If you’re a small trucking business, you are likely always looking for ways to grow your business. Scaling your fleet can be an immense challenge and should never be taken lightly. However, if you are ready to start this process, we can help you hit the ground running with this 5-step comprehensive guide.
No. 1: Determine Your Costs
Of course, your first step is to start saving. However, it might be challenging to know how to save if you aren’t tracking your spending. Figuring out the costs of running your business is a crucial first step. Here’s a quick breakdown of six ways you can cut costs.
- Fleet Management Software: Fleet management software can help you cut costs across all factions of your fleet. It enables you to track all kinds of data, which you can use to determine problem areas and eliminate inefficiencies.
- Monitor Monthly Spending: This may seem like a no-brainer, but many fleets need help tracking their spending. This is another area where fleet management software can help. Generate a monthly report that shows your spending habits. You can even obtain a profit-and-loss (P&L) statement from your accountant.
- Calculate Mileage Expenses: Vehicles are your bread and butter as a fleet company– that means they are also where most of your spending goes. Vehicle expenses can be tracked per mile, which helps you weigh their costs versus their value to your business. Unfortunately, many fleet owners don’t calculate this metric, making it difficult to grow.
- Safeguard Cargo: You may not immediately consider theft when considering cost reduction techniques. However, theft is still rampant, particularly regarding trailers and goods out for delivery. Consider investing in asset tracking software that will tell you when your goods aren’t where they should be.
- Save on Fuel: Fuel-saving is one surefire way to cut costs for your fleet business. It doesn’t seem easy since your fleet needs fuel to operate. However, we will link a blog at the end of this article that can help you save thousands on fuel.
- Optimize Routes: Route optimization software is the best answer for boosting efficiency. This software uses algorithms and machine learning to find the most fuel-efficient (and time-efficient) route to your destination.
No. 2: Build Your List of Clients
You can’t rely entirely on one big client. You need many clients to create a customer network that will help you grow. Try to work with varying clients to make a name across multiple fields. Visit the manufacturers in your area and present the benefits of your business to their transportation needs. Of course, not every manufacturer you consider will become a long-term client, but consider which ones appear most profitable to determine how to move forward.
No. 3: Prioritize Fuel Management
We mentioned fuel management in a previous section. However, it must be worth expanding on. Many small and new businesses buy fuel like regular consumers. However, fleets have the International Tax Fund to contend with, meaning they get taxed on fuel used, regardless of what state it’s from. As a fleet manager, you must know the difference between pump and base prices. Use this formula:
Fuel Price - Taxes = Base Price
Also, check out the fuel-saving tips provided at the end of this article.
No. 4: Organize Your Paperwork
So many fleet businesses should pay more attention to the office side of things. Don’t wait until the last minute to try and catch up on paperwork. Fleet management software is an asset in this regard as well. Digitize your paperwork so you can access it anytime, anywhere. When your information links with your fleet management system, you can use it to track all kinds of data and keep records as far back as you please.
No. 5: Quality Over Quantity
This field is highly competitive. That’s why many fleet companies continuously lower their rates to try to keep up. This is often a mistake that can cause the downfall of a business. Focus on providing top-quality service. Customers are willing to pay more when they know the job will get done how they like. If a deal comes across your desk that is not profitable, decline it! This will not prevent your business from growing. Instead, it will open you up to take better deals when they come along.
Grow to Your Full Potential With Azuga
Azuga’s advanced fleet management software isn’t just a top-quality solution for enterprise businesses. A unique feature that we offer is scalability. Our plans are customizable, and we will work with you to find the solution your business needs. Schedule a demo with one of our experts to see how we can grow together.
Related Reading
The Ultimate Guide to Fleet Fuel Management
This article provides a comprehensive guide to effective fleet fuel management strategies, covering fuel efficiency optimization, real-time tracking, maintenance, and data-driven insights. It offers valuable insights for businesses seeking to enhance fleet operations and reduce fuel costs.
4 Best Practices to Reduce Fuel Consumption for Fleets
This article presents a set of best practices for improving fuel efficiency in fleet management, including tips on driver behavior, vehicle maintenance, route planning, and technology integration. It offers practical guidance to help businesses reduce fuel consumption and operating costs within their fleets.
How to Save Money on Fleet Maintenance
This blog outlines cost-saving strategies for fleet maintenance, emphasizing preventive measures, data-driven insights, and proactive maintenance scheduling. By following these recommendations, fleet managers can effectively manage maintenance expenses while improving their vehicles’ overall performance and longevity.
