It is true that many companies and sectors have been hit hard by the global pandemic, but the future looks bright for the transportation sector. 2021 is expected to bring high volumes of activity, and this seems like a good opportunity to start a new business.
Have you also thought about starting a transportation company? Wondering how to enter the industry in 2021? Here are some steps to guide you through the process.
1. Select the type of transportation business you want to start
Before you start the business, you should have a very clear idea of what kind of trucking business you want to go into. The choice essentially depends on your preferences and convenience. But you also need to consider the type of business that will bring you the most customers. After all, that is essential for the success of your company.
You can choose from passenger transport, regional freight transport or overseas transport.
- Personal transportation: You have one-on-one contact with the end customers. In this segment you can think of running a taxi service, car rental service, bicycle rental service, limousine rental service, school bus service etc.
- Regional freight transport: This segment typically focuses on the commercial sector, which transports goods and materials from one city to another. If that is your area, you may want to consider a shipping company, moving company, etc.
- Overseas transport: When considering this segment, you are primarily looking at cross-border transportation, typically air or sea shipments.
2. Select the business entity type and prepare your business plan
You must have a business model in place before you can start operating in the segment you have selected as your business niche. This involves selecting the type of business entity you want to establish.
- Proprietorship: You can start as an unincorporated entity. This type of business model only involves the business owner.
- Partnership: If you do business with partners, you can form a general partnership or a limited liability company.
- Company: A limited liability company or LLC gives you the benefit of having a separate legal identity for the business. This means that your personal liability in case of damage is limited.
Once you have determined the business model, it is time to formulate a business plan. You will need to conduct extensive market research and come up with a marketing and pricing plan. You should also prepare a financial plan with at least a three- to five-year projection for revenues and costs.
3. Obtain your tax IDs and other licenses and permits
Every company must maintain its licenses and permits with government authorities. The basic requirements include obtaining a federal tax ID number or an employer identification number.
Don’t forget that you will also need a commercial driver’s license and registration for your vehicle. There may be other permits you need if you plan to work as a freight carrier.
4. Buy the vehicles
Based on the business segment you have selected and the market size you are going to target, you need to buy the commercial transportation vehicles.
You should start by exploring vehicle options both online and in local showrooms. Don’t forget to also consider used commercial vehicles at bargain prices. For example, if you are interested in buying Iveco trucks, you can first explore the used Iveco truck options on Truck1, United Kingdom.
5. Hire your employees
The success of any business depends not only on the efforts of its founder, but also on the skill and dedication of its staff and employees. Depending on the size of your business, you will need to hire commercially licensed drivers and some support staff for both administrative and technical tasks.
Conclusion
Once you have the business in place and start operations, you need to start connecting with the customers. Your goal should be to provide the utmost satisfaction to customers so that you can build long-lasting relationships and a good business reputation. We are confident that with the above guidelines for starting the transportation industry, you will have a strong foundation to build on.
We wish you all the best in your endeavors!