Transport companies are becoming a very popular business idea. When you think about it, it’s easy to see why. People always need things transported from place to place, right? So, there should always be a high demand for the service you offer.
Starting a transport company is easier said than done. There are plenty of things you have to consider before you get your business up and running. To help you understand if this idea is right for you, take a look at the financial highs and lows of a transport company:
High Potential For Profit
As I mentioned in the introduction, there’s a high demand for transport companies. In fact, the demand is higher than ever before. Thanks to the growth in online businesses, there are companies that need their goods to be transported to customers. It won’t be hard for you to find some clients, and the money should flow in comfortably.
Relatively Cheap Employees
To run a successful transport company, you’ll need plenty of drivers. Now, this means having to pay out salaries every month. You may think this is a financial low, but it’s not! Truck drivers will typically earn less than the average yearly wage. This means you can get relatively cheap employees for your company. Whereas, in other businesses, your staff may expect to be paid much higher wages.
One of the financial highs of a transport company is that marketing can be cheap. Think about it; you’re catering to a very specific market with your business. Regular people aren’t going to care about a transport company. Your business will serve other companies and help them get their goods from A to B. As such; you can save a lot of money on your marketing campaign.
There’s no need to spend loads of money on TV or billboard adverts. Instead, you want to promote your business where it matters. Get some small ads in industrial or business magazines. Use the internet to network with your target market and promote to them and only them. It’s way more cost-effective than your generic business marketing strategy.
Buying A Fleet Of Trucks Is Expensive
The main financial low is that buying your fleet is expensive. It’s funny, buying one truck on its own isn’t as costly as you might think. In fact, you can find some on sites like AutoTrader Trucks that are cheaper than most cars. The problem is that you can’t start a transport company with only one truck.
There’s no way you’ll be as productive as possible. It means you’ll only have one driver out on the roads each day, making it hard to generate money. What you need is a large fleet of trucks. This can help you be more productive and make more money. My advice is to shop around for second-hand trucks. They represent the best value for money, and can help you save some cash.
High Running Costs
After you’ve bought your fleet, you’ll still encounter some problems. Mainly, how much do trucks cost to run? Most big industrial trucks are surprisingly fuel efficient given their size. However, you have to remember that you’ll be making lots of long journeys every day. The amount of fuel you’ll burn is crazy. And, multiply this by every truck you own, and things can get expensive.
Another huge financial concern will be where you store your trucks. You can’t let your employees take them home because they’re way too big. Even after they’ve detached from their load, they’re too big to park outside a house. So, you need to invest in storage space when they’re not in use. It’s likely you’ll need a large warehouse complex, which is more money out of your pocket.
There’s no denying that a transport company has many financial highs and lows. From looking at this article, you may think that the lows outweigh the highs. Yes, buying a fleet and maintaining it will cost a lot of money. But, you have to think about the money you make and save too.
If your business does well, and you’re constantly making profits, then you have nothing to worry about. That’s the key here; you have to run your company properly. If you do this, then the financial highs will end up outweighing the lows.
Hopefully, after reading this, you have a better idea of the financial side of a transport company. By looking at the highs and lows, you can decide whether or not it’s a good idea for you.