How to Start a Transport Company Without Debt
While it always costs something to start up a business, there are ways and means to start up a transport company without too much debt, depending on what kind of freight you transport. If you do it right, then you can get away with spending about the same as you would on buying a car.
For instance, you can sell your car and purchase a good used van, one tonner, or ute instead, for the same amount of money and use that as your start-up vehicle. The freight you carry will have to be small enough to fit in your vehicle, but there should be plenty of that around in a city as there will always be car parts and other small goods that always have to be sent from one destination to another.
By taking small loads you can offer fast service because it won’t take as long to load your vehicle as it would for a semi-trailer or a large truck.
Here are some points to consider:
- If you are single, your transport vehicle can be used for a personal vehicle, especially if it’s a ute.
- If you are a family man – or woman – you may need another vehicle to take children to and from school unless they are old enough to take the bus. That said, a child seat can fit into a ute or van and you can do the school run in between pick-ups.
- A couple with no family could work together using both vehicles or even just the one. Having an extra person along makes lugging parcels in and out quicker and much easier and you’d always have someone to answer the phone.
- You need to keep the books properly to avoid tax fines, so make sure you learn how before you start up. It’s not that difficult.
- If you are working on your own, it can be easy to leave sending out invoices until another day – and then forget all about them. To make sure your business has a good cash flow, get those invoices out on time, every time and don’t keep working for clients who are constantly late paying or don’t pay at all.
- Driving in heavy traffic can be hazardous, so always have the right kind of insurance for your business.
- Find free or cheap ways to advertise and get other things for your business. For instance, if you want your business name or logo on your van, offer to take goods somewhere for free in return for the job.
- Having business cards printed out is not very expensive and they can be easily given out to help you get more work.
- Don’t neglect maintenance on your vehicle/s as without them you won’t have a business – and are at risk of injury or worse.