Setting up in Business
Page 80
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The amount of capital available is rarely mentioned in inquiries received from potential haulage operators, but a recent one from the Eastern counties is an exception. Having stated the sum available he asks for advice on setting up in business.
Briefly, the first step must be to determine whether there is. in fact, any business in haulage to be obtained in the area in which it is proposed to operate. To judge whether any such business is likely to be profitable requires an adequate knowledge of commercial vehicle operating costs. To assist in this the COMMERCIAL MOTOR Tables of Operating Costs (price 5s. 6d. postage paid) would be helpful. The next major hurdle would be the obtaining of a carrie(s licence and for brief information on the procedure of applying for one, the official leaflet G5/7 is a helpful document. It is obtainable free from local Licensing Authorities.
Regarding the amount of funds available. even if these exceed the outlay on the initial vehicle (which would be unusual) it cannot be too strongly emphasized that there must also be an adequate reserve of working capital, even if the new operator is to be self-employed.
Once in business, he would be fortunate if. on average, he was paid for all work done by the end of the month following the date of its completion. Even then considerable outgoings would be accumulating. For example. a 7-tonner operating 600 miles a week would cost, in round figures. £45 a week to run. So in 10 weeks his outgoings would be approaching £500. But only by then could he expect to be receiving substantial payment of accounts for work done in the previous month or so.