If you are considering going into the transport industry, before you start your search for a transport business for sale or starting one from scratch, do your homework and make sure that this industry is a good fit for your experience, interest and lifestyle.
A transport business can be anything from a taxi service to a trucking company. Some of the most common transport businesses are:
- Ambulance service;
- Taxi service;
- Air freight company;
- Courier service;
- Bus service.
The key to being successful with a transport business is making sure that you know your client base and are able to provide the right kinds of services. As you move forward with your transport business, there are things you can do that will improve your chances of success and enhance your revenue.
Make Sure All Of Your Insurance Is In Place
Sometimes transport businesses try to get by with minimal insurance coverage and it usually winds up costing the business a lot of money when something goes wrong. Along with the standard commercial auto and liability insurance policies you need to carry, you should also consider policies for:
- Lost revenue;
- Loss of key employee;
- Supplemental disability insurance.
With the right insurance coverage in place, you can protect your transport business from almost any kind of challenge. Without the proper insurance, your company could be exposed to disaster.
Invest In Routing Software
Transport business owners understand how expensive gas and vehicle maintenance can be on a daily basis. But they often overlook the importance of good routing. When your drivers take a more direct route to their destinations, they save on time, fuel, and wear on the vehicle. Investing in good routing software will not only help your drivers to meet their deadlines, but it will save you money as well.
Empower Your Drivers To Market The Business
Your drivers can be so much more than the professionals who make sure that your payloads arrive to their destinations on time. A driver will come across a variety of people who will express interest in the business, but that interest will wane if the driver has to constantly tell people to call the office for more information.
Give your drivers marketing materials and the training necessary to at least speak to people about what the company has to offer.
If your drivers are empowered to market the business, then they can inspire more people to actually call the office and inquire about your transport services.
You can even create an incentive program that will compensate your drivers with a small commission for every load they bring in with their own marketing efforts.
Become Better At Load Balancing
If you run a transport business that deals in hauling goods, then you are aware of the benefits of load balancing.
The best way to make money is to have several vehicles on the road servicing your clients. But if you continue to weigh down one or two of your vehicles with heavy loads, then you are damaging your profitability by using up more gas and putting more wear on the vehicles than you should.
Good load balancing means understanding that sending out a truck with a single load on it to take the burden off another truck may be more profitable and beneficial to the company. There is software you can invest in which will combine good routing with better load balancing to save your company a lot of money.
If you want to reduce maintenance and operational costs on your vehicles, then you need to learn about good load balancing.
Customer Service is Crucial
A transport business puts your company in contact with customers every day who have set deadlines. A successful transport business learns how to meet those deadlines and keep costs down at the same time. The transport industry is competitive and going the extra mile will help improve repeat business.
As you run your transport business, be sure that you are always investigating new ways to improve profitability while still maintaining your high level of customer service.
When you find that balance of profitable activities and satisfied clients, then you will see your transport business revenues continue to rise.