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What are the challenges in haulage business?

A haulage company is not straight forward and there are a few things you need to consider before jumping in.

Finding a client that will keep you busy for at least 15 days a month. This is what will cover your costs and pay the bills.This helps free you up so you can look for other business at market related prices and not desperate prices.Your rates must be the same as your competitors. Just offer a more reliable service. remember the hidden costs such as (GIT) Goods in Transit Insurance.

Learn to drive the truck yourself.If a driver doesn't arrive at work you can cover the load not letting your clients down. Your good name will bring you more business and the word will spread that you are reliable. reliability is always an issue in this industry.

Truck servicing is always time consuming and is normally days lost whilst the truck is off the road.. Buy a truck that has warranties and  a service plan.  Negotiate an extension to the service plan as this will save you thousands and headaches.

Get your self a software program that calculates fuel consumption and plans the most economical route to travel. This is money well spent as it will make sure you stay profitable.

Look for safe and secure storage yards in case you need to store goods on trailers overnight. This may not be enough and a small secure warehouse somewhere may be required. Trailers loaded with goods ties up your inventory and costs you money. i have seen this happen. Having a back up plan for this is forward thinking.

If new clients contact you be very wary. No one just loses their transport company and it is normally a warning sign that they been dropped by the transporter for bad payment. These are too risky and only accept cash up front.

Get to know your competition as they may be able to help you with loads and you help them when you are too busy. No one likes telling a client no and losing them forever.

Internet sites auction off loads so keep an eye out and joining one would be smart. You could tie in return trips making the trip more profitable. Delivering one way and coming back empty is a business killer.

I hope these points give you an insight into how the business works. It is very profitable but you need careful planning to succeed.