Note: All tips are being kept in coronavirus.
(a) Do Not Buy A New Truck
If you are planning to start your own transport business, it is important that you take note of certain points so that you can run your business successfully and reap good returns. One of the most important things that you should consider is not to buy a new truck. A new truck is expensive and you cannot afford to buy with full cash payment. If you go for a loan your EMI starts from the day the truck is purchased.
With EMI every month to be paid, you will have an additional burden on your business. Because you will be working on old freight rates and so it will be very difficult to bear the additional EMI burden. Also, the rate of fuel is also very high.
The best solution is you hire the truck from the market and carry on the business for a certain time period till you are fully settled and are confident of earning desired gains where you can afford to bear the burden of the new truck easily and can easily make the EMI payments every month without any hassle.
(b) Hire Truck On Lease
It is also advisable to get trucks on lease for your transport business. The leasing process enables you to get access to the truck without making the full payment of the total cost. You are financing the depreciating cost of the truck. Leasing also provides you with the benefit of a lower down payment.
The process also offers the benefit of driving newer models with better functionalities and a better fleet of the truck will always provide a smoother driving experience. Also, the leasing company’s insurance will cover the expenses like routine maintenance and basic repairs that would otherwise be a financial burden.
As your monthly payments are lower you can obtain better profits for your business and as a result, you get to keep more money in your company’s bank account. A lease can be for one week, one month, or for a certain period.
Furthermore, if you are having both side bookings then the lease is the best option to go for. For e.g. if you hire the truck on lease from Delhi to Pune for around Rs.40,000 and again you have back booked from Pune to Delhi for Rs.35,000 to Rs. 40,000 then this is best for lease business for you will be earning around Rs 75,000 to Rs. 80,000 in one go.
During festival times the agent will get good bookings and if during that period the agent takes the truck on leases then they will be at a good profit. For e.g. if the agent takes the truck on the lease of Rs.1,00,000 and is able to get bookings for Rs.1,00,000 during that festive month then after paying the lease they are still earning Rs.1,00,000 commission. Here when the agent knows that in one particular month they will have to get good business taking a truck on lease is the good option.
(C) Hire Truck Trip Wise
If you are not having a return booking truck then it is better to hire a trip-wise truck booking. The trip wise truck will help you to earn more on the basis of certain trips.
Here you will not have to return with the empty truck and lose on your earnings. For. E.g. if you have bookings from Pune to Delhi for Rs. 32,000, but no back bookings then you can go for the half trip wise truck instead of the full trip wise truck. Here you can book the truck for a half trip from Pune to Delhi for Rs. 30,000 and earn a commission of Rs.2,000 in the half trip. The responsibility of filling the truck for further trip lies with the owner.
(d) Hire A Close Body Container And Reduce Your Liability
Every client gives high regard to the safety of their goods and consignment. They prefer to get partnered with a secure, reliable, and trustworthy logistics service provider. With the open body truck, there are chances of damage of the goods or theft of the consignment or any other unprecedented events that are beyond the control of the driver and the logistics service provider that results in damage of goods and the loss will have to be borne by the agent. It is therefore advisable to go for the closed body container to reduce the liability of any such loss.
The driver in a long route trip has to halt in many places for refreshments, food; fuel and to pay taxes, and during this time in open container things like theft can be quite common. So it is better to go for the closed body container for safe and secure transport business.
(E) Work With Liable Logistics Partner
Working with a reliable and trustworthy logistics partner is the most important thing that has to be considered for the transport business. It is important that you work with a reliable and known truck owner or freight broker.
Experienced and trustworthy truck owners will have correct documents, they must have paid their EMI of the trucks in time and such other things that might hamper your transport business and put you in an unwanted burden. Like for e.g., you have booked the truck for transporting the consignment from Delhi to Pune but if the truck owner is not trusted worthy and do not possess genuine and reliable documents then the traffic police persons or the concerned authorities can hold the truck in the middle and even might not release the consignment in time.
This will result in unwanted loss and also will hamper your relation with your clients. Also, if the EMI of the truck has not been done on time the lending authorities will seize the truck and this will also result in the loss to the agent.
(F) Join Online Freight Marketing B2B
With B2B you can either take the load yourself or can give your truck for rent. This is a whole new concept in India and it is very beneficial for truck owners. You make maximum use of famous b2b portals like just dial, India mart; trade India where you can get information of different clients who need loads.
The transporters need demand and B2B clients need trucks. These portals provide trucks to businesses; that have loaded. Clients request trucks based on the size, timing, and other shipment specifics.
So if you are manufacturing hosiery in Punjab and transporting it to Bangalore, then the B2B portal can help you to get a truck and help reach your shipment in time. The b2b freight marketing helps the logistics business from sourcing to supply to take it to the factory, to the mother hub to distributors, and finally the retail store. With the framework of b2b marketing, the empty loading areas can be brokered in freight and thus used sensibly.
(g) Social Media
Social media is the latest buzz in the internet acumen. With every other individual connected to social media via social media platforms like Facebook, Twitter, Instagram, in one form or the other, social media has become the most important platform for marketing and promotion of your logistics business.
By promoting your logistics business on social media platforms you can reach umpteen numbers of people easily and that too in a flash of seconds. Also, you can get to know their reviews about your services via comments and other posts.
It is therefore advisable to post your services or business information on social media platforms and get maximum business network opportunities that will help you to catapult your transport business to the new heights of success and growth.
CONCLUSION
Transport and logistics business, if done with proper planning and road map helps reap great returns.
It is important to analyze the scenario and mold oneself according to it so that you can carry out your transport business successfully without having to face any hassle or losses.
The above tips will be of great help for the person related to the transport business in any way.
The tips are in fact the success mantra in the transport business that will help individuals to achieve good returns on their investment.
