofounder and CEO of uShip, the company, which operates an online marketplace for freight/shipping services, has more than 600,000 transportation providers in 19 countries and over 4 million businesses and consumers that use the platform to ship a wide variety of goods. uShip has also raised $25 million in funding from top-tier investors like Benchmark Capital, DAG Ventures and Kleiner Perkins Caufield Byers.

So here’s some advice from Matt on how to attack a market opportunity:

Rules of Thumb: Each industry has them. Interestingly enough, they are ripe for disruption because people take them for granted.

“For us, in shipping and logistics, it was the rule of thumb that when a shipment got beyond a certain size — say a parcel weighing over 70 lbs or of a certain length and width — it no longer qualified as a one-man delivery,” said Matt. “Based on this particular rule of thumb, it had to get shipped as ‘freight.’ This jumped the cost dramatically, sometimes by 500 percent of a parcel just slightly lighter or smaller. But we knew this was old-school thinking and we could get around it. So we seized the opportunity and let the market decide the rate for that shipment, instead.”

Beachhead Approach: In the early days of uShip, Matt tried to identify niche areas where his company could gain strong initial traction. He wanted to follow the advice of former Southwest Airlines CEO Herb Kelleher: “Think big, start small.”

 

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks and construction equipment. CFF is a 4-time winner of the 2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

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05 Oct

The Equipment That Will Make You The Most Money

The Equipment That Will Make You the Most Money

 

While the right equipment can help your company weather economic downturns, a bad purchase can hurt your ability to compete. That’s why it’s crucial to analyze the pros and cons of every purchase, including the potential return on investment. In some cases, buying new equipment may not be the best option; it may be wiser to lease or rent or to avoid acquiring machinery entirely.

 

Still, don’t fall into the trap of avoiding equipment purchases simply because the economy is volatile. The right equipment can improve your processes, productivity, capacity to innovate and bottom line. But to get those results from a major capital investment, you need an investment plan that addresses both your short- and long-term needs. Not only will you save time and resources, but you’ll also avoid costly quick fixes.

 

  1. Assess your business reality

It is important to understand your objectives. Are you looking to increase productivity? Will this new equipment make you more successful in the marketplace? Will it help you stay ahead of your competitors? Can you upgrade instead of buying new equipment and still get better performance?

Be sure you have answers to these questions before you buy. Avoid being influenced by aggressive marketing campaigns that make unrealistic claims.

 

  1. Get an external point of view

Depending on the scale of your investment, it may be worth working with an external consultant who can ensure you make the most of your purchase by helping you assess your needs. Initially, you’ll be looking at important factors such as capacity, employee usage, and current resources. The most common practice is to do a cost-benefit analysis, which helps you justify your purchase and determine the pros and cons.

If you’re in manufacturing, you may use an asset utilization ratio, which measures your ability to get optimal results from equipment and other assets. The premise is that more efficient equipment will give you better results.

 

  1. Be innovative

In today’s competitive business world, being innovative in everything you do is key to success. Innovation is really about responding to change in a creative way; one way to do this is by acquiring equipment or technology that helps you improve your efficiency.

Your new equipment might help you streamline your operations and create better products and services that appeal to a niche market, for instance, or it might help your research and development efforts or by improving customer service. It’s always a good idea to let your customers know that you’re investing in innovation; it’s a clear message that you have their evolving needs in mind.

 

  1. Look at your business as a whole

Rather than making isolated purchases, look at the overall needs of your operations. Short-term purchases without long-term plans are costly and may not yield the best results. An external consultant can conduct a review of operational processes to help you fully understand the way your business works. This review enables the consultant to devise a sound plan that ensures your operations run smoothly and don’t generate waste.

Creating such a plan helps you focus on improving one area of your business at a time, rather than tackling an entire process. Ultimately, you could improve turnaround time, efficiency or other aspects of your business. If you discover you don’t need to buy new equipment at all, you might then be able to use the money you’ve saved—or avoided spending—to make other investments in your firm.

A consultant can also help you anticipate human resources issues arising from new equipment. For instance, if new machines make some jobs redundant, will you be able to move affected employees to other positions in your company? Will you face increased costs for severance pay or retraining? Do collective agreements affect your ability to reassign workers?

Another question worth asking is whether the equipment you are replacing could be used somewhere else within the company. Often, for example, less powerful computers can be reused in departments that do not require high-performance machines. Likewise, in the area of electronic data processing, the newest technology is not necessarily the best. To avoid useless setbacks, businesses often purchase the second or third version of a new software package, after the first buyers have discovered the bugs. Ask yourself carefully whether the new features offered by more technologically advanced equipment are really of use to you.

 

  1. Shop around for suppliers

The Internet gives you access to a wide range of specialized equipment companies, so take the time to browse. Check out newsletters targeting specific industries and attend trade shows where you can get some hands-on time with equipment. You can also contact industry associations for more information. Don’t let price alone guide you in your supplier decision. Also, consider aspects such as post-sales service and a supplier’s reputation and get references. If you’re a loyal customer, you can ask for better warranties or an extended customer service plan.

 

  1. Keep training in mind

All too often, entrepreneurs don’t consider the time, money and resources required to train employees on new equipment. You want to avoid the productivity drop that occurs when employees take too much time to adapt to new technology or processes. If the equipment is new or has new features, you can assume employees will face a learning curve. It’s important to head off problems by ensuring that you have the financing in place to address the resulting downtime. You’ll need to block off time to train employees and still be sure that your operations can run at capacity.

 

 

  1. Know your financing options

Every method of financing has advantages and disadvantages, so carefully evaluate each option. The factors to be considered vary from one company to the other, depending on your company’s credit record or line of business.

  • Purchasing enables you to own the equipment as soon as the transaction is completed. Your company amortizes the cost over the lifespan of the equipment. It may be possible to get financing for more than the purchase price. BDC, for example, offers up to 100% financing for the cost of the purchase and the possibility of additional financing to cover the cost of installation, training, and transportation.
  • Leasing the equipment for a specific period can make your payments lower than they would be if you purchased the equipment. However, you do not own the equipment, and you will have to wait until the contract ends to buy it if you wish to do so. The price you pay at the end of the contract may be lower than the initial purchase price would have been, but since you’ve also been making lease payments, this option may cost more in the long run than others. Depending on the structure of the lease, your payments may be included as part of your operating costs.
  • Renting option may be appropriate for equipment that quickly becomes obsolete or is needed for a specific project. Rented equipment is not considered a fixed asset, so you can quickly exchange or return it at minimal cost.
  1. Keep it green

When purchasing equipment or technology, be sure that it’s energy efficient. Not only will you be saving money, but you’ll also be contributing to the health of the planet. Research the environmental impact of your new equipment and find out how to dispose of your existing equipment in a way that minimizes its impact on the environment.

Investing in the right equipment is a complex task. An external consultant can help you see the big picture and plan your purchases so that your new equipment supports your company’s ability to thrive in challenging times.

 

  1. FREIGHT RATE BASICS

 

Freight rates are variable, meaning that they are constantly changing depending on the economy, fuel prices, supply and demand, and the season. The costs of running a trucking company are fairly stable in comparison with cargo rates. Knowing your own trucking companies cost per mile is vital to making a profit on the road. Just for reference, according to the research done by ATRI, the average cost per mile in 2015 was $1.59 for all motor carriers. One easy way to make sure that you have a found a good rate on a freight shipment is to multiply the total mileage of the load route by your trucking companies cost per mile to figure out what it will cost you to haul the load.

 

Example: $1.59 X 1,310 = $2,082.90

 

In the example listed above, we took ATRI’s average cost per mile ($1.59) and the mileage for a round-trip load that is going from Glen Allen, VA to Albany, GA (1,310 miles). This load would cost you $2,082.90 to haul. As long as the freight rate you’re getting will pay more than what you will spend to get the cargo there, you will make money on that truck shipment.

One of the most important things to remember is that higher paying freight is relative. What you consider to be high, might not be for the person next to you on the road. Try not to let all the information that is out there about the highest paying truck freight loads let you lose sight of accounting basics, revenue and making a profit!

 

FREIGHT TYPES AND THEIR AFFECTED RATES

 

Like everything else, there’s give and take when it comes to finding higher paying freight. While there are no good and bad types of freight, there are some that just won’t work for every trucking company. If it pays higher, there’s a chance that it might require more training, experience, and it may cost you more in insurance coverage to haul. So looking at all the opportunities and challenges of specific freight is important to figure out what works best for your trucking company and your drivers.

 

Specializing in certain types of freight; like hauling motor vehicles, livestock, or hazardous materials will gain you a higher freight rate per mile but those types of freight require special licenses, higher insurance premiums, and a lot of special equipment and training. It’s important to keep in mind that while on paper it might look like you are getting paid more, there is a lot more money that needs to be spent up front before you can haul those items.

 

Flatbed trailers are often awarded higher paying freight loads. This shipping type might be a good fit for a trucking company with experienced truck drivers that love a challenge and are willing to do a little extra work to get paid more, like help with loading/unloading, and tarping certain loads.

 

Dedicated lanes and Less-Than-Truckload (LTL) jobs are often highly sought after because of the perceived higher paying freight rates and reliability of consistent freight. While those two things are true, the market for dedicated lanes and LTL loads is so competitive that they can be hard to find and hard to keep.

 

LOAD BOARDS CAN GET YOUR FOOT IN THE DOOR

 

Load boards are websites you can use to find and book all types of loads. Our free load board, NextLOAD.com gives all trucking companies, the ability to search for and filter loads by trailer types, truckload types, destinations, and rates listed. Most importantly we show which brokers and shippers have an established credit line with Apex so you know that you are booking quality loads that can help you create relationships to earn those higher paying truck freight rates.

Do you want to book the highest paying truckloads and stop focusing only on the loads that pay quick? Factoring your freight bills can help you with your cash flow so that you can book more loads and get paid the same day.

 

Get all 10 tips by downloading the “10 Tips Everyone in Transportation Needs to Know Now” Booklet by going to www.10tipbook.com or clicking the image below.

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks and construction equipment. CFF is a 4-time winner of the 2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

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05 Oct

BUDGET, BUDGET, BUDGET!

Budget, Budget, BUDGET!

It is crucial to keep your budget organized every month so that you won’t lose money on your new business.  It is the foundation of your business.  Here at CFF we actually have software on our website for FREE at https://commercialfleetfinancing.com/budget-builder/ which will help you save time, money and the added stress of worrying about losing money each month, and rather if you adhere to the budget builder, you will be MAKING the maximum amount of money and GROWING your business.

 

Remember, the magic number is $15,000 (profits) per month.

 

The first step is budgeting well, which means first finding out where you are losing money before you can reduce costs. Analyzing your fixed expenses (such as insurance, equipment, rent, taxes, permits) and variable expenses (tires, fuel, stationery, lodging, and meals) will help you locate areas in your business that need to be improved. Conducting a profit and loss analysis monthly or even weekly helps you reign in any stray numbers. Hiring a local accountant or using inexpensive accounting software can often help you budget your expenses accordingly.

 

Fuel Efficiency

Fuel expenses can make up 35% or more of the trucking companies overall operating a budget. It is also a very challenging expense to predict, control, and monitor. Many factors synergize, and poor mechanics, adverse weather conditions, or other factors can impinge on your margins. This means that devoting time and money to aerodynamics and equipment maintenance are essential to fuel efficiency and reducing costs.

 

Repairs and Maintenance

 This is a good reference chart to save for repairs and maintenance as they can occur anytime.

If you are spending more than 13-14 cents per mile on maintenance, it might be a good time to look into investing in a new truck.

If you follow this schedule, you should be prepared with the appropriate funds to perform routine PM and pay for those unplanned costs that always seem to pop up. If you save too much and don’t have to use it, it’s money in the bank! Save for maintenance and it will save you time and money in the long run.

___________________________________________________________________________

Get all 10 tips by downloading the “10 Tips Everyone in Transportation Needs to Know Now” Booklet by going to www.10tipbook.com or clicking the image below.

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks, and construction equipment. CFF is a 4-time winner of 2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

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21 Sep

The Foundation of Your Trucking Business: No Room for Error

In the 10 Tips Book Tip #1; Knowlege is Power Is very important to the success of your business. In this blog, we are going to give you a head start on understanding the industry you are approaching or already in.

In many ways, the trucking industry serves as the backbone of America, bridging the gap between customer and seller, and solving the problem of transporting goods in masse. The trucking industry plays such a critical role in the economy that a 2015 report by the American Trucking Associations (ATA) shows that trucking companies generated over $700 billion in revenue in 2014. The industry also employs 8.9 million people across different trucking-related jobs.

As markets grow, so too will the need to transport commercial goods between states and cities, which in turn, fuels demand for new transportation and logistics companies. Although the industry can be brutally competitive, it’s not impossible to start your own successful trucking company. Below are a few steps to help you get started.

  1. Create a business plan, do your research, and check tax obligations

A trucking company is a business, and like any other venture, you’ll need a solid business plan to serve as a map through the startup process.

  • In your business plan, write down your company objectives and form the outlines of your strategy.
  • Think of the accounts you intend on servicing and business projections for expected earnings
  • Check your state’s tax rules for companies—rules can change between cities and states.

In other words, do your homework on the basics of trucking companies, and research the necessary steps to register as a business in your industry.

  1. Procure the necessary equipment

The kind of equipment you’ll need will depend on your business goals and services. For example, if you want a private fleet, you’ll need commercial trucks. If you intend on servicing clients in the food industry, you may need refrigerated trucks.

In any case, there are generally two options for procuring equipment:

  • Buying –You pay the down payment and secure a loan to finance the remaining amount, paying off your purchase until the trucks are finally yours.
  • Leasing –Leases work like paying the rent—you pay a fixed monthly amount to use the trucks. You can also opt for leasing agreements that let you own the trucks after the final payment.  Companies such as CFF can help you with that.  www.cfffnationwide.com

Your startup capital and projections should tell be your guide on the number of vehicles to get. Just remember that you can always grow your fleet as you get more business.

  1. Buy an Insurance and Liability Policy

CNBC report using data from the Federal Motor Carrier Safety Administration and the National Highway Traffic Safety Administration shows that in 2012, truck crashes were a factor behind more than 3900 deaths and more than 104,000 vehicular injuries.

These statistics highlight the importance of buying an insurance policy for your business to protect your property, as well as a liability insurance policy to cover any damages and claims for untoward incidents that happen on the road.

  1. Build your client base

Most new trucking companies depend on a load board to find clients. But competition on load boards is usually high, so you’ll need to bid at low prices to win contracts, which often results in razor-thin profit margins. Use load boards only if you need to. The better option is securing trucking services contracts with local establishments such as grocery stores, department stores, and other business, which tend to be more profitable.

Of course, these 4 steps only scratch the surface of the entire process behind starting a trucking company. Just remember to take time to do your research and, if possible, network with industry insiders for valuable insights before you take the plunge.

1. Support the right market niche

The most important step to be a successful owner-operator is to support the right market niche. I have done this in my own company and have been extremely successful. This affects small fleet owners as well. The market you choose determines the equipment you buy, the rates you charge, and the freight lanes you can service.

As a rule of thumb, owner-operators should focus on markets that the large carriers avoid. In other words, consider hauling specialized loads.

Making decent revenues with a dry van is very difficult as an owner-operator. There is too much competition from large carriers and other owner-operators trying to pull the “easier” loads.

There are many markets that you can focus on. However, hauling fresh produce and meat in reefers has many of advantages. They include less competition, year-round work, and it’s resistant to recessions. The last one is very important.

2. Charge the right rate (per mile)

As an owner operator, you need to determine what rate to charge your clients to haul a load. Your rates need to be high enough to give you a nice profit and pay all your operating costs.

You need to know your rates before you start calling shippers and making sales. Remember, when you call shippers, you want to be competitive with what brokers charge them.

There is a simple way to do this:

  • Select your freight lane
  • Go to a load board
  • Find 10 loads going in one direction
  • Call the brokers and find out how much they pay
  • Get the average
  • Add 10% – 15%
  • That is the price brokers charge shippers
  • Repeat the process for the opposing direction

Now, you know how much the lane pays for a round trip

3. Determine your operating costs

Knowing your operation costs in detail is important. Otherwise, you have no idea whether you will make a profit.

Determine your fixed costs. These are costs that stay the same regardless of how many miles you drive. Examples are truck payments, insurance, permits, and so on.

Now, determine your variable costs. These costs depend on the number of miles you drive. For example, fuel is a variable cost. The more you drive, the more you fuel you use.

Use your fixed and variable costs to determine your ‘all in cost per mile’ This figure is very important. If you subtract your ‘all in cost per mile’ from your rates (calculated in step #2), you get your profit. Profit, the amount of money you keep.

4. Use the right fuel buying strategy

Fuel is the largest expense for owner-operators. However, new and experienced owner-operators often buy their fuel incorrectly. They think that the cheapest pump price provides them with the cheapest fuel. This is wrong. You could lose hundreds (or thousands) of dollars by doing this.

This issue is taxes. Regular drivers pay fuel taxes in the state that they purchased the fuel. Truck drivers, on the other hand, must deal with IFTA. Truckers pay taxes based on fuel used as they drive through states, regardless of where they bought the fuel originally.

Because of this, you should buy fuel at the cheapest base price regardless of the pump price. Base price = fuel price – tax.

5. Work directly with shippers

Load boards and brokers have their place in your business. They can be very useful when you have an empty truck. However, they are also very expensive. Brokers keep about 10% – 20% of the load price. That’s fair, they must make a living and they provide the shipper (and you) with a service.

6. Run an efficient back office

Having an efficient back office is key if you want to stay profitable and grow. The importance of the back office becomes more important as you start adding leased drivers to your operation. You have a couple options.

One option is to do it yourself. You can run your business of the cab of your truck. All you need is a laptop, the Internet, and a printer. You will need accounting software to run your business. There are several options on the market. One well-known solution is Truckbytes, which offers a free entry-level package.

Alternatively, you can outsource your back office to a dispatcher. However, they can be expensive. If you choose this route, interview them thoroughly. The wrong dispatcher can kill your business.

7. Avoid cash flow problems

Trucking is a cash flow intensive business. You are always buying fuel, making insurance payments, truck payments, and so on. Unless you get quick pays, shippers and brokers can pay invoices in 15 to 30 days. Sometimes they take 45 days. This can create a cash flow problem for you, especially in the early days of the business.

Get all 10 tips by downloading the “10 Tips Everyone in Transportation Needs to Know Now” Booklet by going to www.10tipbook.com or clicking the image below.

ABOUT COMMERCIAL FLEET FINANCING, INC.  Commercial Fleet Financing, Inc. (CFF) located in Dallas, TX. CFF is celebrating its 23rd  year in business and provides financing for commercial fleet vehicles such as box trucks, cargo vans, big rigs, tow trucks, dump trucks and construction equipment. CFF is a 4-time winner of the 2014, 2015, 2016, 2017. Inc. Magazine Top 500/5000 Fastest Growing Private Companies in America.

 

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