What You Need to Start a Transport Company

When you decide to go into business, whether it is a transport business taking freight all over the country or something different, it is good to take a hard look at the kind of person you are to ensure success.

For instance, if you hate sitting at a desk, you wouldn’t want to have an accountancy business and if you dislike trucks, there is not much point in starting any kind of business that involves driving them.

So what sort of person do you need to be to start transporting goods as a business? Here are some pointers:-

• You need to be good at communicating, both in person and by phone. Much of your work will come in by phone, but if you are abrupt or unclear in speech over the phone you’ll lose many jobs because people will find it hard to communicate with you.
• You need to be a people person. That means you get on with people and don’t easily take offence if they are irritable with you. No one is perfect and sometimes people get annoyed or irritable through no fault of yours. If you are going to take offence and snap back, you’ll make the job more stressful for everyone – and may lose customers.
• You need to be patient. Driving a truck in heavy traffic can be stressful; you also have to back into tight corners and sometimes find places to park and unload that are not ideal. Again, stress can make the job unpleasant if your patience continually wears thin.
• It you are going to drive your own truck, you need to like everything to do with them, from doing minor repairs on the road, to driving through torrential rain and even driving for long hours when you are tired.
• You need to be good at details and organising when you run your own business. If you have several trucks to work out schedules for, you should be able to schedule for delivery in different areas for each. Truck A should deliver all the goods for Area A and other areas nearby. There is no point in sending truck B into that area, when they should be delivering in area F or Z.
• You need to be able to handle money. Some people take all the profits and give themselves an overseas holiday, instead of using that money for more equipment, maintenance or just for cash flow. Their business is then short of money to pay bills or pay for unexpected repairs.
• Can you delegate, or do you think the only way to get things done is do it yourself? It’s impossible to do everything and you’ll soon suffer from burnout not to mention employee dissatisfaction if you don’t learn to delegate.

What You Need to Start a Transport Company

If you intend to start a transport company there are many things to consider including exactly what you need to purchase.

However, most people think in terms of buying a truck, insurance and choosing what kind of freight they will take.

But there are several additional components that you may not have thought of.

• It’s important to have somewhere safe to park your trucks when they are not on the road. People in rural areas may not find this a hassle, but if you are working in a city, it means you need to purchase land and build large sheds for your trucks. Or you may be able to lease an area that is suitable. It may not be completely essential to have a covered area, so long as it is surrounded by a safety fence and locked to ensure vandals can’t get in. This option may be the cheapest.
• If you use a small truck or a van for your work, it may be possible to park it on your back or front lawn. A shade sail could be used to protect it.
• An office will make things easier for you to run your business and if it’s a big one you’ll need dedicated office space with all the amenities and facilities employees need to work for you, including computers, software, phone hook-up, furniture, stationery, fax machine and printer.
• If you have a covered facility for your trucks, you may also be able to use a corner of it for an office to save the rent on a separate one.
• If you start small there may be a spare room in your home to convert into an office, or you may get away with having a laptop and mobile phone in your truck – at least until you can afford something bigger.  However, it will still be necessary to have virus protection and accounting software to make the job easier.
• If you don’t have an office person or someone at home to take calls, use your mobile phone, but ensure it is a hands-free set-up so you don’t risk a fine or losing your licence, not to mention putting yourself in danger through It’s best to set up a message service that can take calls for you if you are going to be on the road a lot.
• Insurance is important and not just for your trucks. You’ll need public liability insurance and insurance for yourself as well as your employees. Having tracking software can also be a good thing to keep tabs on your trucks and drivers. It can also be a safety feature in case of accidents or sudden ill-health while on the job.

Where to Source Funds to Start a Transport Company

No matter what kind of business you want to start, it is going to cost money and the larger the business the more it will cost.

For instance, a large transport company with several semi-trailers will cost much more to start up than a small freight company with just one van. Most people don’t have enough funds to finance the whole amount so will have to look elsewhere for it.

While it is not good to go too far into debt, the kind of debt that allows you to earn enough to pay it back is considered ‘good’ debt.

That said, it is not that easy to persuade a lending institution to pass over millions of dollars unless you have a watertight business plan in place that shows how you can pay it back – and when.

So when you are just starting up, you’ll need to find finance to help you. This can come from several sources: –

1. A lending institution such as a bank or credit union.
2. The sale of assets you already have, such as a rental home, boat, jewellery etc.
3. Your personal savings.
4. By taking on a partner who can supply additional finance.
5. By getting a business grant or seed funding from some donor organisation.
6. From family or friends

If you choose to borrow from family or friends, make sure that it is a business proposition done legally, that you will pay back with interest.

Otherwise it can be all too easy to default on the payments simply because it is your family and this can ruin relationships that you thought were solid.

Many people who now offer well-known transport services that reach across the country started their business years ago with just one truck.

This is a good idea as it gives you a toehold into the industry and you won’t lose so much sleep over the amount of debt you have.

It allows you to become a reputable player and develop contacts over a large area that will come in handy when you purchase your second and third trucks.

When estimating how much you will need, never cut yourself short so that you cannot afford the things that are essential for the business, such as insurance.

If you don’t have insurance and there is some kind of accident your business will go down the drain very quickly.

It is also a good idea to work as a truck-driver for a few years before starting up your own business, because that way you’ll know exactly what it entails and how to put into place all the things that are needed for such a venture.

While many people are eager to start their own business, consider those few years to be your training and they will be well-spent.