Starting a logistics company is a very popular option for many entrepreneurs in the world, especially because it doesn`t look so complicated at first sight. However, there are many factors that you have to be aware of for the successful running of the transportation company.
The production of various goods and the need for all types of transport in the world is huge. There are a few types of delivery, with cargo, shipping, and trucking being the most popular ones. While shipping is most effective, and cargo the fastest option, most people are choosing smaller vehicles or trucks because they represent the best value for money option, especially for some shorter routes.
The essential part of starting the logistics company is to come up with a plan. The business plan has to cover all of the factors, such as vehicles, workers, monitoring and more. Also, you will have to provide your company with enough funds to cover all of those expenses. In this article, we are going to introduce you with a sample of how a business plan for a transportation company should look like.
Determination of the Market for your Transport Company
As we already said, the market is big enough that it always requires more transportation options. For you, as a beginner, it is crucial to determine what exact part of the market you want to cover with your logistics. Also, you have to know that even if there are many rivals in that segment of the market that you are interested in, there is always room for newbies. That means that you should not be afraid of competition. Also, there are two main types of transportation businesses, the logistics, and transportation of people.
Furthermore, your risk will be smaller if you choose the part of the market that you are familiar with, and where you can provide your clients with the best possible service. You are building your reputation from the beginning, which means that your clients are expecting a professional service from you, even if they know that you are a beginner.
Do a Research
Before you even start to write your business plan, it is very important to research a market, and see what is expected from you. Also, you will find out what are the possibilities, how much money can you earn, is there a chance for further development, and much more.
When you are familiar with the market that you chose for your business, it is easier to set goals and create strategies. Also, you can determine how many vehicles do you need, what type of vehicles, how much money you need to invest, and how to fill out all of the legalities.
Registration of Transportation Company
In the first stage of the business plan is to set the goals and determine all of the expenses and possibilities. The second stage is to register your business as a company and get all of the necessary licenses to assure your business to be legal. Also, our advice is to get help from a lawyer, who can provide you with all of the requirements.
Provide your Company with Means of Transportation
After you set your strategy and register your company, you can buy the vehicles for your company. If your business is going to provide clients with logistics services, you will need a fleet of trucks. Also, if you have enough funds, maybe the best option would be to buy your vehicles directly from the manufacturer because you could have a discount.
Insurance, Maintenance, and Monitoring of your Vehicles
Having an insurance policy for your vehicles is very important, especially because they will always be on roads, and with current statistics, there is a chance that there might be a possible car accident. In that case, you won`t have to worry about some additional expenses, since the policy will cover it for you.
Furthermore, good maintenance of your vehicles is crucial for keeping them in good condition. Also, you could prevent many errors with proper maintenance, which is also a great way to prevent your business from some extra expenses.
Monitoring your vehicles is also very important, especially for logistics, where drivers are limited in hours and miles they drive. The best option for monitoring is to install an ELD device in your trucks and other vehicles. Check out ELD Mandate violations at bestelddevices.com.
With an ELD device, you can easily prevent your drivers from violating the law by driving some additional hours. Also, these devices can track possible errors on the engine, gas consumption, and they could provide you with the location of your vehicles.
Drivers and Other Workers
You shouldn`t just employ the first person you find with a driving license for your company. Your goal is to build a successful transportation company, and your drivers must be professionals. It would be better for you to hire more expensive workers that will get the job done in the best possible way, and don`t try to save you money on this one.
Also, besides professional drivers, you will need a team of people who will communicate with clients, control your accounts, maintain your vehicles in good condition, and complete many other tasks. Having good customer support is also very important.
Marketing and Promotion of your Transportation Company
It is always good to have a good marketing strategy for your business. However, in the transport and logistics industry, you shouldn`t look at promotion as something crucial, since some services and companies are connecting transport companies with their clients. If you are a beginner, set your marketing strategies to grow along with your company.
On the other side, you should have a website, with some simple design, where people could contact you. Also, it wouldn`t be a mistake to have a Facebook, Instagram, or any other account on social networks. You could make an email listing of your previous customers, and offer them a discount for future services.