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April 19, 2023   Entrepreneurs, Start-ups, Small Businesses, FinTech and Alternative Finance, Innovation and Resources, Venture Funding and Building   No comments

Do’s & One Don’t for Your Transport Startup

April 19, 2023

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The transportation industry is undergoing a growth phase. That's one reason so many entrepreneurs are choosing to try their hand at launching startups that deliver goods from one place to another for a fee. However, as is the case with all other niches and business segments, owners need to avoid common pitfalls and engage in best practices to maximize their chances for long-term success. One example of a smart method is crowdfunding for the purpose of obtaining initial capital.

Another is to manage vehicle fleets with the latest technology to stay ahead of the competition. Owners who automate all payments add another layer of security to their financial operations. What should new entrants to the segment avoid? Impatience is the primary component of an early downfall, along with ignoring local laws and regulations about how to operate fleet vehicles. The bottom line for most who attempt to enter the transportation business is attentive customer service. Consider the following points before launching your entity.

Do: Use Crowdfunding to Generate Seed Money

Crowdfunding is the most efficient way for startups to develop a steady stream of capital that can be used to finance a launch. In transport, the technique is effective because potential donors tend to seek opportunities that can deliver a solid return on investment. This is true even when the recipient does not offer any ownership stake in the business.

Do: Manage Fleets With Smart Technology

If you use vehicles of any kind in your daily operations, it's wise to implement a fleet management process that includes software that can track ELD compliance and other pertinent metrics. Electronic logging devices resolve several problems simultaneously for busy fleet supervisors. Via COC (connected operations cloud) capability, managers can use ELD to meet rigid jurisdictional requirements as well as federal regulations regarding driver logs. One of the central reasons companies utilize the systems is to prove that all their drivers have taken the requisite number of breaks for the proper amount of time. Additionally, ELD equipped with COC technology gives managers a chance to store all the relevant driver information instantly, in the cloud, for later retrieval or analysis.

Don't: Expect Fast Profits & Immediate Growth

Impatience is the enemy of success. Entrepreneurs who expect quick profits are sure to be disappointed. The same goes for those who want to gain vast numbers of clients within the first few months of operations. The reality is that it just doesn't happen that way. Instead, plan to build up a clientele, one customer at a time, for the initial 12 months. Then, calibrate expectations based on what has happened up to that point.

Do: Automate Payments with Apps

Even a single late payment to a vendor can tarnish an otherwise excellent commercial credit rating. Familiarize yourself with finance automation and use a reliable app to automate all recurring payments. Install them on your financial system well before opening day. Double-check with vendors and other payees to make sure they received payment on time or early.

Do: Focus on Customer Service

The shipping and transportation industry is competitive. Customers realize that they can always shop around and find new companies that are willing to give them a better deal. That's why it's necessary for startup owners to focus on pleasing the first wave of clients. Keep in mind that the initial customers took a chance on an unknown business that had virtually no history or track record. For that reason alone, it makes sense to deliver excellent service to them.

See:  How Corporations Can Innovate Like Startups

Make it a habit to not only deliver a high level of service but also to study the trends and habits of clients. The data can reveal a lot about what each one values the most. Owners learn that some clients put on-time delivery at the top of the priority list, while others want discounts or access to special packaging. People who purchase your services are not homogenous clones who all want the same thing. Study their habits and desires to better cater to their needs.

 

NCFA Jan 2018 resize - Do's & One Don't for Your Transport StartupThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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