Have you considered starting your own fleet management business? Do you have a background in driving yourself? If so, you may be in a great position to run a company, but be sure to step back and take some precautions.
Being the best driver in the world can give you a good starting point for running a fleet management company but does not necessarily make you a great business person. Below are a few things you should consider before making the leap.
Business Plan
A business plan is not just necessary if you’re looking for loans or investors. It can help you identify weaknesses in your company before you even get up and running. Think about your customer base, your marketing plan, your financing, your logistics and your team, and put it all down on paper.
Management Logistics
You’ll need to think about whether you want to hire drivers or choose subcontractors as well. The latter costs significantly less but also leaves you with less control over your fleet. The former is more expensive, but with your own trucks and equipment, you could take advantage of devices such as dash cameras. AI dash cams can help detect and prevent accidents, can coach your drivers and can keep your costs down overall.
Maintaining Relationships
Relationships are important in every business, and this is true in fleet management as well. You have two types of relationships you need to preserve: those you have with your customers and those you have with your drivers. Good communication, rewarding your drivers for excellence and regular check-ins with both drivers and customers are all ways you can keep these relationships in strong working order.
Understand Your Finances
There’s a lot to keep in mind here. First, you need to know exactly what your costs will be. You must track them carefully because if your estimates are off once you are up and running, it could be disastrous. Operating costs are either fixed or variable. Knowing exactly what they are and where you might be able to cut back can help you bid correctly. You want to get contracts, but you don’t want to bid so low that you are just breaking even or losing money. You should make sure that you have enough capital to get you through any lean times, especially early on, and you should think about how you can keep expenses down.
The Right Equipment
You need the right equipment, and this encompasses everything from your trucks to your software and more. Right-size vehicles will help ensure that you have what you need to do the job without wasting money. And the right equipment can help make your business look more professional and improve your company’s first impression. Even if you are starting small, you will need the right processes in place to deal with payroll and other administrative issues, including making sure you are compliant with all regulations. You should know how all these different parts of your business work and you should not hire staff too quickly, but you should anticipate that there will come a point where bringing on a back-office team will be necessary.
