How to Start an Auto Transport Business
Here’s a useful step by step guide we created to help you start up an vehicle transport company. Starting is surprisingly simple. That’s why so many new companies are springing up every day.
- How much money can I make?
- Get incorporated
- File with your state
- Open a business banking account
- Apply for an auto transport broker bond
- Apply for an MC Number
- Set up a merchant account to accept payment
- Get an 800 number for your auto transport company
- Register with a Load Board and set up a CRM
- Build a website for your auto transport company
- Get customers
Benefits:
- Low out of pocket to start under $2,500
- Be the Boss
- Set your own schedule
- Work at home, or rent an office
- Affordable leads from $1.50/ea
- Make an average of $100k+/year
What you need to start:
- Incorporate your business
- Business bank account
- Insurance
- Operating Authority
- 1,000 leads/mo
- Web site
How much money can I make?
- Average closing ratio for an experienced broker is 5%.
- To properly gauge performance, experienced brokers and businesses in general purchase (1,000) leads/mo or more.
- (1,000) leads @ $1.50 costs $1,500.
- Closing 5% of (1,000) leads would result in (25) orders.
- (25) orders at $150 commission each would total $7,500 in sales.
Minus the investment of $1,500 is a
$6,000 Profit
That’s a 300% ROI.
The key to maximizing profit is to get as many leads as you can handle.
1. Get incorporated
Visit the IRS web site and to get an EIN
2. File with your state
File then print out your details.
3. Open a business banking account
24 hours after you filed with your State, bring your paperwork to your bank and open a business account.
4. Apply for an auto transport broker bond
A $75,000 Bond (Insurance) is required and can be purchased for as low as $500/yr.
5. Apply for an MC Number
Allow 10-21 days after you applied for your MC Number for your information to be visible across systems. Then you can move on to the next step.
6. Set up a merchant account to accept payment
Set up a Merchant account with one of the many providers.
7. Get an 800 number for your auto transport company
Get an 800 number for added professionalism. Research several “virtual phone” service providers and choose one that meets your needs.
8. Register with a Load Board and set up a CRM
Load boards connect brokers with carriers to haul vehicles, and you’ll want to use Auto Transport Industry CRM (customer relationship management) software to manage your business and customers. Utilizing CRM Software is critical to managing all the details, transactions, customers for your business.
You need a CRM to effectively transition your leads through the sales funnel. For example: converting leads to quotes and then to orders. CRMs also allow you to effectively keep notes and comments associated with each lead to stay organized. Avoid complications trying to get by managing your leads via e-mail.
Load board options:
Free Open Source CRMs:
Auto Transport CRM options:
We also support custom CRM solutions
NOTE: Most CRMs are run by other brokers (your competition)! Do your research.
9. Build a website for your auto transport company
Register a domain and hire a designer to build you a web site. A decent designer costs around $500.
10. Get Leads
We connect customers looking to move their vehicle with your company. Give us a call or fill out our form to get leads.