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Securing transportation for your business: Seven things to think about

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22 August 2022

A lot of businesses need transportation in one form or another. Either the business relies on the transportation of goods, or it becomes necessary in order to meet the evolving needs of the business. In order to keep up, transportation is a necessity. The type of transportation that you choose and the policies that you implement will have a direct effect on the success of the business, which is why we have put together the following information; read on to find out more.

The Needs of Your Business

The needs of your business should always be the most important consideration that you make. Whatever form of transportation you choose needs to be compatible with the aims and operations of your business, whether you want to take your dog grooming business mobile or you need a vehicle to ship products, or your business relies on collecting supplies. The vehicles or transportations need to be compatible with the objectives of your business.

Distance, Time & Volume

The next thing to think about is the distance that is going to be travelled. How far does the transportation need to go? Some forms of transportation are better suited to longer distances; they are more fuel efficient that way and, therefore, cheaper to run for longer distances than other options. How long will it take to travel the distance? This might also affect your choice of transportation. For example, if you are transporting goods that need to be kept at a certain temperature and they are in transit for a while, then a refrigerated vehicle might be necessary to keep them at the right temperature. Volume is also an important factor to consider. The more items you need to transport, the bigger the vehicle will need to be.

Speed

The speed of the transportation may also be something to consider. If you need the products or supplies to travel long distances or even go overseas, then it can be incredibly tempting to go for the quickest option. However, the fastest choice might not be the cheapest. Although if you are outsourcing, then you don’t have to worry too much about the cost of procuring the transport itself. If you can afford the fees for shipping, then it might be worth it. On the other hand, if you or your customers need the items quickly, then this is definitely something to think about – especially if one of your business’s selling points is the speed with which you can deliver your goods and or services.

Outsourcing is an Option

If you aren’t sure how incorporating transportation into your business plan will affect things, or if your budget can’t stretch to purchasing or procuring the transportation for the business right now, you might want to consider outsourcing. You can work with another company to fulfil your business’s transportation needs at a lower price; if this is an avenue that you want to explore, then you need to do your research. What businesses can offer you the types of vehicles that you need? How much can you afford to spend? What are the terms and conditions of partnering up with the other business? Remember to read reviews before committing to working with another business.

The Benefits of Buying

For the most part, if you have it in your business’s budget to buy or lease the transportation that you need, it is better to do so. Outsourcing may cost less initially, but the longer you choose to do so, the more the money will mount up, and it can also throw up more obstacles too. Having your own transportation is obviously more advantageous. You will be able to personalise the transport as you see fit to act as an advertisement for your business. For example, if you choose a van, then your business’s logo and contact information can go on the side; you could also go for a personalised number plate too, like the ones you can find at Regtransfers. It’s useful to learn about DVLA number plates, so that you know what to look out for when purchasing or selling plates.

Accessibility & Budget

When it comes to considering what form of transportation is right for your business, you will need to think about your budget and how accessible the vehicle is. Some vehicles require specific licences, which can make them inaccessible unless you have the time and money to secure those licences for you or your staff, or of course, you have it in your budget to hire staff that already hold them. If it isn’t accessible, then it is a waste of money and a drain on your resources.

The budget considerations go beyond the price of the vehicle itself too. You need to think about the cost of fuelling the vehicle too. As mentioned above, some vehicles are more fuel efficient than others which can help to keep the fuel costs as low as possible. The type of fuel can also affect the fuel costs; petrol tends to be cheaper than diesel but only marginally. You could also consider an electric vehicle which can save you money on taxing your vehicle, but with the rising energy prices charging the car up might end up more expensive, which means the savings aren’t worth it.

There is also the price of insurance and vehicle tax to take into account. Any vehicles purchased with the intention of using them for your business will need commercial as opposed to private insurance. This can be a little more expensive than personal insurance. Luckily, you can still use comparison sites to help you to get the best deal. Vehicle tax is also non-negotiable, some vehicles have a cheaper tax rate, and some are even exempt but will still need to be registered. You do not have to pay for both the insurance and the tax in one go. If you cannot afford to do so, you can choose to pay monthly, which does make it a more affordable bill; however, you are often charged interest which does make it a little more expensive in the long run.

The Transportation Options

Obviously, the options will heavily depend on the factors mentioned above but especially on the purpose of your business and the goods and/or services you provide. For example, most small businesses will only need a car or a van. For some businesses, a car will be perfectly adequate if the only thing they really need to transport is themselves and a few pieces of equipment – think cleaning businesses. Other businesses would benefit from a van if they need to transport more than would fit in a car, or if the business is mobile, the van can be kitted out to have everything you need in it like a mobile hairdressers or courier service. Finally, bigger businesses can think about procuring lorries or securing transportation via planes, trains, and ships.

In Conclusion

Securing transportation can be transformative for your business and help it to achieve its goals. However, choosing the right transportation method is important because it can further your goals or act as an obstacle to overcome. So, when considering the next steps for your business, make sure that you have taken into account all of the factors above. Be thorough in your research and think carefully about what makes the most sense for your business.

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Business Motoring is the motoring resource for small businesses and SME small fleets running company cars and business cars.

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