10 Ways Your Transportation Business Can Use Financing
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 transportation 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. In this post, we’ll review ten ways that your transportation business can benefit from a small business loan, so that you can get back on the road to success!
How to Use a Transportation Business Loan
1. Purchase New Vehicles
In order to run a successful transportation business, you’ll need high quality, state-of-the-art vehicles! If your current trucks or vehicles are old, 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. Make sure that you compare prices prior to making purchases, which will allow you to make the most of your business financing.
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 condition of your current vehicles, so you should evaluate this before making any big decisions. With working capital, you can pay for repairs, so that you’re not without vehicles for too long and can get back to work!
3. Invest in Equipment
Many transportation businesses require equipment aside from vehicles. For example, moving companies should have towing equipment and additional storage, while medical transport companies may need 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 being able to serve more customers and increase 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 more drivers.
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. This will allow you to spend less on hiring costs, while still feeling confident that you’re able to meet customer demands.
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? Below, you’ll find a few ways that you can market your transportation company.
- Publish sponsored posts on social media: On social platforms like Facebook and Twitter, you can publish sponsored posts that target your ideal customers. For example, you can target nearby individuals that are interested in transportation services. By doing this, you’ll ensure that your advertisements get in front of the right people!
- Invest in SEO: Most likely, you have a website for your transportation business. Although this is a great start, you should ensure that it’s search engine optimized (SEO). If you need help with this, we suggest hiring an experienced SEO agency that can help your business conduct keyword research, secure backlinks, and implement other best practices.
- Be Active on Yelp: If your business has a Yelp profile, then you know that it can be a beneficial way to attract customers. Still, you could increase your reach by advertising on Yelp, which will ensure that your business’s profile is seen by more users searching for transportation services.
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, you shouldn’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 On-Hand
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 to purchase durable winter tires, and if you’re a trucking business, you should invest in equipment that’ll help you during harsh conditions. These items can add up fast, which is why it’s 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 transportation 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. Implement New Technologies
Incorporating technology into your transportation business plan can be very beneficial. For instance, you could install GPS tracking in your vehicles so that you’re able to 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 to grow. Let us know in the comment section below how you’d like to develop your transportation business!
Editor’s Note: This post was updated for accuracy and comprehensiveness in October 2018.
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.