5 things to consider before opening for business
Entering the transport and logistics industry isn’t necessarily challenging, but there are numerous obstacles you will need to overcome to ensure your initial success.
It doesn’t matter if you’re starting off with a small van or a fleet of vehicles, you must have a firm understanding of your finances, market competition and more. To launch a venture, read this guide to starting a transport and logistics business in 2019.
Consider the Essential Costs
Before you get started, you must develop a rock-solid understanding of your company’s finances, which can ensure your business success from day one. For example, you must identify where you will secure capital for your new venture, so consider a private investment, bank loan or bootstrapping.
You’ll also need to factor in associated business expenses, such as:
- License and toll fees
- Maintenance costs
- Fuel prices
- Fees for driver development training
You must also find and lease a business premises to protect all vehicles when off the road, and you must invest in security features, such as CCTV monitoring, alarms, etc.
Source the Right Vehicles
It is crucial to source the right vehicles for your transport and logistics business. For example, it will be a challenge for a small minivan to transport a big order, which can make your business appear unprofessional and it could potentially lead to goods being damaged during transit.
By providing a driver with the correct vehicle for a job, your company can enjoy greater productivity while providing customers with a dependable service. So, if you need to transport large cargo for lengthy journeys, you’d be smart to invest in a long-haul truck.
Find the Best Business Insurance
Business insurance can provide financial coverage for a variety of claims against your company, such as personal injury, property damage, vehicle damage, and workers’ compensation. Of course, as different companies will have different needs, it is wise to find the right insurance for a business online, which can be specifically designed to complement your organization’s requirements.
Provide Business Permits and Licenses
To kickstart your transport and logistic business, you will need to secure a variety of licenses and permits. The requirements will, however, be determined by your state.
Most US states will require companies to possess various tax forms and a business permit to operate legally. It is, therefore, worthwhile consulting an experienced business lawyer to gain an understanding of the licenses and paperwork you will need to ensure you strictly follow a state’s regulations.
Recruit the Best Drivers
It’s not only high-quality vehicles that will secure your company’s productivity, reliability, and profitability, but your employees will also determine your success in the industry.
In addition to proving they have the relevant licenses to legally operate your vehicles, they also must have the right attitude and experience to excel in the role. It is important to trust your judgement when recruiting drivers.
Plus, you should always perform background checks to ensure a candidate doesn’t have a criminal record that could impact your fleet, profitability and, most importantly, the lives of others. For example, you should not hire a truck driver who has been convicted of a DUI felony.