BET ON BLACK FREIGHT COMPANY LLC | Application Preview
BET ON BLACK FREIGHT COMPANY LLC is seeking government grants to support its business setup, focusing on strategies for growth and operational efficiency. The company's business plan emphasizes diversifying its customer base rather than depending on a single client, which is essential for stability and long-term success.
To enhance profitability, they propose a comprehensive review of costs, distinguishing between fixed and variable expenses. They stress the importance of maintaining well-organized office operations to boost overall efficiency and monitoring various logistical aspects. Utilizing load boards is suggested as a transitional strategy to secure freight until robust relationships with shippers are established.
Additionally, the company discusses smart fuel purchasing, advocating for selecting fuel based on base price rather than pump price to optimize expenses.
They provide five compelling reasons for funding approval which include business growth potential, increased professionalism, reduced stress for the owner, the ability to focus on core competencies, and time savings.
In terms of competitive landscape, they reference recent industry shifts, such as Knight-Swift’s acquisition of Abilene Motor Express, highlighting the strategic moves companies make to gain market strength amidst challenges like driver shortages and volatile freight volumes. They underscore the necessity for the trucking industry to evolve, focusing on attracting a diverse workforce, particularly women and millennials, while leveraging technology to sustain competitive advantages.
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General Information
Business Registration Number: 86311689
Location: joliet, IL, United States
Length of Operation: 4month
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: NO
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Funding Usage
set-up
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Business Plan
Think Outside the Box Hanging on to just one client is hardly going to be the most successful route to growth. To grow, you are going to have to build a network of customers rather than basing the stability of your business on one manufacturer or one broker. Building a list of your own shipping clients, and working with a variety can help your trucking company have a sense of reliability which will go far in acquiring more clients in the long run, and therefore grow your business. Determine Your Costs Before you can save money, you need to know how much you’re spending. First, what are your regular costs, that would be the things you always have to pay. For example, your insurance, permits etc. Next calculate your variable costs, such as fuel and subtract your total cost from your rates and you’ll get your profits. Once you have this you can set goals for how to increase it going forward. Make Sure The Paperwork Is In Order The office is not the most visual part of a small trucking business and therefore it can often be the most neglected. Especially for small fleet owners, it's easy to see the paperwork as an unimportant part of the business that can easily be done when it is desperately needed. However, a well-run office equals a well-run trucking business. Constantly monitoring things like routing and fuel, as well as dispatch and planning tools, can really increase the profitability of a business without having to increase your load. Organize a load board Another way to grow your business is to start using load boards. As a small fleet owner, you’ll be spending time building relationships with shippers, and you most likely won’t have constant work scheduled, so load boards are a safe bet to tide you over when loads are sparse. Using multiple load boards at once such as DAT, Sure Way and Truck Stop can ensure you get the best rates for your needs and capacity. You can also pick up loads with the Federal government such as the U.S General Services Administration , Federal Business Opportunities, and the U.S Postal Service . Remember to not make load boards something you rely on; your main priority is to build your own relationships with shippers to create the stability that working with different shippers too often from load boards cannot. However, this does take time so, until then, organize a load board until you have established enough relationships where you won’t have to rely on load boards. Buy Fuel Correctly New and experienced truckers alike have the tendency to buy fuel as if they are a normal driver, in that they think that they will pay taxes based on the state where the fuel was purchased. However, truck drivers pay taxes on their fuel differently as they deal with the International Tax Fund and get taxed on the amount of fuel used on the journey (in each particular state driven through), regardless of which state the fuel was originally bought from. This is why it is better to not buy fuel based on the cheapest pump price but rather based on the cheapest base price. To find this out you would use this formula: fuel price – taxes. Growing any business can be tough but by following these tips you should be able to take your trucking business to the next level, ensuring more stability and profitability, making the most out of your opportunity to create a successful company of MY own. There are about a thousand more reasons why investing in MY business is important, but we’ll leave it at five. 1. ITS will grow my business 2.You (and others) will take your business seriously 3. I will feel less stressed 4. I can focus on what you’re best at 5. I will save time
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Self Identified Competition
Knight-Swift Buys Trucker Abilene Motor Express Few examples demonstrate these dynamics in the trucking industry better than the recent acquisition of Abilene Motor Express by Knight-Swift. It is a classic example of individual players within the industry positioning themselves for the top spot by any means possible including mergers and acquisitions. The business markers for this particular transaction are impressive: A massive total business holding which includes 400 trucks from Abilene Increases in the Knight-Swift revenue account to the tune of an estimated $100 million The creation of a strong player or stronger player within an already fragmented market That is not to say that it is all going to be happy in paradise. First of all, there will have to be significant operational changes that are designed to amalgamate such a large holding with an already substantial trucking company. Of course, there are advantages in peering into Abilene’s market but that will require a clever reconfiguration of the working systems that Knight-Swift has been used to. The markets seem excited about this acquisition. However, there is the usual speculation about the motives and effects of the move. This is not just a quirky bit of news for the industry hacks, but rather a significant change in the market that could impact other players within the trucking industry. What is fairly certain is that Knight-Swift is in a much stronger position than before acquired Abilene. Truck Driver Shortage Meanwhile, there are certain systemic issues that continue to plague the trucking industry. Indeed, some have speculated that the acquisition of Abilene was directly related to these challenges. Here is a rundown of the issues that are keeping industry bosses busy at the moment: Driver Shortage: The basic premise of this industry is that if there are no workers then nothing moves. By 2015, the industry was facing a driver shortage that was estimated as high as 45,000 personnel. It seems that even in this new optimist America, there are few people that are qualified and willing to drive trucks. Currently, there is a shortage of 50,000 drivers which represents about 70% of all the freight tonnage that covers USA highways. Volatile Freight Volumes: The trucking industry is a slave to the whims of nations and consumers. For example, in 2016 there was a slackening of freight volumes which led to the problem of over-capacity. However, the upside to such changes is that it releases some of the pressure on personnel. A case in point is how the shortage of truck drivers fell to 36,000 in 2016 (a drop of over 10,000 personnel when compared to the previous year). International Trade Shocks: Many industry experts are anxiously waiting out the full impact of the systematic moves by the US Trump Administration to reduce imports and increase exports. Specifically, there is a nudging fear that China might retaliate in kind. Although a full-out trade war is unlikely at this stage, it is nevertheless a concern for the trucking industry, which relies on international trade for its business. Key Issues for the Industry In order to survive, the trucking industry will need to address these critical needs and issues: The trucking lifestyle must become more women-friendly. Millennials should be enticed to join the industry before it is too late. The industry should be part of the conversation about international trade. Industry players like Knight-Swift need to continue coming up with imaginative ways to overcome some of the systemic market challenges of the industry. The industry should embrace modern technology in order to achieve efficiency and a competitive advantage over other forms of transportation.
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