In the past few decades, India has witnessed high growth in the economy. Business production, supply and transportation has been the crucial part. The rate of supply of goods and availability of transportation services is very much in demand.
Transport Business, either for supplying commodities or for travelling purposes, gained a lot of resonance among the people as India is a developing country and somewhere in India a new construction starts and roads are built on a frequent basis. Hence new transportation players are entering the market, introducing services like cab services, truck and tempo services, bus services, etc.
Some other business opportunities that include travel are movers and packers, car rental services, bike rental etc. In today’s module of the ongoing business series, we’ll be informing our readers about the “Transport Business Plan and How one can start their Transport business from scratch. Along with this, we will also inform them about the types of Transport business in India. Keep scrolling down!
Transport Business Plan: Different Transport Ideas to Adopt!
If you are getting confused in selecting the transport niche and don’t know which transport business initiate, then here are some of the popular ideas for you to choose from :
- Car shuttle service
- App-based travel services
- Car rental services both in and outstation
- Travel agency
- Courier services
- Logistical services
- Air and Marine transport services
- Grocery / Raw material delivery services
- Passenger bus service both in and outstation
- Bus / Taxi and Van services for school-going children.
- Bike and Bicycle renting service
- Livestock transportation
- Healthcare transportation
Transport Business Plan: Easy steps to follow
Just like any other business similarly, in the Transport Business, there are steps involved that are required to follow.
Do your Research and Finalise the concept.
Doing proper and accurate research on the business in and out is essential in every business. As stated above travel businesses itself have a variety of categories to choose from. Be ready with your domain in the travelling business and mark your goals and objectives right from this step.
At the time of selection, make sure you have done it on the basis of the factors involved, Nature of work, the capital investment needed and how much investment you have in hand and how much credit is needed, market demand and supply, competition involved, availability of driving partners, licence & permits, and other costs involved.
Collect the available Information and Keep a Projection of the costs involved.
Businesses now run on data; the abundance of information, analysis, technology and calculated predictions are ruling the working structure of every possible business. Similarly, in transportation, suppose you are launching your cab services; then you need to have access to every possible information that you have to deal with like permits, registrations, laws relating to it, policies, competition, commercial registration, logistics required and most importantly legality and validity time associated with all these.
Cost Estimates
Always keep an account of every cost that is involved or will be involved in the initial years.
Keeping the projection of costs will help you in framing your total business and working capital, and you will not face any lack of funding and capital. Still, if you get short of funds in pre and post-commencement of business, then don’t forget OneNDF provides easy credit on a competitive rate with early disbursal.
Get the required Permits & Licences.
The transport business requires few permits and licences. They may vary according to the type of business, scale, within state or interstate. Similarly, in cab businesses, essential documents required are a driving licence, pollution control certificate and cross-border permits similarly, these documents may differ in other cases. Being a transport business owner, you must have the following authorisations.
Business registration documents
Just like any other business, registration documents like MOA, AOA, Certificate of Incorporation, Trade licence, and MSME registration (if applicable) must be required.
Property Buying documents
If you have purchased a separate property for your new transport business then maintain a registered sale deed with signatures and two witnesses.
Rent agreements
While renting a property to start a business, make sure the purpose and use are mentioned along with a NOC from the landlord.
Using your personal residential property for commercial purposes
If you are starting your business using personal property that you used for living as well, then inform and take a permit from the municipal corporation of your town.
GST registration
GST registration is getting mandatory for businesses that exceed the prescribed limit of turnover.
TAN and PAN registration
Tax deduction account number and Permanent account number are essentially required to operate the business.
Trade licence
It is obtained from local authorities and is given to entities that are not involved in the production and dealing of harmful chemicals. If you have offices at different locations then you need to have a separate licence.
Fire NOC
Obtain a NOC from the nearest fire department.
Permit from the Pollution Control board
The permit from the Pollution control board is acquired by proposing the disposal methods of waste material, although vehicles need to have a separate pollution permit.
Purchase Vehicles and Get them Insured
This is the most important segment in the Transportation business plan, which may determine the success and failure of the business, getting the right quality vehicles in the prime segment of the transportation business. Vehicles should be purchased in line according to the nature of the business.
In case you are low on capital, try starting your business with an initial capital, purchase small cars and SUVs if it is a taxi travel business and upgrade accordingly. Be strict with the number of vehicles that you are purchasing. For instance, if you are purchasing 20 cars, then be sure that all are similar in terms of brand and facilities. Doing this will make you avail cars at a discounted rate.
Mandatory Insurance
Nowadays, cars or other vehicles are not disbursed without insurance. Getting your vehicle insured has become a mandatory legal norm. Its absence can make you liable for a penalty also it is needful at the time of loss, theft or any accidental damage.
Use Tracking Devices
To prevent theft and retrieval of stolen vehicles nowadays, technically advanced tracking systems are setting the trend. Through this system, entrepreneurs can easily get access to the vehicle’s location.
Suggested Read: Top Benefits of High Cibil Score
Hire a Workforce
The transportation employer has a need to hire a productive workforce to keep the business running. Staff people required in the transportation industry are
- Drivers / Chauffeur
- Cleaners
- Managers
- Account personnel
- Receptionist
- Legal team (if required)
Promotion and Marketing
Similarly, like any other business, marketing and promotions are the core elements that help entrepreneurs reach their goal of selling their services to targeted markets and getting more potential customers.
Some of the catchy marketing tactics involved in the transportation/travelling business are free rides, rides at discounted rates, and monthly discounts for regular users. Get tied up with cinema halls and other small ad platforms where your target market stays.
Online Ways of Market
Technological advancement is taking over the traditional form of marketing. In today’s time, Digital marketing is an effective way of promoting and reaching your potential customers. It involves ways such as
- Website
- Blogging
- Social media marketing
- SEO
- Email marketing
- Paid Ads
- Influencer marketing
Conclusion
Starting your transportation business is an all-time endeavour, if you follow the above steps and given instructions, you’ll be truly going to be a leading player in the transportation industry. In the module above, we have deeply examined each and every required point associated with the Transport Business plan: Easy steps to follow to start Transport Business in India.
Secondly, we have also talked about how OneNDF can help you in case of a lack of funds. They provide rapid business and working capital loans to Transport business entrepreneurs, both new and existing.
FAQs on Transport Business Plan
Q.1 What is the GST rate for a Transport business?
18% is applicable for rental services for vehicles on the road, including trucks.
Q.2 Who pays GST on freight?
The recipient individual pays GST on freight.
Q.3 What is the minimum investment required to start a Transport business?
Minimum capital of INR 20-30 lakhs is required.
