Does your business have the capacity for sustained, double digit growth?
There are some pretty important metrics for every transportation business leader to monitor as they look to build bottom line growth.
Cost cutting may be necessary, but it is most often a solution leading to a downward spiral in morale, revenue, margins, and then profits. Cost Management is much more effective.
Carrier management in your brokerage business can have a profound effect on gross margins.
Improving your margins will automatically improve your net income--all other things being equal.
In working with more than 100 transportation companies over the past several years we find that 15% to 20% year-to-year growth is healthy and builds real business value.
In terms of the fair market value of the company, moving gross margins from 15% to 17.5% will increase the value of a brokerage organization significantly.
If you are irreplaceable, indispensable, and immortal, don’t read this post. For the rest of you, succession planning must be done, sooner rather than later.
Make sure existing customers know that you appreciate them, and attract new customers with ease.
Fauxgistics: False Logistics - the misperception of your company’s ability to handle the detailed coordination of a complex operation involving many people, facilities, or supplies.
Be interested in the person (people) with whom you speak
What Got You Here, Won’t Get You There