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Is the cargo transportation business profitable? Opening a cargo transportation company: business plan

Nowadays, cargo transportation is a fairly popular and promising business. But a sufficient number of large and very tiny companies are already operating in this market, providing various services for moving goods. In order to successfully choose your niche and successfully withstand competition, you need to carefully weigh your capabilities, work out a business plan, and take into account all the intricacies of such a business.

Before you open a cargo transportation business, you need to choose the appropriate type of transport and think about the features that will help you stand out among your competitors. A win-win option has always been to rely on consistent quality of transportation, customer satisfaction, integrity and honesty.

Each entrepreneur has his own opportunities, but the main points of starting a business will be similar to each other, differing only in the breadth of scope and the availability of capital. So, the very first steps in organizing cargo transportation will look like this:

1. Register a company or become an individual entrepreneur (IP).

2. Purchase or rent trucks.

The number and brands of cars purchased will depend on the expected scope of work and the state of finances. If you have a couple of Gazelles at your disposal, then you shouldn’t count on serious orders. With such a fleet of vehicles, you will have to limit yourself to single applications from individuals when moving or transporting a small batch of goods. To serve larger clients, you will need Euro trucks with a large carrying capacity. Alternatively, you can team up with several private car owners. In some regions of Russia, cargo transportation in open Gazelles is common.

3. Rent an office or purchase premises for it.

However, with modest plans, you can limit yourself to your own apartment and garage.

4. Hire workers.

The following specialists will be needed: drivers, loaders, mechanics, lawyer, accountant, dispatcher. Moreover, one employee can combine several responsibilities at once.

5. Open a bank account.

6. Competently draw up a contract with the customer for transportation.

Cargo transportation: types, conditions, features

Cargo transportation is carried out both within the region and throughout Russia and between different countries.

In the case of delivery of goods between regions, even if the vehicle does not cross state borders, special permission is required for the movement of heavy and large cargo. After it is received from the territorial road authorities and approved by the traffic police, a pass is issued for the right to move freight transport.

When moving cargo between countries, much more permitting documents will be needed.

In addition to road transport, rail, sea, river and air transportation are widely used. The most cost-effective and speed-of-travel option is road transport. It is more profitable to use the railway one when the delivery point is located at a considerable distance from the main roads and under any climatic conditions. Sea and river transport have low cost of transportation. Air transportation is most often used when there is a strict time limit or the impossibility of other access to the destination.

Conditions for moving goods may vary between companies involved in cargo transportation, but the contracts usually stipulate the following:

place of departure and delivery;
names of all persons and companies involved;
product characteristics;
description of the means of transportation;
contract price and payment procedure;
deadlines.

When drawing up a contract, it is also necessary to provide for all the specifics of transportation, including the route. Agreements can be signed both for a single supply and for a sufficiently long period of time.

It is worth remembering that all financial responsibility for the duration of the route falls on the owner of the vehicle.

Drivers who will deliver dangerous goods, such as compressed gases, explosive or toxic materials, must obtain a special permit in accordance with the established procedure.

Usually, in order to arrange a trip by vehicle, in addition to the contract, you must have the following documents:

waybill with information about the driver and business owner, the make of the car and its characteristics, permission and assignments for the driver, as well as a note about his pre-trip medical examination;
waybill and order receipt;
compulsory and voluntary insurance in case of property damage.

Freight dispatcher: home business

One of the options for a business idea for cargo transportation is to organize it without having your own car. In this case, the dispatcher, whom shippers contact, looks for the appropriate transport for a specific product, negotiates the terms of transportation, its cost, and creates the desired route. And after the work is completed, he receives his agreed percentage of its total cost.

To work as a dispatcher, you do not need special education, just communication skills, attentiveness, and perseverance. It is also important to have a calm, stress-resistant character.

You can start a business in your apartment, having only a computer with the Internet, a telephone and a fax. But you still have to register as an individual entrepreneur. It is also necessary to draw up a business plan for a freight dispatch service.

How to open an individual entrepreneur for cargo transportation

The process of registering an individual entrepreneur for cargo transportation is almost the same as for regular registration and consists of submitting the following papers to the tax authority:

statement;
receipt of payment of the duty;
a copy of the passport pages with your own data and registration of place of residence;

OKVED code for cargo transportation you can choose the following:

63.4 “Organization of cargo transportation”
60.2 “Other land transport activities”

Moreover, individual entrepreneurs for cargo transportation can be registered not only in personal presence, but also by power of attorney certified by a notary. Along with the cost of paying the fee, you will need to order a personal stamp for documentation and open a bank account.

A great help for a newbie in cargo transportation will be drawing up a well-thought-out business plan. Since everyone’s initial conditions are different, everyone will have their own business plan. But the average option includes the following:

General overview section. It describes the form of the business, goals, and relevance of the project.
Description of activity
Analysis of the cargo transportation market. This section provides an overview of the market in this segment in the region, analyzes the shortcomings of competitors and offers its advantages.
Production work plan. It discusses the sequential steps to complete the work, the expected risks, and a description of the necessary resources.
Project costs. All current and expected expenses, income and calculation of efficiency and payback are described.

How much can you earn from cargo transportation? Depending on the tonnage of the vehicle and the nature of transportation, you can receive from 50 thousand rubles per month. You can download an example of a ready-made business plan for cargo transportation for individual entrepreneurs.

Ready-made cargo transportation business

Many entrepreneurs are ready to buy a ready-made cargo transportation business rather than organize it from scratch. As a rule, the established business already has a fleet of cars that employ drivers and dispatchers, a base of regular customers has been established, and some contracts have even been concluded for a long period. The only thing that is needed from the buyer is an investment of money and further competent management.

If you have no experience in managing cargo transportation, then it is best to start at the intracity level.
Needs to be installed long-term relationships with clients, since this will not only provide you with regular orders, but will also give you additional advertising.
Always ask from large clients letters of recommendation. They will serve as a good guarantee of reliability.
An excellent option would be creating your own website or. This will convince potential customers that the company is serious.
Four components can lead to continued success: quality of transportation, a more attractive price for customers, safety and meeting delivery deadlines.

Useful articles

Cargo transportation is a fairly promising type of activity. People living in villages, big and small towns use the services of transport companies or individuals to transport things and cargo to different places.

At the moment, cargo transportation is in great demand in our country, so the number of companies offering their services in this area is growing every day. If you want to get into this business, you need to take your place and try to organize work in such a way that it generates income, to create conditions that are radically different from the conditions of competing firms.

Cargo transportation: business from scratch

This is quite a troublesome and costly matter. In order to start work, you will have to acquire your own vehicle. If you are limited in funds, then a car like a Gazelle or something like that is quite suitable for the first case.

What is the job? At the first stage, a written agreement is concluded with the client. The next step is packing goods and belongings. Timely delivery plays a big role in this matter: if you miss delivery deadlines even once, the company’s reputation will suffer, and then you will have to earn a good name for the company again. Unpacking and putting things in place - this work is performed upon additional agreement with the customer.

How to open a freight transportation company so that the business brings real benefits? Transportation is often carried out by everyone who does not know what to do with themselves. They put the dispatcher on the phone, take orders, but are in no hurry to fulfill them. The cost of work very often does not coincide with that stated in the agreement, so people are dissatisfied with the work of such “firms”. The final amount is sometimes announced only when things have already been unloaded and the client has to pay the announced amounts. To avoid such mistakes, you need to organize your work honestly towards the customer. Only then will people use the services of your office, and it will generate good income.

The relevance of this type of business

The relevance of cargo transportation in the modern world is difficult to overestimate. Transportation services are in more and more demand every year.

Until recently, the customer had to wait for his cargo for several weeks, or even months. Now the situation has changed radically. People began to value their time more. Therefore, we try to deliver luggage as quickly as possible. Regardless of the purpose of delivery, the relevance of transportation is growing at a rapid pace.

It is difficult to even imagine what will happen if the freight market ceases to function for any reason. Life will come to a standstill, especially in big cities. Essential goods and food products will not be delivered, and medicines will disappear from pharmacies. This list can be continued indefinitely. Therefore, the importance of cargo transportation in the modern world cannot be underestimated.

Basic goals

Competent organization of transportation by vehicles of various types.
Delivery of commercial cargo.
Office, apartment, country, industrial moves.
Transportation of large-size cargo.
Providing trained personnel for loading and unloading operations.
Providing services for forced storage of goods.

The most important thing is to have perseverance and strive to achieve your goals. Confidence in yourself and your capabilities is also not in last place.

Company registration and taxes

In order to open a freight transport company, you need. If you plan to deal with small-tonnage transportation, your fleet will have several small Gazelle-type vehicles, and your staff will have a small number of employees, then in this case you can.

You will need to pay a state fee and collect a package of necessary documents. The tax office will give you a list of them. Then an application in the appropriate format is submitted here. It should contain your passport details, a telephone number where tax officials can contact you if necessary, and. All these manipulations can be carried out by you personally or through a trusted person.

Every registered carrier must pay taxes to the state treasury on time. In order for taxation to be optimal, the following factors must be taken into account:

the scale of the future company;
types of transportation.

For sale.

Coffee machines as an easy way to earn money. about the features of vending.

Types of taxation for cargo carriers

. This is the most acceptable option. It means the following: you can pay 6% of the company’s total income or 15% of income minus expenses.
General system. This is not the best option for small businesses. In this case, you must pay all taxes. In your case, this will be a direct road to ruin.
. It can only be applied if your fleet has no more than 20 cars. If you cannot choose a taxation system for yourself, then the regional authorities will automatically transfer your company to a single tax.

In order to earn decent money, make every effort to switch to a single tax. Don’t forget to pay the state in full, and most importantly, on time. There is also a Pension Fund, to which you will also have to make contributions. The amounts of contributions to the Pension Fund often change, so it is necessary to constantly clarify the figures that are transferred from the accounts of your company.

Where and how to open a transport company?

Selecting a room

You cannot do without an office space in which the dispatch service will be located.

The premises can be rented. The choice of its location must be taken very seriously. Saving money by working from home will not achieve good results. The “home” level of work will not bring much income. If you do not have the funds to rent your own premises, you can rent an office in a call center. This will require less cash investment. The dispatch service can be located on 20 square meters. meters.

The office needs to be set up. Dispatchers must have computers or laptops at their disposal. Having a printer and scanner is a prerequisite. Without a landline telephone, work will not be carried out at the proper level. Having two telephone lines is a huge advantage for the company. Employees' mobile phones will be used no less. It is advisable to purchase a walkie-talkie for conversations between drivers and the dispatcher - it is convenient and inexpensive.

Recruitment

A company that plans to engage in cargo transportation must have dispatchers on staff - at least 2 people. Their main quality should be good diction, excellent memory, communication skills and the ability to think logically.

A good manager will help to properly organize the work of the enterprise. A competent accountant will maintain all the company’s documentation, and there will be a lot of it.

A prerequisite for successful work is effective advertising. Therefore, an advertising manager will also come in handy.

Buying cars

Business in this area begins with the purchase of a car. When choosing cars, you need to clearly understand for yourself what goals you set for yourself and what means you have. Used foreign cars are more reliable than domestic cars and are more convenient to use. But Russian cars are much cheaper to repair. At the same time, imported cars break down less often.

Which car to buy is up to you. Gazelles are often purchased for cargo transportation within the city. Thanks to their maneuverability, they cope well with assigned tasks in urban areas. Gazelles are fuel efficient and inexpensive to maintain.

If you plan to transport products, tilt vehicles are suitable for this purpose. For large volumes of cargo, vehicles with additional trailers are suitable - in this case, the carrying capacity will increase to 24 tons. For perishable products you need to buy special refrigerators or isothermal vans. For transporting furniture or office moves, the Russian-made Zil-Bychok machine is indispensable. This car will go where a large truck cannot go.

Which car should I buy to develop my freight transportation business? This question is individual. One point is worth remembering for sure - in order to provide quality services to the population, it is necessary to have an appropriate fleet of cars.

Road transport services for cargo transportation

It is very important if you can organize the work of a company that will provide clients with a full range of services. It will be nice if you provide the customer not only with a suitable vehicle, but also with loaders.

Companies that specialize in this area provide the following services:

cargo insurance;
services for customs clearance of documents;
office, country house, apartment moving;
transportation of oversized and heavy cargo;
transportation of dangerous and especially valuable things.

In order for the quality of services to be at a high level, it is necessary to adhere to the following rules:

develop a clear route;
calculate the cost of the entire procedure;
prepare the necessary documentation;
carry out continuous monitoring of the movement of cargo along the entire route.

Marketing plan for company development

Before you begin the paperwork for starting your own business, you need to have a well-developed marketing plan. What does this include?

Conducting an active advertising campaign that will fully highlight the services provided by your company. In this case, it is necessary to attract local media, design and distribute the company’s business cards as much as possible.
In the near future, try to attract as many clients as possible and interest regular customers with advantageous offers and bonus discounts.
A clearly developed enterprise development strategy, which will outline effective measures to promote and develop the business.

A well-developed marketing strategy and the right tactical actions will take your company to a leading position among similar companies in the region.

Marketing research is necessary before drawing up a detailed business plan for the transportation of goods. This data will be the basis for the successful operation and development of the enterprise.

Financial questions: is it profitable to engage in cargo transportation?

You must understand that preparing a detailed financial report to create a trucking company is unrealistic. To obtain specific figures, you need accurate data on the state of the future enterprise. An approximate picture will look like this:

"Gazelle" will bring about 10 thousand rubles of net profit;
“Zil – Bychok” - 20 thousand rubles;
a machine with a carrying capacity of 5 tons will give a profit of up to 25 thousand;
truck - 100 thousand rubles.

These figures reflect the picture of an enterprise that regularly pays taxes and salaries to employees.

If you plan to start a business by purchasing 2 cars, you will have the following expenses:

costs for the purchase of cars - 900 thousand–1 million rubles;
machine repairs and fuel and lubricant costs – 40–45 thousand rubles;
rental of premises – 10 thousand rubles;
boxes – 10 thousand rubles;
salary to employees - 40 thousand rubles;
advertising – 15 thousand rubles;
other expenses – 30 thousand rubles.

Thus, you will need about 1 million 200 thousand rubles. This is provided that you have 1 dispatcher, 1 driver and 1 loader on your staff.

If you need to attract a second car, you will have to drive it yourself. Accounting reports will be kept by a specialist from another company. This scheme of work assumes an income from one car of 30 thousand rubles. per month.

All your expenses will pay off no earlier than 1.5–2 years. If you use rented cars, this period can be halved.

More accurate calculations depend on many factors. So, one of the main components is the location of the company.

Drawing a conclusion, we can say that organizing a small-tonnage transportation business is a profitable and promising business that novice businessmen should pay attention to.

Freight transportation is a fairly popular activity in Russia. In 2019, the flow of cargo in a variety of directions will not decrease, but will increase. What are the prospects for the owner of a Gazelle to organize his own small business and make money from it? The selection of 10 business ideas and analysis of their profitability suggests that there are profitable niches in the field of cargo transportation, but commerce on small-sized transport has its own specifics.

Income, expenses, business nuances

The profitability of a Gazelle business depends entirely on the flow of customers. Attracting them, keeping them and making them talk about themselves in a positive way is the main task of a novice entrepreneur. To inspire trust, it is necessary to register an individual entrepreneur on a single tax or patent. A respectable clientele will not entrust valuable cargo to a random driver, and one-time orders will not bring the desired profit.

To figure out how much money you can actually earn per month on a Gazelle, here are some simple calculations of the costs of its maintenance and service:

* Fuel consumption of the Gazelle is approximately 150 liters per 1000 km. With an average monthly mileage of 3000 km, gasoline costs will be 150 * 3 * 38 = 17,100 rubles.

How much can you earn on a Gazelle? In cities with a population of over a million, the price of a trip is 400-500 rubles per hour, in the regions 350-450 or 12-15 rubles. for 1 kilometer. If you work 8 hours a day, your earnings will be 3,200 rubles or (for 22 working days) 70,400 rubles. per month. Taking away the costs of gasoline and maintenance (23,200), we get the amount of net income: 47,200.

Important! If you use this money to pay a salary to a hired driver, the business will not pay off soon. Profitability is based on the fact that the car owner sits behind the wheel.

For the owner of a Gazelle truck, finding clients becomes problematic in the new 2019. Firms, shops, transport companies themselves offer delivery - the old proven channels no longer work. Russians are accustomed to the fact that there are many offers and plenty to choose from: the requirements for the carrier entrepreneur have grown.

Since 2010, Russian business has been moving to the Internet: freight transportation is no exception. Counting on a flow of customers without using new attraction tools is difficult. In 2019, ideas based on a combination of traditional and new trends are in demand.

1. Cargo taxi

The simplest idea today is to register with a dispatch service that works like a taxi. It’s convenient to work on orders that are found by specially trained people. There are similar mediation services in every city.

Pros: the dispatcher creates a flow of clients, there are no advertising costs, there is no downtime, no time is wasted searching for customers, you can register with several similar organizations at once.
Cons: income from one order is reduced, since part of the earnings (10-15%) will have to be given to an intermediary.

Another idea for organizing a business without hassle is to become a partner of one of the transport companies (TC) operating in Russia and the CIS countries. They are interested in a small transport with a driver who will transport the cargo from the TC branch directly to the destination, and offer loyal conditions for cooperation.

Organizing your own business is a great opportunity to become independent from an employer, work for yourself and make a good profit. But not everyone knows where to start a business or how to calculate the possible profitability of a business. This article reveals issues related to organizing your own business for transporting goods on Gazelle.

Any business should start with developing a business plan. The further process includes several points:

Development of a step-by-step transportation plan, taking into account the nature of the goods being transported, the type of vehicle and other important conditions.
Preparation of necessary documents and contracts.
Buying a car or repairing an existing vehicle.
or the tax authority.
If necessary, rent office space.
Hiring workers (locksmiths, loaders, drivers) – if necessary.
Promotion of services through advertising.

A business plan can be divided into the following points:

Determining the nature of the goods transported.
Organizational component.
Financial component.
Marketing.
Risk analysis.

What kind of cargo can you carry?

First, you need to decide what you plan to transport on the Gazelle and, based on this, purchase a car. So, what can be transported using this vehicle:

Delivery of various food and grocery products. A van is ideal for this purpose.
Transportation of household goods, as well as various building materials and furniture. For this, it is best to choose a car with an awning.
Transportation of various goods for trade in rural areas. In many remote villages where there are no shops, this activity can be very popular.

Of all the above options for using the Gazelle, one of the most affordable and with a good return on investment is the transportation of furniture. You can start doing this business from scratch; a Gazelle with a long platform, covered with an awning, is best suited for this type of activity.

Organizational plan

Market analysis. At this stage, it is important to study the local structure of freight services. Most often, this market has quite tough competition. The lion's share of transportation is carried out by large companies (usually about 50%), 20-25% of the market is accounted for by medium-sized companies, 10-15% is carried out by narrowly targeted transportation, 5-10% is accounted for by private owners with a personal car. When researching the local market, you can use the Internet and local print media.
Registration of individual entrepreneur or LLC and choice of taxation system. At the initial stage, registering an individual entrepreneur will be enough, but over time, it is often more advisable to register an LLC. To register a company, you will need a decision on establishment (or an agreement on establishment, if there are 2 or more founders), minutes of the meeting, a receipt for payment of the state duty and an application in the prescribed form. To register an individual entrepreneur, a passport and a receipt for payment of the fee will be enough.
Selecting a room for a control room, as well as buying or renting a garage for a car. If the delivered goods are intended to be stored for some time, then it is necessary to consider the issue of renting a warehouse.
Purchasing a work vehicle. This is often the most expensive part of the expense. To reduce costs, you can take a closer look at used cars, but the car must be in working order and not have serious problems. A good option is vehicle leasing. Leasing terms usually require payment of 20% of the cost of the car with its further purchase.
Recruitment. At the initial stage, you can independently accept orders, be a driver and a loader, but in the future there will be a need to hire employees.

To learn how to start such a business, watch the following video:

Financial part

Approximately this part of the business plan might look like this:

Expenses

Purchasing a vehicle. If you plan to purchase two vehicles (this is the best option for establishing continuous operation), then this expense item will be approximately 1,000,000 rubles.
Office space rental – prices vary depending on the region and location relative to the city center. The approximate amount for a small room is 15-30 thousand rubles per month.
Rent of boxes - about 10,000 rubles.
Purchase of fuels and lubricants - with continuous operation, this amount is about 40,000 rubles per month.
Costs for car repairs (owners of used cars should pay more attention to this item).
Advertising – minimum 10,000 rubles per month.
Other expenses – about 20,000 rubles.
Labor costs at the initial stage are about 30,000 rubles.

As a result, we get a sum of about 1,120,000 rubles. This is the start-up capital that you need to have when starting a business.

Income

Approximately monthly income will be 150 thousand rubles, of which about 50 thousand is net profit. Thus, business can pay for itself in 2 years. If the vehicle is leased, the payback period ranges from 3 months to six months.

It is important to consider that at the initial stage there will most likely be few orders. It takes about 2-3 months to develop a customer base and have regular orders.

Marketing part and advertising

This part is very important when starting any business. In fact, all entrepreneurs should do marketing research before opening a business, in order to understand the state of the market for certain goods and services, and whether it is worth engaging in this activity.

When doing marketing research, it is important to get answers to these questions:

Which organizations are the main competitors.
What vehicles are used by competitors for transportation.
What are the competitors' prices?

Only after a thorough study of the market situation should you decide to open a business.

After the organization has already been created, a car has been purchased, and workers have been hired, you can begin advertising services.

Advertising

In the case of cargo transportation, the most effective actions to attract customers will be in two ways:

Active advertising.
Interaction with partners.

Advertising can be posted in the form of notices, submitted to local media, or posted on the Internet. It is periodically necessary to change advertising methods to expand your customer base.

How does collaboration work? Everything is quite simple here. If you have one machine, then sometimes you are simply not able to fulfill all orders. By collaborating with the same private owner, you can give orders to him. And he, in turn, will transfer orders to you when he cannot fulfill them.

Risks

When developing a business plan, it is very important to include possible risks in it. We list their main types that may arise when providing cargo transportation services:

Risks that may arise as a result of using vehicles in poor technical condition. If there are frequent breakdowns, you will have to allocate additional funds for vehicle repairs. In addition, machine downtime increases, which makes it impossible to make a profit.
Organizational risks are associated with issues of approach to searching and customer service. A well-thought-out advertising campaign, discount systems and contracts with regular customers ensure a constant influx of customers. If done incorrectly, orders will be few and profitability will be low.
Risks associated with competition and dumping. It is important to know that large companies can sometimes afford to significantly reduce prices for services for some time and organize promotions, while a private entrepreneur cannot do this.
Risks associated with personnel selection. Don't think that a good employee is easy to find. Quite often you can encounter situations of periodic refusal to go to work for various reasons, work on third-party orders using your car and other troubles. To avoid unpleasant situations, it is good to have several available drivers and loaders who can replace each other.

Freight transportation services are a business that definitely will not disappear in Russia. Naturally, for this you need to have a thoughtful plan and good capital to start.

Transporting furniture, moving apartments or transporting large 82-cubic-meter cargoes - all this cannot be done without a truck.

Therefore, at the initial stage, you should take care of transport. In addition, there are a number of significant factors on which the profitability of the company and its relevance in the market depend. How to draw up a business plan for a freight transport company, read our article today.

Registration of a license

Initially, your company must be licensed, otherwise all transportation you carry out will be considered illegal. This is subject to a fine, the amount of which reaches several hundred thousand rubles. Legalization of a business involves the preparation of various documents in all necessary authorities. As a rule, this document is issued to the entrepreneur within no more than 30 days.

And if in Russia the opening of an individual entrepreneur for cargo transportation is accompanied by obtaining the appropriate license without fail, then in Ukraine it is quite the opposite. Several years ago, the issuance of licenses there was officially stopped.

In order to open their own company, Ukrainian entrepreneurs do not have to go through various authorities and wait for these permits to be issued. On the one hand, this is a big plus for “private traders”, but on the other hand, cargo transportation as a business in Ukraine will soon go “into the shadows”. This is especially true for apartment and office moving: there have been a lot of announcements about services using GAZelles without a license number lately.

Organizing cargo transportation: where to start a business? Calculation of tariff and payment for freight

After completing the documents, a column such as tariff should be included in the cargo transportation business plan. Most often, this value is measured in rubles divided per kilometer. In order not to scare off the customer and at the same time not to make a loss, you need to correctly draw up the transportation tariff. This must be done based on the volume and carrying capacity of the vehicle you have in your fleet. For example, if it is an 86-cubic-meter truck, its optimal tariff will be 35-40 rubles/kilometer. 10-ton and 5-ton trucks charge from 20 to 25 rubles/km on average.

GAZelle currently operates for interregional transport at a price of 15 to 20 rubles/kilometer. And how much office and apartment moving will cost should be calculated based on the city area. Here, even with the same distance, the cost may differ by 1.5-2 times. In order not to rack your brains over this, you can simply look at the website of a competing company and find out there how much GAZelle owners charge for moving in a particular city.

Before you start a trucking business, keep in mind that most of the profits you make will go towards maintaining the vehicle. For example, on 20-ton trucks, the cost of fuel and spare parts can be about 55-60 percent of total revenue (that is, net profit from 1 kilometer is approximately 15-20 rubles).

How to search for orders?

Of course, in a big city you won’t have problems finding orders, but due to the competition that has arisen in the market recently, sometimes you have to fight for a client. To increase your chances, you first need to place an advertisement (we will talk in more detail about marketing moves a little later). You can also try to cooperate with dispatch and intermediary firms.

Such companies will definitely have suitable orders and constantly provide you with work. For cooperation, dispatch firms often charge a fee of about 10 percent of total revenue. At first glance, this is quite a lot of money. However, given that the net profit per day will be several hundred dollars, 10 percent will seem like a trifle against this background.

About the documentation

When organizing cargo transportation, the legal side of the issue should also be noted. If you want to take a certain share of the market, you should enter into contracts with clients for the provision of services (tenders). This document specifies all agreements on your part and on the part of the customer. Thus, when concluding a tender, you will be provided with permanent work for quite a long time (most often the agreement period is from 6 to 12 months).

It is important to be able to correctly draw up contracts and fill out invoices. The customer’s trust in your company, and possibly further cooperation, will depend on this.

Working staff

Any transportation of cargo, even the smallest, is accompanied by loading and unloading. If this is a small-tonnage vehicle, for example a GAZelle, then at first you can handle the work of a loader yourself. However, it is worth considering that moving an apartment may involve loading not only a TV and a pair of bedside tables, but also larger items that can only be lifted by 2 or more people.

Therefore, it is best to hire an assistant. If you carry out cargo transportation daily, and this is your main income, it is advisable to have several employees (loaders) in your company. For frequent orders, you can set a constant payment. However, freight logistics shows that it is best to pay labor based on output (i.e., how many orders are made, so is the salary). It happens that in one month you will carry out 20 apartment moves, and in the next - no more than 3.

Provision of warehouse services

Some companies are engaged in specifying not only transport, but also warehousing services. In this case, you simply cannot do without special loading equipment. Here it is worth taking into account additional costs, such as renting or purchasing premises, as well as servicing the equipment itself, which loads/unloads cars in the warehouse.