Business Idea

Start A Transportation Service

About

Starting a transportation service requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell transportation service, or selling transportation service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$1T
revenue (monthly)
$3K
starting costs
$23.2K
gross margin
10%
time to build
24 months
growth
Direct sales
time investment
Full time

About

Starting a transportation service requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell transportation service, or selling transportation service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$1T
revenue (monthly)
$3K
starting costs
$23.2K
gross margin
10%

 

time to build
24 months
growth
Direct sales
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $252
Equipment & Supply Expenses $563 $5,700
Business Formation Fees $600 $5,400
Vehicle Expenses $2 $10,004
Retail Business Expenses $0 $3,150
Inventory Expenses $0 $5,000
Training & Education Expenses $0 $2,000
Other Expenses $0 $1,800
Website Costs $13 $215
Advertising & Marketing Costs $75 $2,486

Successful Businesses

Business URL Rank
MTA mta.info #31,438
Forward Air forwardair.com #96,141
MBTA mbta.com #113,020
Metro wmata.com #248,581
Metropolitan Transit System sdmts.com #261,820
Diversified Transportation Services dtsone.com #528,693
Frozen Food Express ffeinc.com #570,279
IPATA ipata.org #862,824
Josefinos Transportation in Cabo transportistasjosefinos.com #870,968
Transcabo transcabo.com #1,188,966
VIA Metropolitan Transit viainfo.net #1,227,647

Pros & Cons

Pros Description
Rewarding work Starting a transportation service can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Daily physical activity Transportation Service's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Face to face interaction If you are the type of individual that thrives on human interaction, then this is the business for you! With a transportation service, you will be hands-on with customers and or employees every day.
Strong Demand & Relatively Recession Proof The demand for transportation service is increasing year over year and the business is known to be relatively recession proof.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Low margins The gross margins for your transportation service are typically around 10%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the transportation service, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Lack of benefits With a transportation service, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a transportation service, you typically work alone and do not have much face-to-face interaction with other team members.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Partnerships

    A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.

    Creating strategic partnerships with an existing business can be a huge win for a startup.

    This is considering that a partnership creates a new slate of future options for your startup.

    On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.

    Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.