Truckipedia Blog Category - 4 Things to Consider for Your Growing Truck Business
There’s certainly no shortage of work in the trucking industry. As an owner-operator, you know the demand and the growth opportunities that lie ahead – now it’s all about planning for steady and profitable growth. Planning ahead can be the difference between sustainable, profitable growth or growth that results in a significant loss.
At Velocity Truck Centres, we work with owner-operators every day and, as a leading truck dealership in Western Canada, we know a thing or two about growing a business. Here are some of the top things to consider as you grow your truck business.
1. Decide whether you want to rent or buy equipment
Whether you own or rent a fleet, there are pros and cons to both. While owning a truck is considered an asset and provides a bit of a cushion for risk, renting frees up capital to invest in other areas of the business, such as hiring more employees and training drivers. When deciding to either rent or buy a truck, consider:
- The estimated mileage your truck will run each year
- Trade cycles of your equipment
- The total cost of ownership
- How a new truck can decrease operating expenses
An important part of renting or buying equipment is the company you choose and how they accommodate your requirements. Companies like Velocity Truck Centres offer flexible leasing terms for heavy-duty truck financing and medium-duty truck financing. Financing options vary depending on the model year and current mileage of the unit as well as the type of application (team-driven or owner-operator).
2. The cost of service and repairs
A factor that is commonly overlooked when growing a truck business is the cost of service and repair, a critical component of keeping equipment running smoothly. Be sure to plan for routine maintenance and contingencies for potential emergency situations when calculating the total cost of ownership or leasing.
Keep in mind that, while older models may come at a lower price tag, you may need additional repairs and services that you otherwise wouldn’t need with a newer truck. Additionally, investing in a new truck can reduce operational costs as many new models have improved fuel efficiency.
3. Growth in the same market or other market segments
Of course, growing your truck business is about more than growing your fleet. To achieve steady growth, you’ll need to build a network of customers. Decide if you want to be a master of one market segment or if you want to venture into other markets. Serving one segment can keep your equipment needs simple but comes with inherent risks while working a variety can help you acquire more clients in the long run.
As your truck business grows, you might experience mediocre loads or quiet seasons but building relationships with the right clients is what contributes to sustainable growth and a reputation for reliability.
4. Consult with a medium-duty and heavy-duty truck dealership
Last but certainly not least, reach out to experts in your field who can offer guidance. Velocity Truck Centres helps owner-operators expand their fleet and can help you choose the right finance options for your growing business. Find a truck dealer near you to learn more.