Is this the right time to start a trucking business? We are entering the second year of a pandemic, supply chains are experiencing major issues, and certain sectors are downsizing their workforce. While those are the excuses many people give for not launching a business of their own, they are the exact reasons why it is a great idea to launch a trucking company. We will explore those reasons, and more, to help anyone who is undecided about starting a trucking business in 2022.
1. Supply Chain Issues and Starting a Trucking Business
Supply chain issues are certainly more pronounced now, but they existed well before 2020. In fact, end customers and large carriers both have relied on smaller trucking companies to fill in gaps and get shipments to their destinations. From LTL shipment to “last mile” service, smaller trucking companies can operate within a radius and reach towns and cities that major carriers cannot. Starting a trucking business in 2022 will benefit the economy and help mitigate supply chain issues moving forward.
2. Trucking Companies as Job Creators
Over the past two years, we have seen certain industries downsizing their workforce. The energy industry closed refineries and furloughed drivers when the price of fuel plummeted in 2020, and then again after severe natural disasters in 2021. Similarly, the meat packing industry reduced the number of drivers in 2020, and plants are still not working at 100% capacity. Launching a trucking company will attract those skilled drivers who have been looking for steady work. New trucking businesses are creating jobs, reducing unemployment, and hiring drivers with years of experience under their belts.
3. How Long Will the Pandemic Continue?
There was a lot of hope when the first vaccines rolled out to cities across the country. Then the COVID Delta variant started spreading. Now, the Omicron variant is here and, though nowhere near as dangerous as previous forms, is still spreading quickly. What does that mean for commerce? Well, more people and businesses are embracing e-commerce. B2C and B2B operations alike are minimizing person-to-person contact. This also means more trucking companies are being called upon to deliver shipments, to the point where carriers are starting to develop LTL divisions in their fleets. E-commerce is not going away anytime soon. In fact, e-commerce is projected to grow and overtake traditional business methods. Launching a new trucking company in 2022 will allow you to build a positive reputation and make inroads with clients. As we move closer to business as usual, or a post-pandemic economy, building those relationships will become more difficult.
4. Increasing Your Revenue
Most of the people who start trucking businesses are owner-operators who want to apply the lessons they have learned over the years and multiply their revenue. Launching a trucking company allows owner-operators to get out from behind the wheel and manage employees who will haul shipments for the business. Instead of depending solely on their own driving, owner-operators who transition to business owners can multiple their revenue many times over, after overhead and payroll.
Maintaining Strong Cash Flow
Not many business owners like accounting. Even fewer like having to chase after every dollar from unpaid invoices. Typically, the numbers and minutiae are where potential entrepreneurs lose interest. Launching a trucking business in 2022 has an advantage with freight bill factoring. From day one, trucking businesses can eliminate waiting times of 30, 60, or 90 days to receive payments from customers. Instead, freight bill factoring from Single Point Capital turns invoices into cash and makes funds available in a single day. This allows new trucking companies to minimize debt, maximize cash flow, and build up capital reserves starting with the very first delivery.
Launch Your Own Trucking Company in 2022!
Single Point Capital is your one-stop-shop for launching a new trucking company. Our team will handle permits, licensing, and forms so you can focus on launching and growing your new trucking company. We also offer comprehensive freight bill factoring, fuel discounts, and even solutions to keep insurance costs low. 2022 is slated to be a tremendous year for new and small trucking companies, and there is no reason to miss out on the opportunity to get a strong foothold in the industry. Contact Single Point Capital Today to learn more.