How to Start a Cargo Van Business

There are three ways to get into the cargo van industry. You could purchase a van, rent short-term or acquire a long-term lease.

A long term lease is rather expensive and based on contractual agreement. You could lease the trucks for expended periods for nothing less than 36 months- 60 months.

Short term rent is relatively cheaper and less stressful. If you have the financial means purchase the vehicle outright.

How Short-term Rent Works

Setup the shipping contract and secure the vehicle when appropriate. Short term lease could run from a few hours, days or weeks.

Determine your price based on rent, millage, and weight of cargo including fuel consumption.  Decide on the terms such as hourly or extended rental.

Long-term Leasing

Leasing truck on long term is a good idea if you have a large customer base. There are many advantages to this arrangement.

The depreciation of the truck is borne by the owner. You also avoid huge amounts spent on purchase and other tax related issues. Usually the owners of the truck are liable for the insurance. How to start a Trucking business

Common Trucks used for Cargo Transportation

The common trucks used for cargo business are the straight trucks and box trucks. The box trucks have cube shaped haulage back and ideal for moving small office furniture or household equipment.

How to Start a Cargo Van Business

Choose a Location

Choose an ideal location close to your target customers. The office should have adequate parking for your vehicle and storage for goods.

Make sure the location is easily accessible and visible. Use signage boards to attract pedestrians and vehicle to your establishment. You would have to pay a small advertisement fee to your local government .

Equip the Office

A standard operational base should have proper equipment. Purchase software to handle inventory and destination orders.

You need a dedicated phone line, fax machine and computer. Make sure the out-office is comfortable for customers.

Staff

You could operate the business on your own or hire staff. The staff you need are drivers, secretary, accountant and cleaner.

Funding

Try to avoid bank loans because they attract interest rates and collateral. You could try target savings or borrow from friends and family.

The primary expenditure is on vehicle purchase and maintenance. You can start the operation with a used vehicle and upgrade as the business grows.

Marketing

Cargo van business is very competitive and there are many players. Your small business will come against giants and enterprising small companies.

To attract patronage use newspaper advertisement and offer discounts. Make sure your services are unique, cost effective and punctual.

You can approach companies in your area and home owners. Use traditional print such as flyers, billboards and glossy brochures.

Build a Website

Build a website targeting your locality and include services. Use high definition images and schedules to attract customers.

Increase traffic to your website through guest posts, Facebook adverts, Adwords and yellow page listing. You could try free/paid classified websites to find clients.