Invoice Factoring Tips
If you’re in the process of starting your own trucking company, you’ve probably heard the phrase “starving startup.” Most people assume that the odds are against them when it comes to surviving their first year in business. In reality, however, approximately 75 percent of small business startups make it past their first year with a little planning and the right steps. Below, we’ll explore tips for starting your own trucking business to help ensure your company is one that endures.
Create a Foolproof Business Plan
A small business startup has to have a foolproof business plan before it can make any real progress. Many new business owners don’t take the time to research and gather important information, which can lead to future problems. If you’re starting your own trucking company, your business plan should include at least three to five years of detailed and accurate planning. When putting this plan together, take the time to consider the following:
- An executive summary
- Company description
- Market and industry analyses
- Organization and management structure
- Product and service descriptions
- Marketing plans
- Sales strategy
- Financial projections
- Funding
For an even better chance at surviving your first year, it’s important to stand out from the competition in order to make a lasting first impression with potential customers and investors. One way to do this is by exploring freight factoring for small trucking companies, which can provide steady cash flow and financial stability during your early stages of growth.
Make Customer Service a #1 Priority
A small business startup won’t survive its first year without superb customer service in today’s world. Customers are the lifeblood of any business, and securing a loyal customer base isn’t easy. Prioritizing customer service above making a name for yourself is the only way you will maintain an edge over your competition. Take the time to offer excellent customer service with better loyalty programs, rewards, and incentives than the competition does.
Be there for your customers as much as possible by hiring friendly, helpful staff. You’ll also want to come up with helpful solutions for common complaints and bad reviews. Your customers will return the favor by recommending your company. Word of mouth and online reviews are effective ways to spread brand awareness and cultivate potential customers. Customer service is a long-term investment that will provide you with a high ROI when it comes to the life of your company.
Measure Your Progress
Operating a business without a plan or any understanding of where you stand and how you’re doing is a recipe for disaster. You have to keep track of your company’s metrics regularly and compare them to the goals you’re looking to achieve to see how you are performing. One key performance area to monitor closely is your cash flow, as unpredictable income can make it harder to scale or stay operational. As outlined in the Freight Factoring Guide, factoring freight invoices can help stabilize your revenue. When you partner with a company like Integrity Factoring, you can use spot factoring for trucking invoices, which allows you to factor selectively or factor all your invoices.
Measuring your failures and successes is the only way to make sound adjustments to help you stay on track. You’ll also need to adapt to any changes to ensure you spend your time and money wisely. While your first year in business can be tough, it can be the most rewarding year of your career with a little preparation and planning.
Get Off to a Strong Start with Integrity Factoring
Things change quickly when you’re starting your own trucking company. That’s why it’s important to be prepared for any fluctuations and take advantage of new opportunities to grow your business. Whether you’re exploring freight factoring for owner-operators or preparing to manage a larger fleet, we can help. While our trucking factoring guide covers the basics, the best way to explore the fit is to speak with a factoring specialist. To learn more about invoice factoring or get started, fill out our online form.
