Surviving Las Vegas

As I mentioned last week, I was in Las Vegas for the Great West Truck Show. I love Las Vegas and it was an excellent show. As part of the show, I ran a seminar each day on cash flow management for owner-operators. We had a great turnout for each session, but hardly any true owner-operators (single truck operators). Most of the audience each day was made up of what I call micro-fleets - people running 2-10 trucks. At that size, they're starting to have the same challenges as larger fleets, but they don't have the resources to deal with them. 

They do, however, have lots of tips for maximizing revenue, cutting costs, and figuring out what's going on with the business. I compiled those tips and will be emailing a summary to everyone who attended. Here's a quick look at some of those comments:

• Buy the truck (rather than leasing) and run it for as many years as you can. This may not be possible in some industries that require newer equipment, but the consensus among the group was that buying was a better choice. Along with that, pay the truck off as soon as possible because then it's an asset that makes you money, rather than costing.
• With those older trucks, the group felt it was better to not invest in an APU. Avoiding idling was considered important, though, and the general feeling was that staying in a motel was the best way to avoid idling without an APU. The motel often costs less than idling, and offers other benefits as well (showers, TV, free Internet, etc.)
• One simple tip sparked a large discussion - look for lighter loads. Many loads aren't priced with thorough consideration for their weight, so hauling lighter loads at the same (or comparable) rate can save fuel and lower the overall operating cost.
• Someone else commented that many times "TL" loads don't actually fill the truck. Depending on the circumstances, you may be able to use that extra space and stick a couple of extra palettes in the back. Lots of discussion about this one as well, and the general consensus was that you have to be very careful, and it only works in specific circumstances, but it is something to be thinking of.
• Invest in software that streamlines the administrative requirements. A couple of participants mentioned different software products that integrated with QuickBooks and other programs and saved a lot of duplicate data entry. There are a number of these packages out there, so I may do some investigation for my Rear View Mirror column, but a little bit of poking around can end up saving lots of time on the business management side.

Do you have tips for more effectively managing the business? If so, send me your thoughts and I'll add them to the list.

Happy Canada Day to everyone north of the border! Happy 4th of July to everyone down south!