| If you're a trucking company, you should know that it's | | | | expectations, it is assumed it is the employees fault; |
| critical to have a business plan. Many trucking | | | | maybe yes, and maybe no! |
| companies have business plans for 1 to 3 years, and 5 | | | | In this economic environment, it's imperative that |
| years with specific goals and objectives. Those goals | | | | employees become assets and not liabilities. Trucking |
| and objectives are made clear to all of their | | | | companies have enough liabilities and they certainly do |
| employees, then adjusted, based upon market | | | | not need more liabilities with their employees. |
| conditions and hope to achieve a desired result. | | | | In essence, a written business plan acts as a resume |
| However, I've worked with many business owners | | | | of your company, a tool for introducing your business |
| who simply don't plan. In some instances, no matter | | | | to bankers, customers, vendors and it defines who you |
| how long they've been in business, they don't have a | | | | are or who you want to be. For many companies, it's |
| solid business formula for success. It's critical that, if | | | | very difficult to differentiate profits from cash. Believe it |
| you want to expand your business re-energize your | | | | or not, you can have a profitable company that's going |
| business you need to start by having a plan. | | | | broke. I know it sounds crazy but it's true and very |
| For many, that seems very time consuming and | | | | common. Just because a company is making sales |
| frustrating, but that's why many trucking companies, | | | | and creating orders, doesn't mean that the cash is |
| today, are facing financial challenges. For instance, | | | | coming in. |
| they don't understand their cost, they don't operate | | | | When you look at the financial condition of the trucking |
| their business utilizing cash flow management or | | | | industry today, its clear that shippers are extending |
| review or receive their financial data on a weekly and | | | | credit terms whether you like it or not. You may |
| monthly basis. In addition, they don't monitor truck | | | | dispatch a truck and not get paid for 45, 60, 90 |
| utilization the way they should, and then wonder why | | | | days--that's 45 – 90 days after you've created the |
| they're in trouble. | | | | invoice and sent it to the customer. |
| When you start a business, there are normally many | | | | Meanwhile, you still need to pay all of your overhead. |
| things that go through your mind. However, one of the | | | | The idea of a business plan is to have more cash |
| goals is to obtain financial security. To reach that end, | | | | flowing in then out of the business, and at the same |
| you need to know exactly where you want to go, | | | | time, planning for the inevitable financial challenges. |
| how long it's going to take you to get there and what | | | | To ensure your company's future survival, you need to |
| obstacles you may encounter along the way. | | | | be prepared for anything. Changes occur all the time |
| A business plan provides a detailed "road map" to turn | | | | and a business that keeps up with the economy is the |
| your desires into a reality. Granted; business plans take | | | | one that will survive. |
| a lot of time and energy to write, but the time is well | | | | However, before you can figure out how to deal with |
| worth the efforts. Particularly if you're expanding, or | | | | upcoming challenges, you first have to identify what |
| you need to borrow additional working capital for your | | | | they could be and where they may come from. This |
| business. | | | | task requires some insight and imagination, but it also |
| A business plan walks you through every aspect, | | | | takes experience. If you don't believe that you have |
| every question mark, helping to make sure that you | | | | the expertise to be able to determine market |
| have considered every important factor and not | | | | conditions, get help and talk to some of your "mentors" |
| overlooked anything significant. When you're | | | | in the industry. |
| developing a business plan, some details may seem | | | | One practical way to address potential challenges so |
| insignificant, but they are not. | | | | you can adjust to them, most easily, is to perform an |
| Trucking is a pennies business. Trucking is a cyclical | | | | analysis of your company's strengths, weaknesses, |
| business. There are many factors that trucking | | | | opportunites and threats. |
| companies can't control such as; | | | | The first two, strength and weaknesses, describe your |
| 1. Fuel cost; | | | | company's internal state of affairs. The last two, |
| 2. Accidents; | | | | opportunities and threats, define what potentially exists |
| 3. Insurance premium increases. | | | | for your company to grow and potential pitfalls that |
| 4. The weather, and; | | | | can cause failure. |
| 5. The economy. | | | | If you want your business to succeed, in a highly |
| However, knowing that you have numerous variables | | | | competitive world, you must define and separate it |
| that can directly impact the success or failure of your | | | | from all your competitors. That means taking an |
| business, you need to plan for both the highs and lows | | | | honest look at your strong points and weak points, and |
| of our industry – yet, many trucking companies do | | | | recognize the factors outside your direct control that |
| not. They wait until it's too late, or they simply bury their | | | | can influence your business. |
| heads in the sand and figure that, if they work hard, | | | | To perform a successful analysis, you need to look at |
| the rest will take care of itself; a great philosophy, but | | | | your business with a detached, realistic mind. Keep |
| not a reality. | | | | your points brief, use phrases not paragraphs, and |
| Many people ask me, "How can a business plan help | | | | come up with specifics for each category that define |
| them succeed?" My answer; it forces you to take a | | | | why your trucking company or logistics company |
| close look at your business and yourself and set | | | | differentiates you from your competitors. |
| specific goals and objectives. | | | | A business plan is the beginning of the process, and |
| Not every idea makes economic sense. Business | | | | over the next several weeks, I will discuss in greater |
| plans also set a time line for results and it forms a | | | | detail. |
| basis for a company to hold their employees | | | | In the meantime, as you are preparing to analyze your |
| accountable, for their respective jobs. | | | | business, be realistic about you as an individual. |
| Some of the things that I've noticed in my consulting | | | | Continually review your strong and weak points and |
| practice is that employers expect their employees to | | | | recognize that no person is perfect, no company can |
| perform but they do not provide them with specific | | | | do all things perfectly, and define your weaknesses. |
| goals and objectives or with specific time frames in | | | | Once you've accomplished this task, it is the beginning |
| which to accomplish the goals and objectives. Plus, if | | | | of "the process". |
| the employee doesn't perform or meet their | | | | |