How many times have you gone on road trips and chuckled at the “buri nazar wale tera muh kala” written across the back of a truck? We will all agree that Indian trucks have a cheeky sense of humour. But, did you know trucks and trucking business is a profitable venture to explore?
Looking to start a trucking company as an owner-operator in India? Your timing couldn’t have been better. The influx of e-commerce is opening many doors in the world of trucking business, not just within the country but across the globe. So, let’s get on the road to explore the 5 key steps to launch a successful trucking company:#1: Registration, licensing and insurance
We’d rather not sugarcoat this one. There’s a truckload of paperwork to be done. But, keeping funny puns aside, with a good business advisor in tow you can speed up the process, right from registering as a sole proprietor, partnership or an LLC to understanding the taxes levied on fuel, heavy-duty vehicles etc. Next, insurance plans depend on your trucking business’ structure and location. Reach out to your financial advisor to know the best plan for your company. #2: Leasing or buying trucks
The pros and cons of both are equally debatable because at the end of the day it all boils down to your budget and how much you want to stay invested in the business. Buying trucks require some serious funds, but there are attractive loans options available to help you pay off at decently low-interest rates. You could also go in for semi-used trucks to cut costs. But make sure you factor in breakdowns and maintenance.
Leasing could be a good option for those who can’t afford down payments and long-term commitments. In the long run they may get expensive. However, they do offer a tangible capital cost-cutting for a start-up having other priorities. What’s more, if you’re lucky enough your commercial vehicle may come with an insurance or maintenance-backed lease from the owner itself.#3: The client hunt
One of the most popular ways is checking out load board platforms online – some charge a monthly fee while some are free. You can also join social trucking communities, and sign up for conventions related to the transportation industry to engage with prospects. Fulfillment By Amazon (FBA) is a portal that’s constantly hiring services from quality trucking businesses to ship freights from various locations. If you’re doing amazon ke sath business you’d get a steady stream of clients. #4: Planning and budgeting
Starting a trucking business can be a mean deal. It demands quite a bit of upfront costs that need to be constantly checked – fuel, permits, repairs, parking, maintenance and technological upgrades, salaries for your drivers and more. The key is to maintain a cost-sheet, be patient, and initially take on whatever deals come your way in order to build a fine rapport and prove your mettle. Many experienced truck owners will tell you that success in this industry is a gradual but steady curve.#5: Expansion and hiring new drivers
Knowing when to expand your fleet is where your business stands to tip the scales. You are the best judge of the risk you can afford. As for hiring new drivers, full-time ones are always more beneficial versus contractual as they make scalability effortless in the long run.
Now that you know where to begin, you can even refer your clients to sign up with Amazon as an e-seller
for leveraging their business on a worldwide platform.