Find out what you need to get a transport and logistics business up and running.
There’s a lot of money to be made in the world of transport and logistics, but starting your own business is by no means simple and there will be a lot of costs in the beginning.
So, how do you start a transport and logistics business without much help? Find out some of the things that you’ll need to get this business up and running below.
As with any business, you will need plenty of funding to get your logistics and transport business up and running. There are a lot of initial costs including the cost of the transport and so you are going to need to have a large sum of cash waiting.
You might want to consider finding investors or taking out a loan from the bank as this can often be more expensive than you might think. There are specific expenses that you are going to need to be aware of including employee salaries, licenses, insurance and fuel. If you need to train your drivers and pay for a base of operations, this is only going to increase the overall cost. Make sure you have enough funding to proceed.
As we mentioned above, you will need to have the right type of insurance for your business in order to ensure an unforeseen risk doesn’t put you out off business before you get off the ground.
For example, you might need public liability insurance and indemnity insurance, and since you’re starting a logistics business you’re likely going to need truck insurance for your drivers too. If you don’t have the right insurance policies, then you could be putting your business at risk and it could be over before you ever properly launch.
When looking at insurance policies, make sure to shop around. Often, you can find the best quotes for truck insurance online so make sure to have a look at these. Check what is covered, assess the value for money and you can cover your business.
As we are sure you can expect, you will need to have a fleet of trucks for your transport and logistics business to get up and running. However, you should note that the fleet needs to be reliable and you need to know that they are capable of lasting for a long time. It can be tempting to buy used vehicles with plenty of miles on the clock, but this can also be problematic. While used trucks are much more affordable in the long-run, you risk having to replace them sooner rather than later.
Some of the things to look at when finding your fleet of trucks includes their age, their size and the cost. The size is especially important if you are going to be transporting larger goods more frequently.
Another thing that you are going to need to get your new business up and running is a base. This will be where you will arrange transport with your clients, work on the marketing for your business and of course, store your trucks. If you don’t have a base, you could find that you have to spend a lot of money finding somewhere to store your trucks when they are not in use. It is often best to find a base that is slightly outside the city so that you can cut costs. Remember that your staff will need to get there every day.
Often, to get clients, you need to have clients, and this can be a tricky situation to get yourself into. New clients want to see that you have a proven track record for delivering so you need to be able to present some kind of experience. Even if you are starting a new business, you should have some experience in logistics that you can draw upon to show new clients that you have something to offer.
Try to market your business in the right way and find a USP to secure those new clients. As you are a new business, you could possibly reduce your rates for a month or two to secure those clients. Then, you will be able to secure further clients with evidence that you can deliver.
If you are hoping to get up and running with your transport and logistics business, you should make sure to consider everything that we have discussed. Find reliable trucks, get the right insurance and make sure to secure those clients. Hopefully, you’ll be on track to success in no time at all.