Many people dream of opening their own business and starting to work for themselves. But as you know, desire alone is not enough; many nuances must be taken into account. The crisis and unstable economic situation in the country lead to the fact that many enterprises cease their work and become bankrupt. Starting your own business in our time is quite difficult, but it is quite possible, and this is proven by successful entrepreneurs who earn good money despite the crisis.

You can make money in almost any field of activity; alternatively, you can open your own, or start with something simple, for example, transporting goods.

In this article, I want to discuss a pressing question for many: where to start a cargo transportation business? How to open a freight transport company?

Cargo transportation is a popular and stable way of earning money, which does not lose its relevance even despite significant competition in the market. Therefore, it makes sense to think about such an attractive income option.

Cargo transportation: business plan

Profitability of the cargo transportation business. First, you need to determine the relevance of the idea. In other words, analyze the degree of competition, the demand for the service and the amount of costs for opening a transport company. After that, draw appropriate conclusions about whether the cargo transportation business in your region is profitable or not.

Business registration

First of all, you need to legally register your type of activity. To do this, it is necessary to determine the material and legal form of the activity. At this stage, much will depend on your financial capabilities. If the starting capital is large and you plan to open a large transport company, then, naturally, you need to register as a legal entity. In this case, a suitable option is to register a limited liability company (LLC).

To transport goods on a small scale, it is much more profitable and easier to register as an individual entrepreneur.

Documentation process:

• Prepare a standard package of documents for individual entrepreneur registration;
• Pay the state duty in accordance with the law;
• Submit an application to the tax service and provide your passport data and activity code according to OKVED.

You can collect and prepare the entire package of necessary documents yourself or entrust this matter to an experienced lawyer.

Freight transportation scheme

At the initial stage, you need to analyze the market, determine the degree of demand for the service and competition in a given region. I would like to note that competition in the field of cargo transportation is quite serious. But, despite this, there is always a place for an honest, decent entrepreneur who provides high-quality cargo transportation services. Your main advantage is the provision of quality services at the best prices.

Rent or buy a vehicle?

As a rule, beginning entrepreneurs are content with little and, at the initial stage, personally provide cargo transportation services. Over time, naturally, it will be possible to open your own transport company and hire drivers.

Cargo transportation: types, conditions and features

Cargo transportation is divided into three types: movement of cargo within the region, throughout the country and international cargo transportation. International transportation is the most difficult. It will be necessary to prepare all documents for the transported goods, transportation permits, etc. But accordingly, the cost of transporting goods abroad is much higher. Therefore, choose the option that is most suitable for you, taking into account all the above nuances.

Conditions for moving goods

A contract for the transportation of goods is drawn up with each client. As a rule, this document stipulates the following points:

• Indication of the specific place of departure and exact delivery address;
• The name of all involved persons of the company that provides the cargo transportation service;
• Detailed characteristics of the product;
• Choosing a means of transporting cargo;
• Cost of the service with detailed calculations;
• The terms of delivery of the goods to the destination point are agreed upon.

In addition to the contract, you should have other documents available when carrying out cargo transportation.

Waybill. This document contains all the information about the driver and owner of the transport company. Also, the make of the car, the driver’s clearance and assignment of the route, a note indicating that the driver underwent a medical examination on the eve of the trip.

Consignment note and order receipt;

Insurance in case of property damage.

Freight dispatch office business plan

If you do not have start-up capital to start a cargo transportation business, then you can use a simpler way to generate income.

A dispatcher is a person who finds shippers, negotiates the delivery of cargo with vehicle owners, forms a route, negotiates all transportation conditions and delivery times for goods.

You can work as a dispatcher even from home. This does not require education or any specific work skills. Communication skills, responsibility and literacy will be enough. Your task is to establish yourself as an honest and responsible person who will not let you down. And then, with the help of word of mouth, you will gain regular customers and a good stable income.

Advertising

Trucking is a business that needs advertising, especially in the initial stages. Therefore, it is worth advertising your services in every possible way. Start with friends and acquaintances, tell them about your line of work and advise them to contact them if necessary.

Hello dear readers. Today, in the “Sharing Experience” section, Evgeny Mironov, a 20-year-old entrepreneur engaged in cargo transportation in his city of Angarsk with a population of 240,000 people, answered my questions. If you are interested in the cargo transportation business, then you will be doubly interested in learning from Evgeniy’s experience. In my opinion, the article turned out to be interesting! So, let's begin.

Hello, Evgeniy! What is the name and what does your company do? How many are already on the market?

Hello Nikolay! The company is called "Angarsk Freight Transportation Center". It has only been on the market for 5 months. Initially, when I started providing transport services, these were: special. equipment, minibuses, car rental, etc. But it turned out to be very difficult to advertise several services at once, so I decided to engage only in cargo transportation and providing the services of loaders and general workers.

The scheme of work is as follows. The client calls us, orders cargo transportation or loaders, we accept the order and give it to the order executor (driver or loaders) and receive a percentage of the order. In essence, it turns out that we are selling the client. We also provide services on an ongoing basis with full-time drivers with l/a. This makes it more profitable and safer.

Those. Are you essentially a simple dispatcher?

Well, basically yes, I’m an ordinary dispatcher who looks for cargo for transportation and hands it over to the driver. But on the other hand, no, because at the moment I have several cars that are already working on a permanent basis in the company. In general, I am gradually moving from the status of “dispatcher” to the status of “transport company”.

How many employees do you have?

Not much, we are a very small company, but we are growing quickly. Currently in the state:

• 1 dispatcher;
• 1 advertisement sticker;
• 1 contract driver with a personal truck;
• 4 loaders;
• 1 person on advertising, monitors the site, promotes, takes orders, etc.;
• and the rest from order to order.

Who are your main clients and what orders come most often?

Our clients are mostly private individuals, but now companies are starting to appear with whom we work for delivery to nearby cities. Various orders come in: to transport furniture from one apartment to another, to help rearrange some things, to deliver various goods from one point to another, etc. And there was even one interesting order, to translate a live hog :) Initially, of course, there was some fear: “What if something goes wrong, or an accident?” And while the cargo is traveling and in the car, I am fully responsible for it! In the end, we did a great job with this :) The client was happy! And this is the main thing!

Is this your first business or have you done something else before? How did you get into business in the first place and why business and not working for “Uncle”?

From early childhood I tried to work for myself, and I didn’t have a great desire to work for some “guy,” so when I was little I tried to sell something, carry passengers on my scooter for money, etc. Therefore, later in life there was no particular doubt about where to go and what to do.

I tried to do different kinds of business, but not always everything went smoothly, maybe because of my little entrepreneurial experience, but I’m constantly learning :) For example, I was also involved in slate making. Buying at a low price and selling at a higher price. To be honest, in my city this is an ideal business with almost no start-up capital. You only need to have a house with a plot, a couple of phones and advertising of course :). The business is mainly seasonal, so I had to look for something permanent and settled on cargo transportation.

Why cargo transportation?

There is no clear answer here. Maybe because you can enter it without initial funds and still get used to it as a dispatch office. Or maybe I’m just good at it.

What is the revenue/turnover or net profit of the business (on average)?

The average turnover depends entirely on you and advertising. As much as you work, you will get so much. When I first started, my average turnover was 3000-5000 rubles. in Week. Now, after many attempts, testing and hard work, the income averages 80,000-100,000 rubles. per month. I think this is a good result for just 5 months of work, without having a personal vehicle fleet.

What difficulties and nuances are there in your business and what did you encounter when you first started?

Like any business, there are difficulties and pitfalls. And, of course, I am no exception. The first thing that was difficult was the contracts with the drivers, they are the owners, why would they work for our low prices? There is also, of course, high competition in my city. Well, and constant monitoring of the condition of cars, drivers and loaders, so that it doesn’t happen that there is an order, but there are no workers.

Another difficulty was and is the recruitment of loaders. It often happened that a person completed a job, but did not give a percentage of the order, he simply disappeared and that’s it. Because of this, I often didn’t want to do anything and gave up. After all, really, you give a person a job, try to find orders, and he acts like a pig. We have to pass a lot of people through the company in search of adequate and responsible guys.

What plans do you have for business development?

As always, there are a lot of plans. I would like to buy a couple of my own cars, open an office and raise the income level by at least 2-3 times. We are also starting to work with companies. We recently entered into an agreement with a company for the transportation of household chemicals on an ongoing basis for payment on a weekly basis. The amounts there are completely different and it’s interesting.

The main ones are: Avito, Yandex.Direct, Google Adwords, banners around the city, business cards and posting advertisements. But the most important source of advertising is word of mouth. After all, we live in Russia and there has never been good service here. And we try to serve the client at a high level, we try to save his time and money, which is why we are often recommended to others.

What documents, permits and other formalities did you require?

If you just start, try, then documents and permits are not needed at all. If you have started earning money and want to work officially, do larger-scale advertising and work with companies, then you need at least an individual entrepreneur. I collected all the documents and went through the state. organs and everything. And in my work I only need contract agreements with employees. If I were transporting people, I would need to obtain a license, but in my activities I can do without it.

I think everyone should answer this question for themselves. After all, every person has a soul for different things. But I will say one thing, if you approach this type of business correctly, you can get good returns. And most importantly, this is desire and aspiration!

And lastly, give some advice to readers who also want to get involved in cargo transportation in their city.

Well, first you need a great desire and love for what you do. You also need to understand that quality of service is the best advertisement. When starting out, you should immediately decide what exactly you are doing: a dispatch service or, in the future, a full-fledged transport company. Next, you need to know how you will differ from others and wisely think through the prices for services.

I’ll tell you right away about advertising. Website and advertising work best in Yandex and Google. Posting advertisements only works when the whole city is covered and it is advisable to make the background of the advertisement red or yellow so that it is clearly visible that you are offering and a telephone number (preferably a home one, since it is quickly remembered than a mobile one).

You also need to hire workers, the more the better (so that it doesn’t happen that there is an order but no performers). It is also necessary to make special offers for legal entities, because... they generally generate more profit. Well, give the opportunity to choose payment: hourly, by mileage and by weight. Otherwise, try, experiment and everything will work out!

Thank you, Evgeniy, for answering the questions. Good luck in business!

Dear readers, if you have questions for Evgeniy, then ask them in the comments!

In this material:

If cargo transportation is chosen as an activity, where to start the business? Such an occupation was considered unpromising 2 years ago. Today, even a beginner has the opportunity to quite profitably transport goods and create a profitable business. This is a costly and troublesome task. Up to $10,000 is the amount of starting capital without purchasing trucks.

Trucking business concept

The market for in-demand freight forwarding services is continuously growing in Russia. The services of qualified logisticians are always in demand. The activities of industrial, trading and manufacturing enterprises are closely related to various types of transportation. How to start a business related to the transportation of various types of goods? You should navigate the market by studying competitors' offers.

Intercity and international flights are the most profitable type of cargo transportation business. In this market segment, the company is subject to more stringent requirements for documentation for technical equipment and technical conditions, but the prices for such cargo transportation are significantly higher than the average. Various options for organizing this business are possible. Without having your own car, you can implement a business idea for cargo transportation.

Cargo transportation as a business allows customers to purchase the necessary equipment and various types of equipment from suppliers, bring raw materials for production, and send goods to their customers. Cargo transportation is used by various modes of transport. Delivery by water transport, plane, railway or road transport is a popular service. Heavy and large cargo can be transported profitably and conveniently using rail or air transportation. Small consignments of cargo are transported using curtained vehicles. Clients value high-quality, reliable, prompt delivery during office or apartment moves.

Specifics of the cargo transportation business

In the mature market for forwarding services, there is a very high level of market competition, but entrepreneurs who have managed to occupy a niche and organize a profitable cargo transportation business have a stable high income. Small private firms account for about 60% of the cargo transportation market, the remaining 40% belong to large companies. An enterprising, enterprising entrepreneur can open a business from scratch in the forwarding services market, provided the right approach to organization is taken. When entering this business, significant amounts of start-up capital are required.

How to open a business related to freight transportation?

Within the framework of current legislation, you can register as an individual entrepreneur, the owner of a small company. An individual entrepreneur manages his business independently. How to open an individual entrepreneur? As part of the standard procedure, an individual entrepreneur is registered, which costs several thousand rubles.

The legal right to transport goods is given by a transport license. To freely cross the state border by cargo vehicles, you must obtain an additional license, which is valid for 15 days. The responsible person is given a power of attorney for the transportation of goods, a list of items being transported, a package of accompanying papers, and a waybill. These forwarding documents are necessary to carry out various types of cargo transportation.

To transport oversized or bulky cargo, the carrier must obtain a special permit. To officially open an individual entrepreneur for cargo transportation, you must obtain insurance for the cargo vehicle. A package of constituent documents is required to register as an object of taxation with the tax authorities. An entrepreneur must obtain a TIN.

Individual entrepreneurs involved in cargo transportation are exempt from accounting. Any enterprise is quite a risky business, so the various nuances of a cargo transportation business being opened should be taken into account by the main document drawn up by professionals who will help and advise on how to organize a business. A business plan is the main document of a future entrepreneur, which helps to assess their commercial opportunities. The success of a business related to cargo transportation primarily depends on this competent document.

The business plan should reveal the main problems of the activity:

• strategy and goal of the company's development;
• organizational issues;
• sources of start-up capital;
• order search options.

Part of the business plan is the financial side.

Smart startup

To carry out full-fledged cargo transportation, it is necessary to purchase cars. It is worth starting a business from scratch by purchasing reliable imported cars. A startup will be easier if the aspiring entrepreneur has his own freight transport. The location of the office is not critical. If you want to start cargo transportation, it is better to start the freight forwarding business by using one car. Where to start a business to earn a good income? It is important for carriers to avoid unprofitable idle runs.

A future entrepreneur should take care of hiring qualified workers for a cargo transportation business in a timely manner. Logistics forwarders help minimize transport costs. In accordance with the contract, these professionals perform insurance, storage, transhipment, and freight forwarding from the initial loading point to the final destination. These cargo transportation business specialists choose the optimal route, solve problems with customs clearance, and monitor the completion of documents.

To develop your business you will need:

• use of reliable cars;
• website with prices and descriptions of services;
• electronic digital signature;
• experienced drivers, several logistics forwarders.

In the first months of the company’s operation, when the client base has not been created, the work has not yet been established, and no one knows about the transport company yet, it is especially difficult for entrepreneurs.

If you organize your cargo transportation business correctly, you can soon make a good profit.

Order a business plan

	Investments: Investments 800,000 - 3,000,000 rubles. The GruzovichkoF company has earned a reputation as a reliable partner, because for more than 10 years we have been providing the highest level of service. We apply the principles of European business organization, therefore we are one of the largest companies engaged in transportation in Russia. Our company has a large fleet of vehicles, and we constantly monitor the technical condition of all vehicles, so each of our clients can be confident that…
	Investments: Investments 137,700 - 899,000 rubles. Why did more than 33 partners in Russia choose the Gruzchikov-Service franchise? Simple business = FOR THOSE WHO HAVE NO EXPERIENCE no need to purchase any goods no need to rent an office for the first 2 months no employees needed at the start Quick payback = NO RISK investment 157,700-257,700 rubles. payback 2-3 months business risk insurance Reliable franchisor = TRUST...
	Investments: Investments 6,500,000 - 10,000,000 ₽ The idea of ​​​​creating a wine bar with a high-quality assortment and reasonable prices was born to Evgenia Kachalova in 2013. After some time, which was spent understanding the holistic concept, searching for a suitable place and team, the first Wine Bazaar appeared in Moscow! In May 2014, the Bazaar on Komsomolsky Prospect opened its doors and guests immediately fell in love with it. Everyone liked...
	Investments: Investments 1,350,000 - 6,500,000 ₽ VodaTeplo® – sales, design, installation, warranty and service maintenance of heating systems, water supply, water treatment, drainage, smoke removal, ventilation, air conditioning, electrical safety, video surveillance, smart home systems. As well as plumbing, equipment for baths and saunas, fireplaces, bath accessories, equipment for swimming pools and swimming pools, chemicals for swimming pools and much more. VodaTeplo® - engineering systems. The most recognizable brand in our industry!!!…
	Investments: Investments 1,400,000 - 1,800,000 ₽ The Crown® brand was founded in 1986 in Canada. At the moment, more than 1000 integrated corrosion protection stations are successfully operating in the world. The unique product T40, which was specially developed by the company's engineers, allows comprehensive protection of vehicles from the harmful effects of the environment. The composition of the inhibitor is protected by a patent, production is organized only at the Krown® company plant in Canada. Every year more than 1,000,000 transport...
	Investments: Investments 2,700,000 - 3,500,000 ₽ We are a team of professionals with more than 10 years of experience in the food market. During this time, we have implemented more than 40 regional and federal projects in 15 different concepts. In 2017, we launched the “Bakery No. 21” project and now we manage a network of cafe-bakeries, which we want to expand, because we believe that our product is a new level in the world...
	Investments: Investments 29,500,000 - 47,500,000 ₽ “MU-MU” is a chain of democratic cafes in the free floy format with a distribution line, barbecue and bar areas, with dishes and drinks of home-made Russian cuisine familiar and loved since childhood. Currently, the network has 42 cafes, of which 6 cafes are open at airports as franchises. The first MU-MU cafe opened in 2000, it was a confident step towards…
	Investments: Investments 200,000 - 600,000 ₽ The SAMPOST courier service has been actively working in the field of cargo transportation and express delivery of documents and parcels throughout Russia, the CIS countries and the world for more than 13 years. We gained valuable experience, developed optimal routes and work algorithms. This allows us to reduce the time and cost of shipments for our customers. Experience and thorough knowledge of the market allow us to provide our partners with an effective algorithm for opening and…
	Investments: Investments 550,000 - 2,000,000 ₽ Open your own chemical production with NPK AtomHim! You will be able to produce products in your region: auto chemicals and auto cosmetics, antifreeze, antifreeze and antifreeze, household chemicals, professional liquid soap. chemistry for enterprises. You can sell it, offer the best price than dealers for similar products. The research and production company "AtomHim" has been working in the field of chemical production for more than 6 years.…
	Investments: Investments 300,000 - 1,350,000 ₽ LEGAL CENTER "PravoActiv" is a unified team of professionals in the field of jurisprudence, banking and insurance, sales and marketing. The MISSION of “PravoActive” is to help people solve their credit problems efficiently and at affordable prices. Working in credit consulting, we saw that a large number of people who were experiencing difficulties with loan repayments came to us. They wanted a new...

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:

1. 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.
2. Preparation of necessary documents and contracts.
3. Buying a car or repairing an existing vehicle.
4. or the tax authority.
5. If necessary, rent office space.
6. Hiring workers (locksmiths, loaders, drivers) – if necessary.
7. 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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

Any person sooner or later is faced with the need to transport any cargo. For individuals, this type of service usually accompanies moving, purchasing furniture, building materials or large household appliances. Manufacturing enterprises need regular delivery of raw materials, semi-finished or finished products, and trading companies need to fill retail stores with their goods.

When considering where to start a cargo transportation business, you can find that this niche in large cities is almost filled, and therefore entrepreneurs working here cannot boast of super-profits. On the other hand, studies show the presence of free demand in this industry, which even numerous offers from transport companies are not able to satisfy.

This need is associated primarily with the low quality of services and insufficient responsibility of individual market entities. It is logical to assume that an entrepreneur who successfully avoids such negative factors can provide his company with a constant high income.

Business Features

Road transport companies account for about 4% of the total volume of cargo transportation in Russia. Of course, this industry cannot compete with railroads in productivity, but for citizens and small businesses there is simply no alternative way to transport things, goods, equipment or raw materials over short distances.

Moreover, 80% of all road carriers are small firms and individual entrepreneurs with a fleet of three to five cars. This fact is explained by the availability of light-duty vehicles to the population: for example, a business plan for cargo transportation on a Gazelle requires an investment of only 1.1 million rubles, even when purchasing a new car.

When starting to organize a business, an entrepreneur must conduct some analytical work and assess the saturation of the local market for transport services. The easiest way is to use local newspapers and other media: just count the number of classified ads from other organizations to imagine the scale of the upcoming competition. Then you should find out how many cars the companies operating nearby have at their disposal, find out the tariffs for their services and the most popular areas of activity.

Finally, you need to consider the pros and cons of the trucking business so as not to miss the opportunity to take advantage of the advantages and avoid possible risks.

Listing the main advantages, it should be mentioned that:

• An entrepreneur can choose one or more of dozens of available areas and cooperate with both legal entities and individuals;
• The business has enormous development potential - as the vehicle fleet expands, the profitability and profit volumes of the enterprise increase;
• Unlike the transportation of passengers, transportation of goods in any volume does not require licensing;
• To reduce the initial investment, equipment can be rented or arranged under a leasing agreement.

Of course, the transport business is also characterized by certain disadvantages that further complicate the activities of the entrepreneur. So:

• The level of competition in this market segment is quite high;
• The operation of transport is accompanied by the need for constant repair and maintenance;
• The carrier is responsible for any damage to the cargo received during transportation.

Types of services

1. Companies delivering small cargo for private clients within one city and nearby settlements;
2. Firms that cooperate with trading enterprises and transport various consumer goods from city to city, as well as deliver distributor products to retail stores and warehouses;
3. Enterprises serving industrial or mining production, transporting various types of raw materials, semi-finished or finished products;
4. Intermediary companies that do not own their own fleet of vehicles and use the services of third-party carriers to service clients.

In the process of considering the question of how to open a cargo transportation business from scratch, you need to pay attention to the fact that the main service of the company in any case remains the movement of any objects over short or long distances. Depending on the type of vehicle, type of cargo and distance, all activities included here can be classified as follows:

• Transportation of goods. Includes delivery of furniture, household appliances, building materials and other goods for legal entities and private customers;
• Transportation of passengers. This type of activity involves servicing regular routes, transporting tourists and vacationers, as well as delivering employees of any enterprises to their place of work and back;
• Moving. The service is in demand among citizens and companies transporting things from one place to another - for example, to a country house, to a new apartment or to an office;
• Garbage removal. Most often, special transport is required to provide this service, but ordinary trucks can also be used to remove industrial, construction and household waste;
• Special transportation. This implies the delivery of specific, oversized, perishable or dangerous goods. For these purposes, tank trucks, truck cranes, refrigerators, low-loader trawls, tow trucks, timber trucks, etc. are used.

You can increase the profitability of your cargo transportation business and win the favor of customers by providing additional services that allow customers to save money, time and resources. This includes:

• Loading and unloading of goods by the contractor;
• Dismantling and packaging of things, furniture;
• Goods safety insurance;
• Customs declaration for international transport.

Documentation

Where to start a cargo transportation business? To operate legally and safely, an entrepreneur must register his activities in the prescribed manner by contacting the local tax office. For a company with one owner, it is better to choose an individual entrepreneur, and when organizing a business with partners, it is better to choose an LLC.

Registration is carried out on the basis of an application, which should indicate the passport details of the individual, his registration address, the desired types of activity according to OKVED and the preferred taxation system. After issuing the certificate, you need to open a bank account for non-cash payments, order a stamp for documents and register with various funds.

For any entrepreneur, it is logical to want to save on tax payments. Considering the existing taxation systems and the criteria that companies applying for their use must meet, we can identify two schemes that are most loyal to cargo carriers:

• USN. The simplified system is used in two versions: payment of 6% of the company’s total income or transfer of 15% of net profit (after deducting expenses). Since 2018, the use of the simplified tax system has been permitted for enterprises whose turnover for the previous year does not exceed 120 million rubles, and the value of fixed assets - 150 million rubles;
• UTII. In this case, there are no restrictions on turnover, however, the number of transport units at the enterprise should not exceed 20, and the number of employees - 100 people. The rate is calculated based on the base profitability of one car (6,000 rubles) and the actual number of cars. The advantage of UTII is the possibility of deducting insurance premiums of individual entrepreneurs and transfers to funds for employees from the tax amount.

Before you open a cargo transportation business, you must also order lawyers to develop a standard contract for the provision of transportation services. When concluding an agreement with a client, this document indicates:

1. Exact addresses for loading and unloading of goods;
2. List of company employees involved in organizing transportation;
3. Dimensions, weight and other parameters of the cargo;
4. Type and characteristics of the vehicle;
5. The final cost of the service and the payment procedure;
6. Delivery terms.

In addition, each individual transportation process requires filling out a vehicle waybill, a waybill, as well as an insurance policy in case of any damage to the cargo (if such a service is available).

Car park

In the process of implementing a business idea for cargo transportation, the question of choosing between new and used cars may arise. There is no clear solution to this situation, since new models are much more expensive, and used cars require additional repairs and maintenance. However, practice shows that it is better to purchase any domestically produced vehicles in a showroom or at a factory, and foreign trucks - when they are no more than three years old. The fleet of a logistics company may include:

• Light vehicles. Among domestic models, the most popular trucks and minibuses are “Gazelle Business”, “Gazelle Next”, “ZIL Bychok”, capable of transporting from 1.5 to 3 tons of cargo. The cost of a new Gazelle is from 1,100 thousand rubles, with low mileage - from 810 thousand rubles;
• Isothermal vans. A sandwich panel body with thermal insulation properties is most often installed on five-ton trucks. Such vehicles can be used to transport both regular and perishable goods. The cost of three-year-old Hyundai HD65 and Hyundai HD78 cars belonging to this class is in the range of 1.9–2.2 million rubles;
• Truck tractors. Designed for long-distance transportation of long cargo semi-trailers with a carrying capacity of 20–30 tons. The cost of Scania, Mercedes, Volvo, and Man trucks starts at 4 million rubles;
• Trucks with open body. Various models “MAZ”, “KAMAZ”, “ZIL”, “FAW”, “Tatra” are used for transporting bulk and large cargo - sand, earth, building materials, agricultural products. This category also includes dump trucks and vehicles with trailers;
• Special equipment. To transport non-standard cargo, special-purpose equipment is used - food tank trucks, fuel trucks, refrigerators, manipulators, tow trucks, low-loader trawls, car transporters.

Staff

Running a trucking business on your own is quite difficult. An entrepreneur who owns a single vehicle can still cope with administrative work, but expanding the fleet inevitably entails the need to hire additional employees, including:

• Drivers. The number of drivers is determined by the vehicle load. For example, with a standard eight-hour workday, one person per vehicle is enough, for long-distance transport, two are needed, and for trucks operating around the clock, three;
• Mechanic. Of course, for a vehicle fleet consisting of two cars, it is not advisable to hire a mechanic, but if the number of vehicles exceeds 5-6, you need to invite an experienced specialist to work. His responsibilities will include routine repair and maintenance of trucks, inspection before leaving the line and other measures to prevent and eliminate technical faults;
• Dispatcher. As a business, cargo transportation requires constant coordination of transport operations and monitoring of the current situation in order to process orders in a timely manner. If the number of cars exceeds 2–3, the entrepreneur will need the help of a dispatcher, whose list of responsibilities will include accepting applications from clients and receiving information from drivers in the process of completing them;
• Accountant. An outsourced specialist can easily handle accounting for a company that owns two trucks. If the number of vehicles exceeds five or six, it is better to hire a part-time accountant. If an entrepreneur considering how to develop a freight transportation business plans to expand the fleet to ten units or more, he cannot avoid hiring a full-time employee;
• Loaders. A company providing a full range of services will definitely need loaders - qualified specialists without bad habits, who can work quickly and accurately. To create a positive image of the enterprise, they should be given a new uniform with corporate symbols;
• Managers. In the early stages of organizing a cargo transportation business, you can do without office workers, however, in the future, the entrepreneur should hire a sales manager who searches for clients and a logistics manager who compiles and optimizes transport routes.

Production area

Providing transport services is considered a space-friendly activity, since you can start a cargo transportation business from scratch even in your own apartment, using a home computer and telephone. However, some clients negatively perceive this format of the company, and therefore all entrepreneurs sooner or later realize the need to rent an office.

A large area is not needed, since a maximum of five people will be at the workplace at the same time - the director, accountant, managers and dispatcher. Location is also not particularly important, since basic issues are resolved over the phone. You can rent such an office even in a large regional center for 230–250 rubles/m² per month.

Let's assume that an entrepreneur starts a cargo transportation business from scratch and has two or three cars. At this stage, he will not need the help of other support staff except the dispatcher: drivers and loaders will be constantly on the routes, and an outsourcing company will handle the accounting. Therefore, the office equipment can be represented as follows:

Office equipment

The second important issue that must be resolved when starting a freight transportation business is finding a place to park trucks: by leaving them in the yards, the entrepreneur risks causing dissatisfaction with residents, while parking lots for cars are simply not capable of accommodating vehicles of this size. The ideal option is to have your own garages, however, finding a box more than 12 m long and more than 4 m high, as well as its construction, is not always possible. Therefore, businessmen rent space in the territories of motor depots or in specialized parking lots for trucks: the cost of one parking space here is in the range of 100–150 rubles per day.

Search for clients

As a small business, cargo transportation is of interest to many beginning entrepreneurs who have the required capital, as a result of which the level of competition in the transport services market remains quite high. To find your client, the owner of the enterprise needs to pay constant attention to promoting and finding clients, spending a significant part of the budget on this.

The most effective for attracting individuals are:

• Contextual advertising in search and on thematic sites;
• Advertising on social networks, maintaining your own group;
• Offers of services on the Avito service;
• Searching for customers and publishing proposals on portals;
• Advertising and notices in free newspapers;
• Posting advertisements at bus stops, near construction materials markets;
• Collaboration with furniture stores, household appliances supermarkets;
• Cooperation with intermediary companies;
• Your own website in a one-page or full-fledged resource format.

When working with corporate customers and other entrepreneurs in the business plan of a cargo transportation company, you need to consider slightly different channels for organizing demand, including:

• Participation in tenders held by large public and private companies to find performers;
• Cold calls to managers of enterprises potentially in need of cargo transportation or forwarding;
• Distribution of commercial offers to customers indicating the list of services, price range, terms and conditions of delivery;
• Registration on popular cargo transportation portals.

Investments

For an enterprise that does not involve the construction of its own office building or warm garage boxes, the main investment will be related to the purchase of cars. Below is an example of a business plan for a freight transport company whose fleet consists of two cars - a one and a half ton Gazelle and a five ton Hyundai with an isothermal body. The presence of such trucks will allow the entrepreneur to provide a wider range of services in the transportation segments of both regular cargo and food products, as well as simultaneously work with private and corporate customers.

Initial Investment

Analyzing the structure of an enterprise's current expenses, it should be noted that many variable costs depend on the mileage of vehicles, while others appear once a year. So:

• The cost of compulsory motor insurance for vehicles of the specified carrying capacity is 5880 rubles. Insurance is paid annually;
• The cost of technical inspection for cars weighing up to 3.5 tons is 1100 rubles, with a weight up to 12 tons - 1900 rubles. Inspection is carried out annually;
• When operating at 75% load (six hours a day), the average vehicle mileage is 120–130 kilometers per day;
• The average fuel consumption in the combined cycle is from 12 liters per 100 kilometers, and the cost of diesel fuel is 30 rubles per liter;
• The cost of maintenance for trucks of this class is up to 10,000 rubles per 15,000 kilometers.

Monthly expenses

You can learn how to open such a company and organize its work from video lessons on doing business in the field of cargo transportation:

Video on the topic

Revenues and profitability

Is the trucking business profitable? The profitability of an enterprise is largely determined by the effectiveness of advertising, correct pricing policy and quality of work. Average tariffs for services of transport companies in large regional centers are given below:

Tariffs for company services

Let's say the enterprise will operate on a six-day schedule with 75% load, fulfilling an average of 1-2 orders per day with the provision of loading and unloading services. Thus, the effective working day for drivers will be 6 hours, for loaders - 3 hours. These data allow you to calculate the expected monthly profit:

Enterprise profitability

Based on the results obtained, we can conclude that in order to increase profitability and reduce the payback period, the business plan of a freight transport company needs to provide for an expansion of the vehicle fleet as the customer base develops and the number of orders grows: overhead costs will grow more slowly than income.

Conclusion

The main competitive advantages of small motor transport enterprises are mobility, the ability to quickly respond to changes in the market situation and affordable prices: unlike large carriers, their owners do not need to maintain huge office buildings and additional staff.