The transportation and logistics business is crucial for export and import of various goods, especially because it represents the best value for money option, it is much faster than shipping and greatly cheaper than cargo delivery with a plane.
If you are interested in opening your logistic business, you have to know that starting is not complicated. However, remaining successful as a tracking company has its challenges, and you have to maintain your financial stability with a proper business plan. Also, you will have to go ahead with all of the trends in the market, which also involves new technologies.
You don`t need a fleet of trucks for your transportation business. You could start with only one van, bus, truck, or any other type of vehicle, it depends on what you are planning to transport with it. In this article, we are going to present to you some of the most important tips on how to start a transportation business.
How Much Money is Required for the First Investment?
In case you want to start your logistic business from scratch, you don`t need some exceptional amount of money, but you will need to know what are all of the side expenses when you buy your first vehicle. Since this type of business is very popular, you could easily get funds from a bank, or some investor.
There are many specific expenses that you will have to be aware of before you even start your business. First of all, you will need a licensed vehicle and resources for proper maintenance, fuel, and wages for your workers. The crucial part is to keep your vehicles in good condition and have professional drivers.
So, there are many other factors than just buying a truck fleet, that you must consider when you are making your business plan. Also, it is advised to invest some money in marketing, and develop your marketing strategies along with the growth of your company.
How to Choose the Right Type of Vehicles?
It is not complicated to answer this question. You will need to set your strategy and determine what are you planning to transport when you start your business. You should by a vehicle that can cover your requests. For example, you don`t need some big truck, if you are going to transport bread from bakery to bakery.
You must set your goals from the beginning, which is crucial for your success. Also, you can always expand your logistics company, and add some new types of transportation. Also, if you can buy used vehicles, maybe that would be a great way to save some money at the start.
What are the Challenges with Finance of the Logistic Company?
The biggest challenge is to find the funds for your trucks in the beginning. There are several options, you could take a loan from a bank, or choose to rent your vehicles in the beginning until you buy your own. However, getting the funds to buy vehicles is only one of many expenses that you will have to deal with.
When you are running a logistic business, as we already have said, the crucial part is to keep your vehicles safe and to set funds for your workers, their training and wages. Furthermore, you have to be sure that your drivers don`t drive over the legal limits in hours and miles.
There is a great option for monitoring and controlling the miles and hours traveled, condition of your vehicles, gas expenses, and many other factors, that could save you a lot of money if you solve every possible problem in time.
There is a device called PeopleNet ELD that you can find on bestelddevices.com, which represents a logging device that can monitor the condition of your vehicles, miles and hours, and gas consumption.
The ELD device is connected to the vehicle and great advantage from using these types of monitoring devices is that you could save a lot of money by preventing some bigger errors, or stop your workers from breaking the law with too many hours spent in front of the steering wheel. If your transportation business has a fuel card in place, you can also look at tracking your fuel expenses.
What are the Important Standards for Vehicles and How to Find a Good Driver?
Every country has a law about vehicles, and you must meet the standards. You will need legal documentation from your vehicles, electrical systems, and proper dimensions of the truck. Also, the proper condition of the truck is reflected in brakes, exhaust, engine, transmission, board table, suspension, and many other parts of the vehicle.
After you provide your company with a proper vehicle, you will have to find a driver. It is advised not to hire the first person who has a driving license for trucks. You should look for someone more experienced who can deal with your assignment and get the job done in the best possible way.
You have to ensure that your company will be on the highest lever from the very beginning, to keep your clients and customers satisfied.
How to Find First Customers?
In today’s era of technology and communication, finding your first client should not represent a problem. Many sites connect clients with logistics companies. Also, you can create your website, Facebook page, Instagram, and many other social networks where you can promote your business.
Also, many transportation companies are using the advancement in technology and communication to implement it in their businesses. For example, you can install a system that can inform a client about his delivery, and he can track the order on his phone. Nonetheless, you have to be sure that your systems of communication are simple for your clients.
How to Remain in Contact with Suppliers?
The best way for you to be noticed from the suppliers is to assure them that you will provide them the good service. You are building your reputation by keeping all of your clients and suppliers satisfied. That leads to the point where you should choose a sector of the transportation industry where you can fulfill all demands.