Start Your Own Transportation Service

Your Step-by-Step Guide to Success

Cheryl Kimball

• Publisher: Entrepreneur Press
• Year: 2016
• Print ISBN:
  9781599185859
• eBook ISBN:
  9781613083352
• Topic: Business
• Subtopic: Small Business
• Index: Business

Start Your Own Transportation Service shows readers how to create a revenue stream by thinking outside the traditional transportation box. Features information on how to start businesses in the areas of ridesharing, executive car service, special events, medical transport, and pedicab/party services. The personal transportation business is the hottest trend in the service industry, offering riders an alternative to traditional taxi, bus, and shuttle services. The perfect business for the entrepreneur, a transportation service allows business owners to go as big or as small as their market allows, from a single-car rideshare service to a full-fleet operation with multiple drivers. Featuring Entrepreneur's trusted branding and strategies, this title gives readers the keys to success.

CHAPTER 1

An Overview of the Transportation Industry

From taxis to limousines to bicycle rentals, moving vans, and long-haul transport of refrigerated goods, the transportation industry has a wide range of entry points. Whatever your particular interest is, there is likely a transportation business that can fulfill it.

But first, let’s look at small business as a whole.

The Current State of Small Business in America

According to the U.S. Census Bureau, small businesses (defined as those with 250 or fewer employees) employ 56.1 million of the nation’s private workforce. Firms with fewer than 100 employees make up the largest part of small-business employment.

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stat fact

According to the U.S. Department of Transportation’s Bureau of Transportation Statistics, the value of freight carried by all modes of freight transportation (air, ship, pipeline, rail, and truck) was lower in 2015 than 2014.

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That said, small business is far from immune to the ups and downs of business cycles. It has taken a while for the small-business sector to recover from the recession in the late 2000s. Just in 2015 did birthing of companies exceed the exit rate, a trend not seen since 2007 according to Business.com. “Small businesses are the forefront of our economy. . . . Every minute, a new business in the U.S. is started and according to some people, more than 50% of all workers will be self-employed by 2020.” (“The State of Small Business in 2015,” May 5, 2015, by Betsy Scuteri, www.business.com.)

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State of Small Business

Wasp Barcode’s “State of Small Business Report” (www.waspbarcode.com) found the following statistics:

47 percent of small businesses were more confident in the economy in 2015 than a year before.

Product companies were anticipating higher revenue growth than non-product companies.

57 percent expected revenue growth in 2015.

56 percent expected to invest less than 3 percent in marketing.

38 percent were expecting to hire employees in 2015.

38 percent planned to spend money on IT in 2015.

35 percent view their company website as very or even extremely important.

54 percent spent over $5,000 in on IT-related equipment and software in 2014.

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The Small Business Administration (SBA)

With statistics like the ones from the U.S. Census Bureau showing that small businesses, homebased or not are responsible for the employment of 56.1 million people, it’s no wonder the U.S. government has an administration devoted to small businesses. Anyone thinking about starting a business should have the SBA (www.sba.gov) bookmarked for quick access. There is a wealth of information on this site; you couldn’t do much better than to start your small business research here.

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fun fact

Trucks carried 59.1 percent of the $48.3 billion of freight to and from Canada in September 2015, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics.

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The Small Business Administration started in 1953. It is an independent agency of the federal government helping Americans start and grow small businesses through field offices throughout the U.S. and its territories. The SBA was designed by Congress to also ensure that small businesses get a “fair proportion” of government contracts and sales of surplus property. You can quickly see that using the SBA to its fullest is only to any small business’s advantage.

Through the years, the SBA has met current challenges in the small-business arena such as focusing on minority- and women-owned businesses with special programs and education to help these businesses thrive. They publish a Small Business Resource magazine and annual national resource guides. These resources contain educational information on things like how to apply for a government contract and keep you up to date on current legislation and advocacy on behalf of small businesses, as well as some small-business basics like advice on creating a business plan and how to obtain financing.

The SBA was created for you. You will do yourself a favor by referring to their site and contacting them whenever something comes up in the startup phase or as you establish your transportation business.

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stat fact

According to the SBA, each state has a portal dedicated to commercial transportation, to help you understand the regulations your state requires and the assistance your state provides.

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Service Corps of Retired Executives (SCORE)

Imagine 13,000 volunteer mentors at the service of the small-business world. That’s what the nonprofit organization SCORE (www.score.org), formed in 1964, is all about. There are almost 400 SCORE chapters throughout the U.S. in urban, suburban, and rural communities. Over ten million Americans have used SCORE’s mentoring services. These mentors can help you at any stage of your business, from planning, to startup, to growth.

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warning

Many small-business leaders point to health care costs along with EPA regulations and increased stringency in OSHA compliance as making it harder and harder to do business today. You shouldn’t let this deter you from starting your business, but you should be very aware of these costs as you get started.

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Go to the score website at www.score.org and click on the link “SCORE Locations” to find a chapter near you. A check of the zip code 03801 ...

Table of contents

• Cover
• Title Page
• Copyright
• Contents
• Preface
• Chapter 1: An Overview of the Transportation Industry
• Chapter 2: Is Transportation the Right Business for You?
• Chapter 3: Meet Your Mentors
• Chapter 4: Transportation Business Basics
• Chapter 5: Market Research for the Transportation Industry
• Chapter 6: Financing and How to Get It
• Chapter 7: Licensing, Regulations, and Maintenance
• Chapter 8: All Things Digital
• Chapter 9: Employee Considerations
• Chapter 10: Day-to-Day Finances
• Chapter 11: Making Sure the World Knows You Exist
• Chapter 12: Social Media
• Appendix: Transportation Resources
• Glossary
• Index