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Transport business is a huge market for transport of both persons and goods. The transport business has recently gained a lot of boom due to the increase of various new players in the market like car hire companies, truck and tempo hire companies, etc. With the ever growing economy and the constant migration of workforce between the cities the transport business gains a huge boost with many business opportunities like movers and packers services, grocery transportation services, bike rental services, etc.

The transport business like any other business comes with its own set of highs and vulnerabilities. It is therefore essential for the transport business owners to chalk out a business plan at the very onset of the business to have clearly defined goals and a path way to navigate the ever changing face of the transport industry and the many challenges that the entrepreneur may face in the day to day operations of the business or in the long term.

Transport Business Ideas

There are several business ideas or ventures that the entrepreneurs can take up in the transport industry. Some of the most common and profitable transport business ideas that have created a market for themselves and found many takers are mentioned below.

  • App Based Taxi Services
  • Car Shuttle services
  • Outstation car rental services
  • School bus or taxi/van services for school going children 
  • E-Rickshaw services
  • Courier services
  • Grocery transport services
  • Truck transport services
  • Passenger bus services
  • Medical emergency transport services
  • Non-medical transport services
  • Packers and movers services
  • Travel agency
  • Bicycle rental services
  • Livestock transportation
  • Air transport services
  • Airport transport services
  • Marine shipping
  • Shipping and small boat services
  • Milk carrier transport services

Steps to form a transport business plan

The basis of a successful business plan for a transport business is usually the same as any other business plan where the entrepreneur has to first identify which type of transport business is best suited to him/her and the current market scenario. After that, another important initial step is to set up the objectives and the goals of the business and start from there.

Following are the details of a successful transport business plan

Selecting a business venture

As mentioned above, the starting point of any business is to select the type of business venture to be pursued. This selection is based on various factors like the capabilities of the entrepreneur, capital investment that needs to be made, current market scenario, availability of driver partners, licenses and permits, etc.

Collecting information about the business

The key to any successful business is the abundance of information. Information relating all the aspects of the business whether small or big is necessary for the smooth functioning of the business organizations. In case of a transport business, the entrepreneur has to gather all the necessary information relating to the permits (interstate transport or permits specific to the goods being transported), labour or driver’s union laws, competitors and their policies as well as pricing, background check for the driver partners, their licenses and their past record with preferably at least one or more references. Such information will ensure laying down of necessary guidelines that the business can rely on to handle any day to day issues as well as any unusual or extraordinary situations and navigate them efficiently.

Getting proper licenses and permits in place

After collecting all the necessary information and setting the general layout of the business, the entrepreneur will have to then secure the necessary permits and licenses to run the business. These permits will include intrastate transport or national permit as the case may be as well as registration of the vehicles for commercial purposes. As per the law, a vehicle registered for personal use cannot be used for commercial purposes. Hence, the entrepreneur has to get the necessary permits and registrations under the prevailing Acts for the validity and the legality of the business. Business persons can seek professional help in this regard to ease out the process and not miss out on any necessary permits. This process will also involve getting necessary permits for the driver partners and ensuring that their licenses are up to date to avoid any unnecessary outcomes or situations.

Purchase of vehicles

This is the most important aspect of the business as it will be the basis for the success or failure of the business. If the vehicles purchased are not in line with the purpose or idea of the business then the entity may face many problems like not meeting the target scale of operations, unnecessary wastage of fuels or over expenditure on fuel cost, etc. The purchase of vehicles has to thus be in line with the purpose or nature of the business. For example, if the business is to transport persons, the entrepreneur can purchase small cars or SUVS if it is a taxi service business or buses if the business is a school bus business or travel agency or intercity/interstate travel business. If the business is of transport of goods, the entrepreneur can purchase trucks or tempos (big or small) depending on the scale of operations and the nature of goods to be transported.


Insurance of the vehicle is a mandatory requirement as per the law. If the vehicle is not insured or if the insurance is not up to date, the vehicle can be seized or can be liable for a penalty. Also, ensure that the vehicle is insured for any losses or damages that may occur to the vehicle in the event of any accident. Many entities in the business of transporting goods take blanket insurance or an extra insurance for the goods being transported to cover for the damages to the goods due to any accident or theft.

Tracking of vehicles

Tracking of vehicles is of utmost importance in any transport business. This will not only ensure the safety of the persons or the goods that are being transported but also prevent anti theft or misuse of the vehicles that are registered under the business name. With the advancement in technology, entrepreneurs can easily track their vehicles no matter what part of the country they are in as well as contact the drivers immediately in case of any queries or change of destination or delivery point.


The entrepreneur will then have to employ the necessary workforce to keep the business running. Some of the workforce involved in the transport business is highlighted hereunder,

  • Drivers
  • Chauffeurs
  • Cleaners
  • Maintenance staff for the upkeep and repair of the vehicles
  • Receptionists
  • Accounts personnel
  • Legal team
  • Managers

Marketing and promotion of the business

Marketing and promotion are an important aspect of any business. It enables the entrepreneur to reach the right customers as well as get more potential customers. The entrepreneurs can come up with some unique ways like discount coupons, free rides, monthly passes, additional amenities like free wifi or tie-ups with cinema halls or movie booking sites or malls/resorts/hotels, etc. for promoting and marketing their business and ensuring customer loyalty.

FAQs – Transport Business Plan

1. What are the various types or modes of transport?

The various modes or types of transport are,

  • Roadways
  • Railways
  • Water transport
  • Air transport
  • Pipelines transport

2. What is the cheapest mode of transport?

Water transport is traditionally the cheapest mode of transportation apart from railways.

3. What is the most flexible mode of transport?

Roadways are the most flexible mode of transport.

4. Does transport business refer to only transportation of goods?

No. Transport business is not only the transport of goods but also includes transport of persons.

5. Can a person get loans for starting a transport business?

Yes. Entrepreneurs can get many easy and affordable loans for starting a transport business under the MSME sector.

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