Re: Starting up a Transport Business Quote:
Originally Posted by TheARUN One piece of advice - "If your itch is to own a vehicle, then buy one and attach it to some Agency. If your itch is to run the business, then don't buy vehicles, get them attached to you" |
This is very right as I talk with big transport agancies in my work. Couple of them have only 30% owned fleet. Rest of them are attached. When you are 100% sure of a consistent load to planned destinations , you can buy your own fleet but the sad thing is unless its a contract* you can never.
Hearing this just dont be disappointed. If you are really serious do the following. - Get in touch with lorry brokers of all major industries near your region.
- Make a questionnire, interview atleast 15 major and 60 small timers. Get the trend. [ Being an MBA grad, take this as your STP]
- Understand from the response where the truck fleets are coming from other than those owned by drivers in short the funder.
- Meet the capital investors of the truck fleet. Interview them.
- Understand on the returns.
Cross check your figures with more people in the industry.
Take the plunge or walk away from the water in search of better spot.
* Qty Contracts wherein the only work is transfering load from point A to B PS : I know someone in your family is into the related business but first hand knowledge is +++must when you are planning to invest your own capital. Never depend on a single source of information when your capital is at stake. |