In this article, we shall be discussing about how to start haulage business in South Africa this 2022. Haulage simply means the commercial act of transporting containers of goods either by road or rail from one point to another. Whatever mode of transportation you want to make use of, kindly read along to find out more about this business venture.
In a country where goods and services are ever increasing in demand, requiring the services of haulage companies in the process, the need for more haulage establishments in South Africa then arises. Both new and already existing businesses need logistics solutions to move their goods from their production points to the retailers and final consumers.
The availability of haulage companies in South Africa help many businesses to ship and receive their goods in commercial quantity such as electronics, furniture, building materials, processed food, farm produce, to mention but a few, in record time as opposed to yesteryear when people have to wait forever to get their goods delivered to them.
Haulage service is very lucrative/profitable business venture, and if you are looking to get into this line of work, we advise that you kindly read up the information contained in this article in order to know the necessary steps to take.
STEP BY STEP PROCESSES ON HOW TO START HAULAGE BUSINESS IN South Africa 2022
The following is step by step guide on how to start haulage business in South Africa this 2022:
FIND A NICHE FOR YOUR HAULAGE BUSINESS
The first thing you must understand when venturing into the haulage business in South Africa, as is with any part of the world, is that haulage business is very vast and you will have to choose which part of the business you want to major in. This business involves transporting different types of goods in commercial quantity as we have stated earlier so you will have to decide if it’s say building materials, electronics, or any other type of goods that you will like to major in.
This will give you a centre focus on what you should do to set up your haulage business and the type of clients you will be dealing with. While you are in the process of choosing a preferred haulage business niche, you need to understand what your line of business is, who your target market are, if you require the services of other drivers, if you can travel along a particular route and so on.
Once all these are settled, you can then decide what mode of transportation you want to employ for your business, either by road or rail. There are many things to do in the haulage business, to get started, you just need to decide on a particular service you want to render and stick to it.
CREATE A BUSINESS PLAN FOR YOUR HAULAGE BUSINESS
Without a business plan, no business can move forward. The same applies to your haulage business in South Africa. You need to create a business plan to guide you on what to do as you enter into this line of work. Your business plan is a document that should include things like how you want to run your haulage business, your vision, market research, goals, as well a projection of your possible returns on investment.
Your business plan must capture your starting capital, as well as a detailed financial analysis of everything you need for the your haulage business to thrive. If after drawing up your plan, you realize that you need huge capital to start the business and you don’t readily have it, you can pitch your business idea to potential investors for them to buy into your idea and provide you the required funds to proceed with a detailed timeline on when you can aim to start seeing results. You can also approach banks if you have reasonable collaterals and provide them with a flexible repayment plan so you don’t end up in financial crisis.
REGISTER YOUR HAULAGE BUSINESS IN South Africa
If you want to do your haulage business in South Africa without hindrance from the authorities, you should register your business with the Corporate Affairs Commission (CAC). Decide on a unique business name you want to use after which you can decide on whether you want to venture into your haulage business as a sole proprietor or a limited liability company and register your business accordingly. Visit the CAC for more on how to go about your business registration. You can also make use of a competent lawyer for such purposes.
RAISE THE REQUIRED CAPITAL FOR YOUR HAULAGE BUSINESS IN South Africa
Haulage business in South Africa is very expensive to start up and maintain. In fact, it is a very big risk. The capital required for starting and running your business, as well as maintaining your vehicles depending on the number you want to purchase should all be projected in your business plan before you set out on your journey into this line of work. Once you’ve determined what your capital should be, you will have an idea if you should buy brand new vehicles or fairly used ones.
Brand new trailers cost about R$ 366,000 – R$ 732,000 while fairly used ones cost about R$ 219,600 – R$ 292,800. You can also decide to purchase their parts separately and employ the services of very trusted mechanics to refurbish it. When you are buying your vehicles, do make sure that they can manoeuvre South African roads, are easy to maintain, and they do not consume too much fuel.
FULFIL OTHER REQUIREMENTS FOR YOUR HAULAGE BUSINESS
Other requirements such as legal aspects of your business, tax and insurance need to be taken care of. In addition, you will need to decide on how many vehicles you need for your haulage business and obtain the required driving licenses for as many drivers you need for your vehicles. If the drivers you’re employing all have their licenses based on the particular vehicles you want them to drive, this should be skipped. Other things required to operate the business should also be put in place. Endeavour to insure your vehicles which should be trailers and heavy duty vehicles because they carry containers so you don’t run at a loss if unforeseen circumstances happen.
DECIDE ON YOUR MODE OF BUSINESS OPERATION
After your capital must have been raised, you will have to decide on the way you want to operate your haulage business in South Africa. There are three ways or modes of operation in this type of business. You can decide on being an independent business, a contractor/sub-contractor, or a leasing company. Whichever one works for you is fine depending on your financial capacity.
If you want to operate as an independent haulage company where you are the sole proprietor that sustains the business, you can do so by employing drivers, sourcing for customers and clients, and doing everything concerning your haulage business all by yourself. You are responsible for everything that has to do with the day-to-day running of the business. This mode of operating a haulage company can be quite challenging as you will have to be credible enough to get contracts awarded to your company.
For those who want to operate as contractors/subcontractors, you can partner with a bigger company that will be in charge of your vehicles as well as your drivers. This company will pay you a percentage of the money made from the business at a particular time. This mode of operation is subject to certain terms and conditions that you must abide by and will be given to you by the company you are registering with.
If you want to operate as a leasing company, you will have to lease your trucks to a company for hauling services. It is similar to being a contractor/sub-contractor in that you will rent you trucks to the company and receive a percentage of profit as agreed but it is different from the contractor/sub-contractor mode of operation because you are still in control of your trucks and are responsible for servicing them.
COMMENCE YOUR HAULAGE BUSINESS
Once everything has been put in place, you can commence your haulage business in South Africa. You will need to employ competent people to work with, from your human resource personnel to your administrative staff, marketing personnel, down to your drivers, your employees must be competent people. You cannot afford to employ people who will ruin your business before it even gets started. Ensure that everyone is paid accordingly to avoid issues.
BE ON THE LOOK OUT FOR CUSTOMERS
Depending on your niche, you will have to look for customers and input them in your database. Get a detailed list of companies that are into your line of business and market your services to them through your marketers, in this way, you will increase your reach. Ensure to always keep credibility as your watchword so that you attract as many customers as possible. If you make a promise to deliver at a set time, endeavour to keep your promise as well. In this way you will be trusted. You can also advertise your business via the various means of advertisement available today.