Since the pandemic began impacting small businesses across the country, more and more companies have embraced incorporating fleets in their operations. The increased demand for at-home services and online delivery has not slowed down, which means that many small businesses are still looking to add or expand their fleets today.
If you find your company in this position, it’s essential to understand how to successfully use a fleet in your business model and navigate the challenges ahead. Check out the practical pointers below to get you started!
Incorporate Your Business
First of all, if you are launching a new company, you will need to choose a legal structure. Consider the advantages of forming an LLC; not only can this type of structure protect you from personal liability, but it also allows pass-through taxation. And if you are not sure where to begin with establishing an LLC that complies with state regulations, you can hire a formation service to do it for you. Research the web to choose a service that will meet your needs.
Evaluate the Operating Costs
As a business owner, you must keep tabs on your company’s financial health. This includes using economic tools and spreadsheets to manage your cost figures, driver wages, expenses, fuel costs, insurance rates, and so on. However, when you operate a fleet, you will want to evaluate all associated costs even more closely and break down each price by the mile. Doing so will help you compare the current budget to the rates of other local carriers.
You might find that working with carriers-for-hire on specific deliveries makes more financial sense for your operations. In other words, having your own fleet is valuable, but you should also leave your options open.
Take Advantage of Tools
As with so many other business areas, using the right software can make your fleet management much more efficient. For instance, many optimization tools on the market are designed specifically to help business owners map out the best routes for deliveries and identify ways for vehicles to avoid long periods of sitting idle.
These tools can go a long way in helping you minimize the times your team members must drive a truck without cargo. The more empty miles your fleet drives, the less your fleet contributes to business growth.
Furthermore, there is also software to help keep your drivers accountable. Consider investing in fleet management software to track late braking, lengthy idle times, rapid acceleration, and other undesirable driver behaviors. Along with helping your business maintain its reputation in the industry, using these tools can also help you save on fuel costs.
Invest in Insurance
Finally, one of the most critical steps you can take when creating a fleet for your business is to find the right insurance provider. You do not want to launch your new fleet without ensuring each vehicle is insured. Find an insurance provider that has a lot of experience working with business fleets and can help you navigate the process of protecting your business!
If your small business is looking for ways to keep up with the demand for online deliveries and at-home services, creating a fleet could be the best path forward. Remember to form a business structure that suits your needs, closely evaluate operating costs, and invest in any software necessary to help you efficiently manage your team. And, of course, work with an insurance provider so that you will have peace of mind knowing that each of your vehicles is covered!
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