7 Steps to Start a Bus Transportation Business


Scarcity of fuel and traffic congestion across the world has emphasized the importance of public transportation. As an entrepreneur, it provides a business opportunity to start your own transportation service. In particular, the prospects of starting a bus company can be manifold due to the variety of services it has to offer.

If you are fascinated by the idea of owning a bus company but don’t know where to begin, this article might be the right starting point. Here, we bring you a step-by-step guide to get all the information you will need in starting your business.

  1. Watch out for opportunity

The primary purpose of bus transport might appear to be intercity travel but that’s not the case actually. Whether it is transporting school kids to and from their schools, catering to guests of a hotel in executive coaches or to ferry tourists through the major sightseeing attractions of your city, the possibilities are endless. High quality services ate always in demand; they might take some time to turn profitable but they are a safe bet.

  1. Location Matters

Selecting the right location to run your company is important for any business. However, in case of a transportation company this factor becomes even more crucial. The location of your business should be such that you are clearly visible to your customers. For example, it makes little sense for an airport shuttle service to be located in a remote location- far from the airport.

  1. Market survey is important

You must use all the resources available at your disposal to get as much information as you can. You can go online and search for the bus companies operating in the market category you want to indulge. Advertisements in newspapers and markets can be quite helpful as well. You must have a target client list ready who might be interested to do business with you. Don’t hesitate to call them up and know their requirements upfront.

  1. Prepare your business plan

Once you have sufficient inputs, the next step would be to prepare your business proposal. The business plan must contain the service you wish to provide, the market you want to target, yours goals and how you intend to achieve them. Preparing a good business plan answers several questions and helps you stick to your business strategy.

  1. Get the finances right

When you run a business, you have to consider one-time equipment cost as well as recurring expenditure. The initial investment for your bus transportation business can be leasing your office and getting the vehicles; while maintenance, insurance and salaries etc will contribute to your recurring expenses. You have to decide whether you want to opt for new vehicle or a used one. Lots of city buses are available which might be an economic solution for your business.

  1. Apply for Licence & Registration

If you want to avoid any future trouble you must get the basics right when it comes to registering your business. In the bus transportation business, registering your business as well the vehicles must be done properly to ensure that it meets all the legal requirements. Licensing rules are different for different cities so make sure you are well aware of them.

7.Market your business

As soon as you start your business, focus on the target clients and take your business to them. When you consider marketing, the first step is to get a website and update it frequently. We live in a time where it is important to make your presence digitally visible on social media. However, word of mouth publicity is equally important. Contact travel agencies to locate potential customers.

What’s next?

Now that you have the basic knowledge of how to get started, it’s time to find your calling, create a business plan and start your own bus transportation business.