Do you want to start a fleet management company but don’t quite know where to start? Or do you already have the basics down—building and operating a small fleet—and you just need to know the next step?
Dive into this in-depth explanation of all the I’s you need to dot and the T’s you need to cross to get your fleet management company off the ground.
Whether it's a fleet of trucks for deliveries or tractors for farm use, managing a fleet is a skill every manager exercises. Fleet management involves managing and tracking vehicles from their safety to their maintenance needs, overlooking cars, vans, trucks, or whatever type of wheels you’ve got.
This is used in various industries, including logistics, transportation and delivery services. Basically, if there's more than one vehicle in a business, managers can use fleet management practices and software like Cartrack to optimise their fleet, improve fleet health, increase fleet productivity—you name it—and fleet management can strive to assist you.
Now, instead of relying on external management methods and techniques, how about using the services of a fleet management company? Better yet, imagine you own that fleet management company.
How are you going to steer your fleet in the right direction?
Before you even start your business planning, many owners have the burning question, ‘Will my business even make money?’. To save time and manage your expectations, calculating how profitable your company will become is a smart step to take.
Often enough, with a well-thought-out plan for your business and a trusty fleet management system to boot, there's a high chance your business will be successful and, yes, profitable.
The fleet management market is a pretty lucrative industry worth around $28.6 billion in 2023. The market is estimated to reach an astounding $55.6 billion by 2028. This huge number has brought many entrepreneurs to look towards fleet management and be part of its success, and honestly, who can blame them? It's becoming such a popular venture.
So, first things first: How do you start your fleet management company?
Depending on who you ask, you might get different answers to how you can get your business off the ground. What the many pieces of advice will all have in common are these essential steps that every business owner takes to build their company.
Here’s a roadmap to get your business started.
Before diving in, do some research to understand the needs, preferences, and pain points of different fleet sectors. This will help you find the gap in the market for your business; or, when offering your services, it will help you tailor your business to meet their demands.
You need to know who you'll be serving; small businesses, large corporations, or maybe specialised industries like logistics or transportation. The better you understand your market, the quicker you’ll thrive in the industry.
Think of your business plan as a roadmap for success. Outline your business goals, strategies for achieving them, and how you'll differentiate yourself from the competition. Include details about your services, target market, marketing plan, and financial projections.
A solid business plan will guide you through the startup phase and attract investors or lenders, if needed.
Being financially smart goes a long way when owning a business. Figure out how much capital you'll need to get your business going.
Consider expenses like:
Explore funding options such as personal savings, loans, or investors. Keeping a close eye on your finances from the get-go will set you up for financial success down the road.
Don't forget the legal stuff. Register your business and obtain any necessary licences or permits. Decide on your business structure (e.g., sole proprietorship, partnership, etc.) and consult with a legal professional to ensure compliance with local regulations.
Taking care of legal matters early on will prevent headaches later and ensure your business operates smoothly and legally.
Your team is the backbone of your business. Start by establishing relationships with reliable suppliers and service providers for vehicle maintenance, fuel, and other essential services.
Hire skilled employees to handle administrative tasks, customer service, and sales. Recruit experienced drivers who prioritise safety and professionalism. And, of course, acquire the vehicles you need to kickstart your fleet. Keep in mind the type of business you have, as this might influence the type of vehicles you need.
Time to spread the word!
Develop a marketing strategy to showcase your services to potential clients. This could include creating a professional website, leveraging social media platforms, attending industry events, and networking with local businesses. Highlight your unique selling points and the benefits of partnering with your fleet management company.
The goal is to attract and retain clients who see the value in what you offer.
Invest in the right tools for the job. Choose a reliable fleet management software, like Cartrack Kenya, that suits your specific business needs.
Our software works as your trusty sidekick, helping you track vehicles, monitor driver behaviour, optimise routes, and manage maintenance schedules. With Cartrack Kenya by your side, you can do this and more by taking advantage of its many smart features, including:
With the right software, you'll have the insights and control you need to run your fleet management company efficiently and effectively.
Fleet management companies take the concept of using fleet management software and run with it as their business model. They are experts in everything fleet management, offering a range of services one would usually do alone with the help of a fleet management system.
The difference between using the services and using fleet management software lies in the simplicity, reliability, ease and these valuable benefits:
When it comes to their own fleet, fleet management companies essentially become both the service provider and the client. They handle everything, including vehicle acquisitions, driver training, behaviour monitoring and fleet operations.
Fleet management companies that offer their services to other companies are seen as the jacks of all trades and masters of all. When you team up with a fleet management company, you get access to the fleet experience that can be used to help your business tackle any issues, fleet technology and software platforms that deliver vehicle data, fleet reporting, cost management, etc., all on a silver platter, right to your inbox.
These companies take the headache out of doing it all yourself, leaving managers time to focus on their business and efficiently operate it.
There are various industries a fleet management company can fit into, and many don’t require much to get started.
Here is a list of a few fleet businesses that you can mould your own company to take after. In the world of fleet management, there is no shortage of niches to operate in, you just have to find one that fits your company.
With many fleet management companies to choose from, your company has to stand out in the crowd and offer more than just knowing the locations of your vehicles.
The range of services can be tailored to the specific needs of businesses.
Their services include:
Cartrack is a trusted vehicle tracking fleet management company for over 115 businesses worldwide. Their smart features and services are there to help you master managing your fleet, whether you want to grow your fleet visibility or improve driver safety.
Cartrack Kenya has all the tools a fleet management company needs to thrive.
This video shows how a fleet business can use Cartrack to tackle task management, safety, vehicle maintenance, admin and fuel monitoring. No matter the challenges your fleet faces, Cartrack can be tailored to your business model and offer solutions that will work for you.
