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Car Hauling Business

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How to Start a Car Hauling Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on January 31, 2022 Updated on February 14, 2024

How to Start a Car Hauling Business

Investment range

$6,950 - $14,600

Revenue potential

$180,000 - $900,000 p.a.

Time to build

1 – 3 months

Profit potential

$130,000 - $180,000 p.a.

Industry trend

If you’re a truck driver, you may have thought about taking control and starting your own business. The US car hauling industry is worth nearly $11 billion, so there is money to be made shipping cars from one place to another. You’ll have to get a truck and an operating license, but you should get an excellent return on that investment. You can start by running your business from home, and later grow your company with a fleet of trucks.

No matter how much truck driving experience you have, however, you can’t start a business without some business savvy. Luckily, this step-by-step guide lays out all the ins and outs of a car hauling business, getting you ready to launch your new company.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an auto transport business has pros and cons to consider before deciding if it’s right for you.

  • Independence – Work on your own, running your business from home
  • High Profit Potential – Make $300-$700 per car hauled
  • Travel – Interstate hauling presents opportunity to see new places
  • Licenses Needed – CDL license and operating authority are required
  • High Startup Costs – Large trucks don’t come cheap

Car hauling industry trends

Industry size and growth.

  • Industry size and past growth – The US vehicle shipping services industry is worth nearly $11 billion.(( https://www.ibisworld.com/industry-statistics/market-size/vehicle-shipping-services-united-states/ ))  
  • Growth forecast – The market is recovering from the pandemic slump and expected to grow more than 3% in 2022. It is projected to grow further through 2026 as the economy improves, boosting demand for vehicles.(( https://www.ibisworld.com/united-states/market-research-reports/vehicle-shipping-services-industry/ ))
  • Number of businesses – More than 4,000 businesses in the US provide vehicle shipping services.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/vehicle-shipping-services-united-states/ ))
  • Number of people employed – The industry employs more than 48,000 people.(( https://www.ibisworld.com/industry-statistics/employment/vehicle-shipping-services-united-states/ ))

car hauling industry size and growth

Trends and challenges

Trends in the car hauling industry include:

  • Auto sales are expected to increase in the near future, which means more cars will need to be hauled from place to place. 
  • Car haulers are moving toward more environmentally friendly auto carriers with lower carbon emissions.

Challenges in the car hauling industry include:

  • Rising fuel prices are forcing car haulers to increase prices to keep profit margins high.
  • Delays in car manufacturing due to supply chain issues cause a slowdown for the car hauling industry.

car hauling industry Trends and Challenges

What kind of people work in car hauling?

  • Gender – 97% of auto haulers are male.(( https://www.zippia.com/auto-hauler-jobs/demographics/#gender-statistics ))
  • Average level of education – Nearly 7 in 10 auto haulers completed high school.(( https://www.zippia.com/auto-hauler-jobs/education/ ))
  • Average age – The average age of auto haulers is 40+ years old.((​​ https://www.zippia.com/auto-hauler-jobs/demographics/#age-statistics ))

car hauling industry demographics

How much does it cost to start a car hauling business?

Startup costs for a car hauling business range from $7,000 to $15,000. The largest expense is a down payment on a 7-car hauler trailer, which can run from $35,000 used to $70,000 or more for a new one.

How much can you earn from a car hauling business?

Typically, you can charge $300 to $700 per car, but this can be much higher for long-distance hauls or expensive cars. These calculations will assume $500 per car. Your profit margin after fuel and maintenance should be about 70%.

In your first year or two, you could do one 7-car haul per week, bringing in about $180,000 in annual revenue. This would mean a tidy profit of nearly $130,000, assuming that 70% margin. As you expand your fleet sales could climb to 5 hauls per week. At this stage, you would rent a commercial space and hire drivers and staff, reducing your margin to 20%. With annual revenue of over $900,000, you’d still make a cool $180,000.

car hauling business earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a car hauling business. Your biggest challenges will be:

  • Experience – You need to be an experienced, licensed truck driver
  • Funding – You’ll need the down payment on hauler and qualify for financing

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Step 2: hone your idea.

Now that you know what’s involved in starting a car hauling business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research car hauling businesses in your area to examine their services and price points. You’re looking for a market gap to fill. For instance, maybe the local market is missing a long-distance car hauler.

auto transport business plan

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as used cars.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

You need to determine if you want to do interstate hauling as well as local hauling. You’ll also need to decide if you want to haul just multiple loads for dealers or if you want to ship individual cars for consumers.

How much should you charge for car hauling services?

Car hauling prices range from $300 to $700 per car, but these prices could be higher for long-distance hauls or more expensive cars. When you’re working by yourself, after fuel and maintenance, your profit margin should be around 75%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is likely to be car dealers. You can find them by networking or advertising on LinkedIn or just calling on them directly. You can also offer services to private buyers and sellers and find them on sites like Facebook. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

  • Central location accessible via public transport
  • Ventilated and spacious, with good natural light
  • Flexible lease that can be extended as your business grows
  • Ready-to-use space with no major renovations or repairs needed

car hauling business idea rating

Step 3: Brainstorm a Car Hauling Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “hauling” or “car hauling”, boosts SEO
  • Name should allow for expansion, for ex: “Vehicle Transport Group” over “Show Car Hauling”
  • Avoid location-based names that might hinder future expansion

Discover over 220 unique car hauling business name ideas here . If you want your business name to include specific keywords, you can also use our car hauling business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Car Hauling Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: A brief summary outlining the key aspects of the car hauling business plan, including its mission, objectives, and potential for success.
  • Business Overview: An overview of the car hauling business, detailing its structure, legal status, and the specific niche or market it aims to serve.
  • Product and Services: Clearly defining the car hauling services offered, including vehicle types, delivery options, and any additional services provided.
  • Market Analysis: A comprehensive analysis of the car hauling market, identifying target customers, market trends, and potential opportunities or challenges.
  • Competitive Analysis: An examination of competitors in the car hauling industry, highlighting strengths, weaknesses, and strategies to gain a competitive edge.
  • Sales and Marketing: A detailed plan for promoting and selling car hauling services, outlining target customer demographics, pricing strategies, and marketing channels.
  • Management Team: Introductions and brief bios of key individuals leading the car hauling business, emphasizing their skills and experience relevant to the industry.
  • Operations Plan: An outline of the day-to-day operations of the car hauling business, covering logistics, fleet management, and any partnerships or collaborations.
  • Financial Plan: A detailed financial forecast, including startup costs, revenue projections, and a break-even analysis, providing a clear picture of the business’s financial health.
  • Appendix: Supporting documents and additional information, such as market research data, legal documents, and any other relevant materials that strengthen the car hauling business plan.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to car hauling businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your car hauling business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

auto transport business plan

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

auto transport business plan

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a car hauling business.

types of business financing

Step 8: Apply for Car Hauling Business Licenses and Permits

Starting a car hauling business requires obtaining a number of licenses and permits from local, state, and federal governments.

First, you’ll need to obtain a commercial driver’s license from your state DMV. You’ll also need a Department of Transportation number and a Motor Carrier Authority number, both of which you can get by registering with the Federal Motor Carrier Safety Administration (FMCSA) . Finally, you’ll need to complete a unified carrier’s registration , and if you plan to drive to other states or Canada, an International Registration Plan tag and an International Fuel Tax Agreement decal.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your car hauling business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Shipwell , Samsara , or SuperDispatch , to manage your loads, trips, payments, invoicing, and dispatching.

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your car hauling business, the marketing strategy should emphasize reliability, safety, and efficiency in transporting vehicles. It’s crucial to showcase your commitment to providing top-notch service in handling clients’ valuable assets. The goal is to establish your business as a trusted and professional choice for individuals and companies needing vehicle transportation services. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

  • Professional Branding : Develop branding that conveys strength, reliability, and professionalism, including your logo, uniforms, and truck livery.
  • Direct Outreach : Network with auto dealerships, auction houses, and moving companies to establish partnerships and regular clients.

Digital Presence and Online Marketing

  • Professional Website and SEO : Create a comprehensive website detailing your services, service areas, and transport safety measures, optimized for search terms using SEO best practices relevant to car hauling and vehicle transportation.
  • Social Media Engagement : Use platforms like LinkedIn for B2B engagement and Facebook for customer testimonials, service updates, and educational content about vehicle transportation.

Content Marketing and Engagement

  • Transportation Insights Blog : Share articles on vehicle transportation safety, industry news, and tips for preparing a vehicle for transport.
  • Client Testimonials and Case Studies : Feature stories from satisfied clients that highlight your professionalism and care in handling their vehicles.
  • Content Marketing : Create informative content, such as guides on choosing a car hauling service or checklists for preparing a vehicle for transport.

Experiential and In-Person Engagements

  • Industry Events and Trade Shows : Participate in automotive and transportation industry events to network with potential clients and showcase your services.
  • Local Business Expos : Engage with local business communities at expos and events to raise awareness of your services in the region.

Collaborations and Community

  • Partnerships with Automotive Businesses : Team up with car dealerships, auto repair shops, and other related businesses for mutual referrals and service packages.
  • Community Sponsorships : Sponsor local sports teams or community events to build brand recognition and community goodwill.

Customer Relationship and Loyalty Programs

  • Referral Programs : Implement a referral program offering discounts or incentives to clients who refer new business to your company.
  • Loyalty Offers for Repeat Clients : Provide special rates or services to repeat clients to foster long-term business relationships.

Promotions and Advertising

  • Targeted B2B Advertising : Use platforms like LinkedIn and industry-specific publications to reach businesses that may require car hauling services.
  • Email Campaigns : Maintain contact with past and potential clients through regular email updates offering industry insights, company news, and special promotions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your car hauling business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your car hauling business could be: 

  • Car hauling anywhere, anytime 
  • Car hauling, on-time guaranteed
  • Handle with care – let us haul your luxury cars

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a car hauling business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in car hauling for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in car hauling. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a car hauling business include:

  • Drivers – drive additional loads
  • Dispatcher – dispatch drivers to pickups
  • General Manager – staff management, scheduling, accounting
  • Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Car Hauling Business – Start Making Money!

Car hauling is a great way for truck drivers to start their own businesses. In a $13 billion industry, you know that demand for your services exists as long as people are buying cars. You’ll be your own boss, completely in control of your time and your income, and you can make very good money. 

It takes a bit of an investment, but you can see a huge return. You’ve now got some business savvy to combine with your truck driving skills, so go ahead and get on the road to your entrepreneurial destination.

  • Car Hauling Business FAQs

A car hauling business can be extremely profitable. With a 7-car hauler trailer, you can make as much as $5,000 a load. If you work by yourself, your only expenses will be fuel and maintenance, so you’ll keep a lot of that cash in your pocket.

Your best bet is to call on car dealers directly. You can also network or advertise on LinkedIn to find dealership owners. If you want to haul cars for consumers, you can also advertise on Facebook. 

Being an owner-operator truck driver pays the most in the trucking field. Another type of hauling that’s profitable is car hauling. You can charge $300 to $700 per car or even more for long distances.

Yes, you can definitely start a hauling business on the side. You can haul junk or even cars in your spare time.

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Car Hauling Business Name
  • Create a Car Hauling Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Car Hauling Business Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Car Hauling Business - Start Making Money!

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How to Start a Car Hauling Business: A Step-by-Step Guide

Published by Joe Webster .

How Much Does an Auto Hauler Make In a Year?

Benefits of owning a car hauling business, how much does it cost to start a car hauling business, setting up your car hauling business, choose your car hauling business model, define your budget, research the industry, what are they doing correctly, what are they doing wrong, how can i stand out, get your operating authority (mc + dot numbers), create a business plan for your car hauling company, register your transportation business, get the right equipment, insure your vehicles, trailers, and client cargo, set up your business office, hire employees, vital qualifications to check before you hire a driver, how to market your car hauling business, start hauling cars, how to make your car hauling business more profitable, where to find the best car haulers for your business.

How to Start a Car Hauling Business: A Step-by-Step Guide

Starting a car hauling business from scratch can be daunting, but it is also an enriching journey.

From the legalities of transporting cars across state lines to the equipment you will need to get the job done, there are a lot of details to address.

In this article, we will walk you through each step of starting a successful car hauling business. You'll get actionable advice on the many aspects of setting up your car transport business.

Typically, an auto transport business with a contract to haul new vehicles for a car producer will likely make $75,000 to $110,000 per year.

Additionally, as long as people drive cars, there will continue to be high demand. Your services will be needed by car dealers, individuals transporting their vehicles across state lines , etc.

That way, you're assured of continuous and repeat business.

There are many benefits that come with starting your own car hauling business.

For one, you'll be your own boss and have the freedom to set your schedule. As an owner-operator, you'll have the opportunity to grow your business as large as you want it to be.

Another benefit is that you can start with very little money. You don't need to have a lot of capital - all you need is a truck, the necessary equipment, and relevant licenses and documentation.

Finally, starting your own business is very rewarding. It's a great feeling to be your own boss and build something from scratch.

los-gatos-auto-shipping-car-estimate-state-to-state.jpg

The cost of starting a car hauling business can vary depending on a few factors, such as the size of your operation and the equipment you already have.

You can get by with just a truck and some essential equipment if you're starting a small operation.

If you're starting a more extensive operation, you may need to purchase additional trucks and trailers. This can cost anywhere from $30,000 to $100,000.

Additionally, you will need to obtain the necessary licenses and permits to operate your business. The cost will vary depending on your location.

Finally, you'll need to purchase insurance for your business. This is a mandatory expense and can cost anywhere from $500 to $5,000 per year, depending on the size of your operation.

That brings the total startup costs to $15,000 - $100,000+

Here are some key steps to starting a successful car hauling business:

There are two main types of auto hauling businesses: contract-based and customer-based.

A contract-based business regularly hauls cars for a specific company or dealership. This type of business is usually more stable and predictable, but it can be harder to get started.

In contrast, a customer-based business works with individual customers who need their cars transported. This type of business is often more flexible, but it can be less predictable.

Like every other business, you need money to start your trucking business.

So, calculate the amount you have on hand. If it's not enough, consider taking out a loan from a bank or from family and friends.

Another option is to get into a partnership or look for an investor. In either case, you must have a business plan first.

Once you have decided on the type of business you will operate, it's time to research the market, other trucking companies, and your ideal clients.

To avoid legal issues down the road, find out what business license, or permit, is required in your state or province.

You will also need to research the regulations for auto transport. This information can be found at your local Department of Motor Vehicles (DMV) or Transportation Department.

In general, you'll need:

  • A commercial driver's license (CDL)
  • Permits to transport cars across state lines
  • Dealer Transport License (if you're transporting cars for dealerships)
  • International Registration Plan (IRP) apportioned plates (especially if you're hauling cars across different jurisdictions)

You'll also want to research your competitors to answer three major questions:

There are already many successful companies within the trucking industry. Find out what they're doing well so your business can do likewise. There's no need to reinvent the wheel.

One way to make your startup stand out is to discover what the other car transport businesses are doing wrong and make sure your business does better.

You can find this information through customer complaints on review platforms or face-to-face interviews with potential customers.

Once you see how your business can do better than other companies, use this information for your key value propositions.

For instance, if your competitors are known for late deliveries, then early delivery is a fundamental value proposition for you to leverage.

state-auto-shipping-car-estimate-port-of-los-angeles.jpg

The next step is to get your Motor Carrier (MC) number and Department of Transportation (DOT) number. You will need these numbers to operate legally as an interstate carrier.

The Department of Transportation (DOT) number is a unique identification number assigned to trucking companies. It is used to track a company's compliance with safety regulations.

To get a DOT number, you'll need to fill out an application and submit it to the Federal Motor Carrier Safety Administration (FMCSA). You'll provide some basic information about your business, such as your company name and address. There is no fee.

To get your MC number, fill out an application with the Federal Motor Carrier Safety Administration (FMCSA) on their website. There is no fee to apply for an MC number.

An important note: You must purchase your trucks and insure them within 30 days of getting your DOT number. Otherwise, your new company will be shut down before you even start.

The next step is to create a car hauling business plan. It's an important document you'll need to source for funding from investors, track your business's progress, and make improvements as the case may be.

This document will outline your business goals, strategies, and how you plan on achieving them. Your business plan should include:

  • An executive summary
  • Your business goals and objectives
  • A market analysis
  • Your marketing strategy
  • Your financial projections

Creating a business plan may seem daunting, but many resources are available to help you. The Small Business Administration has a great guide that walks you through each step of creating a business plan.

Your business must be registered to operate legally.

You may want to seek the help of a certified business consultant or tax professional to set up your new company.

You'll need to get your Employer Identification Number (EIN) from the Internal Revenue Service.

An important step is to purchase equipment for your business.

If you're starting a customer-based business, you will need a large truck or trailer to transport at least one car.

You will also need some basic tools to secure the car during transport, such as straps and tie-downs.

But for a contract-based business, you will need a fleet of trucks or trailers. You will also need to invest in some storage space, such as a garage or warehouse, to store the cars you are transporting.

Before you buy new equipment, assess the equipment you already have. To cut costs, you may choose to lease your vehicles rather than purchase new ones. Then, as your business develops, you can purchase your own vehicles as needed.

Here's a checklist of the equipment you'll need:

  • Electronic logging device
  • Vehicles: pickup trucks or semis, car haulers
  • Storage space (a warehouse)
  • Straps and tie-downs
  • Toll transponders
  • Business cards

Another key step is to get the proper insurance for your business.

You will need two types of insurance: liability insurance and cargo insurance.

Liability insurance covers any damage you may cause to other people or property while transporting a car.

Cargo insurance covers any damage that may occur to the car during transport. It is commensurate with the value of the vehicle you're transporting.

You may also want to consider getting uninsured or underinsured motorist coverage, which will protect you if you're in an accident with a driver who doesn't have insurance.

The amount of coverage you need will vary depending on the size and scope of your business. But in general, it's a good idea to get as much coverage as you can afford. That way, if something does happen, you'll be covered.

You can get insurance quotes from a commercial insurance company specializing in trucking companies. But to get the best deal, shop around and compare rates before you purchase an insurance policy.

south-gate-heavy-equipment-hauling-and-shipping-insurance.jpg

Your company will need a business office to track expenses, invoices, and other vital documents.

Your office will need a computer with internet access, a printer, and a filing system.

You can use accounting software to keep track of your finances and generate invoices. Many great accounting software programs are available, such as QuickBooks, FreshBooks, and Xero.

Finally, you'll need a way to accept payments from your clients, which could be through a merchant account with a bank or credit card processor. Also consider using an online payment system, such as PayPal or Stripe.

If you're planning on growing your business, you will need to hire employees. And to make your business successful, you must hire the right people.

Aside from drivers, you will need to invest in some dispatch systems and office staff to handle customer service and scheduling.

To find suitable employees, start by posting ads on online job boards, such as Indeed or Monster. When reviewing applications, be sure to check references and conduct background checks.

After you've hired your employees, be sure to do regular check-ups on their progress; this helps ensure that they adhere to safety standards and driving regulations. It also builds trust and loyalty between employer and employee.

Before you hire a driver, it's crucial to check their:

  • Class A Commercial Driver's License (CDL). Anyone driving a vehicle with a gross vehicle weight of 26,000 lbs. and above must have a CDL in the US.
  • Previous driving record or experience. It's vital to do a background check to gauge their adherence to safe driving, their reliability, etc.
  • Knowledge of loading and unloading techniques, including tie-down techniques and how to properly distribute weight.

Once you've got everything set up, it's time to market your car hauling business.

The best way to do this is through word-of-mouth marketing. Tell family and friends about your business and ask them to spread the word.

It's also essential to invest in a quality website. A good website will be the easiest way for customers to find your business. There are many companies that can help you design a website that will attract customers.

Now that you're done with each step, it's time to start hauling cars.

You can join a load board to get clients consistently. Examples of such load boards include:

  • Carload board
  • Central Dispatch
  • Car Hauler's dispatch
  • DAT Load Boards
  • ready logistics

Another way to get clients is to contact car dealerships and auto transport companies in your area. They are always in need of a car hauler to transport vehicles from one location to another.

Be sure to give them your rates and let them know what services you provide. But before you give them your rates, investigate what other owner-operators charge.

Another way to find customers is to contact auto auctions and ask if they need a car hauler to transport vehicles to and from the auction site.

In most cases, maintaining a business is more challenging than starting one. And that's because most owners are unable to generate profits continuously.

To ensure that your new car hauling company lasts for a long time, do these three things:

First, invest in GPS tracking for your vehicles. This will allow you to track their location in real-time and ensure that they are on schedule. It may cost a lot of money, but it's a small price to pay to satisfy your customers.

Second, create a standard operating procedure (SOP) for your business. This will help to streamline your operations and make them more efficient.

Third, invest in some quality marketing materials, such as business cards, flyers, and websites. This will help you attract more customers and grow your business.

If you're looking for a reliable and professional car hauler for hire, then you've come to the right place.

At A-1 Auto Transport, we’re reputable and reliable car transporters with years of experience in hauling, transporting, and shipping cars. We are happy to help you with any kind of vehicle shipment or to answer any questions you might have. Contact us today for more information.

Joe Webster

Joe Webster always knew the auto transport industry would be a great career option. And with decades of experience, Joe is now an established consultant for A1 Auto Transport.

Joe was born in Santa Cruz, California. During high school, Joe worked as a mechanic; a job continued to work part-time during his bachelor's degree.

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...my choice in terms of auto transport has to be A1 Auto Transport. It’s in the name, but also in the quality with which they do their jobs. I’ve never had a problem with this company.

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A1 Auto Transport... From the get go, they were very different from my past options. Their website was very professional and up to date, full of useful information. I requested a quote using their online form, and I got an email response within an hour. Surprisingly fast!

Testimonial by Cristine Benoit

There are a lot of options for auto transport these days, which surprisingly makes it harder to find a good company. I received more than 10 offers to ship my car, but I couldn’t decide on any of them... Fortunately, I made the right choice with A1 Auto Transport.

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How to Start an Auto Transporting Business

Last Updated: January 18, 2024 Approved

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 30 people, some anonymous, worked to edit and improve it over time. There are 10 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 14 testimonials and 93% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 350,322 times. Learn more...

Thanks to new technologies to make auto transporting more energy-efficient, it's becoming ever more popular as an eco-friendly way of moving cars. Starting an auto shipping business can be a rewarding endeavor, but you might have questions like how to get started and how much it will cost. That's where we come in. Our how-to guide has all the info you need to start your own car hauling business.

Step 1 Determine what type of auto transporting business you want to start.

  • For a regular auto transporting business, purchase at least one open car hauler.
  • For a specialized auto transporting business, purchase at least one enclosed car hauler, a winch, hydraulic liftgate, and high-strength tie-down straps.

Step 11 Approach auto transporting brokers to be included on their subcontractors' list.

Community Q&A

Community Answer

  • If you're operating more than one car hauler, invest in transportation tracking software that shows you where all your car haulers are through a satellite tracking system. Thanks Helpful 24 Not Helpful 10
  • Consider starting a website where customers can book auto transporting services online. Include information about your services and provide free quotes. Thanks Helpful 14 Not Helpful 8

auto transport business plan

  • Before you hire employees, make sure they have their commercial driver's licenses and clean driving records. Thanks Helpful 55 Not Helpful 11

Things You'll Need

  • Commercial driver's license
  • Business plan
  • Motor carrier number
  • Transportation license
  • Hydraulic liftgate
  • High-strength tie-down straps
  • Transportation tracking software

You Might Also Like

Open a Car Wash Business

  • ↑ https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
  • ↑ http://www.gaebler.com/Starting-an-auto-transport-business.htm
  • ↑ https://driving-tests.org/how-to-get-a-cdl-license/
  • ↑ https://www.entrepreneur.com/article/281416
  • ↑ https://www.inc.com/guides/present-your-business-plan.html
  • ↑ https://www.fmcsa.dot.gov/registration/get-mc-number-authority-operate
  • ↑ https://www.upcounsel.com/how-to-start-a-transportation-business
  • ↑ https://www.entrepreneur.com/article/283832
  • https://bizfluent.com/how-6901151-start-car-transport-business.html
  • http://www.gaebler.com/Starting-an-Auto-Transport-Business.htm

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How to Start a Transportation Business: The Ultimate Guide

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The transportation business touches far more of our lives than we notice. When you think of transportation businesses, you might think specifically about taxi companies or car rentals, but there are so many other options that you might not be considering. Any time you’ve rented a car, bike, or limousine you’ve interacted with a transportation business. There are also other businesses like shipping, transportation services for seniors, taxi services, and more.

If you’re wondering how to start a transportation business, first consider all of the possibilities. Our guide to starting a transportation business can help you define what a transportation business is and will go over everything you need to start a transportation business of your own. It takes a lot of planning, but you can successfully start a business if you’re ready to dedicate time to it.

auto transport business plan

How to start a transportation business in 8 steps

A transportation business is basically any business that has a hand in transporting people or goods. It can also have to do with providing transportation for other business owners who need help linking their product to their actual business.

These possibilities lead right into step one of how to start a transportation business: choosing the type of transportation business you want to start.

1. Choose the type of transportation business to start

As we mentioned above there are so many kinds of transportation businesses out there for you to choose from to start. You might consider what vehicles you already have at your disposal or what the market you plan to operate in is currently lacking.

Your options for transportation businesses to start include, but are not limited to:

Taxi company.

Senior transportation.

Limousine rentals.

Car rentals.

Bike rentals.

Moving van rental or moving company.

Medical transportation.

These are the basic types, but there are also emerging markets for things like scooter rentals, along with more traditional ones like school bus companies. You might already have an idea of which type of transportation business you want to start.

If not, though, a key part in your journey to starting a transportation business will be doing some research into which transportation type is most in-demand in your area. You can do this research by conducting a market survey, examining possible competition, or checking in with locals in the area you want to start your transportation business in. This will come in handy when it’s time to write up a business plan for your company.

2. Choose a name and entity for your transportation business

The entity you choose might influence your business name, so you might want to choose the entity first. For a transportation business, some entities might make more sense than others. A limited liability company or a limited liability partnership might be good due to the fact that it would shield the partners from personal liability.

Your options for business entities include:

Sole proprietorship : This is an unincorporated business that is owned by one person or owned by a married couple. This is the most common type of business entity in the United States, but it does leave you open to personal liability when it comes to debts and lawsuits, so it might not be best for a transportation business. If you choose to open your transportation business as a sole proprietorship, then the business will have your name as the business name, unless you file a DBA, or "doing business as."

Limited liability partnership: This partnership is an entity that protects the partners involved from personal liability and the debts and obligations of the business. They’re also shielded from the actions of other partners in the business. Limited liability partnerships differ from a general partnership where the partners manage the business equally and take on those liabilities and obligations equally as well.

Limited liability company: On the other hand, an LLC is a business entity that means owners aren’t personally liable for the business’s debts or obligations. They are a bit more flexible than the LLP option and the LLC can choose to be taxed as a corporation or not.

Once you choose your business entity, you also need to choose a business name when starting a transportation business. If you decide to start your business as a sole proprietorship you may need to get a DBA. This is a name your business uses when it operates under a name other than your own, or the name that the business is legally registered as.

In most states, you can look up businesses that are already in existence there, and see if the name you want for your business is available for you to use. Usually, the Secretary of State’s office will have a registry you can search. You can also check the U.S. Patent and Trademark Office. You’ll want to see if the domain name for your desired business name is also available before finalizing your name.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

3. Write a business plan

This step involves some of the heaviest legwork and the most research, but it’s how you’ll get a very clear vision of your new business. There’s a lot that goes into writing a business plan, but it will be well worth it once you’ve finished. A lot of the puzzle pieces surrounding how to start a transportation business will come together in this stage. The research you do for your business plan will help you prepare your transportation business for success, plus you can use it later on when you approach banks or investors about possible loans or investments into the business.

You can either come up with your business plan on your own or you can use a business plan template. No matter what you use to make your business plan, make sure it includes:

An overview of the business.

Market analysis.

Pricing plan.

Marketing plan.

Financial plan and projections.

Remember what we said about research? If you’re starting a transportation business, you need to make sure that there’s actually a demand for it before you start operations. If there’s no demand your business will not make it very long.

This research into demand is part of strong market analysis, along with research into what other businesses in the area are doing similar work and providing similar services. Through market analysis, you can identify pain points with competitors or gaps in the market, jumpstarting your success.

4. Register your transportation business and get an EIN

Now that you have the name chosen for your business, you have to register the business with that name so that it’s reserved. This is also when you’ll trademark the name if you need to, which can be done with the United States Patent and Trademark Office.

To register your transportation business, you’ll likely have to visit the website for the Secretary of State’s office in the state you plan to operate your business from. That site should lead you to the business bureau or the business agency in your state, where you’ll find information on the specific paperwork you’ll need to submit to them. While some states allow businesses to register online, not all do, so be sure to check whether your state requires you file paper documents with them.

Some of the documents you’re required to file may vary depending on the business entity you chose. Typically, you’ll need to submit a form for your business entity, pay a fee, and — in some cases — publish a notice in the local paper. You may also have to file paperwork with the town or county you wish to operate out of as well.

You’ll use your newly registered business name to apply for an employer identification number or EIN. This is one of the easier processes you’ll have to go through when starting a transportation business. There are many benefits to getting an EIN, like making it easier to file taxes, identity theft prevention and it can help you establish your business credit.

Applying online for an EIN is quick and simple. Usually, within a few minutes, you can get your EIN right from the IRS free of charge and then use that EIN to register to pay your federal and state taxes.

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Start Your Dream Business

5. Get licenses and permits

When starting a transportation business, there are bound to be more business licenses and permits required than if you were opening something like a boutique or a coffee shop. When you open a transportation business you’re taking on responsibility for people or for the items you're transporting and the regulations around that can be more in-depth than they are for other things.

The SBA has a list of the issuing agencies for certain businesses that transport things via plane, ocean and more. For state licenses and permits, you have to check with your specific state and municipality. The registration requirements are highly dependent on the county your business will be operating in and its activities, according to the SBA.

For example, if you’ll be driving tractor trailers or other large vehicles, you’ll need a commercial driver’s license, as will any drivers you employee who will drive such vehicles, along with a commercial vehicle registration. These must be obtained through your home state. But there might be unforeseen registrations. The Department of Revenue in Kansas, for instance, has their own resource page for trucking companies , where they discuss requirements like a liquid-fuel carrier’s license, the International Fuel Tax Agreement and trip permits.

You might want to consult a lawyer in your specific industry to make sure you’re following all rules and regulations, that you’re completing the proper registrations, and that you’re getting the right licenses. They vary by state and by specific industry, so you want to be sure you’ve covered all your bases.

6. Open a business checking account and get a business credit card

A business checking account and a business credit card are the next step when it comes to how to start a transportation business. You want to have both of these things to help keep your business’s cash and credit completely separate from your personal finances.

Getting a business credit card can also act as a form of funding early on if you’re having a hard time getting a loan. Paying off your credit card on time — or early if you’re able to — can help boost your business credit and make you a better candidate for a loan when the time comes. Sometimes they even come with perks that can help your business. For example, there are some business credit cards, known as fuel cards, that are especially useful for truckers.

Having a business checking account as well can help you keep your finances separate and help you establish your credit further. Keeping your business money in and out of one account, that isn’t linked with your personal account, can be very helpful when it comes to things like filing taxes, applying for loans, or figuring out your monthly overhead, costs, and revenue.

The best checking account for your business will vary depending on your specific business needs and the type of transportation business you’re starting. For example, the best banks for truckers, who need a lot of flexibility, won’t necessarily be the best bank for a school bus operation that stays relatively local.

Some accounts, like the Chase business checking accounts, offer you a bonus when you sign up, and the ability to waive the monthly service fee. Other banks offer a high number of transactions per month if your business has a high volume of transactions or offer integrations with accounting software. Choosing the right one comes down to what your business needs and what type and how many transactions you’re processing.

7. Get any funding you need

Starting a transportation business isn’t a cheap venture. You’ll likely need to be investing in equipment, aka vehicles, for the business which can cost a lot up front, even if you decide to rent. These costs are inevitable and you’ll have to spend some money to start making money.

So you’ll probably be needing some financing as well. There are plenty of financing options luckily. As a small business that’s new, you might have a hard time finding lenders but that doesn’t mean you shouldn’t try.

There are grants, loans, funding and more available as startup funding to new business owners. You might even decide that your new business credit card can help you get started depending on your credit limit. Your other options for startup business loans include SBA microloans, small-business grants , family and friends, personal loans and crowdfunding.

8. Hire any employees you need

You’re probably going to need employees if you’re planning on transporting anything on any sort of scale other than small one-time trips that you can handle yourself. If so, you’ll have to find those employees and make sure they’re the right fit for your new business.

Some signs that it’s the right time to hire your first employee include having to turn down work because you can’t do it all on your own, never being able to take a break, and needing someone with skills that you don’t already have.

Once you know you definitely need to hire an employee, make sure you’ve got an EIN and your taxes are in order. Then you can move on to the part of hiring your first employee that involves writing the job description and interviewing and hiring candidates.

You should make sure your candidates have the training and the licenses they need to work for your business. You might also want to check their references to make sure they’re reliable and good employees and will be a valuable addition to your new business.

Don’t rush into hiring. If you don’t need any employees, don’t hire just because you think your business should be more than one person. You’ll be able to tell when the time is right and should take some time to vet candidates and make sure they have the correct skills before offering them a position.

Keep in mind that when you hire someone, you’ll also have to provide benefits, deal with payroll taxes, adjust your budget to reflect salaries and more.

On a similar note...

One blue credit card on a flat surface with coins on both sides.

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Transportation Business Plan Template

Written by Dave Lavinsky

transport and logistics business

Transportation Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their transportation businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a transportation business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your transportation business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a transportation business, or grow your existing transportation business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your transportation business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Transportation Companies

With regards to funding, the main sources of funding for a transportation business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for transportation businesses.

Finish Your Business Plan Today!

How to write a business plan for a transportation company.

If you want to start a transportation business or expand your current one, you need a business plan. Below we detail what you should include in each section of your own business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of transportation business you are operating and the status. For example, are you a startup, do you have a transportation business that you would like to grow, or are you operating transportation businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the transportation industry. Discuss the type of transportation business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of transportation business you are operating.

For example, you might operate one of the following types of transportation businesses:

  • Moving Van Transportation : this type of transportation company specializes in large vans or small fleet trucks to move individuals to a new home. Larger companies are able to move the family or individual to a different country.
  • Medical Transportation: this type of transportation company specializes in the transportation of medical supplies and/or devices and equipment.
  • Taxi Company: this type of transportation company focuses on individuals needing to get to different locations. These trips are often short and within the same city or neighborhood. Many individuals utilize taxi companies for pickup or dropoff from the airport.

In addition to explaining the type of transportation business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of clients served, number of positive reviews, reaching X amount of clients served, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the transportation industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the transportation industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

  • How big is the transportation industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your transportation business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments:individuals, seniors, families, and companies that need to transport their products.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of transportation business you operate. Clearly, companies would respond to different marketing promotions than individuals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other transportation businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes transportation companies such as limousines, bicycle services, car rental companies, etc.

With regards to direct competition, you want to describe the other transportation businesses with which you compete. Most likely, your direct competitors will be transportation businesses located very close to your location.

transportation competition

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of vehicles do they operate?
  • What areas do they serve?
  • What type of transportation company are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Are your vehicles more fully-equipped than the competition?
  • Will you provide transportation services that your competitors don’t offer?
  • Will you provide faster delivery time?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a transportation company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of transportation company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to transportation services, will you provide GPS tracking, 24/7/365 service, client communication, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your transportation company. Document your location and mention how the location will impact your success. For example, is your transportation business located near a warehouse district, an office complex, an urban setting, or a busy neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your transportation marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Commercials
  • Social media marketing
  • Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your transportation business, including cleaning the vehicle, any necessary mechanical needs the vehicle may require, fueling the vehicle, and informing clients of location and status updates.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your transportation business to a new location.  

Management Team

To demonstrate your transportation business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing transportation businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a transportation business or is connected to a wide network of professional associations.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client at a time or multiple new clients with multiple vehicles and drivers ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your transportation business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a transportation business:

  • Cost of vehicles
  • Cost of fuel and transportation overhead
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your vehicle lease or cost, types of customer you will be targeting, and the areas your transportation business will serve.  

Putting together a business plan for your transportation business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the transportation industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful transportation business.  

Transportation Business Plan FAQs

What is the easiest way to complete my transportation business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Transportation Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of transportation business you are operating and the status; for example, are you a startup, do you have a transportation business that you would like to grow, or are you operating a chain of transportation businesses?

Where Can I download a transport business plan pdf?

You can download the transport business plan pdf here. This is a business plan template you can use in PDF format for any type of transportation business.

Don’t you wish there was a faster, easier way to finish your Transportation business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

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How to start auto transport business

How to start an auto transport business

Today you can find a lot of opportunities for starting your own business. The main things you need are money, time and some basic understanding of the process. Of course, it’s always possible to pay for the professional advice of the specialists, but if you are planning to start an auto transport business, here are some main steps you need to consider. And better to check all of them in advance to be ready for all the curves and challenges on the way.

How to start an auto transport business in the USA

Auto-Hauling

As soon as you are willing to figure out how to start auto transport business, you may face the problem that there are a lot of sources and websites on this topic but it’s hard to find all the necessary information gathered in one place. Here you can check all the requirements and main points. It’s important to go through all of them before you are taking a final decision and starting the process of opening a new auto transporting business.

Business plan. This is one of the first things you need to have before starting any business. The main questions in regards to starting an auto transport business should be the following:

  • What? The type of the vehicles you are going to deal with will directly affect the fleet you need to have. The more complex the variety, the more difficult and variable trucks and equipment you will need to prepare;
  • Where? Working across the whole country will provide you with more potential clients (especially in regards to Alaska and Hawaii) but you also need to check the particular requirements of every particular state about the transportation services;
  • How? Are you going to be a broker acting as a third party in the deal or the direct carrier who will perform the delivery service? The options of the transportation are also essential. As we know, today transporters can deliver cars in open and enclosed way, and you can also choose to be specialized in the particular one;
  • What do you already have for starting a auto transport business? It can be mechanical skills or some equipment. It’s always better to start from some basis, and you need to carefully consider what is your particular basis in this case;
  • What is the structure of the future company? Small family businesses and big companies have a lot in common but also can distinguish in many aspects. This should be considered in advance as well.
  • Your role in the company. In many cases, especially at the very beginning of the business, you may need to perform the role of the driver, at least unless you find a great and reliable team. Here you have two choices: to get your medical card to make sure you will be allowed to be a truck driver or to start looking for potential candidates for your employee. In both cases it’s important you have understanding of the driving techniques and process, otherwise you may need the assistance of the experienced professional.
  • Budgeting. Every business requires some investments. In regards to starting auto transport business you need to expect at least 100,000 dollars initial investments to take place. Obviously, not everybody can afford such an essential budget so on this stage you may need to find an appropriate investor or to take a bank loan for the business purposes. Also, you will need to register your Employer Identification Number and Internal Revenue Service – that is how you can finally set up your company’s Business Checking Account. For the details it’s highly recommended to consult with the Tax professional.
  • Equipment. Here is the time to make more investments into material things. But before you need to purchase a special Motor Carrier Insurance. Not every insurance company is dealing with this type, so you may need to make some investigations before. You can expect to invest around 15,000-30,000 dollars every year for the insurance coverage of the vehicles you are transporting. As soon as your insurance is lined up, you can start purchases. Auto transport business opportunities fully depend on the quantity and quality of the equipment you have. To get a better understanding about the prices in the modern market, here are some examples. The truck will cost you about 40,000-50,000 dollars, the trailer for at least 4 cars to deliver – up to 10,000 dollars.
  • USDOT Number. This will allow you to work as a legal transportation company. To get this number as well as your personal MC Operating Authority, you will need to visit the official website of the Federal Motor Carrier Safety Administration and to make an online application. You need to remember that this part is very serious and important and as soon as you have any significant changes in your business you will need to update the information there, otherwise you may have big problems for your company.
  • Unified Carrier Registration. It may sound like you need a lot of registration for starting the transporter’s business. And it’s true. In this case we are talking about the mandatory program for those brokers and carriers who are planning to deal with interstate cars’ transportation.
  • Fuel License. This part is a bit more annoying than others as here you will need to apply for the International Registration Plan in person. To do so you will need to arrange a trip to the State Capitol. One more essential detail in this regard is the planned gross vehicle weight rating you are going to have in your fleet. As soon as it’s more than 55,000 pounds, you should expect to make some extra steps. More information you can always get from the officials.
  • CDL certificate. This is a must for every commercial driver so if you are planning to directly participate in the delivery process you need to make sure your CDL of class A is valid.
  • Drug and alcohol test. This is an important part of any transportation business and you as an employer will need to make sure you are following the necessary requirements and all the drivers are taking this testing seriously.
  • Electronic Logging Device. It’s one of the relatively new requirements you might not have heard of. Every truck you have in your fleet must be equipped with this special device. It will automatically record the hours the driver spends at the steering wheel and, therefore, it will be much easier to control working hours. There are different variants of these logging devices and it’s up to you to choose the simplest one or more developed. For example, you can choose the option with a mobile application which will make the whole process of monitoring easier and more efficient. On this stage you also will need to make sure all the drivers are aware of the procedure, otherwise, the penalties for the violation of the laws will lay on you as the owner of the transportation company.
  • When it comes to ensuring a smooth and safe ride, shocks and suspension are essential components in any vehicle. Car shocks, also known as shock absorbers, play a critical role in controlling the impact of bumps and uneven surfaces on the road. Shocks and struts work together to provide stability and control, helping to maintain tire contact with the road and improve steering response. Over time, these components can wear down and lose effectiveness, leading to a rougher ride and decreased handling. Regular maintenance and replacement of shocks and struts can ensure optimal performance and prolong the life of your vehicle.

This is just a basis of how to start an auto transport business in the modern world. Depending on the particular features you may need to add some extra steps and skip others. And still, there are numerous details you can meet.

For example, talking about the mentioned above electronic logging devices, you cannot purchase and implement any of them, even if you found a very functional and affordable option. You can choose only those that are approved by the Federal Motor Carrier Safety Administration. Basically, its website is one of the most important and informative tools you can use when considering a new business.

Additionally, considering how to start an auto transport broker business, you can also meet a lot of extra points. For example, you will need to figure out how to choose reliable and trustworthy carriers to make sure your clients will be satisfied with the delivery service. Otherwise, every mistake of the carrier will directly affect your reputation and rating even if you have nothing to do with the particular transportation process.

All of this needs your careful and detailed consideration. If you are not very familiar with the transportation industry at all, you should ask for professional consultation and advice from accountants, attorneys, and drivers themselves to avoid unexpected difficulties and frustration. Money is definitely not everything you will need for a great start.

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How to Start a Car Hauling Business

Are you wanting to be a business owner and get into the trucking industry and start-up a car hauling business or auto transport? Starting a car hauling business as a truck driver can be a great way to enter the transport industry and become your own boss. However, before you jump on the load board and start booking loads, there are a lot of factors to consider. Items like obtaining operating authority, purchasing the right equipment, and finding clients.

First, it’s important to familiarize yourself with the requirements set by regulatory bodies such as the Federal Motor Carrier Safety Administration (FMCSA) and the Department of Transportation (DOT). You’ll need to apply for operating authority and obtain necessary credentials like the International Registration Plan (IRP) to ensure that your small business is operating legally.

Getting Authority

When it comes to starting a car hauling business, obtaining a business license and operating authority is a critical step in the process. The operating authority, also known as a DOT number, is a unique identifier that is required by the Department of Transportation (DOT) to operate a commercial vehicle legally.

If you have prior experience in the trucking industry as an owner-operator, you may be familiar with the process of obtaining standard “for hire” authority for a commercial vehicle. However, when it comes to starting a car hauling business, there are a few differences in the setup process. For example, you’ll need to select “auto hauler” as your commodity type to ensure that you’re correctly identified in the professional hauling services.

It’s also important to note that obtaining operating authority is not the only requirement for starting a car hauling company. You’ll need to obtain additional credentials like the Unified Carrier Registration (UCR) and International Registration Plan (IRP) credentials, as well as comply with various regulations set by the Federal Motor Carrier Safety Administration (FMCSA).

Navigating the requirements and regulations can be challenging, so it’s important to work with experts in the field who can provide guidance and support. Working with a knowledgeable consultant or mentor who understands the intricacies of the transport industry can help you save time and money in the long run and ensure that your car shipping is set up for success.

You’ll Need the Right Equipment

When it comes to starting a car transport company, having the right equipment is crucial for success. Unlike other divisions within the trucking industry, a CDL (commercial driver’s license) and auto hauler trailer will not suffice if you want to be a serious car hauler. Instead, you’ll need to invest in a specialized heavy-duty car trailer upfront that’s designed to hold the number of vehicles you need to haul in a typical load.

In addition to the car carrier trailer, you’ll also need reliable pickup trucks (dually) or full-size semi-trucks that have the appropriate towing specifications to haul the trailer and load efficiently on an ongoing basis. It’s crucial to work with reputable dealerships that specialize in heavy-duty equipment to ensure that you get the right trucks and trailers for your business needs.

One option to consider is leasing trucks, which can help you save money upfront and allow you to upgrade your equipment as your business grows. Leasing can also be a great option if you’re starting a new business and want to conserve your capital for other expenses like insurance policy and marketing on and off of social media.

It’s important not to cut corners when it comes to your equipment. If you do not plan appropriately or try to save money by investing in subpar equipment, you will end up putting too much strain on your trucks, which can lead to breakdowns and costly repairs. This can impact your bottom line and delay your ability to provide reliable service to your clients.

Getting Insurance Quotes

When it comes to starting an auto transport business, obtaining the right insurance coverage is a crucial component to consider. Unlike getting a policy from insurance companies for your own car, auto transport insurance is different and requires specialized coverage to protect your business and the vehicles you’re transporting.

Insurance is a major factor to consider in this business, as used and new cars – especially new ones – are considered high-value loads that require appropriate coverage in the event of an accident or damage. Auto hauling typically needs about double the amount of liability insurance and cargo insurance coverage than other trucking companies. It’s crucial to work with insurance providers who understand the unique risks associated with the auto transport industry and can provide you with the right level of coverage to protect your own business.

When obtaining insurance quotes, it’s important to consider the type of cargo you’ll be transporting, the number of vehicles you plan to haul, and the range of your long-distance hauls. Insurance premiums can vary depending on these factors and others, so it’s essential to shop around and compare rates from multiple providers to find the best coverage for your business needs.

Tips For Writing a Business Plan

AWhen it comes to starting a car hauling business, writing a business plan is a crucial step in the process. A business plan is a roadmap that outlines your goals, strategies, and financial projections for your company.

To create an effective business plan, it’s important to research the industry and gain a clear understanding of what you can expect from your business. This includes analyzing market trends, identifying potential clients, and understanding the competition.

Once you have a solid understanding of the industry, you can set goals for your new company and outline strategies to achieve them. This might include developing a marketing plan to attract new clients, establishing relationships with car dealerships and auction houses, or investing in equipment and infrastructure to improve efficiency.

In addition to setting goals and strategies, your business plan should include financial projections and a budget. This will help you determine the startup costs for your business and estimate your potential revenue and expenses. It’s crucial to be realistic in your projections and budgeting to ensure that you have a clear understanding of your financial situation.

Writing a business plan can be a daunting task, but there are resources available to help you. You can consult with a business advisor, mentor, or accountant to get guidance and support. Additionally, there are many online resources and templates available that can help simplify the process.

Also see: Starting a Trucking Company

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How to Start a Car Hauling Business

Running your own car hauling business may be a great idea, but you need to know exactly what is involved in getting started. Before you make any permanent plans, let us help you learn how to start a car hauling business. 

TAFS is More than Freight Factoring

What is a car hauling business  .

The term car hauling refers to transporting automotive vehicles from one place to another. Drivers engaged in this business are responsible for loading each vehicle onto a specially-designed trailer and ensuring that the vehicles are secure. They must also make sure the trailer meets all weight restrictions and safety standards. 

As a rule, vehicle manufacturers and dealerships are not involved in the transport aspect of moving vehicles. This aspect of their business is handled by the trucking industry instead. Essentially, a car hauling business acts as a middleman between the shipper and the customer.

Car hauling can also mean shipping a car to a new location for individuals who move. 

How Does a Car Hauling Business Work? 

When deciding how to start a car hauling business, you can choose to work with a broker who will help you get loads, find your own customers, or work for an auto transport company. 

Pros & Cons of Owning a Car Hauling Business

Owning a car hauling business sounds good in theory, but are you ready to take on the responsibility? Take a look at the pros and cons, and then decide whether you wouldn’t be better off working on your own or with a reputable company.

Advantages 

  • Be your own boss
  • High profit margin
  • Build your business brand
  • Open trailers offer better visibility
  • A growing industry

Disadvantages 

  • High maintenance costs
  • Rigorous licensing costs 
  • Hard to get established
  • More responsibilities 
  • Unexpected expenses

10 Steps for Starting a Car Hauling Business  

Are you interested in the business of hauling cars but aren’t sure how to begin? The best way is to follow specific steps to avoid legal issues or other problems.

If you’re not sure how to start a car hauling business, here are 10 steps you need to follow:

Step 1: Get Your CDL

The first step in starting a car hauling business is to obtain a CDL-A license. The license will make it easier to get insured, and fees will be cheaper. 

In addition to the CDL , you need to obtain a standard “for-hire” authority to fulfill the company’s state and federal legal requirements. 

Step 2: Create a Business Plan

Trying to start a new car hauling company without a business plan is setting yourself up for problems. For instance, you need to know what you’ll be hauling, where you can find customers, your goals, and how you plan to grow the business.

Your car hauling business plan will serve as a guide to help you handle unexpected responsibilities and costs. You may want to get professional help creating the business plan to make sure it’s realistic.

Step 3: Create Your Budget

Before starting any business, it’s important to know your overall costs. They may include initial, ongoing, and future costs. Do you know where your working capital is coming from, the daily operating costs, and how to cover unexpected expenses? Setting up a budget will help you plan for these costs.

Step 4: Get Insurance Quotes

In the car hauling business, the freight you carry is high-value. As such, insurance companies want to make sure you have adequate coverage. You can expect to carry about $2 million in liability insurance and $500,000 in cargo insurance.

Step 5: Learn How to Load and Unload Properly

Loading and unloading an auto transport trailer is a complex process. It requires a lot of skill to ensure all moving parts come together properly. The driver must consider the size of each vehicle and the order in which they are to be unloaded. 

Before starting a car hauling business, make sure you gain experience in this critical aspect of the profession.

Step 6: Fulfill Legal Requirements

Before you can hit the road with your car transport business, you will need several permits:

  • UCR — Unified Carrier Registration fees
  • IFTA — International Fuel Tax Agreement taxes
  • IRP — International Registration Plan taxes 
  • HVUT — Heavy Vehicle Use Tax
  • DOT — Department of Transportation fees
  • MC Number — Assigned by the FMCSA

It’s important to pay the fees on time to avoid paying heavy fines or having your vehicle placed out-of-service. 

Step 7: Purchase Equipment and Insurance

After applying your operating authority, you have 30 days to buy a truck and obtain insurance. If you fail to complete these steps, the DOT may shut down your operation. 

Step 8: Set Up Contact Information

At first, you may decide to work with a broker to get your business started, but it’s better to have an alternate plan. Setting up your business email and website is a step toward independence. When you generate your leads, you will increase revenues and build a reputation as a reliable, trustworthy car hauling company.

Step 9: Sign Up for the Load Board

After the FMCSA approves your authority, your next step is to sign up for the load board . A load board is used by brokers, dealers, and carriers. You can use the board to find and book loads for a fee .

Step 10: Get to Work

Stay legal, drive safely, and start making money. It won’t be easy, and you’ll make mistakes, but you’re off to a good start.

Are You Ready to Start Hauling Cars ?

Hauling cars for a living can be a profitable venture if you plan well, stay up-to-date with regulations, and work hard. You may want to consider working with a logistics company to ensure that you get the loads you want, keep your company organized, and have the support and guidance you need in the early stages of your business. 

Work with a load board that specializes in car hauling. One satisfied customer leads to another and ensures repeat business.

Get the right equipment, licenses, and insurance, and gain experience loading and unloading vehicles. Next, create a business plan, and determine where your operating capital is coming from.

You will have to be highly competitive since you are limited to hauling fewer vehicles over shorter distances than a semi would.

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FreightWaves Ratings reference a list of approved sources for use of research to support editorial research and drafting. These include the Federal Motor Carrier Safety Administration, U.S Department of Transportation, Better Business Bureau®, International Fuel Tax Association, Inc, Federal Highway Administration, additional Federal, State, and Local government websites, internal data compiling, original research, and commentary from industry experts.

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auto transport business plan

Auto Transport Business Plan – Do you need a business plan?

Are you currently or planning to become an auto transport broker, car hauler or a company who sells to them?

Are looking for information on creating an auto transport business plan or asking “do you need a business plan?”

If this sounds like you then you’re in for a special treat. On today’s episode we are covering that:

Auto transport business plan- Do you need a business plan?

We will talk about the situations that warrant a comprehensive auto transport business plan and for those that don’t fall in that category? We will talk about how to create a simplified business plan and what needs to be included in it.

Once you’ve watched the video, in the comments below, let me know which path you’ve taken or plan to take. Did you create a detailed auto transport business plan or did you or plan to create a more simplified version.

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How to Start a Car Hauling Business

By: Author Tony Martins Ajaero

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Car Hauling Business

Do you want to start a car hauling company? If YES, here is a complete guide to starting a car hauling business with NO money and no experience plus a sample car hauling business plan template.

The car hauling/car towing business is indeed a profitable business because we most times need to tow our cars when they break down on the road, or tow a non – functional car from an accident site to an auto mechanic garage. If you are looking for a business to start as an entrepreneur and you have an interest in the automobile industry, then you should consider starting your own car hauling business.

Although you don’t need a college degree to establish a car hauling business, but you would need some form of informal training, you may have to work as an apprentice to someone who owns a car hauling business. It makes it easier for you to learn how to manage your own car hauling services business when you get started.

Depending on the scale you want to start, the startup capital for this type of business can be considered to be moderate. As a matter of fact, you can start your own car hauling services business as a one man show and then grow it big within a short period of time by re-investing your profits back into the business in order to purchase more towing vans, hire towing van drivers and setup an administrative office structure.

Before launching this type of business, it will pay you carry out your market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your car hauling business, it will not take you long before you break even and start smiling to the bank.

So, if you want to start your own car hauling services business, all you need do is to read this article and you will be well equipped.

Steps to Starting a Car Hauling Business

1. understand the industry.

The automobile towing industry generally tows light or heavy motor vehicles over short and long distances. Car hauling service companies may also provide incidental services such as storage and emergency road repair services. As a matter of fact, car hauling services companies can be found in all parts of the world as long as there are automobiles there.

If you are a close watcher of the Automobile Towing industry, you will agree that the industry is tagging along. As individuals returned to work and disposable income started to rise, more consumers felt comfortable driving on their own as opposed to carpooling or taking public transportation.

It is a known fact that when more cars are on the road, the chances of an accident or need for roadside assistance rises, hence increasing the demand for car hauling services. Going forward, the revenue generated in the industry will continue to increase positively.

The Automobile Towing Industry is indeed a large industry and pretty much active in all the countries of the world. Statistics has it that in the united states of America alone, there are about 38,376 registered and licensed large and small scale automobile towing service companies scattered all across the United States responsible for directly employing about 86,829 people and the industry rakes in a whooping sum of $6 billion annually.

The industry is projected to grow at 2.5 percent annual growth within 2011 and 2016. It is important to state no company has a lion share of the available market in the industry.

A recent report released by IBISWorld shows that industry establishments are generally located in regions with relatively high population and vehicle concentration, notably the Southeast and West regions. The report also shows that the Southeast region is home to the largest concentration of population relative to any other region in the nation.

This region lacks the public transportation infrastructure of the Mid-Atlantic and New England regions. Therefore, industry operators located here take advantage of a large proportion of the population using automotive vehicles as a primary means of transportation. This region accounts for about 24.3 percent of industry establishments.

Lastly, the automobile towing industry is pretty much open for aspiring entrepreneurs to launch their business in the industry.

One good thing about the automobile towing business is that the business can be opened in any part of the United States with just one towing van and if proper market survey and feasibility studies are conducted, then you can be rest assured of the profitability of the business.

2. Conduct Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition of those who patronize car hauling services cut across all genders; male and female above 18 years with the financial means and who own automobiles hence the demographic composition of a car hauling/towing business is all encompassing. In essence, your target market can’t be restricted to just a group of people, but all those who own automobiles.

So, if you are thinking of opening your own car hauling business then you should make your target demographics all encompassing. It should include car owners, auto repair, maintenance and servicing garages, transport companies and haulage companies in and outside the neighborhood where your car hauling business will be located.

3. Decide Which Niche to Concentrate On

It is important to state that there is no known niche area when it comes to the car hauling business. Every player in this line of business usually tows light or heavy motor vehicles over short and long distances. Car hauling services companies may also provide incidental services, such as storage and emergency road repair services.

The Level of Competition in the Industry

The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your products or business properly, you will always make headway in the industry. Just ensure you have reliable and effective towing vans and drivers and you know how to attract and reach out to your target market.

But over and above, there are several car hauling companies scattered all around the United States. So, if you choose to start your own car hauling/towing services business in the United States, you will definitely meet stiff competitions from them.

Besides, there are larger car hauling/towing services brands that determine the trends in the industry and you should be ready to compete with them for customers.

4. Know Your Major Competitors in the Industry

In every industry, there are always brands that perform better or are better regarded by customers and the general public than others. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their business and the results they have achieved over the years.

These are some of the leading car hauling/towing service companies in the United States of America and in the globe;

  • American Towing Co
  • Harmon’s Automotive & Towing Service
  • Southwest Auto Towing LLC
  • Timbes Tire Auto Accessories & Wrecker Service
  • Bull City Radiator Service
  • AAA Ridgecrest Towing & Auto
  • Southside Wrecker Service
  • Jim’s Auto Body Shop
  • Auto House Towing & Recovery
  • Defalco’s Automotive & Towing
  • Leonard’s Auto Service
  • Hunter’s Towing & Recovery
  • Joe’s Towing and Auto Repair
  • Jake’s Towing and Used Auto Parts
  • Hill Brothers Auto Body & Towing
  • Northside Service & Towing
  • Superior Towing & Transport
  • Iron Horse Towing and Repair
  • Bo Dean’s Towing
  • Hodge’s Towing and Repairs

Economic Analysis

If you are looking towards successfully launching a business and maximizing profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.

The car hauling/towing services business is not a Green business; as a matter of fact, you will come across several car hauling/towing services companies when you are in need of their services.

So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and costing of the amount required to rent a garage and the amount needed to purchase towing vans, tool box, fueling and maintenance, acquiring the required licenses and also the running cost of the business.

Over and above, if you are considering starting a car hauling business, your concern should not be limited to the cost of renting a garage and the amount needed to purchase equipment, but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base, you are sure going to maximize profits in the business.

5. Decide Whether to Buy a Franchise or Start from Scratch

If you are looking towards starting a car hauling business, you would have to start from the very scratch because you can hardly get a franchise of car hauling business to buy. It is a business that is open to all and sundry and with just a towing van anyone can launch the business even as a one man show.

Besides starting a car hauling business from the scratch is less stressful when compared to other small scale businesses which usually require detailed groundwork before launching the business.

With a car hauling business, you should just try as much as possible to secure a garage that is close to a major road or mechanic village and then leverage on every marketing tool within your disposal especially the internet to market your car hauling/towing services company.

Please note that most of the big and successful car hauling companies around started from the scratch and they were able to build a solid business brand.

6. Know the Possible Threats and Challenges You Will Face

If you decide to start your own car hauling business today, one of the major challenge you are likely going to face is the presence of well – established car hauling companies and auto garages within your business location that also engage in towing services. The only way to avoid this challenge is to create your own market.

Some other challenges and threats that you are likely going to face is economic downturn; if the economy is in bad shape, history has it that businesses such as car hauling/towing services companies and the likes usually struggle to maintain their old customers or even welcome new customers.

So also, unfavorable government policies can also hamper the growth of your car hauling / towing services. There is nothing you can do as regard these threats and challenges other than to stay positive that things will work well for you.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

Generally, you have the option of either choosing a general partnership, limited liability company which is commonly called an LLC, or a sole proprietorship for your car hauling company.

If your intention is to grow the business and have loads of towing vans covering major cities all across the United States of America and other countries of the world via franchising, then choosing sole proprietor is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your car hauling / towing services business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.

If you take your time to critically study the various legal entities to use for your car hauling / towing services business with the ability to sell franchise and position your towing vans all across major cities in the United States of America, you will agree that limited liability company; an LLC is most suitable.

You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.

8. Choose a Catchy Business Name

When it comes to Choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. If you are considering starting your own car hauling / towing services business, here are some catchy names that you can choose from;

  • Vitus Lewis Car Towing & Auto Spare Parts Store, Inc.
  • Bourn Mort Car Towing and Car Accessories Store, LLC
  • Classique Car Hauling and Car Accessories Store, Inc.
  • All Nation Car Towing and Car Accessories Store
  • Mark Fernand Car Towing and Auto Repair Garage, Inc.
  • Tripod Car Towing and Auto Spare Parts Store, Inc.
  • The Kings Car Hauling and Car Accessories Stores, Inc.
  • George Paulson Car Towing and Auto Repair Garage, LLC
  • Ken Garland Car Towing and Car Accessories Stores, Inc.
  • Gaggling Jamel Car Towing Services, Inc.

9. Discuss with an Agent to Know the Best Insurance Policies for You

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your car hauling / towing services business.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own car hauling/towing services business in the United States of America;

  • General insurance
  • Health insurance
  • Liability insurance
  • Comprehensive Motor Vehicle Insurance
  • Workers Compensation
  • Overhead expense disability insurance
  • Business owner’s policy group insurance
  • Payment protection insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

If you are considering starting your own car hauling/towing services business, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

11. Get the Necessary Professional Certification

Aside from the results you produce as it relates to providing professional towing services, professional certification is one of the main reasons why some car hauling/towing services companies stands out. If you want to make an impact in the automobile towing services industry, you should work towards acquiring all the needed certifications in your area of specialization.

Certification validates your competency and shows that you are highly skilled, committed to your career and up-to-date in this competitive market. These are some of the certifications you can work towards achieving if you want to run your own car hauling/towing services company;

  • Commercial Driver’s License (CDL)
  • F&I Regulation Certification – Auto Industry Certifications
  • ASE Certified Technicians

Please note that you can successfully run a car hauling/towing services company in the United States and in most countries of the world without necessarily acquiring professional certifications and business license as long as you have adequate driver’s license, experience cum background in the automobile towing services industry.

12. Get the Necessary Legal Documents You Need to Operate

The essence of having the necessary documentations in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own car hauling business in the United States of America;

  • Certificate of Incorporation
  • Business License
  • Tax Payer’s ID/Tax Identification Number
  • Business Plan
  • Commercial Vehicle Operator’s Registration
  • Appropriate driver’s license for drivers (Commercial driver’s license (CDL)
  • Assistant’s license for assistants
  • Proof of ownership, proper identification and vehicle license
  • Fire certificate
  • Non – disclosure Agreement
  • Copy of license for the service support (garage) facility and/or a recent inspection report
  • Employee Handbook
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document (basically for online payment portal)
  • Company Bylaws
  • Memorandum of Understanding (MoU)
  • Building License
  • Franchise or Trademark License (optional)

13. Raise the Needed Startup Capital

Starting a car hauling/towing services business can be cost effective especially if you choose to start on a small scale with just one towing van.

Securing a standard and well – positioned garage facility and the amount needed to purchase towing vans, tool boxes, fueling and maintenance, acquiring the required licenses are part of what will consume a large chunk of your start – up capital, but if you choose to start the business on a large scale, you would need to go source for fund to finance the business because it is expensive to start a standard large scale car hauling / towing services business.

No doubt when it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.

Here are some of the options you can explore when sourcing for start – up capital for your car hauling business;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell of shares to interested investors
  • Applying for Loan from your Bank
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Source for soft loans from your family members and your friends

14. Choose a Suitable Location for your Business

The location you chose to open your car hauling/towing services business is key to the success of the business; hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people who own automobiles and with the required purchasing power.

If you make the mistake of renting or leasing a facility for your car hauling company in a not too visible or hidden location simply because it is cheap, then you must be prepared to spend more in promoting the business and perhaps giving direction to potential customers.

These are some of the key factors that you should consider before choosing a location for your car hauling business;

  • The demography of the location
  • The demand for car hauling/towing services in the location
  • The number of automobile owners and the purchasing power of the residents of the location
  • Accessibility of the location
  • The number of car hauling/towing services companies in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security

15. Hire Employees for your Technical and Manpower Needs

On the average, there are no special technologies or equipment needed to run this type of business except for towing vans, tool box, Point of Sales (POS) Machines, shelves and software applications. So also, you will definitely need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst other and all these can be gotten as fairly used.

As regards leasing or outright purchase of a garage facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short – term rent/lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property.

When it comes to hiring employees for a standard car hauling/towing services business, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Auto Mechanics, Sales and Marketing Officer/Sales Girls and Sales Boys, Accounting Clerk and Towing Van Drivers. These are some of the key employees that you can work with. On the average, you will need a minimum of 3 to 6 key staff members to run a small – scale but standard car hauling/towing services business.

The Service Delivery Process of the Business

When it comes to a car hauling business, there are no hard and fast rules on how they carry out their services. This is because the business process is simple and straightforward.

Basically, a car hauling/towing services company displays their numbers on key locations especially on the highway so that people (drivers) who need their services within the location can easily reach out to them. Once a client calls them to come help tow a vehicle, they access the distance the vehicle will be towed to and then bill the client. So also, if they are to carry out basic auto repair services, the auto parts that needs to be replaced will be carried along and once the job is concluded, they will get paid.

It is important to state that a car hauling/towing services company may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated car hauling business process is not cast on stone.

16. Write a Marketing Plan Packed with ideas & Strategies

Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a car hauling business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands determining the market direction for the automobile towing services industry.

As a matter of fact, your marketing strategy should center on reliability, swiftness, safety, pricing, secured payment platform, and above all excellent customer service. You should ensure that whenever your customers hire your services, they will get excellent service.

The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers. These are some of the marketing ideas and strategies that you can adopt for your car hauling / towing services business;

  • Introduce your car hauling/towing services company by sending introductory letters alongside your brochure to car owners, auto repair, maintenance and servicing garages, transport and haulage companies and other key stake holders throughout the city where your car hauling company is located.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on the social media or those who read blogs can know who to call when they need the services of a car hauling/towing services company within your location
  • Create a basic website for your business so as to give your business an online presence
  • Directly market your products
  • Engage in road shows in targeted communities from time to time to promote your car hauling/towing services company
  • Join local car hauling/towing services associations for industry trends and tips
  • Provide discount days for your customers
  • Advertise your business in community based newspapers, local TV and radio stations
  • List your business on yellow pages ads (local directories)
  • Encourage the use of Word of mouth marketing (referrals)

17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If your intention of starting a car hauling business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by owning fleets of towing vans and franchising, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Your corporate identity has a lot to do when it comes to building a profitable business.

Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your car hauling/towing services company;

  • Place adverts on both print (newspapers and health magazines) and electronic media platforms
  • Sponsor relevant community based events
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
  • Install your billboards on strategic locations all around highways and major roads in your city or state
  • Engage in roadshows from time to time in targeted neighborhoods to create awareness of your car hauling/towing services company
  • Distribute your fliers and handbills in target areas
  • Contact car owners, auto repair, maintenance and servicing garages, transport companies and haulage companies and other key stake holders throughout the city where your car hauling / towing services company is located informing them about your business and the services you offer
  • List your car hauling/towing services company in local directories/yellow pages
  • Advertise your car hauling/towing services company in your official website and employ strategies that will help you pull traffic to the site
  • Position your Flexi Banners at strategic positions in the location where your car hauling / towing services garage is located
  • Ensure that all your staff members wear your branded shirts and all your towing vehicles and trucks/vans are well branded with your company logo

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Transport Business Plan Sample

AUG.16, 2016

Transport Business Plan Sample

Transport business plan for starting your own business

Do you want to know how to start a transport business ? Well, technology hasn’t yet got sufficiently advanced to enable teleportation of things and thus humans have to still rely on old friends: trucks, vans, and cars for transportation.

The business is never going to fall in demand and immense profits can be generated through launching it if you are good at business management. To have a guide on how to start and run this business we’re providing a free business plan here. This business plan for transport was written for ‘Niro Transports’ a transport startup based in Atlanta.

You can benefit from here. Moreover, you can also hire our business plan writing services if you want to get a specialized business plan tailored to your needs.

Executive Summary

2.1 the business.

Niro Transports will be owned by Tom Niro. The business will provide transport vehicles for enabling the transportation of goods in multiple domains. In the initial years, manufacturing and construction businesses will be specifically targeted so that they can be made to enter long-term contracts with us.

2.2 Management of transport business

The crux of the transportation business lies in your managerial skills. A transport business cannot be run successfully if you are not willing to stay vigilant throughout the operational days. You have to have a strong hold over your employees, and you must have a mechanism to check and measure their performance.

To effectively manage your transport business, you will need to start by developing a transport company business plan. In your strategic business plan you should include the details of how many employees you will be hiring and how you will spend your finances to manage the business.

This transport business sample can serve as a model for you. From here you can learn how to start a transport company and manage it effectively by studying the real-life experience of Niro Transports.

2.3 Customers of transport business

Before starting a transport company you must study some transport business plans to identify the group of target customers. Generally, the customers of this enterprise are:

  • Manufacturing Bases
  • Construction Business
  • Food Enterprises
  • Home Shifting Businesses

2.4 Business Target

The fiscal business targets are demonstrated in the following graph. However, the business targets related to marketing and expansion of the transport network will be given in the next sections.

3 Years Profit Forecast - Transport Business Plan Sample

Company Summary

3.1 company owner.

Tom Niro will be the owner of Niro Transports. Niro has acquired a degree in Executive MBA. After excelling in his academic career, he went on to earn fame in the business world. Working for 4 years in the freight business, he earned a reputation as an honest and hard-working manager.

3.2 Why the transport business is being started

While working in the freight business, Niro came to have various transport ideas that he couldn’t implement due to having limited decision-making authority. Finally, he decided to exploit a transport business opportunity and manage it the way he wanted.

3.3 How the transport business will be started

As per the transport company business plan of Niro Transports, the following steps should be taken to start this business.

Step1: Plan & Take Down

The first step is to develop a business plan transport company. Your strategic plan should cover all aspects such as how to get a transport contract, what would be the broad guidelines for agreements done to the consumer businesses etc. This business plan for transport company pdf will be elaborating all those aspects for your help.

Step2: Recruit

The next step is to hire talented and hardworking employees for your business. For the transport sector, you will need to hire relatively more employees in managerial positions as well as for the posts of drivers.

Step3: Get the Vehicles

To conduct the transport business, you will need to purchase vehicles of different sizes and functionality.

Step4: Market with a Strong Web Presence

Lastly, you will need to ensure a strong web presence to advertise your venture. Moreover, offline media should also be used to ensure the marketing is done rightly.

Startup Cost - Transport Business Plan Sample

Services of transport business

If you are starting your own transport business it would be good to have your hands on multiple transport business opportunities. For that, you should study many sample trucking business plans and notice which type of services they are providing. Since the services may overlap with those of other enterprises, it is advisable to also consult passenger transport business plan and general freight trucking business plan .

In this transport business plan, we are providing the services of Niro Transports so that you can have help with your transport proposal, if you plan to enter transport services business.

  • Transporting Food Items

Our major service will be transporting raw food materials to the industries that deal in food products. We will also transport the raw items to hotels and motels that need an influx of new material on daily basis.

  • Home Shifting

We will also serve in the arena of house shifting. To move the furniture and household appliances, we will provide both the vehicles and drivers.

  • Transporting Construction Material

We will also serve in the construction sector. We will procure vehicles specialized in functionality to carry grit, concrete, bricks, and other construction materials.

  • Transporting General Goods

We will provide vehicles and drivers to enable transportation to and from manufacturing bases.

Marketing Analysis of transport business 

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

There are various types of transport business and depending on your interest and area, the marketing analysis can be entirely different. For instance, if you are more towards transporting general goods, you would need trucking business plan doc.

For marketing analysis, you have to study how many businesses of the same type are operating near your startup. Moreover, you should study their respective strategies to conduct the business so to know how to succeed in transport business in that locality.

Since Niro decided to provide a myriad of services, the transport business plan developed by him can be taken as general guidance. If you are starting a transport business in any city, you can have help from here. You can get transport business tips, and a complete guidance on how to run transport business and how to manage transport business.

5.1 Market Trends

In the United States, more than 40k businesses are successfully running in each category such as freight packing and logistics, water transportation, moving services, taxi services, etc. Owners of these businesses are earning profits in billions in each category, as per the specified statistics by IBISWorld.

The market trends are promising and therefore if you are thinking about starting a transport business, you must go for it. Here is a complete guide on how to register a transport company and how to run a transport company for information.

5.2 Marketing Segmentation

The customers of the transport business are almost the same as those mentioned in starting a towing business plan and starting logistics business plan .

Marketing Segmentation - Transport Business Plan Sample

5.2.1 Manufacturing Bases

The biggest category of our target customers will be the manufacturing bases. They will need our services to get the raw materials, tools, and machinery transported to their sites. They will also need us to transport the finished products in bulk.

5.2.2 Construction Business

The construction businesses will be utilizing our services to get the construction material transported. In Atlanta, several construction businesses are located near the place where we have established ourselves. And thus, working with them will save us time and money.

5.2.3 Food Enterprises

Companies that prepare packed food items from the raw materials and hotels that cook their own meals will acquire our services.

5.2.4 Home Shifting Businesses

People who do jobs usually possess a car or any vehicle for the commute. However, still, some of them are expected to avail themselves of our services.

5.3 Business Target

Niro Transports aim to meet the following business targets:

  • Acquiring a CSAT score of 90+ within a year of the launch
  • Expanding the business activity to one more location by the end of the first five years
  • Start making at least $30k in monthly profits by the end of the first three years 

5.4 Product Pricing

For the initial two years, we aim to keep our prices slightly less than our competitors. This will be done to expand the reach. However, following this time duration, we will raise the prices such that they become almost equivalent to those of our competitors.

Marketing Strategy of transport business

Running a transport business demands huge investment in terms of both time and money. And unless you have the mindset determined enough, you would feel difficulty managing the business. Just searching on Google for I want to start transport business wouldn’t suffice. You have to research how to start a transport business in your preferred city. Moreover, you have to craft a business proposal for transport services. 

The sales strategy of Niro Transports is given in this business plan of a transport company.

6.1 Competitive Analysis

  • Our biggest competitive advantage is our strategic location near all the giant organizations that we aim to serve.
  • Secondly, we are especially focusing on reaching a maximum number of customers whether that means parting from monetary benefits. This strategy when carefully continued will benefit us in the longer run.

6.2 Sales Strategy

  • We will create and brand posters based on memes so that more and more people see and share them.
  • We will offer a 10% discount to hotels for the first year of our launch.
  • We will set up a photography base with some vehicles culturally decorated so that teens and youngsters could capture pictures and share our brand name.

For more advertisement ideas, you may want to visit dump truck business plan sample as well as taxi company business plan .

6.3 Sales Monthly

Sales Monthly - Transport Business Plan Sample

6.4 Sales Yearly

Sales Yearly - Transport Business Plan Sample

6.5 Sales Forecast

Unit Sales - Transport Business Plan Sample

Personnel plan of transport business

Most of the transport business depends on the dedication of drivers and the vigilance of managers. in your business plan transport company you must enlist the staff you would hire to fill up different positions. For your help, we are listing the personnel plan of Niro Transports in this transport business plan template free of cost. If you want to save the business plan for later use, you can download it from transport company business plan pdf.

7.1 Company Staff

Niro, the CEO, will hire the following people:

  • 1 Operation Manager
  • 2 Sales Executives
  • 1 Digital Media Manager 
  • 1 Customer Care Executive
  • 2 Technical Assistants (Mechanics)

7.2 Average Salary of Employees

Financial plan of transport business.

Making a comprehensive financial plan is essential to ensure that your business generates profit and remains safe from getting into a loss. The financial plan should cover detailed planning for at least three years. It should entail the expected sales, investments, earnings, and the ratios mentioned below.

In this transporter business plan the financial plan that enabled Niro to earn huge profits is given free of cost. Through this transport business plan sample you can have an insight into how much one can earn through this business.

While you skim through, you must identify that your profit generation would depend a lot on your transport business ideas. It is because due to increased competition, one has to be ultra-competitive and hardworking to earn fame in this field.

8.1 Important Assumptions

8.2 break-even analysis.

Break-even Analysis - Transport Business Plan Sample

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Profit Monthly - Transport Business Plan Sample

8.3.2 Profit Yearly

Profit Yearly - Transport Business Plan Sample

8.3.3 Gross Margin Monthly

Gross Margin Monthly - Transport Business Plan Sample

8.3.4 Gross Margin Yearly

Gross Margin Yearly - Transport Business Plan Sample

8.4 Projected Cash Flow

Projected Cash Flow - Transport Business Plan Sample

8.5 Projected Balance Sheet

8.6 business ratios.

  • What is the most profitable transportation business?

Goods transport business is profitable in all domains and entirety. Though air transportation is considered the most profitable, the fact is you can make immense profits in other domains with relative ease and freedom.

  • How do you write a transportation proposal?

To write a business plan for transport, you need to have an understanding of business terms and trends. It is good to hire a specialist to make a transport company business plan for you. For an idea about what the transport business plan would look like, you can see this sample business plan transport company.

  • What are the 4 types of transportation?

The 4 types of transportation are Marine Transportation, Air Transportation, Road Transportation, and Rail Transportation.

  • How can I start a small transport business in the USA?

To start the transport business in any U.S. city, you need to first get transport company registration. Further steps can be seen in detail from this blog on how to start a transport company in any city.

Download Transport Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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COMMENTS

  1. How to Start a Car Hauling Business in 2024

    Step 1: Decide if the Business Is Right for You Pros and cons Starting an auto transport business has pros and cons to consider before deciding if it's right for you. Pros Independence - Work on your own, running your business from home

  2. How to Start a Car Hauling Business

    How do you write an auto transport business plan? The same way you write a business plan for all trucking companies. The same principles apply - Where will you network to find customers? What are your goals? How do you plan to grow? What do you project to be your company's expenses and profits?

  3. How to Start a Car Transport Business

    Develop Your Car Transport Business Plan Choose the Legal Structure for Your Car Transport Business Secure Startup Funding for Your Car Transport Business (If Needed) Secure a Location for Your Business Register Your Car Transport Business with the IRS Open a Business Bank Account Get a Business Credit Card

  4. How to Start a Car Hauling Business

    4.7 (67,926 reviews) How much does shipping your Vehicle cost? Free Instant Online Calculator based on quotes from Trusted Auto Shipping Companies * Transport TO * Get Shipping Estimate - Free 7790 people shipped using A-1 Auto Transport last week No risk, no contracts. Just calculate your quote first and choose your contractor later. 190+

  5. Car Hauling Business Plan Template [Updated 2024]

    Written by Dave Lavinsky Car Hauling Business Plan Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their car hauling companies. If you're unfamiliar with creating a car hauling business plan, you may think creating one will be a time-consuming and frustrating process.

  6. How to Start an Auto Transporting Business: 13 Steps

    1 Determine what type of auto transporting business you want to start. There are auto transporting businesses that provide open car transport for regular vehicles, specialized auto transporting businesses that offer enclosed car transport for vintage and exotic vehicles, and those that provide both types.

  7. How to Start a Transportation Business

    1. Choose the type of transportation business to start As we mentioned above there are so many kinds of transportation businesses out there for you to choose from to start. You might consider...

  8. How to Start a Car Transport Business

    How to Plan Your Auto Transport Business Like any other commercial enterprise, your car-hauler venture requires a well-developed plan. To plan more effectively, make strategic decisions based on insights gleaned from comprehensive research about the industry and market trends.

  9. Transportation Business Plan Template

    Written by Dave Lavinsky Transportation Business Plan Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their transportation businesses. On this page, we will first give you some background information with regards to the importance of business planning.

  10. Starting Your Own Auto Transport Business? 6 Things to Know

    Be sure to factor in one-time costs, like the cost of a truck, as well as ongoing expenses, such as fuel, taxes and regular maintenance. Don't forget administrative costs too, like your website, communication tools and accounting services. 3. Set Up Your Business. Formalizing your business structure is necessary for everything from getting ...

  11. How to start an auto transport business

    Every business requires some investments. In regards to starting auto transport business you need to expect at least 100,000 dollars initial investments to take place. Obviously, not everybody can afford such an essential budget so on this stage you may need to find an appropriate investor or to take a bank loan for the business purposes.

  12. How to Start a Car Hauling Business

    You can consult with a business advisor, mentor, or accountant to get guidance and support. Additionally, there are many online resources and templates available that can help simplify the process. Also see: Starting a Trucking Company. Our trucking experts know a thing or two about this. Talk to one today. 913-393-6110.

  13. How to Start a Car Hauling Business

    Advantages Be your own boss High profit margin Build your business brand Open trailers offer better visibility A growing industry Disadvantages High maintenance costs Rigorous licensing costs Hard to get established More responsibilities Unexpected expenses 10 Steps for Starting a Car Hauling Business

  14. Starting an Auto Transport Business

    The mandatory components of an auto transport company business plan include an executive summary, mission statement, strategic overview, financial plan, marketing plan and timetable. Without these elements, your plan will have limited use to lenders, investors and other stakeholders..

  15. Car Hauling Business Plan [Sample Template]

    1. Industry Overview Car hauling services companies are part of the automobile towing industry and players in this industry generally tow light or heavy vehicles over short and long distances. Car hauling services companies may also provide incidental services such as storage and emergency road repair services.

  16. How to Start a Profitable Auto Transportation Business

    Draft a business plan After you've brainstormed a name and experimented with logos and brand colors, you'll need to put pen to paper and write out a clear vision of your new business. Using your research, develop a detailed business plan that offers an overview of the company, your marketing plans, pricing strategies, and financial projections.

  17. Auto Transport Business Plan

    Did you create a detailed auto transport business plan or did you or plan to create a more simplified version. Related. One Response James Hill says: November 17, 2016 at 9:10 pm. Hey Ashley, Sorry to hear about your lost. Thanks for the new video!

  18. How to Start a Car Hauling Business

    Here are some of the options you can explore when sourcing for start - up capital for your car hauling business; Raising money from personal savings and sale of personal stocks and properties. Raising money from investors and business partners. Sell of shares to interested investors. Applying for Loan from your Bank.

  19. Transport Business Plan Template [2024 Updated]

    AUG.16, 2016 Transport Business Plan Sample ( 10 votes, average: 4.70 out of 5) Article Business Plan Templates Logistics & Travel Business Plans Truck Business plans Table of Content Transport business plan for starting your own business Do you want to know how to start a transport business?

  20. Autos & Boats in Moscow

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