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How to build a successful Transport Business?

How to build a successful Transport Business?

07 Jan 2021

This may be the common question for anyone planning to start a transport business. Getting into the industry is not difficult but staying in the industry with a tag of a successful business is challenging if the business plan, finances, strategy, and customer relationships are not well since the launch of the business. Whether you own buses or trucks for your transport business, be ensured that you are planning the business model keeping competition in mind because a large number of transport and logistics companies in India have their footprint in the industry.

There are various reasons to start a transport and logistics company in India. The improvement of road infrastructure in recent years along with the reformation of various policies by the Government and the introduction of GST has made the ease of doing business simpler in India. The expansion of the e-Commerce business has also been the reason for the development of the transport and logistics industry. The economy generated by the transport and logistics industry has been appreciable in recent years, it is due to the fact that approximately 14% of India's GDP is spent on the transport and logistics sector.

In 2016, the Global Ranking of the World Bank's 2016 Logistics Performance Index showed that India jumped to 35th ranked in 2016 from 54th rank in 2014 in terms of overall logistics performance. It was also estimated that by the end of 2020 India's logistics industry would be worth 215 billion dollars and this could be successful with the implementation of GST but the coronavirus pandemic has affected its growth.

So from the about data and facts, it can be concluded that the transport, logistics and supply chain companies in India have a high demand and promising future. All they need to offer competitive prices and the best service.

Some basics steps to consider while launching a transport and logistics business:

1. Building a business strategy and finance management

As a businessman build a strong team of members for your business and a solid business strategy that will drive your business to the next level. A strong finance team is an important arm for your business. You along with your finance team have to source capital to get your transport and logistics business started. There are various gateways like banks and investors. Every kind of expense needs to be studied and estimated like license, toll, fuel, maintenance, etc. Backup money in case of an emergency has also to be stored.

2. Buying the right vehicle in the right number

Buying the right vehicle suited for your business is also a matter of consideration. Study and research on the approximation number of vehicles needed for your transport and logistics business initially. Investing unnecessarily in the vehicles before the success of the business will drag your business to losses. Look at the type of supplies you will be carrying, the volume of supplies you will be carrying, and decide the vehicle.

3. Finances for buying the vehicles

The cost of financing the vehicles for your business is very expensive and hard to manage. Also, do research for various options available to afford vehicles like leasing the vehicles or buying vehicles on installment. It is preferred to go for second-hand vehicles that are in good conditions and acceptable mileage. The running costs of the vehicles should be minimal.

4. Employing the staff

Employ the right staff for various positions to your business by recruiting through interviews and referrals. The drivers employed should have a valid driving license for long vehicles. If required train them about road safety and security of the vehicles. The drivers should be a hardworking person and not drinkers who can create problems.

5. Finding customers

Well, this must be challenging for all transport and logistics startups. The start may be hard but once your business gets recognized and customers are happy with your service this not going to be tough for you. Spend some money on advertising in the right place where you can grab the attention of potential customers. Reaching customers on the internet is also a good idea. Always participate in business conferences and networking sessions where there are higher chances of getting customers.

6. Suppliers for the business

When you give the best service to the customers, they trust you and become return customers. They will also recommend your service to their friends. Make sure you won’t let them down at any cost