Trucking companies can be extremely profitable in Canada, but because competition in this industry is extremely steep, before you jump in, do some thorough research. The following 5 strategies can greatly put your transportation company in the right direction and ensure you succeed.
1. Have an Efficient Team & Back Office
Running a successful Canadian trucking company requires that you assemble an efficient logistics management team backed by an equally good back office. Determine how you will run the office, go through the all the logistics, processes, and ensure everything makes business sense. Efficiency is the hallmark of the trucking business.
2. Get Right Equipment
Obviously, getting the right equipment for your trucking business is paramount. This should be the first and probably the most expensive decision that needs to be faced. Do you buy or lease equipment for your Canadian trucking company?
Of course, buying trucking equipment is generally straightforward because after you have made the last payment, the equipment becomes yours. Leasing equipment, on the other hand can become a bit more complicated, although in some cases it could have lower payments.
3. Have Right Insurance Cover
By its nature, the trucking industry comes with very strict requirements in terms of insurance coverage, more than many other types of transport business. To fully identify the kind of cover your particular transportation company will need, discuss with an insurance specialist in your field and area.
In addition, your responsibilities as an employer require that you also comply with relevant health and safety regulations & standards in your Province.
4. Ensure Vehicle Safety & Compliance
Safety of commercial vehicles in Canada is taken very seriously by Transport Canada. Federal regulations governing heavy trucks and other commercial vehicles are set by the Canada Motor Vehicle Safety Standards (CMVSS) addressing various safety aspects.
Under the Canadian National Safety Code (NSC), those responsible for the safety of commercial vehicles, freight services and carriers are obligated to ensure that they are compliant in terms of meeting performance and maintenance standards as set in the NSC regulations.
Besides the above requirements, several other compliance issues must also be addressed such as permit regulations, taxes, and licenses that specifically apply to the Canadian trucking industry.
5. Avoid Cash Flow Hitches
If your transportation company is doing well and expanding rapidly, there is a potential of expenses getting ahead of your revenues. Under such a scenario, you could easily run out of vital funds and get constrained until when your clients start paying. This is when your rivals tend to steal your clients. The key thing here is to be well-prepared for such situations by having a ready source of funding.
The growing Canadian marketplace is creating great business opportunities for trucking companies and freight services. However, this is also an increasingly competitive field. Many trucking companies start small, making use of small local trade shows and local contracts in building up a clientele base.
Success doesn’t come overnight, but as you continue to successfully bid for, and complete these jobs, your business will grow and over time, you will be running a highly successful freight services enterprise.