Asia having a legitimate part of it harboring a natural port and being one of the main hubs of receiving an exodus of imports and exports obviously needs a well-developed infrastructure and an efficient transport facility to do the needful. The ever growing marketplace has made it a genuine need to safely and securely transport commercial goods and products from one city to another creating a viable business opportunity for those who have a knack for driving or have a network of truck drivers who can form an association and get into this business to earn a living and generate generous profits. The trucking industry can be tapped into through effective research beforehand.
The right education for the right job
Before considering jumping into any business you need to have thorough information of the relevant field so that you do not have to suffer irrevocable losses in the future. The practical first step as a fresher in the trucking business requires is to gain the status of a licensed truck driver. The license will give you the right to bid competitively yet high enough to be financially profitable. You need to know what you are signing up for which includes knowing the technicalities of truck driving and the occupational hazards associated with it.
Getting around the facts of how your trucking business will operate
Bidding plays a pivotal role in gaining an upper hand in the trucking business and requires the fulfillment of transportations contracts and accounts. The way you acquire truck drivers to run your business is a major determinant of the progress of the business;
Drivers on contractual basis
Drivers are sub-contractors in this scenario and are not full-time employees of your company. Being the whole and sole owner of the company you may be receiving contracts under your company name but you do not own the employees and are not liable to pay or cover up for employee costs. This is an effective way to curtail start-up costs, the cost for purchasing in-house equipment and also saves up on insurance cost. Conversely it also doesn’t you give you autonomy over your employees that you have hired on a contractual basis and also makes it liable on you to share your profits.
Drivers privately owned by the company
Under private ownership of your company you own and run your business at your own accord and on your own discretion. Your business operations are under your direct control and you have a say in the running of the different business activities whether they incur a profit or loss. You have your own equipment (which is when you decide whether to buy new or used machinery), pay a higher insurance premium and also build up a private group of employees to run your trucking business. The number of commercial vehicles produced in selected countries of Asia in 2015 was surveyed on, out of which 1.45 million commercial vehicles were produced in Japan. When working under this business model you have certain rights which you can exercise over your employees and your business is under your control which guarantees return on investment and profits. However, on the financial side it requires a high initial investment and continuous operating costs to keep the business alive and growing.
Last but not least
You need to establish a trustworthy clientele base from where you will get projects and stay alive in the competitive trucking industry. As a start-up you will have to struggle in your beginning years to receive transportations contracts and establish a note-worthy reputation to be able to advance to larger and more profitable contracts.
About the Author
This article was written by Rachael Everly, A business and finance enthusiast, who happens to have a special interest in matters related to student loans and repayment plans. see more.