What you need to think about before expanding your fleet
Photo by Marcin Jozwiak
With the profits coming in, and your business hitting its stride, you might be thinking of scaling the fleet that makes it all possible. More wheels on the road means more deliveries being completed, which means a chance for greater profits. However, before you go looking at buying a new truck, you need to consider a few things. Here, we’re going to look at a few thoughts you shouldn’t overlook.
Know your needs
You should have an idea of why, exactly, you need to expand your fleet, how much you need to expand it by, and how long you should expand it for. For instance, if you’re meeting additional demands during the seasonal sales, then you may be better off simply leasing an additional truck or two, rather than buying them only to find that you don’t need them as much, later.
Get your finances right
If you decide that you do have a long-term need for more wheels on the road, then you should ensure it fits within your budget well. Rather than taking on the high upfront costs of buying additional vehicles with your cash reserves, truck finance can help you keep the books balanced. You might be paying off your trucks a little longer, but financing can make better trucks a lot more widely available to your business. Take the time to check that your business credit is in good condition so that you can get the best financing deal, too.
Get them running cost-effectively
As your fleet grows, the costs associated with running are going to grow, as well. What’s more, it can be exponential growth if you have some bad management habits that are being adopted with new vehicles, such as not planning your fuel costs. Fleet management fuel cards can make it a lot easier to pre-plan around certain costs, and to make sure that you’re getting a better deal. Similarly, thorough fleet maintenance is crucial for keeping them cost-effective.
Consider your drivers
You’re also going to need more drivers to man those additional vehicles, most likely. Not only do you have to consider the costs of hiring, onboarding, and training, but as your team grows, you may need to invest in more effective dispatch and planning to better manage a larger roster. Growing your team without also taking steps to improve your ability to manage them can lead to issues with efficiency across the board.
Protect your assets
The larger your fleet, the greater the potential loss if anyone can steal your vehicles. As such, you should ensure that you’re investing some time and energy in making your fleet more secure. You can do this with automation security devices, CCTV for where they are stored, and background checks on your drivers to ensure they’re trustworthy.
Expanding your fleet can offer the keys to real growth and new levels of profit for your business. If you don’t consider the costs or responsibilities that come with them, however, those profits can quickly become eaten up.
