Want to learn how to start a transportation business in India? Our comprehensive guide provides step-by-step instructions on legal requirements, business types, funding options, and marketing strategies to help you succeed in the competitive industry. Start your journey towards transportation entrepreneurship today!
If you’re looking to start your own business with a small investment, then you’ll want to check out this unique opportunity. For just Rs 50 Lakhs (USD 62K), you can start a transport business that comes with its own fleet of small carriage vans. This is a great way to get started in the transport business without having to worry about the large upfront costs.
The logistics business comes with a number of advantages. First, it’s a very scalable business. You can easily add more carriage to your fleet as your business grows. Second, it’s a very versatile business. You can transport a variety of goods, including perishable goods. Third, it’s a relatively low-cost business to operate. You won’t need to spend a lot of money on fuel or maintenance.
If you’re looking for a transport business with a small investment, then this unique opportunity is definitely worth considering. With its own fleet of small carriage vans, it’s a great way to get started in the transport business.
Who can do this Transportation business?
Anyone with basic entrepreneurial skill can start it, in this article I propose this business to all Indians and to NRIs.
If you live in USA, UK, and some other developed countries and are engaged with assignments that is giving you high pay packet, and that helped you accumulate a good amount of disposable wealth, in that case you must look back to India again, your motherland has kept the door open, and a bouquet of opportunities are waiting for you.
What is stopping you come back to India?
It must be your high pay packet and the quality of life you are enjoying now! You think that is impossible for you in India. That is an underestimation, it is possible, and even can go much higher than what you earn today.
Check this simple business idea, how 62K USD investment in India can earn you 3 lakhs per month right from the very first month of business commissioning. And with this you will generate thirty-seven jobs.
Read the article to understand how you can start the transport business and what investment is required. Try this easy to implement small truck business.
Have confidence on India, we are strong and continuing to be stronger day by day. We managed covid well, 140 crore people supported each other like family members, our government could hold tight the economy to prevent collapse, and now after covid the domestic trade is trending skyrocketing to bring the growth trajectory back.
Do you know, we just crossed USD 2000 per capita income…the history says when a nation cross 2000 USD per capita economy booms as it happened in China, Indonesia.
It is said that the development of an area is always driven by its transportation capability. You must be aware that the government of India is giving optimum focus on logistic and roadways development (Please do not politicize this outlook), eventually the local commerce is getting strong across the country.
Why transport business is a good pick?
Today we will see how a small format intra city logistic business can bring fortune to our entrepreneurial endeavors. As I mentioned small trucking, hence less than one-ton carriage capacity three-wheel motors will be the center point of this business ideation.
Please note, that Indian logistics is expected to grow at an 11.5% CAGR, the industry will reach almost USD 380 billion by 2025 from the current USD 250 billion, in this, 10% to 15% is contributed by intracity logistics which is dominated by small carriage vans.
Before we deep drive let me classify different carriage vans in India, i.e. less than 1 ton, 1-2 ton, 2-3 ton, and more. Under one-ton carriage types are three-wheelers like Piaggio Ape, Bajaj Maxima, please see the image below for better understanding.
- Small truck business
You must have heard that the transport business is not everyone’s cup of tea, in fact, I must say business is not for every Tom, Dick, and Harry, if you have the capacity to be an entrepreneur (appetite to take financial risk and passion) you are welcome to be an entrepreneur. I fully agree that business is a risky deal, we all know the results of a business come in two forms (Excluding the so-called “valuation” form of today’s startup model), and we hate the loss part but sometimes that becomes harsh reality.
How to start a transportation business with minimum risk?
- Please form a Private Limited company (Avoid ownership form of business). Hope you know the difference between the ownership and private limited, for the former all the liabilities are yours, and in the latter with the company (If you do a clean business).
- Please deploy INR 50 lakhs.
- Start with 30 carriage vans. You can get 10 vans with our own money that will cost you 30 Lakhs, and the rest 20 on lease/hire from individuals (fund your 40 friends and family to buy 1 van individually, fund them with 50 thousand each for down payment, take the liability of EMI)
- You will still have 10 lakhs in hand.
- Continue for one year and build up your balance sheet, in the preceding year go for funding or loan from the bank and add 30 more carriage vans, launch a new city.
Things to keep in mind before you start a transportation business.
- Please have an office, a space for garage with four mechanics, four extra drivers, accountant, coordinator, sales executive, and you. You can manage Pvt Ltd’s mandatory compliance by outsourcing (There are companies plenty on the internet)
- Please focus on digital marketing and physical marketing, you can outsource digital marketing and must focus on restricted geography. The sales executive will visit trade to trade to create awareness (Never stop this).
Is transportation business profitable?
The transport business is profitable in India, you can easily earn (after all expenses) rupees twelve hundred per day per carriage van, provided you manage to pick up daily bookings as required.
You are starting a Pvt Limited company with 50 lakhs only and deploying thirty carriage vans. Ten are yours and the other twenty are from your family members, relatives, and friends (you are supporting them in taking a commercial vehicle under individual bank finance, and also you are taking complete responsibility to maintain EMI).
Earning
- Revenue: Rs 2000 daily X 30 Vans X 30 days = 18 Lakhs monthly.
Costing
- Salary: 37 Manpower X 15,000 average salary = 5.55 Lakhs monthly.
- Garage: 1000 Sq Ft space with shed will cost you 50 K rental monthly
- Others: Office rent and Operational expenses 50 K per month
- Fuel and maintenance: 40% of revenue i.e. Rs 800 X 30 Vans X 30 Days = 7.2 Lakhs monthly
- EMI for 20 Vans: Rs 6500 X 20 Vans = 1.3 Lakhs (5 years term, and Rs 2500 EMI per lakh) [ On road price of a 3-wheeler carriage Van is 3 lakhs, as you are funding 50K down payment for each so EMI will be on 2.5 Lakhs]
The margin is coming to around 2.95 Lakhs a month. ROI is less than 2 Years.
If implemented well this unique transport business can surely build a high profit, sustainable and scalable business within a very short time.
Hope you have understood how to start a transportation business, if you have any questions in mind can write to me.
Conclusion: Starting a small trucking business can be a great way to get into the transportation industry with a relatively small investment. There are a few things you’ll need to get started, including some basic business licenses and permits. You’ll also need to find some clients and get your truck insured. With a little bit of planning and some hard work, you can have your small trucking business up and running in no time. And, with a little bit of luck, you can start turning a profit in no time as well.
Ossume ideas sir great job