Starting a transport business is not as simple as buying a vehicle and hiring a driver. In a way, it is similar to setting up other business startups wherein you have to decide on the name, purchase equipment, and develop a business structure. However, the transport business also has requirements unique to its own such as securing licenses, permits, and insurance. Through this article, we aim to help you achieve your goal of starting up a transport business with six steps.
Step 1 – Choose Your Transport Business
From taxi or courier services to limousine and bus companies, the transport industry can branch out into several different businesses. Each type of business has its own advantage and disadvantages, but it important to choose one that does not face a lot of competition in your location. It is also crucial to find out if there is a need for the type of service around your area.
Step 2 – Work on the Legalities
The best way to find out what the requirements are needed to start a transport business is to contact the local public utilities commission. Usually this entails getting permits and licenses from several different departments. Depending on the location, registering with the local, state, or national transportation department may also be necessary. Certain insurance companies focus on particular modes of transportation; one that suits the company’s type of vehicle should be selected.
Step 3 – Get the Right Vehicle
Since this is the transport industry, the vehicle chosen has the biggest impact on how it will affect the business. This will take a large percentage of the capital so putting extra thought on how much will be spent on them is crucial. When starting a service that requires a lot of vehicles, buying them in bulk should be considered as it may result in a significant discount. It would also same money to purchase used models. When doing so, it is important to have them checked by a mechanic for any problems or complications.
Step 4 – Screen Drivers
The right employees should be hired. Setting up a screening process helps gets this done. Background checks should be done in case they have a history of driving recklessly or have previous DUIs. Administering a marijuana hair test to employees every couple months will help ensure that none of the drivers are abusing illegal substances.
Step 5 – Advertise Your Business
It is important to gain exposure so that people will be aware of the service you provide. Whether it be through newspaper ads or a slot on the local telephone book, it is important to advertise to your target market. Utilize technology to your advantage and create social media accounts and a website. Letting people know about your new business via word of mouth can play a big role in its exposure.
Step 6 – Build Your Clientele
Sometimes it takes while to build a formidable clientele. That being said, it is vital to have the funds to keep the business running for a year during difficult times. A constricted financial situation may end up shutting down the business in a short amount of time. Patience, time, and effort are necessary to bring the business to success.
Running a transport business requires discipline, not only in finances, but also in attitude. It is essential to push forward and not let obstacles stop you. Since transportation is a highly regulated industry, it is necessary to keep up with constantly changing regulations as the business grows. Combine that with creating an environment that would retain employees and attract more business, and running a transport company would be within your reach.
*This post was contributed. Family friendly posts are welcome.