When your trucking business is thriving, it is natural to think about expanding. But don’t jump into it. Take the time to consider four important elements of a successful expansion.
You Need a Strategic Plan
When you take the time to put together a strategic plan, you can set realistic goals. This plan tells you where you are right now and points you where it is heading and how fast.
Work with professionals, especially your accountant, to define exactly what you want to accomplish in the next six months, year, five years and so on. Decide who in your trucking business will be responsible for each aspect of the project.
It’s All About Location
Location decisions can be tricky. Research how expansion will affect your employees, customers and suppliers.
Good questions to ask include:
- Can you expand at your current location?
- Do you want to open a second location?
- Would it make sense to completely relocate your business?
- Should you buy or rent?
- What specific problems will growing cause your customers?
Handle Funding the Right Way
Every expansion requires additional funding. If you are serious about growing, keep expansion funds separate from everyday finances.
Look into a variety of ways to fund your growing trucking business. There are a variety of alternative funding lenders who can let you know you are approved in just days, not the weeks that banks typically take.
Having a ready source of quick cash can make expansion possible. Look for a lender that is able to customize the funding to your specific needs and capacities.
Figure Out Your Market Share
It is essential to find out what your competition is doing before you expand. Work with marketing professionals to determine what your actual market share is. You need accurate information in order to make smart decisions.
Though you have a loyal clientele, you need to know more. This sort of complex determination involves checking out competing businesses and seeing what the growth rate is in companies in your area. When you accurately figure this out, you can decide how much growth is possible for your trucking business.