Do you want to start a transportation business with less investment? Do you have limited investment to purchase only one truck? No need to worry. You can still run a profitable transportation business with one van.

The transportation business is one of the hottest business ideas on the entrepreneur’s mind. Undoubtedly it is the most remunerative business plan with an impressive return on investment. The transportation business may not have more barriers to entry, but it has huge competition. It is important to plan and manage your finance properly to make a profit in this sector.

Have a look at the factors to consider before starting a transportation business:

1. Understand the market 

Before starting any business, it is very important to gain knowledge about the market. Gain complete information about the local demand and trends in the market. Research the prices prevailing in the market and competition in your local area. This information will help you to be the best among your competitors.

2. Select the type of transportation business

Various types of transportation business can be started with one van. Select your niche which you would like to work on. Some of the transportation business ideas are:

Transportation for an e-commerce company

E-commerce company businesses are doing great today. More and more e-commerce businesses are coming into existence. It is creating a great opportunity for the transportation business. Hence, it is a great idea to tie-up with an e-commerce business company and transports their goods from production place to destination.

Transportation for schools and colleges 

You can start your transportation business by providing transportation services to schools and colleges. Get in touch with the schools and other educational institutions in need of transportation services and provide them with attractive pricing to stay ahead of the competition.

Medical transportation 

You can also start the ambulance services to different healthcare and hospitals. You can also transport medicines, medical equipment, etc. It has the potential to earn more than any other transportation business.

Cab services  

Cab service is another great transportation business idea. You can either start your private cab service or can work with Uber and other cab service providing networks and earn a good income.

Moving van service

You can start your business as a moving van service. Register yourself as packers and movers and find the people who move from one place to another due to the job or personal reasons. You can help them to relocate their stuff at a reasonable price.

Office transportation

You can provide transportation to the employees of certain companies, and help them with reaching the office on time. It will help them save time from booking the cab, and you can provide your service at reasonable prices to make considerable profits. Or you can also tie-up with the companies who provide transportation facilities to their employees.

3. Choose the Right Vehicle

After selecting your niche, choose the right vehicle that is suitable for your type of transportation business. If you are starting transportation services to schools and colleges, a cab or bus will be suitable. If you are willing to start the transportation of heavy goods to e-commerce or other companies, the truck will be an ideal vehicle. Choose the vehicle according to your transportation business requirements or take a bit of advice from the companies that you will be working with.

4. Arrange Finance

If you own a vehicle and starting your business, you may not require funds. But if you are planning to buy or lease a vehicle, you will need finance. It is advisable for you, not to take big financial aid from the lenders. You can go to a financial institution for funds. As you are starting the transportation business with one van, make sure you do not have a cost burden initially.

5. License and Other Permits 

Type of the license and permit you need to procure will depend on the type and nature of your transportation business. You need to have your license for driving your vehicle or if you are planning to hire a driver for your vehicle make sure he has a driving license. Talk to your local authorities about all the essential permits to carry a transportation business and make it done. Whether you are starting your cab service for passengers or transportation of goods, you need to get a carriage permit for both. It will only have validation for a few years, and you will have to renew them.

Here are some of the legal documents that you will need to start a transportation business:

  • Business License
  • Certificate of incorporation
  • Insurance
  • Commercial Driving license

6. Get an Insurance

It is essential to have insurance even if you are starting a business with one van. Talk to the insurance agent and get the appropriate insurance cover. Not only to your vehicle but it is important to have insurance for all the goods you will be transporting. It will save you and your client from the loss of huge money in case of any unfortunate incidents. It will also provide peace of mind to you and your customers.

7. Get Clients 

Getting clients is the most crucial part of any business. It will not be very difficult to find clients for your business as you are starting your business with one van. If you are getting into the goods transportation business, get in touch with wholesalers, retailers, or other companies who will need your service. You can advertise your business with your address and telephone number to get in touch with the clients who require transportation services.

8. Level of Competition in the Transportation Business 

Transportation business may seem very easy to start but, it is important to note that not all transportation businesses will be successful. The competition in transportation is very stiff. You will have to face price competition, service introductions, advertising battles, etc. As you will be starting a transportation business with one van, you will be competing with other small transportation companies and also with big brands as they can provide service as much as they can. Transportation business can become difficult without making a feasible study required.

9. Threats and Challenges in Starting a Transportation Business 

Every business has to face threats and challenges. These treats can be in any form. It can be the competitors offering services at the lower prices, being cash strapped due to the fall of the economy that results in the demand for transportation going down.

Sometimes prices of fuels can also become a threat to the transportation business. If the prices of the fuels go high, it can become difficult to maintain the profit margin. Transportation businesses will have no choice but to increase the prices that can result in losing some customers. Other challenges you may have to face are government regulation, accidents, and damages to the vehicle.


To conclude, it is necessary to build trust among your customers to run a transportation business. You need to build trust to gain new customers to your business and retain your existing customers. Make your customers happy by giving them incentives and offers when they refer new customers to your business. This business has the full potential to grow if you manage it well.

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