How to start transport business in india

Why to start Transport business

This is really a lucrative business if you know how to start Transport business and run it and take advantage of many opportunities. Many industrialized nations today demand instruments and machinery that they can use in classification, transportation, construction, etc. Following some tips and suggestions on how you can successfully start and manage your logistics company, your business will definitely grow.

  1. The logistics industry in India..”-is growing rapidly & it is the interaction of infra, technology and…- new types of service providers that will define whether the industry can help its customers reduce their logistics costs and provide services effective.
  2. In the current economic sentiments, the logistics and storage industry continued to experience growth largely due to growth in the retail, electronic commerce and manufacturing sectors.
  3. The Global Logistics sector is expected to grow around 10-15% every year.

Key steps to start transport business

1: registration, license and insurance

With a good business advisor or CA you can speed up the process, from registering as a sole proprietor, company or an LLC to understanding the taxes collected on fuel, heavy vehicles, etc. Next, the insurance plans depend on the structure and location of your truck business. Contact your financial advisor/CA to find out the best plan for your company.

2: Lease or purchase of trucks

The pros and cons of both are equally debatable because, at the end of the day, it all comes down to your budget and how much you want to invest in the business.

3: customer search

You can also join the truck social communities and subscribe to conventions related to the transportation industry to interact with the prospects.OR visit industrial where hub of factories or godowns for customers .

4: planning and budget

It requires a considerable amount of initial costs that must be constantly verified: fuel, permits, repairs, parking, maintenance and technological updates, salaries for its drivers and more.

5: Expansion and hiring of new drivers

Knowing when to expand your fleet is where your business is located to tip the balance. You are the best risk judge you can afford. As for the hiring of new drivers, full-time ones are always more beneficial than contractual, since they make scalability easy in the long term.

What are the things that should be considered before starting a logistics company in India?

1. Gain experience in the industry

2. Exploit your experience and connections

for example, if most of your connections or work experience are in an industry, contact customers in that industry. If you have connections or knowledge of a certain region of the world, open a company that specializes in exporting to that region

3. Financing:

you must prepare a business plan to convince potential investors that you can make your business profit. Include any connection you already have in the logistics industry and that is willing to provide your business.

4. Get-trucks \ vehicles-Decide to lease \ rent instead of owing them directly.

5. Licenses:

Its depend which type of transport business you want to start small or big . It may also be necessary to be part of industry forums such as the IIC Logistics Institute to raise problems related to the logistics industry. Other important records in India include the DGFT registry, the Income Tax Department, the Companies Registry and related government departments.

6. Insurance coverage:

for- example:- most cargo and property insurance in India…..” will not cover inventory shortages, as this is considered a normal risk while running business. Therefore, it is very important to understand the risks involved before executing any contract.

7. Manpower Required :

  • Trained employees
  • driver background check
  • support staff

Read Also : How to Start a Business – [Complete business plan]

Small investment Options – to start transport business

There are several types of transport businesses that can be started with a single van, but the most popular and that have the ability to generate a probable return are the following:

  • Transportation for school or college students: one of the easiest ways to start your transportation business is to provide services to the school or universities in the transit of students. You can use your van to pick up and drop off students from your home to schools or universities. You can link with schools or institutes and provide the service.
  • Freight transport through e-commerce: the e-commerce business is doing very well in India with the emergence of new e-commerce brands. These companies constantly require transport services for the goods, so you can link up with one of these transport companies and deliver your goods from origin to destination.
  • Transportation in the office: Office assistants often have difficulty finding taxis or getting transported during the hustle and bustle. You can provide a safe and timely transportation service to a group of office assistants at a reasonable cost so that they can arrive at the office at the time and not have to book and wait for taxis every day. You can also use your van and partner with companies that provide fleet services to offices or hotels.
  • Medical transport: medical products must be transported very carefully and, therefore, people want to choose a transport system that is reliable enough. If you have enough driving experience, you can use your van and your star transport equipment, medicines, etc. and the income is really good compared to another form of transportation
  • Movr and packers: Finally, you can register as packers and removals and start moving the business to people inside or outside the city, especially with a van, you can provide services to millennial who keep changing from one place to another due to a job or other personal reasons.

How to start a logistics business in India for E-commerce

Advice on this would be the following
  • First formulate your business model
  • Evaluate yourself as to how good you are regarding knowledge about the logistics industry in India. If you think you still don’t have the right knowledge, then it doesn’t make sense to start because logistics is one of the most competitive industries in India.
  • Analyze and identify how many customers would be willing to buy your business model. A stable customer base would help a lot to start your business
  • You have to try your model, essentially. You have to see the practical aspects of this plan. Do a SWOT analysis of your plan. Once this is done, you will understand where it is lagging behind. How operations will be executed is the main question that must be asked at this time.
  • The next thing, once you’re ready with everything, is to find a market. With the evolution of electronic commerce in India, there are many companies that carry out their operations only in selected areas. After researching online, you will find e-commerce companies that operate in your geographic area of   interest.

Approach them with their tone and a more affordable, complete and reliable price structure than your current logistics partner.

These things need at least the following to get started:
  • People for delivery (5 for 5 cities = 25, a minimum wage of 10k / person)
  • Physical infrastructure (branch for storage, classification, etc. in each city that operates)
  • IT infrastructure to help e-commerce companies integrate with their business to take orders and process them. You also need a dedicated team to handle the development

Focus on few things

  1. Reliable drivers, both believe in each other as a family member. He is just the person who makes his business profitable in any situation.
  2. He can take care of his fleet, which makes maintenance low in miles
  3. The transit time it covers and delivery on time again exceed it for recognition of performance
  4. Qualitative delivery, that is, damage or theft.
  5. Although the situation is improving, but it is difficult due to the corrupt RTO system that asks for money en route. If the driver has faith in you, he often moves on that route in their absence.
  6. With the business partner, you must have a transparent and robust tracking system that helps you both track in real time.

Advantages and disadvantages – If you have your own vehicles

Advantages
  1. You can take orders directly from customers and you can generate the full benefit from them.
  2. You can provide vehicles to your customers according to their needs, you do not need to hire market vehicles.
  3. To some extent, you will have control over the cost part.
Disadvantages
  1. Cost of regular maintenance of the vehicle.
  2. Cost associated with the driver and other third party payments.
  3. Regular monitoring of vehicles and optimize the route for trips in order to support low cost.
  4. Difficulty obtaining orders from large-scale institutions since they only make orders to established transport players.

You could easily opt for an asset light model. Many companies have done it. Here is the list:-

  • Flipcart
  • Uber
  • Zomato
  • Amazon

and many other companies are doing it. So why can’t you?

Read also : How to attach car with Ola

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