If you are searching for the correct answer on how to start a transport business, then you are in the right place. In this blog, I will give you a 5-step plan to run a successful transport business in 2020.
To bring your wishes to life and make them a feasible goal, you need proper planning. But before making a good plan, you need to harvest information regarding your venture of starting a transport business.
According to Statista report, the global smart transportation market projected to reach about 5.54 million US dollars at a compound annual growth rate (CAGR) of around 19.5 %.
1. Research the Transport Industry
It’s said that information is power, and in this age of information, it is the costliest currency.
There are many ways of conducting proper research, many big firms have a large team of analysts who research and prepare a proper business plan for their companies, but if your startup is low on the budget that cannot afford a professional analyst, you have one of the best tools named Google.
With the right questions, you can receive any basic elements of transportation planning & management.
Questions to Ask before Starting a Trucking Company
The questions mentioned below are some of the most common queries that people have on starting a transport company. These questions will give you a rough pattern on how to ask the right questions to get accurate answers to your doubts.
General Startup Query
How to start a transport business in
If we arrange the questions mentioned above, we can bifurcate them into 5 steps of the plan for starting a transport business.
2. Choose Your Transport Niche
Before asking the question; how to start a transport business? Your first question should be what particular service your transport business should provide? There are many types of services offered under the transport business, and each type has further sub-types to choose from:
Medical Transport Services
Shuttle Transport Service
Each of these services has its perks and challenges. It’s for you to decide which service is best for your transport business startup according to your budget and experience. It’s advisable to select the one which is most needed in your area with the least competition.
3. Documenting Your Transport Business
The next step should be to get your company registered and acquire all the needed permits and licenses for starting your own transport company. You need to get a set of legal documentation from the concerning government bodies of your business region like:
Permits for Transport Startup
All the permits depend on what type of service you opt to offer from your transportation service company. For example, if you offer shuttle service, then you need permits to operate heavy vehicles like bus, stretched vans, etc.
Similarly, if you offer ambulance service, then you need permits for vehicles with proper medical kit and devices in an ambulance as per official regulations mentioned for emergency medical assist vehicles.
Registrations for Transport Company
Your business should be registered in the service you offer with concerning government body. Also, you need to have a business license to run a company and registered with the IRS for tax filing. You will most importantly need to register with the area, province, or national transportation department.
4. Buy Vehicles for Your Transport Business
The most costly investment in starting your own transport service is buying the vehicles. The budget for vehicle purchase depends on many factors like:
All these questions will decide how much your vehicle budget cost you. Buying a used vehicle can save you a lot, but if you end up with a low mileage problematic vehicle, then the maintenance and repair cost alone will cost you a fortune.
Also, if you purchase a large fleet of vehicles at once, then you may get a substantial discount from the dealer on your purchase. Buying the right vehicle for your transport company is the most critical decision you’ll make for your company.
SEE ALSO: What is The Business Model of Uber
5. Marketing Your Transport Company
Henry Ford once said, “Stopping advertising to save money is like stopping your watch to save time.” If you believe that your company will sell itself in the market, then you are making the same mistake that many other startups made of over-estimating their market reach.
Even the best product in the world needs someone to say it is best to attract more people. You need to let people know that you exist and how they will get a better option than the usual transport.
Here are some tips on advertising your company:
Still Confused on How to Start Your Transport Business?
From a one-man show using a single vehicle to transport goods and offer services, to a fleet of transport vehicles, there is a lot of scope in starting a transport business. Go for mobile application development for your transport company, and your humble beginnings will soon grow into unimaginable heights. With a proper plan and an efficient team, anything is possible.
If you are still confused on where to start from then you can talk to our business analyst who will suggest you a personalized business plan, specific for your transport company. Contact us to learn more.