March 8 , 2022
4 mins read

How To Start a Goods Transport Business in 2022

Punit Chotia
Punit Chotia
How To Start a Goods Transport Business in 2022
How To Start a Goods Transport Business in 2022
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Owning a goods transport business can be stressful. Notably, in 2021, during a pandemic, transport businesses were one of the most affected compared to other domains. Despite the pandemic being far from over, lockdown restrictions being eased provide an excellent opportunity for transport businesses to scale, given that the industry is one of the most profit-making industries in the country.

If you’re planning to start a goods transport business, this might be a great time to get started with your operations. However, you have to keep in mind that the competition will be higher this time due to many businesses realizing the vacuum of transport services.

Therefore, before starting a transport business, here are some things to know to make your transport business successful and profitable.

Things to know before starting a goods transport business

Start your plan today as if you’re about to start your transport business six months down the line. That’s how ahead you should be. This is because beginning things early gives you a lot of time to try out different options and make edits and improvements as time goes on.

At the same time, a niche such as the goods transport business is a vast playing field with multiple business options. Therefore, do extensive research on the industry before settling on something that best suits your needs.

Your research must include findings out such as:

• The budget required to start a goods transport business (Required for equipment and workforce)

• How to get the needed capital (Bank loans, Venture Capital)

• On what scale you should start the company for now (Inter-city or Inter-state)

• Best suited area of transportation (air, sea, or land)

• Understand potential clients (Bulk equipment or FMCG home delivery)

• Risks and dangers involved (Strikes, Fuel hikes, Loss, and damage)

• Average profit earned by similar businesses in the same domain (Competitive research)

• Starting a business in your name or taking a franchise from a market leader, which would be the better option, etc. (FedEx, DHL, BlueDart)

Rules & regulations involved in starting a transport business

Once you’re done with your research and have picked your niche, it is time to start with all the legalities, as it can be a very time-consuming process. A set of legal procedures must be done to receive a green signal for your business.

1. First and foremost, register your business and ideas. Trademarking can help you avoid copyright infringements and idea thefts. You have multiple options to register your business ranging from a single owner, partnership firm, private limited company, etc.

2. Once you’ve decided on your preferred business model, you can proceed to obtain the next legality in the form of GST certification, Federal tax ID number, etc. This makes tax filing easier and speeds up your loan application process due to your credibility.  

3. Reach out to the government offices such as the Regional Transport Office (RTO), etc., to get all the required permits and licenses. A standard driving license wouldn’t suffice. Your drivers need to hold a badge or commercial vehicle license that allows them to drive transport vehicles. Similarly, the transport rules and regulations are sometimes different for each city and state. Therefore, getting a state permit or national permit with a commercial vehicle registration can help you freely cross borders without being held accountable.

4. Risks are higher in the transport business as compared to any other similar field of business. Therefore, you need to put insurance on your drivers, vehicles, and goods (if you’re transporting your goods) and keep them updated to lower the chances of risk. The RTO, too, demands that your insurance be valid to receive a fitness certificate for your vehicle. Therefore, do not take any chances of skipping when it comes to renewal.    

Make your goods transport business profitable

Never settle for the same scale if your transport business is yielding higher profits than usual. Always keep your doors open for expanding and scaling your business.

Running your goods transport business on the same scale can sometimes lead to saturation and fading out when new and more efficient competition enters the market. Therefore, keep looking for opportunities to expand then and there.

If you have started your goods transport business by yourself or with a partner, try getting a bank loan to increase your fleet, list of services, or even enter a new market. If you already have a bank loan, try approaching angel or venture investors to fund your business.

Identify the tangent you are looking to grow your business. “Am I going to transport goods to new locations? Am I losing clients because I don’t have a bigger vehicle? Are my team and employees inexperienced?” Ask these questions to yourself, and you’ll get the answer to the area of development required.

Focus on your post-launch activities  

Launching a goods transport business and simply waiting for profit doesn’t work in any business. Particularly in transportation, where you are dependent on other businesses to grow yours. Therefore, look to attract a new and established clientele that can bring in more revenue.

There are multiple ways to improve your business post-launch:

• Focus on your marketing strategies. In the age of social media, don’t miss out on the opportunity to work on your digital marketing campaigns and spread the word.

• Attract more prospects and look to convert them into your customers. This can double your sales and increase your profits.

• Reduce acquisition costs in the form of paid advertising and go with organic marketing as long as you can

• Choose a big client over five small clients. Fewer materials in different locations can be quite expensive than a bulk order in the exact location.

• Choose to offer a better service to an existing client than bringing in newer clients. An existing customer will choose your service more often (if satisfied) than a new client.

• Offer better service to your customers. They can further motivate other potential clients to choose your goods transport business.  

Once you’ve launched a successful goods transport business, it is essential to take it to the next level. Therefore, in the era of the digitalization take your business online with the help of a goods transport and logistics marketplace such as Vahak and grow your business.

Grow your goods transport business with Vahak

Vahak helps goods transport businesses such as yours grow as a community. In layman’s terms, it is simply a marketplace that connects people in need of goods transport with people who provide the service and get no commission.  

Vahak helps you:

• Maximise on-road time and improve revenue by up to 40%

• Get easy return loads

• Create an online brand for your goods transport business and promote your business

• Get qualified business leads.

• Grow your network by connecting with transport businesses across India

• Reduce calling time by 90% on online bookings, etc.

Get started with the Vahak transport app today and make your transportation business even more successful!

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