The First Step to Increasing Profits of the Trucking Business
No matter what business you may be in, increasing profits is an ongoing and necessary goal. So, what is the most successful way to do this? The first step towards increased profits is knowing where you are. You need to focus, set priorities, and create a trucking profitability strategy on those things that are truly important and are going to enable you to reach your company’s goals and objectives. Profits of the trucking business may seem difficult to reach at times but are in fact completely attainable. With Trincon’s help, we can help you take the first steps to increased profits and to continue growing your business.
Is the Trucking Business Profitable?
This is a common question and the simple answer is: yes, it can be. However, you must take the necessary steps in making your company profitable. Trincon’s consultants can help you take these steps and provide you with the necessary tools to make a successful business. Here is a simple and helpful exercise to determine where your business is at so far, and where there is room for improvement. Grab a piece of paper and write down your answers!
1. Are you profitable?
This is a very broad, but important question. If you had to give a simple yes or no answer, would you say your company is profitable? It’s important to have a solid and honest understanding of where your business currently is before finding out where to improve. This can be a tough question to face, but it’s crucial to take the necessary steps to improve the profits of your trucking business.
2. What are your strengths and weaknesses?
Another difficult, but necessary question. Strengths and weaknesses can make or break a business, so identifying these is critical. However, strengths and weaknesses can be tricky. They may be hard to identify at first, but it’s always helpful to know where you think your business stands. This is where our team of knowledgeable and experienced consultants come in. We can help you find the strengths and weaknesses within your company, and develop a strategy to successfully grow your trucking business.
3. What areas of your business, customers, lanes, and operational areas are profitable and which are not? And most importantly, WHY?
By finding the answer to this question, you get into the more granular reasons why your business may or may not be profitable. Analyzing your company this deeply can be a great way to find an area of your business that may be harming the rest of your company. Getting into specifics is what helps our consultants determine how to best assist you in turning your business around.
4. What are your costs of doing business? Not just the variable cost of moving a truck from A to B, but all fixed and overhead costs associated with it.
We know and understand how intricate and difficult this question can be to answer. However, your business can’t be profitable unless every dollar is accounted for. Answering the question “Is the trucking business profitable?” is truly difficult because it really all depends on your costs. So, it’s important to evaluate how much it really costs for you to run your business, and this can also help you account for strengths and weaknesses.
5. Do you have the management depth to accomplish your goals?
Qualified management is important in achieving your business goals. Profits of the trucking business do not come to everyone, and the reason is typically your management. It’s important to have a qualified team with the appropriate skills to enable your business to succeed. If you feel you may be lacking some skills, there is no need to worry. Trincon specializes in helping design business plans tailored specifically to each company.
6. Does your pricing really cover all your costs and provide for a specific profit?
The last question may be the most difficult to answer since this is really what determines whether or not your company is profitable. A majority of profitability is dependent on pricing and how it relates to your costs. For some, this may be a harsh reality. However, this is not the end of your business. This just helps our consultants determine where to start and how to help.
Designing a Truck Transport Business Plan
Were these questions tough to answer? They probably were, but once you have answered all these questions in detail, you should be able to get a strong idea of where you are currently at with your business. This provides a great benchmark for you as you move forward to the next steps. Increasing your profits isn’t something that will happen overnight. It takes time and planning. Your time and attention must be focused on these different areas of your business, and understanding them.
A trucking profitability strategy or plan could help guide you in the right direction. Once these areas are working together towards your goals, you will start to see your hard work pay off. This is where Trincon steps in. We are experienced in each of these areas and have helped other companies find success in making their businesses profitable. Contact one of our consultants today and take the first steps to increase your profits of the trucking business.