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How to Start a Transportation Business with One Van – Complete Guide

Do you want to start your own transport and logistics business? But unable to invest much at this moment? If the answer is yes, do not worry. You can still start a transportation business with one van initially and scale up when profits start coming in.

The transportation industry is one of the most profitable industries in the world. Moreover, it is easy to start and does not require much investment if you are planning to start on a small scale. However, there is much competition in this sector as there are not many barriers to entry. But, to stand with the competition and be successful, you need to plan properly and manage your business and finances effectively.

There are several factors to consider before starting a transportation business with a low budget. Find below the steps that you must follow before opening a transportation company.

10 Steps to Start a Transportation Business with One Van

1. Understand the Market of the Local Transport Industry

Like any other business, it is extremely important to understand the local demand and trends that are prevalent in the local market. Conduct market research and know more about the type of demand, the pricing, and the scale of the competition in the area you are going to operate. This information will help you with planning and exploring the gaps that exist in the market.

2. Select Your Niche and Type of Transport Business

There are plenty of transport businesses you can start with a single van. However, some are most popular based on organic demand. Check the lucrative transportation businesses you can start with a single van.

  • Medical Transportation
  • Pool Car Service
  • Transportation of Goods
  • Tie up with E-commerce Companies for their Delivery Needs
  • Courier Transportation Service
  • Packers & Movers

3. Create a Business Plan

Based on the information collected, start writing your transportation business plan. Your business plan must include an executive summary, company description, and financial, and marketing plan. You can also get help from free online business plan generators.

4. Choose the Right Vehicle

After you decide on the type of transport business, it is time to choose to buy the vehicle as per requirement. If you decide to start a pool car service for students, a cab or a bus will be ideal. For the transport of goods, buying a truck will be mandatory.

If you are tying up with e-commerce companies, it is better to talk to the company itself and take suggestions from them.

Some of the factors to consider while choosing the vehicle as per requirement are the following:

  • What kind of Goods You are going to carry?
  • The volume of goods
  • Where you are going to supply – consider the terrain.

5. Evaluate the Cost of Starting Transportation Delivery Business

If you are starting a transport business with one van, you do not require much investment. Your cost will be mostly in buying the vehicle and procuring licenses and permits. You will be bearing additional costs if you are hiring a driver.

The amount of investment will also depend on whether you are buying the vehicle or taking a lease. If you are short on budget, you can go with a used vehicle or rent it.

6. Get Trained

For first-timers, it is a good idea to get trained first and then start the business. Many institutions run transportation-related courses. An entrepreneurship course in the transport industry will benefit you enormously in planning your business properly.

7. Arrange Finance

If planning to buy the vehicle, you may need finance. Your business plan will come in handy if you are pitching for funds from financial institutions. It is advised not to go for big loans from lenders, as it will increase your cost burden initially. More so, because anyway since you are starting with a single van, the investment amount will be far less.

8. Procure Licenses & Permits

The type of licenses will largely depend on the nature of the transport business. Transport authorities of states and countries demand different sets of permits for cabs, vans, and trucks for commercial activities. Talk to the local competent authority, and procure the required licenses.

In addition, if you want to drive a vehicle of your own, you will need to obtain a driver’s license from the relevant authority.

9. Buy Insurance

Insurance is a must for any kind of transport business. Talk to an insurance vendor and buy the most appropriate insurance cover. Having insurance is mandatory even if you start the transport business with one van.

In addition, if you are into the goods transporting business, get an additional insurance cover. It will save you and your client a lot of money in case of any unfortunate incident.

10. Get Clients for Your Transport Business

Getting a client is the most critical part of any business. However, since you are starting the transport business with one van, it won’t be much tough to get clients. Depending upon the nature of your transport business, contact companies who might need your service. For example, if you are into goods transporting, contact wholesalers, or distribution companies. They look for vehicles around the year.

Another way is to paste a sticker of your company office address with a contact telephone number. This works as a roaming advertisement for your transport business.

So, What are the Best Business Ideas to Start with One Van

After detailed research, we list down the best businesses you can start with a single van:

  • Rubbish Removal Service
  • Recycling Services
  • Ambulance Services
  • School/ College Students Pooling Service
  • Scrap Metal Collection Services
  • Food Delivery Services
  • Tour Guide Services

Finally, the most important factor in creating a successful transport business is to build trust among your clients. All clients look for trust in the transportation industry. You need to build more so because you are starting the transportation business with one van. If your client trusts you, the chances are that they will encourage you to increase your fleet to serve them better.