The freight business is going through one of its best periods ever from an opportunity standpoint. The most recent statistics show an ongoing expansion in the sector. In 2022, it is anticipated that freight tonnage will increase by 24%. That will result in a 66% increase in industry revenue.
Currently, 70% of freight transportation is done by trucks. The best opportunity for trucking companies to make money and expand is right now.
However, finding clients in trucking still depends on your skills, diligence, and right choices. It doesn’t matter if your goal is to become a company driver or a truck company owner. The main benefits of your hard work are dependent on your entrepreneurial spirit.
But, which model is better for your future? Is it working for an established company within this growing industry? Or is it starting your own business? The trick is finding the optimal solution – less risk, or more profit?
Companies are in growing need of trucking services
In other words, getting your own truck and starting an operation is worth the risk. Starting a business is far from easy. But if you create a steady trucking business development plan, you have a good chance to make a long-term profit. Trucking shows promises of continual growth for the next ten years.
The economy’s need for transportation is rising constantly. The 2019 pandemic has changed everything. Many jobs have become remote, so people are buying and selling products and services over long distances. There’s a growth of new areas of work such as e-commerce. All these changes have made a great impact on the transportation industry. The need for transportation and long-distance delivery is skyrocketing. Goods are being produced and delivered at a fast pace.
The statistics are clear about that. From 10.23 billion tons this year to 13.7 billion tons in 2023, truck tonnage should increase. From 15.1 billion tons in 2021 to 19.3 billion tons in 2032, the total amount of freight is anticipated to increase. That is an astounding 28% growth. By 2032, main freight shipments will generate $1.627 trillion in overall revenue in the United States.
The trucking industry is on a steady path up, and it doesn’t seem that it will slow down any time soon.
Forecast is an indispensable resource for anyone interested in understanding not the trucking industry, but the entire freight economy. – Chris Spear (ATA President and CEO)
Now is the perfect time to get your first trucking contracts
It’s easier than ever to start going with your own vehicle as an owner-operator.
Although gaining your authority is not difficult, it does take time and work. The full procedure should take about two months to complete. To request permission to operate, adhere to the FMCSA’s rules and instructions (AL). Everything should go smoothly if you fulfill all the requirements and fill out all the paperwork.
There are many choices for building your fleet and purchasing your equipment. Multiple buying and leasing choices are at your disposal, as well as numerous financing possibilities. As an owner-operator, you’ll be able to grow your company while supporting yourself.
Many drivers like their freedom and the ability to be their own boss. For bonuses, insurance, and pay raises, you don’t have to compete. Additionally, you do not need to ask for permission to ride along with someone, including family members and pets.
Your on-duty and off-duty schedule can be flexible if you are an owner-operator. Being your own boss allows you to travel or spend more time with your family. If you surpass your profit goal earlier than expected, you’ll get more personal time.
One truck at a time, you’ll be able to grow your fleet as time and profits allow. Owners that have an entrepreneurial spirit prosper in that area. You’ll enjoy extra networking opportunities by turning your company into a trucking firm. People will become familiar with you as a brand. They will remember you for potential commercial collaborations.
But, you should delay starting a trucking business if you have no prior experience. Rather, begin by finding a job as a company driver. Spend the hours and miles necessary to learn the business. After that, create arrangements to launch your own enterprise.
Get the right truck for the best price
Search for your truck acquisition patiently. Acquiring a new truck isn’t the only option if you are searching to start your own business. You have the option of leasing a truck or purchasing a used semi-truck and trailer. Acquiring a second-hand truck with low mileage is an excellent option. That will cut their prices and help you get a high-quality machine.
The main goal is to be a successful owner-operator and turn a profit in your trucking business. Your biggest investment is your truck. It’s best to play smart toward the financing or leasing of your rig.
There are companies that offer leases to purchase with a $0 down payment. But even if your lease expenses are down to zero, you’ll still probably need additional resources. You’ll need extra money for finding loads, equipping your truck, or tracking down new drivers if you’re expanding your fleet.
If you need to sort out your financing, there are multiple solutions. You can find a bank with a cheap interest rate. Having a high credit score makes banks more ready to work with you and offers you higher interest rates.
Your financial situation will be a key factor in determining how much transportation equipment you can afford to buy. It will also impact how quickly you can buy your vehicle and how flexible your payment schedule will be. However, a lot of that is determined by the clientele you work with and the caliber of your routes.
You require consistent shipments, consistent fees, and solid working relationships as an owner-operator. You must develop a sound strategy and seek out customers who will assist you advance your business.
How to find potential customers in the trucking industry?
Finding new work is the key component to keeping your operation afloat. By getting steady employment, you’ll be able to pay off your monthly expenses. In turn, that helps you to grow your business. A steady income is especially important if you are a lease purchase operator. Heaving a steady inflow of loads will help you complete your lease term and become your own boss.
If you want a steady stream of new clients, there are steps you can take. If you want to constantly get miles behind you, the first step you can take is to use load boards. Load boards are a classic tool that helps you find and organize your freight.
Load boards help with the connection of shippers and carriers. That’s where shippers post available freight, the necessary moving equipment and other details. The carrier can then look through the available freight options on the load board.
The use of a load board benefits the shipper and the carrier. The shipper can transfer their freight, and the carrier keeps their trucks on the road.
Building a network is one of the best strategies to earn more contracts. Your chances of receiving more contract recommendations increase with the size of your network. That’s why you should focus on getting connected with brokers and shippers.
A broker is the greatest option for new businesses because they have ready-made databases and client lists for you. Companies invest years in establishing that through interactions with customers.
Their primary benefit is searching the client database for the one who matches the requirements of your company. You can quickly locate loads with reputable brokers. They will help you access a lot of upfront information. That includes pricing, load information, origins, and destinations.
Brokers often get fresh information about new clients before other parties do. To locate businesses in need of transportation, they utilize their broad network in the trucking industry.
Find high-ticket shippers looking for truckers
Look for reliable shippers. They demand regular delivery, make good payments, and pay on time. Have freight lanes that follow your preferred routes as well. Remember that finding shippers with quick-pay options is preferable.
These perfect customers can be found in nearby industrial areas as follows:
- automobile dealers,
- retailers of food,
- the US Government.
An online marketplace called a load board allows brokers, owner-operators, and shippers to transact in real-time for the transportation of freight. Start with load boards because they get your project moving as quickly as possible.
Obtaining shippers from load boards typically results in transient, transient associations.
Wait before becoming an owner-operator and diving headfirst into the money hole. there are numerous considerations to take into account and things you should know.
Create a marketing plan for your trucking company
Finding new customers depends on your ability to present your business. Creating a marketing plan for your company is the first step to a successful trucking brand.
If you want to present your business to the maximum number of people, you should rely on modern marketing techniques. Digital marketing offers new and fresh solutions for trucker companies trying to reach new customers.
Your marketing should start with publishing the company’s website. It establishes your presence on the internet and sends a message that you are reliable.
Every website should have content that is carefully created. That’s where SEO comes into play. Use the right keywords because the search engine will promote your website.
Email marketing is another way to communicate with customers. Emails offer a fantastic customer experience that encourages users to keep you in mind in the future.
You may grow your company and draw in new clients by investing in Google Ads. Your clients will search for the services that you provide. The search engine will target them and advertise you to them. That will help you make contact with potential customers.
Interacting with potential clients becomes even more accessible by setting up a social media page. Additionally, you’ll grow positive reviews and increase the visibility of your company.
If you’re looking to start your own thing by getting your own truck, you’ll need customers to keep your business running. Companies are in constant need of trucker services. Therefore, it’s a good idea to launch your operation.
Create a stable foundation for your company. Finish the paperwork, buy a truck at a price that you can live with, and start searching for your first loads.
The number of customers for your trucking operation depends on your ability to create networks with brokers and shippers. Keep in mind that you can advertise your business through multiple digital platforms. These contemporary methods are far superior to the old school ways of finding new routes. Use them.
Create a recognizable brand out of your company on the internet and social media. Communicate with your potential customers in order to make an appeal to them. You want new customers to contact you and old customers to keep returning for your services.
That will keep your business afloat and help you grow. If you can keep a constant influx of new loads, you will quickly pay off leases and depts and scale your fleet.
Remember that you can always find new ways on the digital platform to attract new customers. Your success in the trucking industry depends on that.