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How to start Transport Business | Start with 10000/- and take it up to millions

how to start transport business

Transport and logistics is an important and valuable industry. And this is because all the goods we use every day like food, clothes, machines etc. need to be shipped to us from different places.

Before starting transport business, first we need to know what this business does.

Transport business is of many kinds; let’s talk about for some of them-

1.   Transport & Logistic business

2.   Cab services

3.   Limousine services

4.   Shipping services

5.   City bus services

6.   Packers and movers

7.   Ambulance services

8.   Interstate commuting services

9.   Car rental business

10.  Air cargo services

The basic structure in all of these businesses is same, just service provided in different kind of transport businesses are different. So lets talk about- 

How to start a Transport & logistic business

A logistics firm is an organization that delivers and stores the products of different organizations. They may have expertise in the import and export of products all through the country or may focus on ground transportation within the states.

We here focus on Inter-state Road transport Truck services. If you are planning to start with a small level. All you need is an appropriate, safe vehicle.

We can start Transport business by following these steps:

Know the transport business personally

Before start of transport business, one should go and visit some stablished transport firms first. And try to gain the knowledge as much as you can. Transport business is a profitable business only if you know it better, in this business large capital is involved so you should not take the risk to start this before gaining proper knowledge.

Cost estimation in Transport business

A common mistake entrepreneurs in the transport business make is to start it right away. They just calculate their EMI’s, Fuel expenses, Driver salary and maintenance charges. But In this business there are many financial needs come up during running business, that we have not considered before. So before start, a proper finance planning must have done. You should have some surplus cash in your hand for unplanned expenses to run the business continuously.

Some of the fixed expenses are listed below-

      Maintenance cost

      Fixed tolls, licence expenses.

      Fuel charges

      Marketing cost

      Staff/driver salary

Transport Business registration, necessary permits & business plan

First you should choose the name of your business and logo for business. Then you can register your business in any of these three categories.

Sole proprietorship: Best if you’re operating as one person or a married couple and you’re keeping things small. This is the most common type of business entity all around the world. However, the downside to this model is that you’re personally responsible for any losses incurred via debts and lawsuits.

General or limited liability partnership (LLP)Each of these partnership types will have different levels of risk assumed by the partners. You may be open to more legal liability in a general partnership than in a limited liability partnership. Both partners take on equal risk. An LLP protects you from personal liability from the debts and obligations of the business, as well as the actions of the other business partners.

Limited Liability Company (LLC)Owners of an LLC aren’t held personally liable for the debts and obligations of the company. This type of business entity can also choose whether or not to be taxed as a corporation.

All you have to do is visit Mca Website or Get help from a Professional to register your company. You need to also contact the RTO for getting a permit and license and registering with the local, state or national transportation department.

Then you have to plan your transport business by contacting peoples, organizations. Contact with persons will provide you more business and it is necessary into transport business.

You can also participate in tendering of some organization like oil and gas companies. That will provide you fixed and stable kind of business.


Open an account and get loan

Opening a separate bank account for your business will help you keep better track of your finances and make it easier to file taxes when the time comes. It’ll also help build credit.

If you are going to start with one vehicle you can arrange money on your own. But if you are planning for more trucks then you should go to finance institution or Banks for business loan.

Increase your fleet size

transport business

You can start with as many trucks as you can handle by getting business loan. You have to calculate your yearly profit and then cut down the EMI amount from it. Profit should be calculated on yearly basis because business can go up and down as per season change. Like Oil and gas demands is higher in winter but low in summer. You have to pay the EMI’s of fixed amount in every month so you should keep sufficient amount in hand to maintain credit with banks. Better relation with bank’s will help you in increase your fleet size.

Hire staff and marketing of business

You should hire some good drivers who can make sure the safety of your vehicle. Also provide them training for road safety.

Now you are ready to launch your business. To promote you can build your own website or promotion pages. That will help in increase your business. Communicate well with people and let them track their packages if applicable. Encourage people to leave good reviews for you if they’re happy. Delivering great customer service will also promote your business through word of mouth.


The transport business takes time to stablish in market. So you should keep sufficient fund in hand to build the business strong in less profitable time. You don’t want to wind up closing your business in a short amount of time due to limited funds.

Maintain good relation with customers as well as banks. Better credit will improve your business very well. Banks can offer trucks at zero down payment if relation are good with them. Hire good drivers will reduce your maintenance cost, and increase the profit.

At the end before you start Transport business you should definitely meet some transporters first. They will give you proper insight of this business and help in provide initial boost.

2 thoughts on “How to start Transport Business | Start with 10000/- and take it up to millions

  1. As with a credit card, the borrower may draw and repay funds as they need, so long as they do not exceed their specific credit restrict.

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