Being a truck owner-operator may prove to be quite challenging because of the business expenses that you need to manage. Failing to properly handle your cash flow can pave the way for your expenses to exceed your income, which is not ideal for your business. In this case, below are some money-saving tips that you can consider to ensure that you will always yield a positive revenue.
Pearl M. Kasirye is a writer at Plant Sumo, editor, and researcher who spends most of her time reading. When she isn’t reading or working, she can be found sitting on her balcony writing her own novels or traveling.
Table of Contents
Manage Your Fuel Expenses
One of the primary ways on how you will be able to save money as a truck owner-operator is by saving on your fuel expenses. The reason behind this is that fuel costs are considered as the largest expense for trucking business owners. You can do this by making your trucks more fuel-efficient. However, this entails the need for you to calculate for your truck’s miles per gallon, or MPG because in doing so, you will be able to determine your truck’s cost per mile. This can vary based on the size, weight, and aerodynamic design of your truck.
Trucks are huge vehicles with less aerodynamics, which tend to get the best gas mileage when run at a slower speed. Because of this, it is a good idea to be easy on the pedal since rapid acceleration and a sudden step on the brakes tend to burn more fuel. It will also help to have the proper tire pressure that will distribute the weight of your truck evenly to minimize the rolling resistance of your truck. A higher rolling resistance requires more energy, and thus, more fuel consumption. Even faulty spark plugs can negatively affect your fuel consumption, which is why it is important to ensure that you have good spark plugs that burn fuel efficiently.
Keep An Eye On Your Maintenance Costs
You can save a hefty amount of money if you are on top of your truck’s maintenance because in doing so, you are minimizing the risk of sudden equipment breakdown. Aside from this, there is a greater chance for you to be able to get a fair price for your truck in the event that you list your semi trucks for sale by owner operators in the future because your equipment is well-maintained. However, even regular maintenance still requires you to shell out a certain amount of money.
As much as possible, build a business savings fund that is intended to cover your truck’s maintenance requirements. This will eliminate the need for you to take out a loan in case you need to replace truck components that have already worn out such as tires and brakes. This also means that you save on the interest rates and other fees that you need to pay in case you get a loan for your truck’s maintenance.
Alongside this, it will also help if you regularly check the condition of your truck. This will allow you to address minor issues immediately before it becomes worse, entailing the need for a major repair which can prove to be more expensive. Don’t forget that your licenses and permits are also part of your truck’s maintenance costs, such that renewing these documents promptly will eliminate the need for you to settle penalty fees for expired licenses.
Leverage Professional Bookkeeping Services
Sure, you will need to pay for an upfront cost if you resort to the services of a professional bookkeeper. However, in the long run, this wise decision can save you money because your books are always organized. They will also be able to handle your taxes and maximize the tax breaks that you can claim, which can be quite complicated for non-accountants. With a professional accountant keeping track of all your expenses, you will be able to focus more on the other aspects of your business that need attention.
Be On Top Of Your Insurance Costs
The insurance costs for a fleet of trucks don’t come cheap because you need to carry a minimum liability of $750000 as a truck owner-operator. However, your insurance premiums can still vary depending on the type of your truck as well as its value. Your credit history, as well as paying your premium in full can also affect the cost of your insurance policy. In this case, to make the most out of the money that you pay for your insurance costs, it is a good idea to get in touch with a reputable and reliable agent who will be able to help you.
Final Word
Exert an extra effort to manage your fuel expenses and keep an eye on your truck maintenance costs too. In doing so, you will be able to save a hefty sum which can then be allocated to other overhead costs that you need to run your trucking operations. Aside from this, you also have the option of leveraging professional bookkeeping services that will ensure that you are on top of your cash flow, including your insurance costs.
Joie Mojica
Joie is the passionate writer and blogger of UsedVending.com. She enjoys writing and works at an amazing pace. Blessed with two adorable boys, she dreams of creating a successful career online. She also loves to write about parenting, home and family life, technology and gaming, as well as beauty and health.
