There are many concerns when it comes to the transportation industry. First, you must identify exactly the type of Transportation industry you are in.
Looking to expand!
One of the major concerns of the transportation industry is fuel. Fuel can be expensive when it comes to diesel.
One of our clients told us he spent $90,000 a year and brought home less than $5,000.
In hauling, employees are necessary for heavier freight unless the business owner wants to do it himself. Yes, this is doable and I am sure that this is commonplace in the transportation industry, but what about the timing of a large haul or freight?
Look at J.B. Hunt… If a business pools Aristafi’s funding resources, they may be possible to grow as large as them.
Also, a business owner generally isn’t complacent, so for the transportation industries that say they are satisfied with their current profit and loss, may not be true.
Growth is essential to the 4% of businesses that make it.
So, the business has a choice, take the hauls individually or increase the overall business flow and increase the trajectory of their bottom line. This can be done by expanding through employees and equipment. A dispatcher is very beneficial for organizational purposes especially when the transportation industry grows beyond one truck.
Outside of expansion, there are other roadblocks that financing will help achieve. A rainy day fund is very essential for a business that operates with a vehicle that is valued at $100,000 or more.
Take the moving sector of the transportation industry and the price of insurance. This is a sector of the transportation industry where employees are essential. Clientele and pure transparency are key, thus hiring and firing techniques must be diligent, to say the least. Also, the trucks themselves are costly versus your ROI (Return on Investment) when helping individuals move precious items from one place to another… Some economists would say that financing is key to growth in any of these instances.
How about the public taxi sector industry? How do you overcome brand names (Uber) striping the business of all their clientele? With major brands dominating the market, yes, it is probably better to go and drive for a larger company, but what happens if the business started before Uber or Lyft?
What if a business has a unicorn like idea (think of Uber) and has been operating, but doesn’t have the working capital to achieve what Uber accomplished?
Either way, no matter what type of transportation company you are in, there are more ways to advertise, stay away from disaster and save on exorbitant fuel costs. it’s called financing.
Transportation is a tricky industry, but very profitable and would greatly benefit from equipment or SBA financing, mainly due to disaster, but what is wrong with expansion? Before you apply, make sure you have been in business longer than twelve months.
It’s an industry that is somewhat saturated and startups fail within weeks.
Either way, what is important is that your business will benefit by revolving its funding with our gorgeous line of financial products.