There is great potential here to learn how to start a profitable moving business even if you can not afford to buy a single truck.
What’s more, the transportation and logistics industry inevitably holds enormous potential through multi-channel revenue streams.
In the meantime, the competition is real, and you must prepare well before you start. Therefore this article teaches how to create a profitable moving business in easy steps.
Surprisingly, before you dismiss this idea regarding investing in the trucking business, you should not own a truck. Funny but true!
What’s more, I know more than one person who has turned a truck custom into owning a truck business. This shows how realistic this investment is.
However, unlike people who invest in a business and fail, you can learn to avoid some of the common pitfalls. It’s one thing to hold business capital; It’s something else to know to run a successful business.
Undeniable facts about running a trucking business
- 91% of businesses and moving companies have six trucks or less and make huge profits
- The logistics market is more of a B2B service that crosses all other sectors. For example, health, trade, education, international exchange, and need the logistics service.
- Logistics as a business sector will thrive under any import- and export-driven economy.
- In Nigeria, poor infrastructure and efficient alternatives ensure this 90% of the luggage is moving on the road. In other words, road transport is the most common means in the country with a network of about 200,000 km.
- Nigeria generated total revenues of over $ 5.1 billion in 2019, indicating a Complex annual growth rate (CAGR) of 5.8%.
- Some of the critical factors that determine the success of a moving business are
- The cost of fuel
- Geopolitical events
- Labor costs
- Demand for services
- Government regulations
Significant challenges in the field of logistics
One of the major challenges that people face when they want to start a moving business in the logistics sector is capital.
But this business idea is unique in that you can start renting a truck until you can afford yours. It can certainly be the joker that some people need to start earning.
In other words, do not limit your chances that you can not afford to buy a truck.
However, right from the word ‘you’, the following challenges are significant that you must overcome in order to be successful:
- Time delays
- Poor follow-up
- service quality
A step-by-step practical guide on how to start a profitable moving business
The following steps can point you in the right direction regarding the transition from the concept stage to the profit stage. Is not that good news?
1. Write and test your business plan
Never undermine the power of a strong business plan in any business idea you come up with. Our number one comes at the top of every ‘how to do’ regarding any business idea.
So, start developing a business plan for trucking that will summarize every thought in your head and the findings you discover.
In addition, a business plan is a roadmap to success, which can evolve as the business grows.
What’s more, a business plan can help you with the organization, articulate your value proposition, identify and stick to your goals.
It can even show you potential obstacles ahead of time.
Some of the essential things to cover are
- Set a clear goal and set your goals
- Cost of owning a truck versus leasing
- Cost of fuel, truck maintenance and other expenses
- Financial management and insurance plan
- How to bring loads to tow
- Analyze the strengths, weaknesses, opportunities and threats (SWOT) of your business idea and proposal.
2. Integrate your moving company
Registering your business will provide some benefits both now and in the future. Business registration can separate personal ownership from business obligations.
In other words, society becomes a legal entity in itself, separate from individuals.
What’s more, integrating your business covers all of the legal, tax, and financial challenges on the corporate walkway.
In some countries, you need a registered agent, permanent address, accessibility and other requirements for registering a business.
Although associations also have a side effect in taxation, studies are subscribed to the most appropriate registration program for trucking.
On the other hand, if you need investors, some may insist on pre-registering before financing. What’s more, you need legal documents to run a bank account.
Find lots to drag and grow your business
The business never starts until you find the real goods to transport through your first customer. Although you may need to start small, your first shipment drives things and from there grows.
First, contact local businesses that may need transportation services or join networking groups. By building sustainable relationships in your niche, you create a tremendous customer base.
Another way is to join relevant charities and exhibitions, including apps and online platforms.
In the meantime, you may need to be consistent with these options before you start getting results. And as you do so, keep running credit checks to build more trust in your customers.
At the same time, focus on providing high quality service to your customers to maintain them.
4. Measure your expenses in trucking
Being careless with your expenses is like digging potholes in your treasury. Therefore, it is essential to pay close attention to the business expenses of your moving company.
For example, accounting software can help keep track of business finances. Moreover, some of the crucial items in your finances include
- Financing payments for caravans
- Truck maintenance and repairs
- Other office expenses
Putting all these expenses in one place shows the actual cost of running your business. This will also allow you to measure your business profits.
In addition, you can prepare a proper financial plan in the long run when you have all the financial information. If you can manage your expenses / income well enough, starting a moving business can be your best decision.
5. Save money on fuel
Aside from the cost of owning a truck, a large portion of your trucking business expenses goes to fuel. Therefore, a good managerial decision would always be to use a fuel card to monitor fuel consumption.
At the same time, you can sign up for great programs to save more money on a pump.
Moreover, do not fall for the trick that the lowest fuel pump price usually means the cheapest fuel expenses.
Aside from state taxes on fuel, truck drivers are also involved IFTA, Ensuring the same taxes for all countries.
In conclusion, do not buy with the price of the pump but with the quality of the fuel while learning the best strategies. Until you understand how it works, you can make safer and better decisions.
6. Manage your cash flow
When it comes to cash flow matters, your best chance of starting a sustainable moving business comes into play.
Your knowledge in creating a moving business is incomplete without a safe way to manage your cash flow. Besides, how can a profit or loss be determined without it?
Meanwhile, certain expenses are recurring, like buying fuel, insurance payments and everything. Besides, you can continue to plan your finances within a 15, 30 or 45 day customer payment cycle.
As you manage the delay, make sure you take into account any crucial factor that affects your cash flow.
You can even get a business to go through fuel advances, ticket sales and revenue from other related services.
What’s more, if you need help controlling your cash flow, look for a financial mentor, which leads me to the next step.
7. Get help when needed
Here’s the point where you need to understand that a tree cannot create a forest. Whether you are starting a moving business as a sole proprietorship or partnership, you need a back office to grow.
Furthermore, you can choose to do everything yourself or use hired drivers for your transportation operations.
As a single driver, you can run your business with a laptop, internet connection and printer. Software for different purposes can also increase your efficiency and profitability.
In the meantime, when hiring employees, be sure to conduct a thorough interview and training to protect your business.
8. Choose effective insurance plans
Your plan to start a profitable moving business is incomplete without setting up the right insurance policy.
In the meantime, start by getting approval from the appropriate authority for any formal and semi-formal protection.
A typical choice is the Federal Motor Carrier Safety Administration, FMCSA’s public liability insurance.
This insurance covers both bodily injury and property damage while the government regulates its minimum deposit.
When you have the right investment for the incubation period, you can sustain the business. However, be prepared to obey all the rules and regulations of the moving business in your country.
In conclusion, this article discusses how you can start a trucking business and make huge profits. Remember to also stick to the most important plans you have in stock and obey your rules.
You can cooperate with giant companies that need specific service of a moving company to deliver goods.
Feel free to tell us how we can help you further