10 Ways Your Transportation Business Can Use Financing
If you own a transportation business, chances are you can think of at least a few ways you’d like to improve your business, but may not have the funds to do so. This is where working capital comes in handy! Pursuing trucking loans can help you improve your business’s operations, while expanding and marketing your services. There are a wide variety of businesses in this industry, such as trucking, limo and taxi companies, moving and medical transportation services, but they can all find ways to utilize working capital. Here are ten ways that your transportation business can benefit from a small business loan, so that you can get back on the road to success!
1. Purchase new vehicles – In order to run a successful transportation business, you’ll need high quality vehicles! If your current trucks or vehicles are deteriorating, or you simply don’t have enough means of transportation to serve your customer base, it may be time to purchase a few new ones. Of course, this can be very pricey, so consider using trucking loans to pay for this investment.
2. Repair vehicles – Just because a vehicle isn’t brand new, doesn’t mean that you should get rid of it! For some businesses, it may be more economical to repair vehicles instead of purchasing new ones. This will depend on your company’s needs and the state of the vehicles, so you should evaluate this before making any decisions. With working capital, you can pay for repairs, so that you’re not without vehicles for too long!
3. Invest in equipment – Many transportation businesses require equipment aside from vehicles. Moving companies should have towing equipment and additional storage. Medical transport companies may need related equipment to ensure the health and safety of their passengers. These extra tools will depend on your business’s specific services, so consider using a transportation loan to pay for these costs.
4. Hire drivers – Having more drivers means more sales for your business! If you’re turning away business because you don’t have enough drivers to accommodate your customers, then you should consider using a transportation loan for hiring. If you’re concerned about hiring more full-time employees, you could also consider paying part-time drivers to be on-call during busy times.
5. Market your business – In your transportation business plan, you should allot enough money to market your services. How will customers know about your business if you don’t market strategically? By using a business loan to pay for marketing expenses, you’ll expand your audience, which will likely lead to more sales.
6. Expand services – Want to increase sales? Add new services! The transportation industry is very versatile, and there are numerous amenities that your business could add with the help of working capital. If you have the space, consider opening a car wash or auto repair center. In addition to providing people with transportation, why not invest in a few trucks and offer your customer’s moving services? Of course, don’t spread yourself too thin or lose focus on the main aspect of your business; so make sure that your business is prepared to add additional services. There are many ways that your business can make more money, so invest in your future with a business loan to get these ventures started.
7. Have extra cash – Running a small business is all about being prepared for the unexpected! If you go through a busy season and see a boost in sales, you’ll need to have cash on hand for repairs and other maintenance expenses. In comparison, lulls in business will require you to have money available to keep your operations afloat.
8. Pay for weather related expenses – When it comes to the weather, transportation businesses need to be prepared. For inclement weather, you’ll need durable winter tires, and if you’re a trucking business, you’ll need to pay for other additional equipment that will help you during harsh conditions. These items can add up fast, which is why it is prudent to use a business loan to cover the costs.
9. Buy branding materials – Many business owners don’t recognize the power of branding. Using trucking loans to invest in branding collateral will likely help your business stand out, and ultimately increase sales. Make sure that your logo is featured on the vehicles or trucks that your company uses, and invest in other branded items like business cards, pens and bumper stickers.
10. Try new technologies – Incorporating technology into your transportation business plan can be very beneficial. For instance, install GPS tracking in your vehicles so that you can inform customers of their driver’s arrival. Another way to use technology to improve customer service could be integrating software like CustomerWise or Zendesk. These companies offer customer support systems such as help desk software, workflow automation and reporting capabilities. With these tools, you’ll be able to easily manage and address all customer service requests in one place.
With these transportation business ideas, you’ll be able to utilize working capital in ways that will benefit the future of your operations. With so many different types of transportation businesses, there are numerous ways that your business can use working capital in order to grow. Let us know in the comment section below how you’d like to develop your transportation business!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.