Moving Words – Opportunity
Timothy Brady
“It’s through curiosity and looking at opportunities in new ways
that we’ve always mapped our path.” – Michael Dell
With the moving sector of trucking in a post-pandemic state of changing, there’ll be opportunities opening to bid on specific customers and lanes. In order to take advantage of these possibilities you’ll need to answer these questions: Is my moving company headed in the correct direction to obtain our share of this changing market? How will my company achieve the goals I’ve set for it?
A surprising number of movers have never returned to review the
business plan they developed when they put their first truck on the road. It’s
been filed away ever since, turning yellow in a file drawer. Chances are very
good the business outlined in that plan is not the business operating today.
A business plan is a living, breathing document that needs to be continually reviewed and updated. Markets and economies change and a company’s business goals and directions must keep up. Not reviewing and updating your business plan annually would be like depending on Lewis and Clark’s map to find the best and most economical route for your trucks.
So what areas should be reviewed and updated?
Your Company’s Business Concept and Objectives:
What type of trucking operation? Where do you operate? How many
trucks? How many will you need to add or subtract?
Trucking Business Trends:
What is the expected growth of the industry segment you’re
servicing? Who are your direct competitors? Who are the leaders in this
segment? How are you going to compete with them? The most important question:
Will there be enough loads at a reasonable rate to ensure you’ll meet financial
objectives?
Specialty Niche:
What’s setting you apart from the rest of the pack? What is your
cutting-edge idea for improving service to your shippers? How will you
implement this idea?
Weakness Analysis:
What are your weaknesses? How do you measure up to your
competition hauling the same freight?
Strength Analysis:
What are your strengths? Special skills? Special equipment? Low
or no debt? Plenty of sustaining capital?
Marketing Strategy:
How are you going to let potential customers know you exist? How
are you going to keep current customers loyal? What’s it going to cost in
advertising, public relations and promotions to retain your current customers
and gain the ones you need? How will you improve customer service?
Determine your “Revenue Bull’s-Eye.”
What’s
your Total Break-Even Point? What is it for each piece of equipment you
operate? What are your capital needs to sustain and protect your current
position? How much is required to grow? By setting a Revenue Bull’s-Eye, you
won’t be left short of cash.
Final Questions:
How do I achieve these financial goals? What do I need to change
to reach these objectives?
This becomes your road map to success. Nothing is more boring than a road map, until you need to know where you are and where you need to go. Ditto your business plan. A business plan lets you know where you are and where you should be going.
Your Take-away Question: Why do a very large percentage of businesses fail? — They fail to plan.
“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”- Peter Drucker
