With the advancement in every sector, it has been noticed that the shipping sector is also growing very rapidly. An immense competition among the shippers and carriers urges to develop a new sort of business i.e. logistics and shipping management. As there are a lot of tricky things in this field, the need for a shipping and logistics management platform becomes essential. After the arrival of these types of platforms, both the parties of carriers and shippers do not have to worry about the management rules that include organizing, planning, and most important leading their tasks. They facilitate shippers and carrier to connect directly with each other.
Who are Independent Carriers?
Independent couriers use their personal vehicles to make deliveries. As independent contractors, they typically work for a company – but not as employees – and they get paid per mile or per delivery. Your deliveries need to match the vehicle that you are using. You will need to meet your state’s truck licensing, registration and insurance requirements. And depending on the type of freight you carry you may need a commercial driver’s license (CDL).
Benefits of being an independent carrier:
Being an independent carrier, you may enjoy the following benefits:
It means you can schedule your work according to your choice. You can keep this business as part-time, full time or on a contractual basis.
- Be the Boss:
As you are your boss, you have the full right of freedom for your business. It means you make all of the decisions and can decide how best to operate your business.
- Balance in work and life:
Since you set the schedule you wish to work it’s easier to balance your work and home life.
After realizing many benefits of the independent carrier, a large number of people want to make their business journey along with logistics and supply chain management platforms. However, due to the advanced processing system, many people are not aware of its whole process. Moreover, a sudden change in the form of an organization is tricky and tough.
As you make the decision to be your own boss as an independent carrier, a few things to take into consideration include:
- Do I use my own vehicle or do I need to purchase another vehicle?
- What’s my start up cost?
- Do I need to obtain different insurance?
- How will I market my business?
- How will I pay myself?
Personal vehicle to buy or not?
Determine how reliable your current vehicle is and what type of freight you are able to transport. It may be that your current mode of transportation is adequate to get started and you can look at other options after your business is off the ground. How quickly do you want your business to grow?
How much money do I need to get started?
Being an independent carrier you will encounter some fees such as fuel, tolls, insurance, etc. So plan ahead to be sure that you cover these costs for at least six (6) months.
What insurance will I need?
Talk with your insurance agent to let them know that you will be using your vehicle for business and ask for their recommendation for your coverage. If you don’t have an insurance, there are various insurance companies around you from where you can get insurance at low rates. Depending on the size of your vehicle and the cargo you wish to transport you may require cargo insurance in addition to the vehicle insurance.
What’s my marketing strategy?
No business can survive without customers. Customers are the primary and main factor of any organization. No matter what type of modern transport or advanced tool you used for your business if there are no customers to place their order. For this purpose, the use of marketing strategy comes on top.
No matter what type of modern transport or advanced tool you use for your business you will need to get the information out to potential customers. Try to attract customers with the use of social media, word of mouth, and active business recruitment. Sell yourself and be sure that you provide the type of customer service that you would like to receive.
When is my payday?
Keeping records of business income and expense is very essential for every type of business. Be sure that you maintain a log of your business activity (fuel charges, tolls, vehicle maintenance, parking, etc). It will help monitor your activity and achieve your target performance. If you are new to the business, you may wish to try an accountant app that are easily available on the play store. These apps will save your accountant salary and you can invest this money in the purchasing of further advanced tools. Hiring a professional and qualified accountant may save you time and reduce your stress.