I'm a serial entrepreneur, and Fluid Truck is lucky No. 13 for me. I've learned through trial and error to see economic downturns as opportunities instead of something to fear. Even if the market doesn't decline, it's always best practice to prepare your business to survive the worst possible outcome. The freight industry has and will continue to slow down regardless of a recession, thanks to a shift in consumer focus from goods to services and a decrease in imports. However, you can position your business to not only endure a market dip but hopefully come out ready to thrive on the other side.
As the CEO of Fluid Truck, a commercial truck rental company, I have a unique perspective on the mobility industry and its trends. This is how you can capitalize on those trends to keep your business afloat no matter what comes your way.
1. Why own what you can rent?
A great way to de-risk your business in the face of a possible recession is to start renting assets. If you're paying large sums of money each month on your vehicle loans and business slows down, those vehicles might end up sitting idle. Rather than paying for themselves by bringing in cash flow, they can instead drain your savings.
By renting, you can ensure that you're only paying for vehicles that are actually earning money. You can easily adjust the size of your fleet to meet your current demands. Even when business picks back up, you can simply rent the assets that you need to cover incoming orders. This flexibility allows you to keep your company adaptable in the midst of an ever-changing market.
Renting vehicles and equipment also saves you from covering maintenance costs. Repairs, oil changes, new tires, check-ups, etc. -- all these costs add up quickly, especially when you manage a large fleet or a lot of equipment. For rented assets, routine maintenance falls to the rental company, completely eliminating that extra burden from your monthly bills. Those savings alone can make a big difference when every penny counts.
2. Take advantage of thriving markets
According to vehicle auctioning service Manheim, used car prices went up 4.3 percent in February. This is the most significant price increase in this off-season month since 2009.
If you've been looking to change how you manage your fleet or rebuild your vehicle inventory, this could be the perfect time to do it. Capitalize on the resale market while it's high by selling off the vehicles you own and switching over to a rental service.
Commercial vehicle rental companies offer a wide variety of assets, from mid-sized cargo vans and pickups to larger box trucks. Many companies also provide electric vehicles, which could help you get a head start on meeting your business's zero-emissions goals.
3. Position your business as a recession resource
If you really want to power through an economic decline, try to set your business up as a potential solution to recession problems. I've learned through trial and error to see economic downturns as opportunities instead of something to fear. I've done this by evaluating how I can position my company's offerings to be a resource for others during an economic downtown. For example, if someone is laid off, it can be the push they need to start their own company. If that company needs a vehicle to operate, that'll take time to acquire and slow down the company's launch.
We designed Fluid Truck to make it easy to hop on our app and rent a truck. That means these first-time business owners can get their hands on the vehicle they need to kick-start their business in minutes. We can provide them a leg to stand on by supplying vehicles at affordable hourly, daily, or monthly payments so they can avoid the overwhelming cost of purchasing the assets themselves.
No matter where the economy ends up in the next few months, it never hurts to prepare your business to be able to take on the worst. In fact, anticipating changes now could put you in a position for a huge resurgence when the market turns back around.
BY JAMES EBERHARD, FOUNDER AND CEO OF FLUID TRUCK@FLUIDTRUCK
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