In fact, it takes more than just knowing the basics.
Accordingly, it takes more than knowing the FMCSA or DOT regulations, or the expenses.
Furthermore, it takes dedication, full energy, and a strong vision.
With regards to the expenses, you are always ought to know them. Further, learn to effectively save because that is one way to improve your small transportation company.
In order to create a winning scenario for your employees and the company, in the end, you need to consider what mistakes are you doing.
In particular, these are the top mistakes that kill your profit:
- Not Paying Attention to Cash Flow – calculating the expenses and doing the math is obligatory. There are ways to help you improve it.
- Avoiding Regular Truck Maintenance – plan, maintain and schedule repair appointments. In this way, you will prevent the engine from damaging.
- Cost Per Mile – not doing the math for your mileage costs is the path leading your company to an end. Luckily, there are ways to calculate revenue per mile.
- Out of Route Miles – not calculating the miles or taking the long way to complete the route results in high fuel costs.
- The Idling Time – when putting your truck in idle, you are not only damaging your truck but the health. On the contrary, you need to tell your drivers to turn it off while parked.
- Bad Quality of Fuel – trucks get 5% lower quality fuel consumption.
- Providing Traditional Postage – replacing the standard postage with innovative, electronic emailing is crucial for costs reduction.
1. Cash Flow
One of the main reasons why a small transportation company fails to create success is the bad cash flow analysis.
