As an owner-operator, you know that the expenses never stop rolling in. The costs associated with meals, maintenance, fuel, insurance and more never seem to stop, which makes cash flow crucial.
If you’re looking to get into the trucking business as an owner-operator, or you simply need to make some changes to ensure financial stability and business success, read on. We’ll go through some of the best ways to ensure cash flow is steady so you can keep your trucks on the road.
Avoid Cash Flow Problems With These Tips
From getting organized to keeping detailed records, we’ve outlined some of the most important factors to improving cash flow.
- Be Clear on Your Costs: The first step to avoiding or addressing cash flow issues is to know what your day-to-day costs are. Being organized is the best, first step any owner-operator can take to ensuring cash flow is in the green. Conduct monthly profit and loss analyses, accurately track expenses and create a process that everyone involved in your operation follows. Make records accessible to employees who need them.
- Factor Freight Bills: Never lose time chasing down invoices again. When you factor freight bills, you can get paid fast and speed up your cash flow in a way that allows you to grow your business. FreeFreightSearch.com members get access to expert-led and custom factoring programs from Interstate Capital. Learn more about this transportation factoring company. Factor your freight bills so that you can continue taking new loads and never put your business on hold.
- Invest Where it Matters: Put your time and money into the right tools, people and processes that will ensure long-term stability and success for your trucking operation. Many small business owners look to cut corners by doing everything themselves, but unless you have a background in finances, this can be a huge mistake. Investing in expert help and proper protocols can help your business avoid cash flow issues.
- Don’t Neglect the Rainy Day Fund: No matter how much you plan or follow procedure, there may come a time when your cash flow can’t cover your operating expenses, especially if a lot of your client base comes from seasonal businesses. By setting cash aside during times of excess cash flow, arranging a business line of credit, and using a freight factoring service, you can protect yourself in difficult times.
- Prioritize Efficiency: Many small trucking operations suffer due to inefficiency. Using the latest technology like an electronic logging device, finding freight on online load boards, or even following through on regular truck maintenance can ensure that your operation is functioning at peak performance levels, and set you up for continued success.
Maintaining cash flow is undoubtedly easier said than done, but with the right plan and support in place, it’s possible. Find even more tips to running a successful trucking operation by checking out our blog. Or get a head start on finding freight by signing up for the world’s largest FREE load board.