Becoming your own boss as an owner-operator can be a wonderful thing. While growing a new trucking business comes with many challenges, there are many rewards, as well. Making more money is probably the single most important one. That’s why Integrity Factoring would like to provide you with the following tips for surviving in the trucking industry.
HOW TO BE A SUCCESSFUL OWNER-OPERATOR
Being a successful owner-operator can be profitable, but it comes with a lot of responsibilities. It’s essential to manage your money and build a strong reputation. Below are some helpful tips on how to make the most money as a business owner in the trucking industry.
BE A RELIABLE TRUCKER
As with any company that depends on excellent customer service, being an owner-operator of a trucking company is no different. Making a profit requires more than picking up and dropping off loads if you want to attain high-ticket freight. Other businesses lean toward trucking companies that they trust, and trust must be built before it’s established.
Establishing a good reputation as a reliable owner-operator includes making sure you deliver on time while maintaining positive relationships with customers and fleet managers. When you build strong relationships, you will be the first person they call when they have freight that needs to be moved. However, it’s important to remember that it takes time and effort to establish a reliable reputation which means working hard with a good attitude to achieve this goal.
SIGN UP FOR FUEL CARDS & REWARD PROGRAMS
To turn a good profit as an owner-operator, it’s essential to save money. Keeping your expenses down is one of the best ways to make money. Fuel card and reward programs for truckers can help make travel expenses much more affordable by providing significant diesel fuel discounts, as well as savings on other services. These types of programs offer discounts on a wide variety of things, from fuel to tires to parts. In fact, some fuel card and reward programs can help you track your spending and include management tools and purchase controls to help you manage other expenses.
STEER CLEAR OF DEADHEAD MILES
To maximize earnings, it’s important to steer clear of deadhead miles. Deadhead in the trucking industry means driving with an empty trailer without any freight. When you drive without transporting cargo, you’re burning fuel without making any profit to make up for it. Not only that, but you are also putting wear and tear on your truck. That’s why it’s important to ensure you are making money anytime you are behind the wheel.
An excellent way to steer clear of deadhead miles is to backhaul loads on your return trip after making your first haul. However, it’s important to take the time to plan your route carefully to ensure maximum backhaul revenue. While backhauling typically pays less due to lower demand, it’s better to make a little money compared to none.
LEARN HOW TO MAKE FREQUENT REPAIRS
If you are an owner-operator in the trucking industry, you can save money by reducing the amount you spend on repair bills. By learning how to make frequent repairs, you can save thousands of dollars compared to taking your truck to a repair shop. However, it’s important to keep in mind that not every repair can be fixed by an owner-operator. Sometimes you will need to enlist the help of a skilled professional to get the job done right.
USE TRUCKING FACTORING FOR OWNER-OPERATORS
Managing the finances of your business as an owner-operator isn’t always an easy take. This is especially true when you have clients that take their time making payments. Waiting around for money from outstanding receivables prevents many businesses from taking on important endeavors.
Trucking factoring for owner-operators is a useful solution that eliminates the waiting game. Instead of waiting for 30-60 days to get paid, a factoring company like Integrity Factoring will advance you up to 90% of your invoice. Once a client pays, you will receive the balance of the invoice minus a small factoring fee. This, in turn, provides you with consistent cash flow and the ability to pursue other important business ventures with fast access to debt-free working capital.
Got questions about the trucking factoring process? Want to learn more about how it can help you as an owner-operator in the trucking industry? All you have to do is contact Integrity Factoring by filling out our online form or give us a call at 1.866.834.7338 to get started.