You might think that your business is not big enough to have company cars, but you are wrong. Leasing vehicles for your business can have significant advantages. When you lease instead of spending thousands of dollars on new cars, you will free up capital and put it to good use.
Having access to company cars will allow you to support your business in all kinds of ways while keeping track of how much you are spending.
Effective Uses of Company Cars
Transporting Customers and Staff
This will be like having your own taxi service inside your business. If public transport is not an option for your employees, having company cars will make sense. For instance, catering companies need cars to pick employees, especially if they are working in a remote area or late at night when public transport is not safe.
Similarly, your business might require you to fetch customers or guests from the airport or train station. In this case, having a company car will make a good impression on your customers. Leasing a car for this service will make it easier for you to track the cost of transport.
If you are always making deliveries to your customers, you need to have a company vehicle for convenience. Even if delivery is not a big part of your business, a vehicle will come in handy when you need to take something to your customers quickly. Instead of renting a vehicle for the day just for this, you should consider leasing a car.
Transporting the Sales Team
If you have a sales team, you should consider providing them with a company car. Once you do this, you will be able to concentrate on growing the business and increasing your sales. You will not be worrying about whether your employees have booked their cars for a service or if they have the right insurance.
Managing a Fleet of Vehicles
Managing a small fleet can be challenging for any small business owner because it comes with a set of risks and challenges. Here are some tips that will help you to manage your fleet of cars:
Ensure that you communicate with your drivers to ensure that they know the part that they should play. They should also know the actions that they should take in all eventualities. If they ever get into an accident with a company truck, they should know which legal action to take, according to a truck accident attorney Houston based expert. Being prepared and informed is good for all parties in such a case.
You should focus on improving performance while prioritizing the areas that pay back significantly in terms of cost saving. If you deal with performance improvement in a measured manner, you will see many benefits. To ensure the best outcome, you should work in concert with your line manager to keep the drivers in line.
Deliver Constant Improvement
You should always aim to increase the value of your business by delivering constant improvement. Analyzing all the information carefully will help you to identify more problem areas that you need to address. However, you also need to keep assessing the improvements you make to ensure that they do not slip back to their old standards.
Manage Accident Risk
Automobiles are prone to accidents. The more cars you own, the greater the possible risk from accidents, breakdowns or damage from wear and tear. The best thing to do to manage your risk is to BUY INSURANCE. There are lots of options, but you’ll want a policy that minimized your risk for the lowest available cost. Note, in general semi truck insurance costs are generally higher than the cost for sedans or smaller automobiles. This is because semi trucks carry more cargo and insurance companies have to pay out more in the event of an accident.
Identify the Best Routes
Learning the profitable rules and the unprofitable ones can be a bit of a trial-and-error process. However, if you have been in business for a while, you probably have all the necessary data to help you scrutinize the routes that bring in profit. You need to find a sweet spot of the most efficient routes that are multi-drop, highly repeatable, multi-pickup, and nonstop.
You need to avoid one-way, long-distance trips because they are not cost-effective.
Rachel Slifka is a freelance writer and human resources professional. She is passionate about helping fellow millennials find success with their finances and careers. Read more by checking out her website at RachelSlifka.com.