1. Poor cash-flow management
Cash-flow issues can be a combination of several factors., low-paying rates, high costs of operations, too many unpaid invoices, and the list goes on…Identify strategies to improve or manage your business’ cash flow more effectively.
2. Poor Management
This is one of the weakest points in any small business, including trucking. If you don’t know where the money goes, or how much is coming in, you are likely to fail.
Keep track of every penny spent and make sure your invoices gets paid on time.
Familiarize yourself with the companies you do business with, do they have a reputation of not paying on time or maybe even not pay at all?
Know the risks involved with who you do business with.
3. Hiring Incompetent staff
You hire someone who you think will be a great manager. Then a few months down the road not only don’t they manage the trucking business well, they are rude to staff and your clients, they recklessly spend the profits or steal your money. Hiring a manager is fine, sometimes a necessity, but don’t ever trust anyone completely with your money or the reputation of your business. Even worse, you hire a driver that likes to stop at a tavern along the way every now and then, you get a call from someone telling you that your truck was involved in accident and lives were lost only to find out your driver was drunk driving.
Careful selection of employees is of utmost importance and would likely make or break your business
Remember that no one is going to care about your business the way you do.
4. Not servicing the trucks
The trucks must be in good condition, and regularly serviced, otherwise their life span will be significantly reduced, and you might forfeit the manufacturer’s warranty by not adhering to prescribed service intervals.
More so, you will end up paying high rates for time consuming repairs and resulting in losing production time and in this industry, time is money.
Remember if the wheels aren’t turning you aren’t earning.
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