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November 16, 2016 at 11:24 AM

Starting a van business is a huge undertaking. It is a challenging path, and always includes things you might have never taken into consideration. However, if you are willing to put in more effort and hours, you will effectively reap the van business benefits. You are going to need more than just your quality van to set up the business and meet the transportation demand. Save yourself countless hours and the likely brainstorming of making huge fundamental mistakes. Here are 10 things you should know when starting a van business. 


1. Market research

Ask yourself why you want to start a van business, the kind of completion existing in your target market, and why you think people should choose your vans instead of your competitors? Is there enough market to support another van business in your target market? If you positively answer these questions and find the market sustainable, then you need to write a business plan. It is important to offer services that your customers want, not what you want.

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2. Business plan

Write a comprehensive business plan. Think about how you can raise money for the business, sales, profit and loss as well as capital expenditure and cash flow. You need to show your marketing ability because you are definitely going to compete against well-established players. This will help you understand how your van business would work and eventually become successful.

3. The fleet

Ideally, you do not need several vans, although the more you have, the greater opportunity for your business. Think about picking best brands and comfortable vans in the industry and updating them with best-class amenities. Look for vans that are not greedy on the fuel, manoeuvrable and spacious.

4. Licensing

Get an employer identification number for tax purposes and any incorporation and local business licenses that your country requires. Perform background checks for all your drivers and check any necessary certificate required by law. Register your vans for commercial use and ensure all drivers have a commercial driver’s license.

5. Insurance

Your vans must be appropriately covered. Get the necessary business insurance for your van commercial operations. Insurance needs vary for various types of businesses, so ensure you choose the right insurance cover. Insure every driver with the right insurance coverage, as employees and as passage transport drivers. Always ensure that insurance coverage is in force by submitting premiums monthly to avoid lawsuits and fines. 

6. Choosing your customers

Van industry presents a variety of job opportunities, depending on your partialities, yet most of them require a similar service. The varied nature of the jobs allows you to choose a niche to aim your services to. You have all the power to market your van business to various consumer markets or you can opt to work entirely on business-business marketplace.

7. Creating van rental agreements

Purchase a standard van rental agreement, which any qualified lawyer can amend. You might need a consumer credit license if your cars are valid for hire for more than 90 days. Investing on the legal documents at the start of your van business can play a major role in keeping you out of trouble before it happens. 

8. Maintenance 

Create a budget for keeping your vans in excellent condition because if any of these vans is in bad condition or out of action you will lose business. You might not have maintenance staff, but you need a trustworthy repair shop to deal with any breakdown. Get an accountant to help you understand what is needed to make this work from a profit standpoint: spending within manageable expenses. 

9. Going alone or franchising

A van business has always experienced a competitive market out there. So, if you are afraid of going it alone, you should consider becoming a franchisee, meaning you merge with an already well-established business. The parent company will assist you with marketing and lead generation, which is an important platform to drive your van business forward. However, if you want to go it alone, you need to up your game on marketing and quality services to beat established competitors. 

10. Drawbacks 

Your van business start-up costs and expenditures may seem high, and still, you need a premise or a parking to keep your vans safe. So, you need to work extra hard to keep your fleets in use. Remember, you need to offer, affordable, flexible and friendly services to be a winner. 

 



Tags: van Business Know How Blog
Category: Ideas and Tips