Join Jim Stice for an in-depth discussion in this video Capital to start a trucking business, part of Finance Essentials for Small Business.
- Even as we speak, a friend of ours is getting into…the long distance trucking business.…- He owns a truck and he contracts with a driver…to drive the truck for him.…- He finds his customers in companies…that want to ship goods long distances,…but don't have a big enough need…to hire one of the large trucking companies.…- Our friend says that the most difficult part…of his business is finding the right customers…who want their goods shipped to the right place…and are willing to pay the right price.…- So the scheduling and contract negotiation functions…of his business are very interesting,…but those are topics for another day.…
- Yeah. Let's talk about the financing…for this small business.…- Our friend originally thought that he could…get into his trucking business with $35,000.…He would use this money to buy a used tractor,…the front end of the truck, the part where the driver sits.…- But then he learned that used trucks…that he could buy for $35,000 wouldn't be compliant…with California emissions standards.…
- Describe the most common reason small businesses fail.
- Identify two reasons why your business plan needs to budget cash inflows and outflows for the first six months of your business’s operation.
- Write the formula to forecast cash flow for the first four months of your small business.
- Explain the first step you should take if your new small business is not making the profit you anticipated.
- Identify the most important thing to keep in mind if you are considering faster growth for your small business.