Launching a business is no easy feat. It requires thorough planning, extensive research, and access to working capital, especially if you’re planning to start a transportation business. Businesses in the transportation industry can be capital-intensive, so you might need the help of transportation business loans (Check SMB Compass) along the way.
Before you take the plunge, you have to make sure that you can handle the pressures of the transportation industry. If you’re set on starting a business in the transportation sector and you’re looking for ideas, here are five different types of transportation businesses that are perfect for aspiring entrepreneurs.
Rent a Bicycle
The urbanization in both developed and developing countries has caused a major issue – road congestion. For this reason, bike rentals have become more popular over the years, especially in recreational tourism spots. Bikes are a convenient way to get around town without being caught up in traffic. You could set up shop in busy areas of the city, as well as near hotels and resorts so tourists can easily access your bikes.
Bike rentals are also popular in highly populated cities. A great example of bike-sharing programs is the Citi Bikes in New York. Citi Bikes is one of the first and largest bike rentals in the United States. You don’t even have to set up a physical store. You can place bike stands in different areas in the city for more convenience. People will be able to rent a bicycle, ride one around the city, and return the bike to a bike stand near them. If you think your city is ready for a bike-sharing program, rent-a-bicycle would be very lucrative.
Trucking businesses are one of the most popular subsectors in the transportation industry. In 2018, the trucking industry’s worth amounted to $8 billion. Furthermore, studies show that trucks are responsible for moving 71% of all freight in the United States.
There’s always a need to transport goods from point A to point B. Goods need to be transported to retailers, retailers need to transport goods to their customers. In 2017 alone, the trucking industry transported over 10.8 million tons of cargo as recorded by the American Trucking Associations. With that said, trucking companies are an integral part of the transportation industry.
Moving Van Company
If you’re not ready for the responsibility of managing a trucking company, you can start with owning a few moving vans. Since it doesn’t take much to start a moving van business, your competitors will most likely be college kids using a rented vehicle. Your competitive advantage is that your moving van business will be set up professionally. You can also offer additional services such as storage facilities for in-between deliveries.
To start a moving van business, you’ll need to purchase one or more vans in different sizes to transport the goods you’re planning to move. You will also need a space to park your vans and hire one employee to help you around. However, you need to train your employee on how to properly pack and move goods, and interact with customers. A moving van company is perfect if you want to dabble into the transportation industry without having to shell out hundreds of thousands.
Transportation for Seniors
As you grow older, it becomes harder and harder for you to drive around. This opens an opportunity for entrepreneurs to offer transportation services for older citizens who are unable to drive themselves to doctor’s appointments, social engagements, or grocery shopping.
You can endorse your services to senior living facilities in your area. If you live in a low-income area, another alternative would be setting up a nonprofit and applying for grants to support your project. You can easily ask for support from the government. In fact, the federal government is more than willing to help programs that benefit senior citizens.
Medical transportation is another lucrative option for entrepreneurs looking to enter the transportation industry. In some cases, you may only need a vehicle, a good driving history, and a driver’s license to get started. The medical transportation business can be as simple as driving patients to medical appointments within the city. You can also offer to drive patients to specialist appointments in bigger hospitals.
Having medical credentials can work to your advantage as well. You can partner with local hospitals and offer to drive admitted patients to different medical facilities if they need specialized care. However, you may need to invest in medical equipment, such as oxygen tanks and more.