Wondering how to start a RV transport business? We take you step-by-step from start to success.
RV Transportation Industry Outlook
RV transport companies deliver pull-behind RV trailers and motorhomes from manufacturer locations to dealers throughout the U.S. Since most RV's are too large for multiple unit delivery, transporters haul them one at a time, using individual subcontractors who meet standard industry qualifications.
Since RV transport operations are intermediary service providers, the transport is highly vulnerable to fluctuations in consumer demand for RVs. During peak demand periods, RV transporters struggle to find enough drivers to maintain their delivery schedules; when demand plummets, they struggle to piece together enough business to keep the lights on.
Although the demand for RVs dropped significantly during the recent recession, the RV industry regained its footing in 2011. With manufacturers hiring additional labor to meet industry demand, RV transporters are back on the road. Going forward, RV transport startup entrepreneurs can likely expect variable demand cycles, but long-term industry growth and stability.
Recruiting Subcontractors for a New RV Transport Company
RV transport businesses rely on a steady supply of drivers for day-to-day operations. Instead of hiring drivers directly, it's usually more economical to hire RV transporters on a contract basis, provided meet stringent requirements including a safe driving record, possession of a heavy-duty pickup capable of safely hauling fifth-wheelers and adequate insurance.
One of the best places to begin your recruiting efforts is the RV community itself. The RV community is extremely tight-knit with many individuals interested in earning side income through RV deliveries. To increase the pool of candidates, consider hosting RV transport training seminars. A good seminar can attract driver prospects and equip them with the skills they need to safely deliver manufacturers' products to far-flung destinations.
Profit Considerations in RV Transporting
Starting an RV transport business is easy. But starting a profitable RV transport business takes a combination of hard work and entrepreneurial skills. The most obvious way to increase profitability is to take on more work. With proper capacity planning, it's possible to quickly expand your workload and increase revenues.
Pricing also plays an important role in profitability. For RV transport businesses, pricing issues need to be addressed at both the manufacturer and subcontractor levels. Current rates for delivery personnel hover around the $1 per mile range with large deliveries commanding slightly higher rates. Since contractors are required to pay for their own fuel and vehicle expenses, the average driver earns somewhere around $15 per hour net income.
Best RV Transport Company Business Plans
A first-rate business plan is job one for your startup RV transport business.
If time is scarce, business plan software can be used to streamline the process. A reliable software solution will increase the accuracy and consistency of your business plan, dramatically improving its value to your RV transport business.
As an additional benefit, most business plan solutions are geared toward providing the information most commonly requested by lenders and investors.
Before you open a RV transport business in your area, it's a good idea to find out how strong the competition is. Try our link below to find competitors nearby. After following the link, enter your city, state and zip code to get a list of RV transport businesses in your area.
Gain a knowledge of how existing firms have positioned themselves in the marketplace, and then design your business in a way that sets you apart from the others.
Getting Advice from Experienced Entrepreneurs
If you are interested in starting a RV transport business, it's essential that you speak with somebody who is already in the business. If you think owners of nearby RV transport businesses will give you advice, think again. Why would they want to educate a future competitor?
But, a person who owns a RV transport business outside of your community may be more than happy to give you a few tips, after they realize you reside far away from them and won't be stealing their local customers. In fact, they are often very willing to share startup advice with you. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
How does one go about finding a RV transport business founder in another city who you can speak with?
Here's how we would do it. Try the useful link below and key in a random city/state or zipcode.
Acquired RV Transport Businesses: Competitive Advantages
By acquiring an existing RV transport business, you'll put yourself in a better position with lenders and investors than if you tried to fund a startup.
A business acquisition also delivers an established brand - a big advantage in competitive markets. In fact, many entrepreneurs pursue acquisitions for the primary purpose of buying an established brand.
Since your RV transport business's ability to compete is largely indexed to your brand reputation, an acquisition strategy significantly condenses the amount of time it will take for your business to become a competitive threat.
The odds of achieving your primary goal of avoiding failure in business are much better when you join the ranks of franchisees and leverage their successful brand and track record.
Before starting a RV transport business, a smart move is to investigate whether franchise opportunities in your space might increase your chances of success.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you currently own a RV transport business, these resources will come in handy:
If you came here to learn about selling to RV transport businesses, you're in the wrong place. Try these resources instead:
If you are interested in starting a different kind of business, please browse our directory of guides below.