As was discussed last week, “a plan is just a plan until it’s put into action.” You now have your playbook laid out; this playbook becomes your road atlas, showing you the way through the financial and business mine field. This plan is what will get you off that ice-covered mountain in first gear and in one piece.

As you start down this frozen financial hill, here are some things to keep in mind:

• Keep a close eye on what’s happening within your hauling niche. Talk with your customers and find out what they are projecting in the near future, not just for their company, but also for their industry.
• Industries to which your customers sell or from which they buy need to be closely studied. The more you know what’s happening to the industry you serve, the greater you’ll be prepared for any changes which occur.
• Track the shipments similar to the type your trucks haul which travel within your hauling lanes. Know your lanes and the freight hauled in them better than the back of your hand.
• Follow the trends in the oil and fuel markets so you can anticipate increases and decreases in your fuel cost and adjust your hauling rates accordingly. Be ahead of the curve.
• Keep a close eye on your costs; reducing or eliminating them is your objective. But beware—make sure that reduction or elimination of an expense doesn’t diminish your ability to provide top-of-the-line service.
• Think customer service—the best way to be sure you can increase your rates when necessary without losing a customer is establishing the highest level of customer service possible.
• Create a customer service bar so high your competition has to struggle to match it.
• Cut expenses before increasing hauling rates. Be able to prove to your customers that you did everything possible to avoid increasing your hauling rates.
• Don’t wait until your costs have significantly increased before raising your hauling rates. Help your customers by doing small, incremental increases. If your costs have increased by 5%, it’s time to consider doing a rate increase.  Avoid ‘sticker shock’ for your customers, they’ll appreciate it.
• Communication is the key to your entire plan working. Be sure you keep everyone in your operation in the loop: drivers, dispatch, sales. Then include your customers’ key people: the folks on the dock, in shipping and receiving and the front office. Maintain a list of emergency contact numbers with alternate contacts as back-up. Do the same with e-mail addresses. And then use them when needed.

With the economic outlook for the next year or two not looking real bright, running a trucking company is going to be challenging. It is going to require a dedication to detail not seen for many years. The good news is, America runs on trucks, and small motor carriers (those with fewer than 35 power units) haul a vast majority of the freight. Over 80% of American manufacturers are small businesses with fewer than 25 employees, meaning these small business owners are going to be facing the same dilemmas and problems as the small trucking company owner. The small business owners are going to need a hauler who understands what they’re dealing with, and who better than the owner of another small business? That’s you. 

If you navigate this slippery financial and business slope, picking your way carefully with a defined plan, you’ll reach the bottom of the hill in good shape. When the road flattens out, you’ll realize your success, because you’ve been ‘Running Smart.’

Good loads and safe roads, everyone.

Timothy Brady
©2009