6. When Buying A Trucking Company, See If The Company Had Any Direct Dedicated Loads With Certain Customers…
Do you know one of the best advantages of buying a trucking company that is already established is? You can often get their clients as well. This can be a mixed blessing. On one hand you will be guaranteed at least some form of an income, especially during the early months of re-branding the company from the previous owner to you. On the other hand they already have a history with the previous owner.
You will need to know who they are, and be made aware of all contract agreements (written and spoken). This brings up the downside of established customers. They will be accustomed to doing things a certain way. Not necessarily good or bad, just different. You will now need to either get them accustomed to your way of doing things, or adjust to what they are used to.
Another issue is that they might have both expectations and preconceived notions. Meaning, the previous owner used to cut corners here or there. Or offered discounts during certain runs, or even allowed for slow pay for services. At the same time they might test you to see what they can get away with and see where you bend and when you’ll stand your ground.
Source: www.huffingtonpost.com
Another important thing is the bill factoring. You have to have cash in your bank to allow the 90 days period of payment to your customers and manage cash flow; otherwise regardless if you have existing loyal customers from the previous owner or not you will end up closing before you can open.
This period of growing pains can be a mixed blessing as it is both rough but an excellent learning experience. Remember when buying a trucking company with preexisting clients you will lose some of them. They will leave because they were loyal to the previous owner, perhaps they know the competition but don’t know you, or they might not like the changes. Often they come back, if you prove to be a better choice than the competition.
Source: www.business2community.co
