Do you want to start a transportation company from scratch? Or you need a sample transportation business plan template? If YES, then i advice you read on.
Every single day, we all need to transport ourselves from one location to another, and we also have the need to transport goods to another location. If you don’t have a private car, you will need a public or commercial transportation to do so.
The transportation business is a viable and profitable one, as there will always be need to transport passengers and goods from one place to another. The only problem that discourages people from the business is that it is somewhat capital intensive.
This article will focus on all you need to know about starting a transportation business, and the transportation system am talking about in this respect is the vehicle transportation. I will touch on issues like why the transport business is a profitable one, and how you can start your own transport business.
Why Transportation Business is Profitable and Hot in Demand
- There Is a Market for You-: As I mentioned above, there has always been need for transportation of passengers and goods from one place to another. This shows that there is market for your transport business; so it is not a new business niche you are to open.
- It Is Easier To Break Even In the Transport Industry-: As I mentioned above, there is a ready market for your services in the transport market. Also, it is easier to enter the market and break even. As much as there is competition in the market, there is enough demand to allow you break even in a short while.
- Few Risks-: There is this general assumption people have that the transport business is risky because of accidents, deaths and all that. The truth is that there are very few risks involved in the transport business and as long as you take an insurance that covers every party in the occurrence of an accident, then your business is covered.
Starting a Transportation Business – Sample Business Plan Template
1. Choose an Aspect of Transport Business-: There are two major aspects of transport business. First is the passenger transportation, which includes: taxis, commercial vehicle for transportation of passenger and car hire services or chauffeur hire services.
Secondly is the Freight or logistics for transportation of goods from one location to the other; it can be from the port to the warehouse. You have to choose an aspect to start from; you can incorporate other aspects of the business as your company expands.
2. Gather Information on the Business-: You need to gather as much information as you can on how the transport system works in your location. Find out what it takes to start a transport company, how many fleet of cars you are expected to start with, the popular routes that you can ply and make maximum profits in the business; and other people’s opinion on the business.
3. Register Your Transport Company-: This is the stage where you have to register the business as a company and acquire all the necessary licenses you need to run your business. You can get the services of a lawyer to help you will the legal processing of your license.
4. Buy Your Fleet of Vehicles-: Why I said that you should choose the aspect of transport business as the first step is that your choice will help you know the type of cars to order for your business. For instance, if you are venturing into haulage and logistics; you need to buy haulage trucks to serve your business clients. Since you are buying a large number of vehicles, you can order straight from the manufacturer to get it at a discount price.
5. Insure and Track Your Vehicles-: The next step to take when the vehicles you ordered for arrive is to get an insurance policy from a reputable insurance firm to cover the cars. Also, you can install a vehicle tracker on them to keep track of their location in case of theft.
You can place a tracking system that will allow you shut down the engine of your car if the car has been stolen and on transit. Third party insurance is the best type of vehicle insurance because it covers the victim, the drive and any other third party affected in the accident. Also, if you are into freight and logistic, you should find an extra insurance cover for the goods you are transporting in case of accident or damages to the goods.
6. Employ Your Work Team-: You need to employee the services of the following personnel for your transport company:
- Drivers-: To drive the car to any location need. Your drivers should be at least 18 years of age, and should have a current driver’s license or a commercial license if they are to drive commercial trucks.
- Chauffeurs-: If you are running a taxi hire business, you will need to employ the services of chauffeurs.
- Receptionist and Accounts Personnel-: If the receptionist has a good knowledge of book keeping and accounting, he or she can double for both a reception and an account. The role of the receptionist is to receive orders for the company and take other inquires about the services your company offer. While the role of the account personnel is to record your account books; taking records of your income and expenditures.
- Maintenance Team-: You need to have a team whose duty amongst others should be to service your vehicles from time to time, and change damaged parts.
7. Advertise Your Company-: This is the final step to starting your own transport company. You need to advertise the services your company offers to get people to use your services. Some ways you can advertise your company includes; printing complimentary cards and sharing to companies that may need your services, you can also offer discounts to first twenty customers that use your transport services.