How to Survive a Slow Trucking Market

The trucking market has ebbs and flows, much like every other industry. Although the market seems to be in a slowdown, it isn’t time to get out of the business. There are still ways to get through the tough times until the trucking market returns. Here are some strategies you can use:

• • Come up with a backup plan to shift into a different mode. Find new opportunities in new population centers that have a higher demand.

• • Find other income streams. Become an agent with another company.

• • Analyze your cash flow to find places where the budget can be cut. Know your break-even point, to ensure you’re staying profitable.

• • Set goals that are attainable based on today’s market, not that of two years ago. Scale back on growth, until your business is stable. You want to keep cash on hand to take advantage of new opportunities.

• • Stay liquid. Build a portfolio of investments that will grow for your business, but make sure you can easily access that cash if you need it. Real estate is always a good investment, but might be more difficult to liquidate,if you need to.

• • Cut costs without damaging your business. Move to a smaller office. Make sure you’re getting the most out of your service providers. Outsourcing smaller jobs to companies who specialize in a certain area might save you money.

• • Don’t wait too long to get financing. Have a backup outside funding source and plan before you need it. Most people make bad decisions when they’re in a time crunch.

• • Manage your risks. Do you really need new trucks this year? Could you lease a truck instead of purchasing it? Explore multiple financing options before you sign a contract.

• Get advice from reliable trucking market resources. Have good advisors on your team who can help you grow. Talk to other fleet owners and find out what they’re doing. No one builds a business on their own.

Your business can survive a slow trucking market, but it will take dedication and focus on your part.