The transportation industry is considered to be a mega-industry in the United States. Transportation companies normally pull around 7 – 8% in gross profit on average. The advantage to working in this industry that is continuously evolving brings change and with this change brings opportunity.
After all of your years of hard work and sacrifice, it is only right that you would want to get the highest possible sale price for your transportation business! When a potential buyer tours your business, these buyers will be impressed with your overall team abilities and knowledge and how well your business is able to function without constant input from you the owner.
A huge benefit to having state-of-the-art technology is that it increases your accessibility to more clients. A good way to start is to identify the needs of your customers and the area you may be lacking to zero in on the software technology that may address that particular need. This can not only open new revenue streams and brings you closer to clients, but it shows buyers that you are able to adapt to the latest industry trends. Buyers like seeing a firm that has already taken steps towards the current industry demands so that they do not have to perform an overhaul themselves.
Every potential buyer’s worst nightmare is purchasing your transportation business and then losing a huge account because the relationship was with the previous owner. If you are thinking about selling your business within the next year, your customer relations are something you need to manage immediately. Attempt to bring along another person or two in the sales capacity before you decide to sell your transportation business. It may take some time, but you should begin to gradually remove you the owner from the sales and customer relationships. I realize that in smaller transportation firms, the owners are normally the sales and relationship builders and owners but understanding how potential buyers feel about this may help you begin the change.
One last tip is as a transportation owner, to continuously analyze and ask the question “why” frequently regarding old and new strategies/techniques that you are using or may implement in the future. Look at what you are doing good and where functions/operations need improvements. Analyze your weak points and work with your staff to provide solutions.
A first step if you are considering selling your transportation business is to find out how much the business is worth as well as to understand what the transportation market can withstand. CBS-Global can address both aspects for you, so please contact us if you have an interest or have questions.