Between tariffs and inflation, running a small service business in this economy can feel like one step forward and two steps back. Trying to predict fuel costs and balance repair expenses can make it hard to project profits from month to month. But when you’re working on thin margins, you can’t afford to miscalculate.
The good news? You can get your costs under control without overhauling your whole operation. With a few smart tools, like fuel cards, dash cams, GPS tracking for improved field efficiency, you can tighten up spending, keep your team moving, and actually grow your business—even when the economy can feel like it’s working against you.
To fine-tune your finances, start by taking a look at where your money is going and how you can tighten your budget so you can withstand any economic highs and lows that may come your way.
Before you can start saving, you need to know exactly where your money is going. Small costs may not seem like a big deal but over time, they add up. And your biggest expenses are obvious, there are still ways to adjust and make smarter decisions on how to maximize every dollar.
"Beware of little expenses; a little leak will sink a great ship." – Benjamin Franklin
Fuel is probably your biggest ongoing expense. Rising fuel costs have hit small businesses particularly hard, especially those with tight margins and limited resources. If you can’t afford to absorb the increases, they start to impact everything: how you run your business, the size of your team, and even what you charge your customers.
"Rising fuel prices have significantly squeezed profit margins for small businesses with fleets. It's not just a minor fluctuation; it's a major operational expense that directly impacts their ability to compete. We've seen many clients struggle with increased overhead, forcing them to re-evaluate pricing, routes, and even staffing. The impact can be particularly devastating for businesses with tight budgets and limited resources."
Mary Akhavan, Sr. Director of Partnerships at Roadflex
While you can’t control the price at the pump, you can improve the operational efficiency of your fleet and crew.
Small steps like using GPS fleet tracking to plan smarter routes, reduce idling, and keep tires properly inflated go a long way in cutting waste. Many businesses fail to recognize that poor driving habits, like speeding or tailgating, can also directly affect fuel efficiency.
"Idling can increase fuel consumption by up to 1-2 gallons per hour, depending on the vehicle. Aggressive driving, including rapid acceleration and hard braking, can increase fuel consumption by up to 30%. Combined, these factors can significantly impact fuel costs." Mary Akhavan, Roadflex
Dash cams help you spot unsafe driving habits like tailgating, speeding, and aggressive driving that burn through gas faster. Dash cams enhanced with AI increase your ability to spot and coach on these behaviors in real-time, which helps keep your crews safe and decrease costs.
Fuel cards help you track spending, set limits, and spot red flags like unauthorized fill-ups or fuel slippage. Instead of chasing down receipts or wondering where the money’s going, you get clear reports and less paperwork, helping to limit human error. It’s one of those simple tools that makes managing your crew, your costs, and your time a whole lot easier.
Fuel cards offer several advantages like:
“Another significant challenge is the administrative burden of tracking fuel purchases and reconciling receipts, which can be a time-consuming and error-prone process. This lost time translates to lost money." Mary Akhavan, Roadflex
Preventative maintenance extends beyond your vehicles. Keeping up with oil changes, fluid checks, and tire rotations and replacements are all important and help you avoid costly downtime. Make sure you’re giving your work equipment the same kind of attention. Things like proper cleaning and storage and regular inspections keep things running smoothly.
Skipping maintenance might help you squeeze in more jobs, but it can cost you thousands down the line in downtime. When maintenance slips through the cracks, small problems turn into big ones. A missed routine $100 oil change could turn into an engine replacement, costing from $2,000 - $10,000. A typical repair cost on a commercial mower ranges from $100-$250 but severe damage due to neglect? You’re looking at at least $3,000.
Poor upkeep also forces your vehicles to work harder, wasting more fuel and even breaking down sooner. In a tough economy, those setbacks hit even harder. A simple preventative maintenance plan can keep your fleet running smoothly and help you avoid expensive surprises down the road.
Every service business should follow these best practices:
You can easily track preventive maintenance schedules and one-time service events with the help of software like Linxup’s Maintenance feature. You can set reminders based on mileage, hours of use, or specific dates—customized to your fleet’s needs. Plus, keep a detailed service history for quick reporting and compliance, so you’re always prepared.
You might not have a hundred vehicles or a dedicated fleet manager, but that doesn’t mean you can’t operate like one. With the right approach and some helpful tools, you can improve fuel usage, cut costs, and get more done with what you already have.
When you take control of your fuel spend and track what’s happening on the road, you can cut down on wasteful habits, improve efficiency, see where to make little adjustments with big results, and get more jobs done with the same number of vehicles. This ultimately helps you run your business smarter and more cost effective so you can withstand whatever the economy throws your way.
With LinxCam with AI, you can coach drivers with the help of real-time insights. This helps cut costs, improve safety, lower the risk of accidents, and keep fleets running smoothly. Stay one step ahead with the power of AI.
Note: Written in collaboration with Roadflex.
Contact us today to learn how LinxCam™ with AI can protect your drivers, your fleet, and your bottom line.