When businesses boom, one of the first things they look for is a fleet company to help them distribute their goods farther and faster. If you have an interest in the transportation industry, owning a fleet business is a great way to get involved with what you love while getting paid to do it.
That being said, you still need to know what exactly is needed to operate a transportation business successfully. It takes a lot of time, money, and resources to pull things off, and if you don’t have everything together you’re almost guaranteed to fail – and lose out on a lot in the process.
To keep that from happening, we’ve put together a quick and easy guide on the most important aspects of starting a fleet company. Keep reading to find out more!
1. Write a Business Plan
As with any new business, is imperative that you start by writing up a business plan. Making financial moves without having a blueprint is like a contractor trying to build a house without a floor plan (hint: it’s a really bad idea). Take time to list out essential matters like your business’s objectives, your short, medium, and long-term goals, and how you intend to reach your desired achievements.
2. Get the Right Equipment
Buying the equipment you need doesn’t just stop at purchasing a couple of rigs. You need to seriously think about the type of freight you plan on hauling and buy equipment that fits your company’s services. What kind of trailer capacity is needed? What sort of trailers do you need (flatbed, refrigerator, hauler, etc.)? How powerful do the trucks themselves have to be to handle your client’s needs? Answering these questions can help you narrow down the selection.
3. Choose Whether to Hire or Sub-Contract
Finally, you’ll need to start finding drivers that can help you move the fleet and handle delivery jobs. For this, you can either choose to hire drivers or have them work as sub-contractors.
Each has its own advantages and disadvantages. For example, subcontractors have their own trucks and can be more affordable, but you will have less control over their actions. On the other hand, hiring employees will give you better profit margins, but you’ll have to pay for more items, which requires a higher startup capital. Make sure to choose the best choice that fits your needs.
Think you’ve got what it takes to create a fleet of your own? Once you really start to pick up the pace, you’re going to want to invest in fleet fueling to make sure your drivers always have fuel around when they need it. It’s just one more way that you can help construct your company to make it a success!
Start Your Fleet Company Today
Now that you know how to start a fleet company, you’ll be able to take off to new heights with your transportation business. Make sure to read through the rest of our site to learn more ways you can improve your personal and professional lifestyles and upgrade to success. We’ve got something for everyone here!