Haulage Business - The Top 3 Elements of Success

Running a haulage company may not be as complicated as manufacturing mobile phones, for example, but it does require certain elements to succeed. As an outfit that depends on accomplishing large volumes of delivery work every single day, a haulage company (and those who operate it) must learn to identify the following three factors, and know how to implement them within the bounds of their operation.

Personal Qualities

Like any other business, the success of a company that offers delivery work (haulage companies) depend a lot on the entrepreneur’s work ethic, business acumen, strategic thinking, and level of expertise. Needless to say, one cannot get into this business as someone who only wants to create something to burn money on! Moreover, competition in the field has become fiercer than ever—anyone who is not fully cognisant of the rising complications of running a business like this will easily crash and burn. Along with the presence of so much competition are factors that must be met head-on: how to counter the competitors’ lower prices, wider distribution network, and years of operational experience. With the right personal attributes, however, the operator with a keen eye for efficiency and the sharp sense to seize opportunities has the highest chances of eventually succeeding.

The Right Mix of Resources vis-à-vis Expertise

When taking on delivery work, especially when you’re new in the business, it’s easy to be tempted to spread your company too thinly. You may get a highly demanding customer with a job that your current resources can simply not meet, yet you accept it just the same, only to fail to be able to complete. In other words, it is very important to bite only what you can chew—at least, for the present time. According to a well-respected organisation of haulage companies in the UK, more than eighty per cent of haulers in the country have less than five delivery vehicles—in fact, about sixty per cent operate using only a single vehicle. The point is you should start small, and then gradually push your company’s growth in direct proportion to your experience and sharpening expertise of the industry. By maintaining a healthy balance between what you have and what services you can offer, you’ll eventually guide your company to success.

Financial Literacy

Believe it or not, many companies that take on delivery work in the UK today are actually owned by people who have little to no inkling of how their cash flow works—how it happens at all is a mystery to them. Many treat their haulage business in much the same way a grocer runs a small store: you get an item for a certain price, then sell it with a certain mark-up. Running a transport company, however, is much more complicated. What’s more, the price of petrol impacts your business in different ways—some of them unexpected. That is why you need all the financial help you can get—from hiring able financial managers to getting the best, most efficient tools and software to help you track how money flows in and out of your company, year on year.

Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry across the UK and Europe. It provides services for matching delivery work and to buy and sell road transport and haulage work in the domestic and international markets.

Writer and Online Marketing Manager in London.