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Transport Company – Features, Benefits and Structure

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How to set up a transport company

If we intend to open a transport company, we must first know what kind of activity it will take and the use of vehicles or whether it has to transport goods or people. To open and operate better with all requirements in order, we also have to adapt to specific regulations. Let’s look in detail at how to run a transport company.

When it comes to a transport company it is not just an effort, it depends on what kind of vehicles you want to have in your fleet, how many cars you are going to get, how many drivers, administrative, operational and maintenance employees. If you need to hire, and the initial capital you have in addition, see the time, commitment and dedication to address the problems that arise and the extensive competition within the market.

Find out how to earn income with service businesses

First you must determine the specialty 

 If you want to set up a transport company, the first thing you have to do is determine the correct course of your business. In fact, each typical transport association follows slightly different rules. You may choose to start a transportation business for people or goods. For freight, you determine the weight of the goods you want to transport to determine the category of light vehicles and heavy vehicles.

For passenger transport, you can choose between taxis, transport of people with disabilities, or the option of creating a passenger transport service to the station or airport.

The selection process for the hiring of the transport vehicle drivers you choose must be strict. This is because the lives of many passengers are at stake every day on board these vehicles and all responsibility for the failures that may occur ends up falling on the owner of the company.

Moreover, knowing the route trajectories in this way is very important not to lose customers and the relationship with the consumer is of real importance to guarantee the clientele of this company.

The requirement of professional capacity. You cannot manage a transport company if you do not have the certificate of professional competence. This document indicates that you have the necessary skills for safe transportation of people. For a professional capacity, there are several options available:

Taking an exam: This is a training course that lasts a fortnight.
Confirm the professional experience of 5 years in a transport company.
To possess one of these requirements: the certificate of studies of the School of Transport and Logistics, the diploma of studies of Master of road transport.

To gain visibility, it is essential to advertise your business on the market. In this sense, contacting a local newspaper to place an ad may be a good idea.

Nowadays, it is almost mandatory for companies to have their own website and business cards with the list of services offered by the company. As with any business, even a transportation activity requires time and effort to build its customer base. The important thing is to make sure that you have adequate financial support, so as not to close the business after a short period of time due to limited funds.

Never forget: Be careful, a wrong investment could make you lose all your money.

Requirements to start in a transport company

In the business of the transport company, some requirements must be specified and resolved, such as

Specify the vehicles to be purchased

After doing all the planning, with the help of a professional, it is necessary to see the type of fleet that is more profitable, looking as an administrator at the focus on small, medium or large fleets, in addition to the type of business to be promoted if it is commercial, public, private or passenger sector.

Take the decision of whether to lease the fleet, start operating autonomously or create strategic alliances with other companies in the sector. On this step depends completely the income, failures or successes of the company.

Select the type of customer

Depending on the focus of the business, it is decided to go to terminals, schools, business centers, food companies or the government, to offer the services. By building up a portfolio of customers and trying to create networks between other transport sectors in which they benefit from each other.

Weighing the costs

open a transport company

Taking into consideration the investment in maintenance, fleet repair, tires, gasoline payment, driver’s salaries and extra expenses such as (insurance, techno-mechanical check), one can know how to distribute the money intelligently.

If it is a matter of delivery of goods, a route plan should be made in which the same car can make different trips under the same route, avoiding wasting gasoline, time and efforts traveling long distances that lead later to time compliance problems before the client.

Problems that can arise in the business process

In this business you must be very clear about the purpose of the business. That is to say, the niche in which you are going to work. Because it is not a business of constant money flow, since most of the fleets present problems with the reimbursement and disbursement of money.

Most of the transporters do not offer fast payments, in fact they pay their accounts in percentages, through alliances that do not generate an immediate capital. In fact, what often happens is that a load can be delivered today and ends up being paid for in a couple of months.

Likewise, there is the problem of repair costs, gasoline and surprise expenses, which become a daily issue that generates extra expenses that impact the finances of the transport company.

Advantages of having a transportation company

Having a transport company, represents an advantage because it brings image to the business, they are available at any time they are needed and you can take better control of drivers and services, directly supervising customer service.

Depending on the use of the vehicles, there may also be advantages if the journeys are infrequent or short, so it is convenient to purchase the vehicles. In this case, a strategy to manage expenses must be organized, including the implementation of tools that allow planning maintenance periods and controlling fuel expenses.

Transport Company Success Stories

A successful company in this sector is MasQrenting, it is part of the niche of car rental of all kinds. It is a company with more than 20 years of experience in the car rental sector. The interested franchisee receives from the company an expanding market, of high demand due to its prestige and brand. Offering investors the advantage of having a car or fleet in the renting business increasing the growth and credibility of the proposal.

Another successful company is automotriz Midas that seeks to provide quality service, in part because car technology is increasingly complex and the system used ensures that workshop processes and technology are kept up to date for the growing demand for electronic and high-tech vehicles.