Cargo transportation as a business – a step-by-step plan from scratch

In this article, we will provide answers to the following questions:

  1. How to engage in cargo transportation, having a minimum start-up capital and work experience.
  2. How, despite fierce competition, to become a successful company in the region in 1-2 years and choose a niche for the long term.

Business is strategy. So that truck driving does not remain a part-time job or hobby, a detailed, step-by -step business plan is drawn up that takes into account the specifics of the region. The minimum planning horizon is 6-12 months. It is important to imagine the development path, choose a niche, before purchasing a vehicle and registering your own business.

Market overview and competition analysis

Is it profitable to engage in cargo transportation, the main question of a novice entrepreneur. The competition in the market is high and each region has its own peculiarities.

The capital market is already represented by professional companies that provide comprehensive services and provide high service. Without experience and initial capital, it is difficult to compete with them . To occupy a niche, you need knowledge and experience. For example, in a narrow area, transportation of specific equipment, works of art. More investments will be required, such as building a business on a modern digital platform and surpassing the level of service.

The market of regional companies, as a rule, is widely represented by intermediaries. Such transport companies do not have and do not attract drivers to the staff. The intermediary searches for an order and sends performers working on a free schedule to it. Intermediary companies do not compete for the level of service, do not provide reliable guarantees. The income of such companies is minimal.trucking

The regional market is also represented by small enterprises, which own 2-3 trucks, or medium-sized companies, 5-15 transport units. In the state: drivers, loaders, dispatcher, manager, accountant. To optimize costs, staff functions are outsourced. Enterprises develop quality standards, direct their efforts to attract and advertise regular customers, compete with each other and with major market players. Due to lack of resources, they do not offer comprehensive services. Including transportation by different modes of transport, customs clearance, cargo insurance, warehousing.

In this case, the metropolitan business comes, including a franchise. Local regional companies are also developing and expanding to meet the needs of counterparties.

Counterparties are commercial, industrial, agricultural enterprises, individuals.

When the listed niches are occupied, it will be difficult for a novice entrepreneur. It will take effort to find resources, identify weaknesses and outperform competitors.

Analysis at the planning stage also allows you to find free niches in the region. For example, the freight transportation market in the region is represented by “grey” carriers, but there is no quality service. In this case, it is important to take advantage of the situation. Another example. A specific customer, an agricultural enterprise, is increasing volumes and needs specific transport. A pre-concluded agreement of intent will allow attracting funding and purchasing a vehicle for the needs of a particular customer.

Is it profitable to engage in cargo transportation? The answer is that it is beneficial if you analyze the situation in the region, find a free niche and regular customers, and purchase vehicles.

A ready-made business plan will help you avoid mistakes.

Description of business and types of services

At the first stage, it is important to decide on the direction:

  • cargo transportation by different modes of transport, with the provision of additional services;
  • commercial transportation;
  • transportation of oversized cargo, animals, requiring special vehicles;
  • apartment, office moving (moving).

Additional services:

  • sales of packaging materials;
  • warehousing;
  • transport rental and staff services;
  • recycling, garbage disposal;
  • cargo insurance;
  • customs services.

If there is no experience, where to start:

  1. Get experience as a manager, dispatcher in a similar company. Get the skill of negotiating with the customer, concluding contracts, learning the essence of the business.
  2. Provide mediation services. Investments with this option will average 100,000 rubles. There will be an opportunity to gain experience, analyze the market.

Ready-made business plan for organizing a business in cargo transportation, the main stages

First stage: business registration

For starters, opening an IP is suitable. PSN or STS taxation system. To work with legal entities, it is necessary to open a current account with the Bank. And to accept cash, purchase an online cash desk and install acquiring. Costs will average 60,000 rubles. Select several OKVED codes, taking into account the further expansion of the business. Later, making changes is problematic.

trucking business

You can register an individual entrepreneur remotely on the website of the State Services.

Second stage: purchase of vehicles and equipment

For a small company, it is optimal to purchase 2-4 trucks of the GAZelle, Hyundai Porter, ISUZU ELF brands.

For example, the cost of a new Hyundai Porter refrigerator is 2 million rubles. For this price, you can purchase a basic model of an ISUZU ELF light-duty flatbed truck or two GAZelle transport units. A used truck will cost half that price, but you can end up with an unscrupulous seller. For used vehicles there is no service, the cost of insurance has been increased. Which transport to choose depends on the type of service. Load capacity, equipment affects the cost.

There are additional expenses. For example, re-equip the body, install equipment for the transportation of specific cargo.

Options for purchasing transport, in the absence of own funds:

  • credit

Transport is owned. The average interest on a loan is 15%. Down payment 20%-30%.

  • leasing

Transport for rent, with the right of subsequent redemption at the residual value. Advance payment 15%-20%.

The lease payment will average 25,000 rubles . For a loan higher, taking into account the repayment of the loan body.

Road freight transportation is included in the list of state-subsidized industries. It is worth knowing what support measures exist in the region for the purchase of vehicles. What are the conditions for subsidizing the interest rate.

The third stage: the choice of premises

Office rent 15 sq. m. for 2-3 employees, will cost an average of 10,000 rubles. monthly. Location doesn’t matter. At the initial stage, you can do without an office. Contracts with the customer are concluded on the spot, the owner combines the functions of a dispatcher and a manager.

Garage boxes for parking of vehicles, maintenance, storage of consumables. The average cost is 15,000 rubles. monthly.

It is optimal if the office is located next to the garage boxes.

Fourth stage: recruitment

At the start of a business, you can not hire staff, but conclude work contracts with them, this will save costs.

Staff, average salary:

  • manager – 30,000 rubles.
  • dispatcher – 30,000 rubles.
  • driver (2 people) – 50,000 rubles.
  • loader (4 people) – 100,000 rubles.

When choosing a PSN taxation system, you can save on an accountant , since special reporting forms are not required.

Fifth stage: marketing and advertising

The main promotion channel is the Internet. It is important to make a good website, use contextual advertising, advertising on transport. You can save costs by hiring freelancers for these tasks. The average cost per month is 30,000-50,000 rubles.

Moving companies, for example, use branded clothing, which has a positive effect on company recognition.

How much money do you need to invest at the start

1.1-2.5 million rubles It depends on whether a new or used vehicle will be purchased.

Monthly expenses include:

  • gsm;
  • rental of parking or garage boxes, office space;
  • salary of permanent and attracted employees;
  • current repair and maintenance of vehicles;
  • promotion costs;
  • tax payments;
  • additional expenses.

Additional costs include:

  • transport and cargo insurance;
  • banking services, payments on loans and leasing;
  • Internet, cellular communication;
  • unforeseen expenses, fines;
  • packaging materials.

Monthly expenses on average 300,000-650,000 rubles.

How much can you earn from trucking

Most carriers operate on an hourly basis providing movers and transport services.

When leaving the city, payment is calculated by mileage in one direction and the other.

They enter into contracts with a fixed cost for specific types of work.

Small companies fulfill 20-100 orders per month with 25% -50% profit from each order.

Profit directly depends on the number of own vehicles and employees, marketing, advertising, work features and amounts to 40,000-300,000 rubles for a small company.

Possible business problems and risks

  1. Competition. The development strategy has not been worked out, there are no permanent orders.
  2. Personnel qualification. Loss of money, fines due to incompetence.
  3. accident rate. The loss and breakdown of a single unit of transport is equivalent to the loss of a business.
  4. There is no money for unforeseen expenses, high rates on loans, leasing.
  5. The cargo is not insured, damage to property.
  6. freight risks

Starting a business, it is important to identify competitors, advantageous differences from them, not to make momentary decisions, work for the long term, use a systematic approach. It will take 1-2 years to recoup the initial investment, to form a customer base, the company’s image.

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