Are you on the hunt for a transport business for sale? There will always be demand for trucking, no matter what types of businesses operate near you. The transport and logistics business is one of the more profitable businesses to put your money in if you do it right.
You should note that trucking is cyclical – when there’s no manufacturing business will be slow. But downturns in the industry tend to be short-lived. And trucks don’t depreciate too much, so you can get your money back relatively easily if you decide to pack up at some point.
While it can be lucrative, the industry is also competitive. Do you want to establish a transport and logistics business in the Melbourne, Victoria, or Hobart, Tasmania areas? You could look up some of the valuable advice on the government’s Business Connect program with four hours of free consultation. And keep in mind the five most important tenets to start a trucking business.
Draw Up A Business Plan:
You have to decide what kind of trucking business you want. It’s easiest and cheapest to become a sole trader, driving yourself, or hiring a driver from the outset. Or maybe you’d prefer to register a company. You could also decide to register a limited partnership, a trusted business structure, or a co-operative. You could consult a professional to help you figure out which type of business structure is right for you.
If you have a day job, hiring a truck and driver out could be quite profitable. You’d have to do some research on the lucrative routes. You’ll also want to think about whether to start with one or two trucks or an entire fleet.
Get The Legal Work Done
If you’re a sole trader, you must apply for an Individual Tax File Number. If you’re not a sole trader, you’ll need to register a business name, GST, and get a business Tax File Number. If you register for an Australian Business Number or fuel tax credits, you may enjoy tax credits. Buying liability insurance isn’t mandatory, but it’s essential for business protection.
Depending on your specific case, there may be more legal steps to take. Are you driving yourself? You may need to get a heavy rigid license. Speak to a professional or someone who has been in the trucking business for a long time. There are a few different types of heavy vehicle license classes, so make sure you get the right one. You’ll also have to comply with Chain of Responsibility Laws and get access permits depending on your routes. Look into whether or not you need a B-double access permit, a Class 3 permit, or a Higher Mass Limits vehicle permit.
There are a few other types of access permits that may or may not apply to you. You’ll also need to get special permits if you’re planning to transport food, livestock, meat, agricultural produce, or dangerous goods. You’ll find all the information you need on permits at the government’s Business Connect portal.
Shop For Trucks, Hire Drivers
If you’re buying out an existing business, you’ll want to start shopping around for a transport business for sale. A business broker in and around Melbourne can help you find a suitable business. If you’re shopping for trucks, you’ll want to keep in mind that depreciation is linked to the model, age, and mileage of the vehicle. If you’re looking for a steal, make sure the condition of the vehicle isn’t sub-optimal.
When you’re hiring drivers, you’ll have to meet the requirements of the Fair Work regulations and NSW Industrial Relations requirements. Make sure you’re paying at least minimum wage and complying with work health and safety laws (WHS). If you’re paying wages of over $7500 a year, you’ll want to get a workers insurance policy for protection.
You could also choose to engage a contractor instead of hiring drivers. Different rules may apply in that case.
Consider Fleet Management
Even if you start out with one truck, think about fleet management. The right software will help you monitor your routes, come up with more efficient routes, and keep an eye on your trucks and drivers. If your fleet is growing, you could always hire a fleet manager or take on the role yourself. It makes a lot of economic sense to use fleet management software for chalking up more efficient (and thus profitable) routes.
Think About Growth
You can’t start a business without having a plan for where it’s going to go. At some point, you’ll probably have to chart a course for future growth. You’ll have to strategise on the work schedule and loads for your truck(s). When you can no longer keep up with the demands, do you get a new truck or hire another driver to increase shifts? These are some of the things you need to think about.
Also remember, in the process of building your business, having an online presence is a must. More customers than you think will look at your website before making a purchase. A high-quality website will bring in more sales. What you need to focus on in your website are: showcasing your brand, building credibility, customer service, and live chat, increase chances of getting leads, saving time, and easier updates.
In Conclusion
Building a trucking business can be hard work. But if you can set it up with the above points in mind and you know where you want to go, it can be a profitable business to run. You can maximise your profits by figuring out the most efficient runs.
There will be challenges that come up along the way, especially in your search for a workforce that matches your needs perfectly. The key is to learn the business. It always helps to consult with those who are already in the business. It can help to speak to a professional. And if you can raise the funds to buy a trucking business instead of building one from scratch, you can get a head start with the help of a business broker.
