While businesses continue to change every day, with the evolution of social media and digital marketing; some elements of starting and running a business stay constant.
Chiefly among those, the start-up costs and upkeep of assets. Rent is still the most expensive part for most companies. But now more than ever, transportation and delivery logistics have to be among the top considerations.
With companies like Amazon spoiling everyone rotten with next day or even same-day delivery, if your business is going to have a delivery component, speed and efficiency are the only way to compete. Time waits for now man, indeed.
What you can expect in this article:
Cutting down costs
One great way to help cut down expenditure, without sacrificing efficiency, is to acquire used vehicles. Suppliers like this Fort Used Car Centre are the perfect example of how to economise on costs. So you can focus your capital on other areas of your business.
When starting out on a venture, it’s irresistible to get everything new and shiny. A crisp canvas to start building out your company and putting the best foot forward to impress your clientele.
The annual “Back to School” campaigns take great advantage of our need for a fresh start. Our drawers are probably full to the brim of stationery and notebooks that would do the job credibly; but no – we want the newest, latest thing, believing a new set of pens will somehow improve performance.
Have you considered implementing the use of fuel cards for your business vehicles? A fuel card system offers a quick and convenient way to pay for fuel, increased security (as an alternative to carrying cash) and tighter control of business expenses a consistent price per litre that is often cheaper than the varying costs between stations. Fuel cards also help you control the costs of your business expenses by providing insight on how much fuel each driver is using. It’s well worth thinking about.
But the costs of a business can tally up and get away from you very quickly. You’ll find that being steadfast and making some sensible decisions will serve you much better in the long run.
Do you really need the added extras?
Unless you’re starting a chauffeur company, where the car model makes an instant and huge impact on your client, don’t spend money on unnecessary frills. Purchasing a used car has countless cost-saving benefits. The extra wear and tear will be something your end consumer will never see or care about.
Used cars have much cheaper registration costs and significantly lower taxes. The latter is determined by the current value of the car, so an older model will automatically come cheaper. Insurance costs are also considerably lower and don’t tend to go up significantly when you switch to another used vehicle.
Moreover, for delivery purposes, you need a dependable and functional car. Many new cars come with a lot of fancy tech and additional gadgets that add significantly to the cost. But they don’t actually add anything substantial to your supply chain and delivery logistics. The more complex a new car is, the harder it is to repair and find replacement parts.
By buying a used car, you will have standardisation and a ready supply of necessary components to your advantage. Delays in repair equal delays in delivery, which can often be a killing blow to a business, especially one starting out.
The final and also extremely useful element is that when you buy a used car, you can just pick it up and go. New cars will almost always have a wait on delivery, sometimes many weeks, so if time is of the essence, used cars are definitely the way to go.
The thing to be careful with is mileage – depending on how often and how long the expected journeys for your business might be, take careful stock of the car’s racked up miles and fuel efficiency.
It is also worth remembering that the overall maintenance of a vehicle is something that can be time-consuming, especially if you are looking at in-house methods of keeping your fleet up to speed. There will be a necessity to keep your tools up to code, whether it’s in relation to torque wrench calibrations and upkeep or ensuring the oil and water levels are correct.
When it comes to getting second-hand cars, you don’t want to spend more time maintaining them, which is why you should look at the bigger picture and conduct some due diligence.
Do a bit of research into the models that have a good reputation for longevity and also consider their eco-friendliness – consumers these days often make their choice based on carbon footprint and commitment to sustainability.
If you need to secure multiple vehicles, all of these cost-saving elements will make a big difference to your final income statement! And if you do need one or two nicer looking vehicles, for things like client entertainment or corporate functions, consider the benefits of leasing a car, as opposed to buying. Between lower tax and maintenance costs, monthly fees on average are much lower than paying back a loan.