This trick can’t be used all the time, but if you set it up right it could work for you 6 or 7 times a year with just a flick of a switch.
With literally millions of lorry journeys being made every week, the road transport industry is one of the biggest industries.
So why not go out and buy a fleet of lorries?!
More great ideas next month.
Okay, okay – I’m only joking. That would hardly be a cutting-edge business idea would it (although that’s the level of “business advice” that some services offer!).
Of course running a fleet of lorries, employing drivers, dealing with all the maintenance and paperwork and paying sky-high road and fuel taxes… is not the perfect business to run from home.
However, there is a cunning way to get involved in this massive industry without facing any of these disadvantages… even without owning a single lorry.
You can set up your own logistics business and plug the empty gaps in the transportation business!
Let me explain...
Peter Milner, who works in the industry, revealed that over a third of the lorries on Britain’s roads are actually travelling around empty.
“There’s massive spare capacity in road transport, just waiting to be tapped. Logistics companies, who specialize in making the whole system work more efficiently, are making thousands of pounds from doing almost nothing!”
This idea is great for three reasons:
- You don’t need a lorry, a depot, any experience or any licences to operate this business.
- You just need to be well organised. You can run your business from home using just a telephone.
- You only need about £150 for start-up expenses and marketing.
How it works (and how you can make good money from it)
The basic work of the logistics business is very simple – you need to efficiently match loads with lorries and lorries with loads. By making contacts and shopping around with a number of haulage contractors, you can get a much better deal for your customers than they can get for themselves – a bit like an insurance broker does with insurance.
So here’s what you need to do to get going:
- Build up your own database of haulage contractors in your area who are willing to bid for work. Use your local Yellow Pages and local knowledge to build up contacts. Tell them you’re a logistics company able to offer them regular loads if they can offer you competitive prices. You’ll get a positive response, since almost all haulage contractors are keen to take on more work to cover their high fixed costs.
- File details of the types of work each contractor can do in your database. Some contractors prefer regional, national, or international runs and others specialise in “multi-drop” deliveries. Some handle dry loads, while others specialise in refrigerated loads or bulk liquids.
- Make your service seamless and trouble-free for your client. This, as well as keen pricing, will persuade them to keep using your service. Do this by: scheduling pick up and deliveries for them, arranging packing, storage and insurance if required, and being on hand to deal with any problems. They’ll be happy to use you rather than dealing with a dozen different suppliers for just one small load.
- When you receive an enquiry from a potential customer, simply telephone the contractors on your database and find the best price for the job. Add a profit margin and relay the quotation to your client.
Peter Milner suggests that you could expect to add a 20% margin to the contractor’s charge. So if, for example, you arranged a journey from London to Newcastle, which cost £800, you would make £160 on the deal.
Make even more money from part and back loads. While you can make a good profit from single loads, Peter tells us that this is where the real money is in logistics.
Here’s an example of how much money you could make:
If a haulage contractor charges £1,000 to do a delivery from Plymouth to Glasgow the price will be more or less the same, even though the lorry returns empty. You might charge your customer £1,200, making £200 commission. But if you can find a return load (or several part loads to make up a full lorry) you can also charge that customer £1,200 for the return journey. You’ll earn yourself not £200 but £1,400 from the trip! And, on a longer national or pan-European journey, you could make much more from your logistics business.
This is a great little idea, and one that will only take you a couple of hours to see if it could work for you.
Does it take your fancy? Is this something that’s creating an excited knot in your stomach? If it is – get going! You may have found the idea you’ve been looking for. But if it doesn’t fire you up, hold back and wait for something that does.
We’ll be looking through hundreds of business ideas and plans on Real Value, so keep reading
Recent Comments