Moving Words – 4th and 10
Timothy Brady
“The greatest accomplishment is not in never falling, but in rising again after you fall.” – Vince Lombardi
It’s 4th and 10, we’re in the fourth quarter of 2021, and about to move forward into 2022. The year has been one for the record books. Going from rising fuel prices, even greater difficulty in finding qualified van operators and moving labor, to the lack of capacity – to say the year has been a challenge would be an understatement. So what do we do for 2022? Punt! That’s what it seems like most of us have been doing for the past year and a half anyway.
Have we seen the worst of this COVID Pandemic, or are we at the precipice of a resurgence of this deadly virus? The effect this pandemic has had on the economy is devastating. When can we put our offensive team back on the field? From all indicators, like the proverbial punted football that hits the ground, the economy is going to bounce in unpredictable directions for the foreseeable future.
The question for 2022 for the moving industry is, what should we be doing to survive the bouncing ball economy and grab the pigskin when it finally bounds into our hands? There’s irregular demand for our services, increased shipper scrutiny concerning unavoidable need for higher hauling rates and fuel cost volatility. Then there’s also unpredictability: in the availability of everything from toilet paper to parts for our equipment, to the labor needed to pack, load and unload, to the hauling capacity to take care of our customers in a timely basis. Until these level out, the economy will continue awkwardly bouncing along.
So what should we be doing? Building the groundwork for a quick turnaround when the pandemic is over and the economy begins to grow at a sustainable pace. What does this mean to moving companies and agencies?
Don’t follow the crowd. Select a niche that gives you an edge over your competition.
- Have a vision of the future and how you’ll reach each plateau to the top.
- Evaluate the facts and figures of what you’re doing according to your plan. If it’s working, stay the course; if it’s not working, adjust or scrap the portion which is not achieving your goals.
- Know your Break-Even Points.
- Base your business model on creating value in your services, not competing on price.
- A single customer cannot represent any more than 20% to 25% of your accounts receivable.
- Shippers are the core of your business, so focus on continually farming for new business. Don’t let status quo be your downfall.
- Have a system to control cash flow and add to it when necessary through a factoring company or a draw loan.
- Remember to invest in your company. Profits need to be reinvested to build value in the company’s worth. Right now is not a time to take your profits in the form of bonuses. During the months and quarters you show a profit, set it aside to augment times when you haven’t met your Break-Even Point. Remember your company grows from your profit.
- Engage experts to do what you don’t have time to do or don’t have the skill to do.
The preparation and planning you do while the ball is bouncing through this pandemic-driven economy is what will position you to grab that pigskin and take it over the goal line when trucking re-emerges from the recession. You must prepare for the worst, while planning ahead for the best.
