It doesn’t matter if your trucking company has been operating for 25 years of 25 minutes, there are going to be several issues that you’re likely to face often. Being prepared for these issues can help your trucking company remain unphased, even when nothing seems to be working in your favor.
Three of the most common issues faced by trucking companies across the United States are truck driver turnover, a lack of work, and cash flow problems. In a competitive business that’s continually evolving, these three things can quickly lead to your company’s demise.
To give you a better idea of how these issues affect your trucking company and how you can prepare for them, we’ll detail everything you need to know about each of them below!
Truck Driver Turnover
First on the list is truck driver turnover, which is when you’re having difficulty finding and keeping a quality fleet of truck drivers.
Some of the most common reasons truck drivers leave their job are for better pay, more time at home or with family, better benefits, wanting a change of pace, or merely the fact that they didn’t like how they were being treated.
Without your truck drivers, you’ll be stuck doing all the deliveries yourself. While this might be possible, it’s not what you signed up for as a business owner and won’t allow you to grow.
To avoid a high turnover rate in your company, culture is everything. You need to treat your drivers with respect, give them proper time off when needed, make sure they have all the benefits they need, and appropriately get paid for their work.
When truck drivers know their owner cares about them, it’ll be difficult to leave, and your company will start to gain a positive reputation within the industry.
Lack of Deliveries
The trucking industry is one of the most essential industries in the United States. Without it, companies everywhere would struggle to operate efficiently and would likely have to employ their own drivers.
While the amount of work is incredible, you’ll also be met with a wide range of competition. Since you’ll all be fighting for the same loads, it’s important to have several different income methods.
Load boards are one of the most effective tools for a trucking company, but you can also work your magic with local businesses and gain some quality long-term clients. A healthy dose of short-term and long-term opportunities is essential.
Cash Flow and Invoicing
The final issue you’re bound to face is depleted cash flow and difficulty getting invoices paid promptly. Since most of your clients will generally pay their invoices in 30-90 days, this can create chaos within your office.
Your bills and expenses won’t stop, your drivers need to be paid, gas needs to be filled daily, and you never know when your truck might need maintenance work. These things won’t wait for your clients to pay before needing attention, so you shouldn’t have to wait.
Luckily, freight factoring can save you from this trouble by providing an advance on open invoices. You’ll give up a small fee, but you’ll receive advances within 24-72 hours.
If you don’t believe us, check out our website. We’ve reviewed some of the most effective freight factoring companies so you can get started with them today!
References
“The Seven Biggest Challenges Facing Trucking Companies Today.” The Seven Biggest Challenges Facing Trucking Companies Today | RTS Financial, www.rtsinc.com/articles/seven-biggest-challenges-facing-trucking-companies-today.
Corp, Apex Capital. “Top Four Trucking Industry Issues of 2019: Apex Capital Blog.” Apex Capital | Freight Factoring for Trucking Companies, 1 Feb. 2019, www.apexcapitalcorp.com/blog/top-four-trucking-issues-of-2019/.