4. Obtain a Federal Tax ID Number
The first step in your transportation service journey is establishing yourself as a business. To do this, you need to get a business license from your local or state authorities. Since business license rules vary by region, you should also check with your local government.
You need to apply for a federal tax identification number, or employer identification number (EIN) before you open a business.
5. Obtain a License or Permit
To start a transportation service, you must be licensed. Why does a transportation business need more permits than other kinds of businesses? The answer is that in many scenarios, you will work with passengers, people, and other precious cargo.
Do You Need a Business License for a Trucking Company?
Wise business plans have simplified the process for you to get your transport business licenses, tax registrations, and seller’s permits in just minutes!
Get your Business License for Trucking Company Now
6. Open a Business Bank and 30 Account and Get Credit Cards
Personal asset protection is enhanced when you open specialized business banking and credit accounts. When your personal and professional accounts are mixed, your personal assets (your home, automobile, and other valuables) are vulnerable if your company is sued.
Furthermore, learning how to establish business credit may assist you in receiving credit cards and other financial resources in your transport and logistic business’s name (rather than yours), improved interest rates, greater lines of credit, and more.
Set up a business bank account
Apart from being a requirement when applying for business loans, establishing a business bank account has several benefits.
- Separates your personal belongings from your transport and logistic business’s assets, which is critical for personal asset protection.
- Makes tax preparation and accounting simple.
- It makes tracking expenses easier and more organized.
Recommended: To discover the greatest bank or credit union, read our Best Banks for Small Business review .
Open net 30 account
Net 30 payment terms are used to establish and develop business credit as well as boost company cash flow. Businesses purchase products and pay off the whole amount within a 30-day period using a net 30 account.
Net 30 credit vendors are reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is the way businesses build business credit to qualify for credit cards and other lines of credit.
Recommended: Read our list of the top net 30 vendors guide to start getting business credit or simply open your net 30 account with wise business plans in seconds.
Get a business credit card
It’s exciting to open a business credit card for your transport business. A business credit card can assist you to establish credit, safeguard your company financially, access rewards (such as cash back), and simplify cash flow. It can also assist you to manage your expenditures.
Pro Tips:
Take a look at our list of the 11 best business credit cards and decide which one is the right fit for you.
7. Purchase and Build Your Fleet
If your company picks the right vehicles, your drivers will have the right equipment for the job. The result is efficiency and speed of service. A small van being used to carry a huge load will make your company look unprofessional, as will using a large bus trailer to haul limited cargo.
When choosing your logistics vehicles, you should consider the following:
- What supplies you will carry
- The number of supplies you will need to carry
- The types of terrain you will encounter.
Business Plan Writing Services by Wise Business Plans
“There are a lot of government regulations when moving items from country to country,” said Joseph Ferriolo, Director of Wise BusinessPlans. “We support the companies that ease stress for clients, businesses, and individuals by taking care of their essential equipment and household goods during long-distance moves.
By offering them a high-quality business plan for a transportation company and accompanying services that can pave the way to a more prosperous business future, we work to give them a better long-term business life “, said Ferriolo.
Transport and Logistics Business Plan
Trucking operators often find transport and trucking business plan vital to planning routes and suppliers and looking ahead to the future of the company in a changing economic environment. A trucking business plan is essential for creating a trucking company with a solid foundation and the ability to both compete and deliver.
“Business planning is what we do and we strive to do it with accuracy and professionalism, always with our client’s best interests in mind,” Ferriolo added.
The wise business plan is committed to helping transport companies to register their businesses, creating a high-quality transport and logistics business plan to get funded.
What is Included in Transport and Logistics Business Plan
Executive Summary
Once the stages of gathering data and brainstorming are over, it is time to know the best way to execute your business plan. This is when the elaboration of an Executive Summary comes into play.
The operational plan describes how your transport and logistics business forwarding company will be structured, location, physical facilities, and equipment.
You should also make estimates about your company’s productive capacity and how many operations you can develop per month. In addition, you should outline the number of employees needed and the tasks that each one will have in your business.
Company Description
After the Executive Summary, it’s time to describe the company description you must have to include 5 W’s in your and 1 H when drafting your first copy for the transport and logistics business plan.
- Who are you? Who is your business?
- What is your product or service?
- Where is your business located?
- When will you implement your business plan and see results?
- Why would potential customers want to buy from you?
- How are you going to structure your business?
Market Analysis
Analyzing the market is one of the most fundamental steps to preparing a good transport and logistics business plan. At this stage, you will define who your customers, competitors, and suppliers will be, in addition to detailing the products and services you plan on offering in the transport and logistics business.
Identifying the target audience of your company is critical. It seems obvious, but it is important to remember: without customers, there is no way a company exists. Therefore, look for detailed information on who your ideal customer is, how they behave and what they seek in the marketplace.
Quality and Cost-Effectiveness
After tracing the profile of your business’s target audience, it is important to think about the positioning of the services you’ll provide. Think about how you want your services to be seen by the international market to be chosen over your competitors. What do quality and cost-effectiveness mean for them?
The more specific market data you gathered in the first stage, the more knowledge you’ll have over the skills you need to develop in order to establish your transport and logistics business in the market.
Financial Projections
It is also extremely important to find out if your transport and logistics business is financially viable. When it comes to financial terms, you should have a sense of how much should be invested to get your business started, considering aspects like rent, workforce, equipment, and registration fees.
You should also stipulate the capital necessary for your company to operate in the long term, making a balance between variable/invariable expenses and the expected revenue.
Download the business plan for transport and logistics in pdf or visit our shipping and logistics business plan sample page to learn what a business plan looks like.
In case you need examples of business plans for other industries, we have compiled a list of sample business plans for a wide range of industries to give you ideas.
Other Major Services for Transport and Logistics Business
Starting a transport business? Wise business plans offer you a quick and easy guide to starting your transport and logistics business, as well as assistance in every step along the way from funding to registering or licensing a business entity, branding, and marketing. Following are our main services
Wise business plans also offer a net 30 account application. A Net-30 account allows you 30 days to pay the bill in full after you have purchased products. Managing your business finances is also easier with Net 30 accounts. Apply for your net 30 business accounts now