It just never gets easier owning a small business, especially if you happen to own a small trucking company.
Assuming you where lucky enough to survive all 2020 had to throw at you, you still can’t relax. Why? Because 2021 is going to have a whole new set of obstacles to through at you.
First of all, your cash reserves are probably low because of 2020. This is gong to make everything from insurance deposits to buying tags an adventure for you.
Second, we don’t really know how many shippers that were able to weather the storm of 2020 are going to fail because of changes in the economy going forward. Be careful and keep a close eye on your receivables.
Third, it is unlikely there will be any sort of lawsuit reform with the Democrats controlling the government. Lawsuit abuse if rampant within the trucking industry and it is only a matter of time before a lawyer comes after you.
Fourth, the insurance market is going to continue to tighten. Some if it is because of lawsuits and some is because many insurance companies have decided that the transportation industry is just not worth the risk. Regardless of the reason you can expect higher and higher insurance costs.
Finally, the Democrats control the government. This means increased regulation and taxes moving forward. The current administration is not trucking friendly, we might as well accept that now.
So now what?
After years in the industry, my best advice for you if you can’t make it this year is the same as it has always been. Partner with a larger company. Become a transportation agent for a company that specializes in agents, now one that is just starting a trucking agent program!
Being a trucking agent lets you continue to handle the operations and sales side of your business while letting the parent company handle all the headaches, funding and problems with running a trucking company.
You still get to be a small business owner with less risk and stress.