As the trucking industry evolves and grows rapidly, companies must scale the trucking business and gain an advantage. Especially with competing against larger fleets, owner-operators must find a solution to grow their business. That’s especially true as market expansion continues. According to MarketWatch, “The Truck Freight market revenue was Million USD in 2016, grew to Million USD in 2021, and will reach Million USD in 2026, with a CAGR of during 2021-2026.” With such growth on the horizon, owner-operators need to have a few best practices up their sleeves to expand their businesses in tandem.
1. Leverage Digital Load Boards to Find More High-Quality Loads
For owner-operator trucking companies, finding the time to connect with shippers in person may be nearly impossible. Load boards allow carriers to find loads that meet the criteria they want in loads. Along with having the ability to have an improved selection on who to work with, carriers can improve relationships with shippers and develop a network.
2. Take Advantage of Integrated TMS APIs to Connect With Other Carriers
For companies looking to expand trucking loads and grow business, communication is vital. Application programming interface (API) can offer advanced integration capabilities without other disruptions. Additionally, API enables different programs to communicate and transmit data instantly. Leveraging a transportation management system (TMS) with an integrated API can increase visibility into real-time data and analytics.
3. Track Market Dynamics to Know What to Charge Per Load
To correctly calculate hauling rates, owner-operators must think about variable costs, fixed costs, and salaries. Additionally, owners must stay up-to-date on the market and can through load boards and spot tender bids. To properly grow the trucking business and charge the proper rate, owner-operators should also understand the current market, broad freight cycles, and underlying reasons that impact per load costs.
4. Consider the Full Headhaul and Backhaul Risk to Avoid Empty Miles
Backhauls are the trips trucks take when cargo is low and head back to the point of origin or near it. These hauls have an immediate pickup, soft demand, and have lower rates. Additionally, headhauls have the highest revenue-generating shipping lane and often are closer relationally to the actual carrier. New trucking businesses or companies trying to scale trucking business should always try to have headhaul.
5. Streamline Billing With an Integrated Billing and Factoring Solution
Especially with owner-operators, finding the time to handle back-office tasks and billing may not always happen. However, as the business expands and transports more loads, it will only get more complicated. Partnering with a factoring company can take the stress off back-office tasks and billing to allow owners to focus more on trucking and finding more loads.
6. Monitor Performance of Your Assets With Analytics
As owner-operator trucking continues to gain more loads and expand the business, they must monitor assets. To properly monitor the fleet’s assets, owner-operators need analytical technology to have a strong foundation. Especially for starting trucking companies that may not have as many trucks or assets as the larger fleets, the data on what they have is vital.
7. Track Your Receivables Versus Payables
To properly grow trucking business and gain a competitive advantage against larger fleets, owner-operators should focus on financing receivables. Rather than handle the issues with receivables, owner-operators can use invoicing to focus more on the business and less on the back-office tasks. With factoring, owner-operators can receive immediate payment, increasing cash flow and allowing quicker advancements in the company. With freight invoicing, owners have the opportunity to shorten the payment clock, improve cash flow, and spend less time focusing on payments.
8. Invest in Your Digital, Online Presence
While growing a trucking business, owners must look at the advantages of going digital against traditional trucking ways. Working with a digital platform can provide companies with improved communication, document management, and payment management, all easily accessible by all ends. Carriers need an easier way to handle company tasks no matter where they are, especially owner-operators. Additionally, some partners already have a list of approved brokers, which can increase networking and risk working with another company without proper credentials. Partnering with a factoring company can provide various benefits to help owner-operators get ahead of the rest without the stress.
Grow Your Trucking Business With the Right Factoring Software and Partnerships
For owner-operators wanting to expand their trucking business and have a competitive edge over the larger fleets, factoring can make it happen. Working with the right factoring company can provide companies with benefits and technological advancements to take the stress off back-office tasks, have constant communication, and access already approved and promising brokers. To gain the benefits of factoring software through a company you can rely on, get started with BasicBlock today.