5 Signs of a Bad Trucking Business
There are hundreds of wonderful trucking companies out there for truck drivers to work at. However, there are also plenty of businesses that are unpleasant to work with and others that just don’t manage things well and will eventually fold. The following are a list of things to watch out for in a company.
How to Spot a Bad Trucking Business
1. Poor Management
For a majority of small businesses, failure is due to poor management and accounting. If you see or hear issues about keeping track of money, have issues with your paychecks, or are not being helped by your management team, chances are they don’t know how to run a business right.
2. Low-paying Freight
When a businesses’ operating costs are higher than the incoming revenue, it’s likely that management is under-pricing services and spending too much. When management doesn’t understand the market or have solid knowledge of the industry market rates, the company is going to tank.
3. Low Cash-flow
Cash-flow problems are usually related to factors such as sparse customers, not generating enough business, low-paying freight, too high a cost of operations, and more. When a business has problems like this there may be payroll issues, as well as unpaid invoices or bills.
A trucking company that strictly adheres to compliance and encourages safe driving is one you likely don’t have to worry about. Safety and legal plans, along with drug-free policies, and regular training courses for drivers keeps everyone safe and knowledgeable. Failure to comply and a high amount of workplace incidents means the business will likely be shut down soon.
5. DIY Trucking Company
There is no such thing. A trucking business needs more than just drivers and trucks. Accountants, safety managers, marketers, etc. are all essential to getting the word out and keeping everything afloat. A small business usually has a couple jack-of-all-trades, like a safety manager who loves using social media and can post for the company.