The transport industry is one of the oldest trades in the world. It is the desire to move people from one place to another that motivated inventors like Henry Ford and the Wright Brothers. The success of their inventions was based on the premise that people need to move from one location to another, and that transportation will always be a critical component of daily existence. That’s why it’s such a great business where you can make serious profits.
Large transportation firms benefit from economies of scale when making purchases since they can provide a wider range of services. Local and regional markets are more favorable for small transportation companies. For instance, the top 50 companies earn 40% of the industry’s revenue, which goes to show how fragmented the industry is.
Below are 17 ideas you can use to start the best transportation business, especially for automotive professionals.
1. Transporting Livestock
Livestock transportation is a great business to start with. All you need is a commercial vehicle that can safely transport several animals. You’ll also need to hire experienced professionals with prior experience in commercial livestock transportation. A commercial license is also required before you can start transporting livestock from one location to another.
Make sure you’re familiar with the laws governing the interstate transportation of livestock in your area. Before offering cattle transport services, you should be well-versed in the various state regulations since the business owner is ultimately liable and responsible for them. This involves the proper vaccination of livestock, medical checkups and certificates, and licenses for the transportation business.
Since the livestock owner isn’t as informed as you are, this responsibility falls squarely on you. Do regular checks and also share your expertise and suggestions with livestock owners about the vets and tests that the animals need. This is crucial when completing the necessary paperwork and facilitating easy access across multiple destinations during transportation.
It would help if you also considered bringing a vet on board, and individuals who know how to secure animals during transit. Doing so will reinforce your reputation among clients for providing reliable services. Also, consider partnering with a bulk road salt supplier.
2. Medical Transportation
Medical transportation is another great business you should consider. It calls for a high level of safety and accountability. You’ll, however, need an ambulance, a driver’s license, comprehensive insurance, and a proven track record in the medical industry. Medical transportation is ideal for patients with scheduled medical appointments or treatments but who live far from the city or hospital.
This service involves driving patients to and from nursing homes and hospitals on a contractual basis. Stock your car with the appropriate medical gear, including needles, stretchers, wheelchairs, stethoscopes, glucose, and other medical supplies. It’s also a good idea to get regular digital vehicle inspections.
3. Cab Services
Uber has revolutionized the taxi industry. And for many individuals, it’s the most straightforward and convenient means of transportation. You only need an app to order a cab on the go. Because Uber has operations in over 300 cities and 60 nations globally, there are many clients seeking the convenience of being driven to their destinations without having to worry about traffic. Besides, Uber allows you to work on your terms as an independent service provider, making it one of the best transportation businesses to start with.
If you wish to start working as a driver, go to the Uber website, complete the driver registration instructions, and provide all the necessary personal and legal information. Uber handles all of the ride-related payments and finances. However, if it’s your automobile, you’ll be responsible for its maintenance.
4. Limousine Service
A limousine service isn’t just restricted to corporate transportation; regular people can also use it. A good reputation is crucial in the transportation industry. In the case of a limousine service, you’ll be driving groups of people who aren’t paying much attention to how you’re driving or where you’re going. Your clients should be able to trust you, and the vehicle needs to be well-maintained.
If you have a limousine, you can operate it yourself. From scheduling to driving, one car is relatively easy to handle. If you want to grow your business, just add more vehicles to your fleet and hire more drivers.
5. Packers and Movers Business
Mover companies have become quite popular. This transportation business is pretty straightforward. It involves packaging companies’ or household goods and moving them from one place to another. However, one must watch out for damage during transportation and ensure fast delivery times. Aim to be one of the most preferred mover companies with a solid reputation for providing stellar service.
6. Travel Agency
If you’ve experience working in the travel industry, a travel agency is a natural transportation business for you. Many people turn to travel agencies to facilitate their vacations and trips. Therefore, venturing into this transportation business can be a worthwhile investment. However, networking is crucial for the success of a travel agency transportation business.
Trucking is another great transportation business you can start. A lot of imported goods need to be delivered to different towns and cities before they get to the small retailers and end consumers. The trucking transportation business links imported, manufactured, and grown commodities to customers. If you decide to start a trucking business, consider hiring a truck driver tax preparation service and also think about adding bucket truck escort services as value-added services. Refrigerated truck rental is another great option.
You can approach this business in two ways. The first option is subcontracting drivers. In this case, drivers are independent contractors with their vehicles. The two main coordinating tasks of this transportation business are getting the contracts and accounts with the manufacturers that need their items transported, and locating drivers who can fulfill the contracts on time.
The benefit of this alternative is that it’s cheaper. Independent contractors typically own automobiles and are responsible for maintaining and insuring them. However, you’ll be shelling out more money to pay them than you would for in-house drivers, which lowers your earnings.
8. Towing Company
Towing is one of the best transportation businesses to launch. Considering you can start with just one towing truck, a towing business is pretty lucrative. Your job is to move illegally parked or broken-down vehicles to a different location. But, remember that you need a license to open a transportation business. Familiarize yourself with the stringent laws regulating auto-towing licensing, since obtaining it can be frustrating.
Some towing business owners entirely forego the license, which means they can’t offer towing services to the general public themselves. Instead, they exclusively subcontract their services to property managers and car dealers. The other option is to buy a license from an existing towing company or operator. If you don’t have towing accounts set up, getting a tow truck and a towing license in a metropolitan area can cost you up to $200,000.
9. Cab Driver
A cab business is one of the best transportation businesses to start for automobile professionals. Some people prefer to have a chauffeur drive them. While taxis are known for picking up passengers off the street, private hire taxi cars only serve passengers who have made a prior reservation. Being a cab driver is one of the most lucrative transportation businesses, since you can use your vehicle to keep startup costs low.
A decent vehicle for a business cab can cost you $5,000 to $15,000, depending on the condition (new or used) and brand of the automobile. Because taxi cabs are regulated in most cities, the cab business might just be the most lucrative sector of the transport industry.
10. Bus Transport Services
Not all travelers can afford air travel, so they use buses for ground travel instead. To start this transportation business, you’ll need to purchase a bus and hire a driver if you can’t drive it yourself. You can also join an established transportation firm as an affiliate and attach your bus to it.
11. Driving School Service
If you’re an excellent driver, consider opening a driving school. Every year, nervous teens who have reached the legal driving age, and even adults who lack driving experience, enroll in driving school. If you’re seeking a reliable source of revenue in the transportation sector, a driving school business is both lucrative and fulfilling as you get to shape the next generation of drivers.
Note that you must obtain the necessary licenses, permits, and approval from the relevant authorities in your state before beginning a driving school. Even though getting approval, a permit and a license for a driving school can be a little stressful, it is rewarding to teach people how to drive, especially if you enjoy driving yourself.
12. Children’s Pickup Service
Another great transportation business for automotive professionals is offering child pickup services. If you have childcare experience, consider using your vehicle to pick up and drop off children for parents who are too busy to take them to after-school events or pick them up from school.
13. Equipment Transportation Service
If your car can lift and move heavy equipment, use it to offer a specialized service to customers or businesses that need to transport heavy supplies from one place to another. Tradespeople using powerful power tools and companies seeking to produce professional-quality video footage are prime clientele for your business.
14. Car Hire
The car hire industry is comparable to a cab business in that both are lucrative professions, particularly when you’re in a strategic location, such as a city with a large population, entertainment outlets, and commercial centers. The vehicles you put up for hire should meet high safety criteria.
Before purchasing vehicles for your car hire business, consider the safety features that are standard in most modern vehicles, as well as other features that could have an impact on the environment. This service is often used by tourists or people visiting for a few days.
15. Specialty Transportation
You can make a decent living by specializing in a particular type of unconventional transportation, such as delivering extremely large goods like airplane components, modular homes, refrigerated perishables, human organs, or blood. Although you’ll probably have fewer clients, you can charge more for your expertise and knowledge. An example of specialty transportation is reefer trailer rental companies.
Whether you can run this business yourself or hire personnel to do it depends on where you are. For instance, medical transport service in downtown Boston, where there are many large medical institutions, requires extra personnel compared to a tiny town in southern Indiana.
16. Senior Transportation Services
As more elderly folks give up their driver’s licenses, there’s an opportunity to build a business by driving seniors to areas they can no longer go to by themselves. You can drive elderly people to the grocery store or the mall, in addition to taking them to medical appointments. If you live in an area where seniors tend to have low incomes, think about forming a nonprofit organization and applying for grants to promote the mobility of elderly people there. Most times, grant funders, corporate sponsors, and the federal government are looking to support initiatives that help disadvantaged populations.
17. Grocery Transportation Business
To cap it all, here’s one of the best picks from this list: grocery transportation. With most people settling into the reality of working from home, this transportation business has become quite lucrative, especially as grocery stores are popping up everywhere, which can only mean one thing: the grocery transportation business is a solid business to start.
There are many lucrative transportation businesses you can start right now. Some require minimal capital outlay as you may already have what is required to start them. For instance, if you have a good car with rims and tires that are in great condition, you could start an Uber business right away. Nonetheless, the transportation business you venture into depends on your knowledge of the sector and the niche, as well as your interest and needs. Here’s to your success in finding the best transportation business to start, especially if you are one of the many automotive professionals out there.