If you want to merge your love for trucks and passion for starting a business into something meaningful, opening a fleet management business might be the best choice for you. Starting a business might seem difficult in the beginning. But if you can put all the pieces of the puzzle in proper places, you’re in for a fun ride ahead.
Starting a fleet management business in LA is not different from starting it anywhere else in the United States. However, it requires much more than growing a collection of trucks and keeping a truck accident lawyer in Los Angeles on standby. Here are our top tips to start a fleet management business in LA.
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Have Clear Plans for ROI and Pricing
The most important part of starting a fleet management business is to have clear plans for ROI and pricing. Before you begin, chalk out your growth expectations and research the target market. How large is it? Do you see yourself growing in the upcoming years? How accessible is the labor market for this field? Do you make enough gross profit after the costs of operations? Answering all these questions will give you a clear picture of the ROI expectations for the next few years – or at least till you break even.
After you’ve figured it out, you can easily set pricing for your services. Update your website with the pricing, and make sure your site is well designed too. Check the trucking website design by The Whit Group and use it to your advantage. Consider discounts where possible. Take help from an automotive consultant if required. Make sure you have all your paperwork ready according to the rules set by the local authorities.
Grow a Robust Team
Fleet management comes with a lot of responsibilities. The job might turn hectic if you do not delegate the work to your team. To ensure smooth operations, you need to find employees that can make a robust team. Drivers are an essential part of the team, but so are fleet managers and mechanics. Fleet managers look after the entire fleet and prepare the maintenance schedule. They also replace old vehicles with new ones and manage driver training and maintenance. Getting a fleet manager will cut down your tasks by half.
If you have a large fleet, it would be wise to have a dedicated mechanic for the repair and maintenance. You could also opt for a temporary technician for the maintenance but it might not be cost-effective.
Prepare satisfactory compensation packages for your team, and include occasional employee discounts to retain the best ones.
Maintain Good Client Relationship
This one is true for any business. Maintaining a good relationship with your fleet clients can earn you trust, which can, in turn, get you more clients. Try to hold conversations with your clients as often as possible. Talk to them about your services and provide details about additional offerings. Ask them about their experience and whether they have suggestions to improve your services. It makes them feel valued and involved in the process, which returns high client satisfaction.
You can create a separate team for client management if your budget allows it. Their job will include managing each client profile and supplying transparent reports on their fleets. They can also communicate new offerings with them and collect their feedback periodically.
Establish Proper Terms with Clients
Establish the proper terms of services and other relevant conditions before taking clients. Document every detail about the fleets. Include services offered, payment terms, and notes about contact persons assigned to each client account. When handling large fleets, you might encounter miscommunication with clients that could disrupt operations or harm your relationship. As every client is important for this business, your focus should be minimizing friction – if any.
Take Good Care of the Vehicles
The vehicles are the most crucial part of your business, so take good care of them. Apart from hiring a technician for regular repair and maintenance, arrange proper storage for the vehicles and keep them clean. Clear out old vehicles and get new ones to ensure the best service to your clients. Create effective maintenance schedules and follow them thoroughly. Add GPS tracking to your vehicles for safety, quick theft recovery, reduced maintenance and fuel costs, and much more.
Starting a fleet management business in LA – or anywhere in the United States – might seem challenging, especially if you have little to no prior knowledge of the technical know-how. By following the above-mentioned tips – and abiding by the rules of your state – you too can fulfill your dream of owning a fleet management business. Having a good network and creating rapport with clients are great ways to scale your business. Apply technology to reduce workload and maintain productivity, and your business will thrive in no time.
Read also: What Are the Benefits of GPS Fleet Tracking for Trucking Companies?