Anyone with ambition and industry knowledge can start a fleet management business, you just need to know how. Managing your own fleet service vehicles can seem a little overwhelming to someone with little experience, but once you know the ins and outs and rights and wrongs, the prospect and potential of your business can begin to flourish. Here’s a rough outline of where to begin and what to consider with your own fleet management startup.
What is the purpose of fleet management?
Every company or organization that uses some form of fleet services in its business model needs to set up a rigorous professional management scheme. Having control over your set of commercial vehicles requires a strong sense of organization and diligence, especially when it comes to reducing risks and maximizing profits.
Start with financial analysis
To decide on how many vehicles you should have in your start-up model, a thorough analysis of your upfront finances must be carried out. Be realistic and consider the potential growth of the market. Seek professional advice to ensure all marketing angles and options are considered.
Choose the right vehicles
The type of service you are providing will determine the type of vehicle needed. You need to think about what vehicle is the most suitable in terms of capacity, safety, upkeep cost, reliability, and style. You should also consider whether it will be more financially viable to start by leasing your vehicles – this short-term option gives you an opportunity to gain essential experience in the industry before a full commitment is made. Plus it’s a great way of saving initial costs.
Choose the right workforce
You also have two options when considering who to employ as your team of drivers, and both choices have their advantages and disadvantages. Firstly, you could hire your own skilled drivers to join your independent business, which means you’ll fork out more for their payroll expenses and insurance but you benefit from having control over them as your direct employees. Secondly, you could bring in subcontractors that are likely to be the cheaper option but they are also the less trustworthy option if you’re wanting to bring on board a reliable employee.
Consider automated management
The automotive industry is shifting dramatically towards a reliance on automated systems and software, and fleet management services are evolving with these technological changes too. Companies such as Ridecell have designed a platform that takes a new data-driven approach to fleet services, including the use of keyless access and digital tools that allow your drivers to increase uptime, reduce costs, and ensure safety. These types of fleet management software could revolutionize the way in which your very own fleet services are managed.
Increase your productivity
If incorporated well into your business model, sophisticated software could increase the efficiency of your fleet services. They provide a smooth running of your database and in turn increase the productivity of your fleet by automatically managing the operations of drivers, vehicles, schedules, budget forecasting, and so much more.