These are the steps you must follow if you want to create your transport company from scratch.
Step 1: Decide on a specific transportation niche.
When starting your transportation company, the first step involves who and what you are going to transport. You will have to answer the question: “What niche or segment am I going to choose?” As mentioned above, there are different categories of shipping companies, and you may need to select just one to be successful.
The best thing about the first step is that the possibilities are almost endless. From a bicycle rental company to a logistics corporation, or a medical transport service. The critical element is that you choose an area and learn all you can about it.
If you’re not sure what to choose, do your research on supply and demand. Offering the solution to a specific and relevant need or problem ensures you have a stable customer base when it’s time to open.
Step 1: Decide on a specific transportation niche.
Once you’ve chosen a niche and learned all you can about it, you’ll need to move on to the business plan model phase. This is the moment in which you will establish the structure of your business and begin to fill in the operational information about it.
Step 3: Requirements to create a transport company
Remember that there are a series of requirements to create a transport company: the community license regime applied to the international transport of goods by road on the journeys made in the territory of the Member States of the EU and a card for the transport of goods or a card transport operator, among others.
In the event that you decide on the individual entrepreneur option, it is convenient that you know what the requirements are to be an autonomous carrier and know the necessary procedures to be able to do so.
Step 4: Apply for Licenses and Permits
When you start your transportation service, you must have the proper license. Why do trucking companies require more permits than other types of companies? The answer is that, in many scenarios, you will be dealing with very sensitive passengers, people, and other types of cargo.
Within the transportation industry, other types of licenses and permits may include:
- Commercial Driver’s License (CDL)
- Commercial vehicle registration for any fleet vehicle
- Fuel transportation licenses
- Cargo or heavy load permits
- Insurance coverage for drivers, passengers or merchandise
Step 4: Apply for Licenses and Permits
It is clear that the offer presented by a transport company must be, on the one hand, low enough to remain competitive in the market, but high enough to be profitable.
To do this, the only way not to make a mistake when presenting the offer to potential clients is to previously analyze what the expenses will be: maintenance, repairs, payments, fuel and the salary of the workers. For this, it is very important to carry out an initial investment plan that accurately details each and every one of the costs of starting up the business, so that later there are no unforeseen events.
Do you need to get a loan to get started? Make sure you have a solid business plan structure in place, as many lenders will ask to review this plan before considering a new loan application.
It’s never too early to set financial goals and benchmarks. Must take into account:
- What income you need to maintain to offset operating expenses
- How much to invest in supplies, equipment and labor
- The specific amount of debt your business has in loans or other expenses
- The amount of money you are willing to invest in marketing and advertising
Step 6: Acquire the equipment
Obviously, before beginning the commercial activity itself, it is essential to acquire the necessary materials, in this case the transport equipment.
The decision to buy or rent the vehicles depends on the entrepreneur, based on his business strategy and financial muscle.
Acquiring the fleet is simple. After an advance and payment of the rest with the loan, the vehicles will become part of the property of the company. However, renting can be a more complex but more affordable operation, since it will only be necessary to pay a monthly fee for the use of the equipment.
Here are some things to think about when making vehicle buying decisions and building your fleet.
- Will you need to transport passengers?
- How heavy are the materials you will be transporting?
- What type of terrain or terrain do you need to cover on an average ride?
- What wear might you need to expect on a regular basis?
- Are there sustainable or fuel-efficient options to choose from?
Take your time to research the best options based on quality, price, and safety. All of these factors are extremely important when establishing your transportation business.
Step 7: Get the first customers
There are companies specialized in contacting carriers and companies that wish to send loads, ensuring coverage of the process and offering greater guarantees to both parties.
Thus, there are dispatchers or carriers that specialize in partial, full or container loads. Thus, it is possible to take advantage of the space and routes on which the truck is empty, to prepare new shipments.
Step 8. Periodic maintenance and renewal
When you have a transportation business, you have to start thinking about the future. Even if your supplies, vehicles and fleet are new, long-term use can affect both safety and quality. How will you carry out routine maintenance to ensure that your customers do not experience any interruption of service?
In addition to regular inspections, your company’s certifications and licenses may need to be renewed at various intervals. To comply with legal requirements and to keep your business running smoothly, you need to make sure they are always up to date.
While it’s easy for small details to get lost in the shuffle of daily operations, setting recurring reminders or putting a specific employee in charge of routine checks can prevent a lot of problems.
To design a strategy that includes all the decisions and steps that we have discussed above, it is necessary to carry out a business plan that describes the entire business project in full and serves as a roadmap in the day-to-day business, to achieve the viability of the business. in the future.