{"id":27822,"date":"2023-07-12T12:28:39","date_gmt":"2023-07-12T12:28:39","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/?post_type=start-a-business&p=27822"},"modified":"2025-01-31T14:13:10","modified_gmt":"2025-01-31T14:13:10","slug":"transport-business","status":"publish","type":"start-a-business","link":"https:\/\/swoopfunding.com\/au\/start-a-business\/transport-business\/","title":{"rendered":"Transport business"},"content":{"rendered":"\t\t
If you know a lot about the transport industry and are keen to run your own business, this short guide aims to cover the steps you need to take and help you understand how to start a transport business.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Demand for transport services is high right now. A shortage of HGV drivers and high fuel costs mean that many clients are desperately looking for suppliers to transport goods around Australia.\u00a0<\/span><\/p> That means that if you have experience in the haulage industry and want to be your own boss, it could pay to set up your own transport business.<\/span><\/p> Be warned, however, that it is also a competitive industry, so it\u2019s crucial to do some research and take steps to keep your costs low to increase your chances of success.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Transportation businesses includes a wide range of services tailored to moving people, goods, or both from one location to another. Some common types include:<\/p> If you\u2019re thinking about opening a transport business, below are the key steps to follow to get your plans off the ground.\u00a0<\/span><\/p> First of all, you need to decide what sort of service you want to offer. You can, of course, operate in a number of areas, but it\u2019s generally better to establish a particular niche at the start to help you stand out from your competitors and perhaps attract more specialist clients.\u00a0<\/span><\/p> Some examples to think about include waste disposal, parcel delivery, and vehicle transport, but there\u2019s a whole range of alternative options. Make sure you carry out some research on your chosen niche to check there is enough demand before you go any further.\u00a0<\/span><\/p> Now you need to work out how many vehicles you want and how fast you want to expand. It\u2019s generally better to start small and have a fleet of, say, two to five vehicles as this can help keep your overheads down. You can then decide as and when you want to add to your fleet, depending on how well your business is performing.\u00a0<\/span><\/p> Another consideration is whether you want petrol or diesel vehicles, or maybe even electric. You\u2019ll also need to decide on the size of the vehicles, which will depend on what type of services you\u2019re offering.\u00a0<\/span><\/p> The location of your business also needs to be considered carefully. To help you make your decision, you\u2019ll need to think about whether you can easily access major road routes and what rental prices are like. Warehouses tend to be cheaper to rent compared to standard commercial properties, but prices will vary depending on the region you\u2019re based in. Keeping your rental costs down will help reduce your overheads and potentially increase your profit.<\/span><\/p> Your next step is to think about all the regular costs your business will face. These include the purchase or leasing of vehicles, vehicle maintenance, fuel and insurance, plus staff wages, your rent and advertising and marketing fees. Knowing exactly how much to budget for these items will ensure you don\u2019t end up spending more than you can afford.<\/span><\/p> You\u2019ll need to take out fleet insurance to cover your vehicles, as well as goods in transit insurance to cover the items you transport. It\u2019s worth having breakdown cover too.\u00a0<\/span><\/p> On top of this, you\u2019ll need to factor in other <\/span>business insurance<\/span><\/a> costs such as public liability insurance, employer\u2019s liability insurance and professional indemnity insurance.\u00a0<\/span><\/p> Public liability insurance protects you against costs resulting from third party injury or damage to property, while professional indemnity insurance means you\u2019re covered if a client loses money as a result of negligence in the services you\u2019ve provided.<\/span><\/p> Employer\u2019s liability insurance is likely to be a legal requirement if you employ staff. It pays out if an employee becomes ill or injured as a result of the work they do for you.\u00a0<\/span><\/p> In addition, there are other rules you\u2019ll need to abide by, including <\/span>tachograph legislation<\/span><\/a>. A tachograph records information about driving time, speed and distance and is used to make sure drivers and employers follow the rules on drivers\u2019 hours. You\u2019ll need a tachograph if the vehicle you\u2019re using comes under EU or AETR rules.\u00a0<\/span><\/p> It can also be worth signing up to a freight exchange website such as <\/span>Freight Exchange<\/span><\/a>. This can make it easier to run your company and allow you to check the status of your freight operations. It can also help you find trustworthy and compliant drivers for your business and will provide a host of tips to help you build a successful business.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t When starting a transportation business, several common mistakes should be avoided to increase the chances of success:<\/p> Avoiding these mistakes and prioritising careful planning, market analysis, and compliance with industry standards can improve the likelihood of success in the transportation business.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Starting a transportation business without any initial capital can be challenging but is not impossible.<\/p> While traditional transportation businesses such as owning a fleet of trucks<\/a> or buses may require high upfront investment in vehicles, licenses, insurance<\/a>, and maintenance, there are alternative options to consider.<\/p> One approach is to use existing resources by providing transportation services using personal vehicles or by partnering with vehicle owners who are willing to collaborate in exchange for a share of profits<\/a>. Additionally, some transportation platforms offer opportunities for independent contractors to provide ridesharing or delivery services using their own vehicles.<\/p> However, it’s important to carefully consider the costs and risks involved, including regulatory requirements, fuel expenses, and potential liabilities<\/a>. Building a successful transportation business with no money requires creativity, resourcefulness, and a thorough understanding of the industry and market opportunities.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Most people starting a business will need to borrow funds to help get them up and running and also to expand later down the line.\u00a0<\/span><\/p> One option to consider is a <\/span>startup loan<\/span><\/a> which is designed to help new businesses launch and expand. You\u2019ll be given a lump sum of capital that you then repay in monthly instalments at a fixed rate of interest. However, you will need to be at least 18 years old and live in Australia to qualify and your business must not have been trading for more than 36 months.<\/span><\/p> If you don\u2019t qualify, you might be able to apply for a standard <\/span>business loan<\/span><\/a> from a high street bank or online lender. Again, this will enable you to borrow a lump sum of cash over a set term. <\/span><\/p> It can also be worth looking into <\/span>asset finance<\/span><\/a> to help you acquire the vehicles you need to run your business. Within this, there are three options to consider \u2013 hire purchase, leasing and contract hire.\u00a0<\/span><\/p> If you opt for hire purchase, you\u2019ll pay an initial deposit for the vehicle and the remaining cost is then divided into monthly instalments, with interest added. You\u2019ll own the vehicle outright after you\u2019ve made the final payment.\u00a0<\/span><\/p> With leasing, you rent the vehicle from a finance provider and pay a regular fixed fee over a set term. Again, interest is added to this. At the end of the term, you\u2019ll usually be given the options of paying a lump sum to buy the vehicle, continuing to lease it, or cancelling the agreement and returning the vehicle.<\/span><\/p> Contract hire is often used for new or nearly new vehicles. You sign a contract with a finance company that buys the vehicle you want and then hires it back to you. Once the contract has come to an end, you return the vehicle and can then acquire a new one with a new contract.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Not sure which funding option is best for you and your new transport business? Don\u2019t hesitate to contact the team of experts at Swoop who will be happy to talk through your funding requirements and help you find the most suitable choice for your new business. <\/span>Get in touch today<\/span><\/a>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\tWhat are the different types of transportation businesses?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
What are the steps to opening a transport business?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Step 1. Identify your niche\u00a0<\/strong><\/h3>
Step 2: Decide on the size and type of fleet you want to build<\/strong><\/h3>
Step 3: Choose a location<\/strong><\/h3>
Step 4: Work out your costs<\/strong><\/h3>
Step 5: Be aware of your legal obligations<\/strong><\/h3>
Step 6: Sign up to a freight exchange<\/strong><\/h3>
What are some mistakes to avoid when starting a transportation business?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Can I start a transport business with no money?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Secure funding\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Get started with Swoop's business funding platform<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t