Starting A Logistics Business Can Be Very Profitable, Here’s How

Written by Chloe Harwood

Are you looking for the perfect start up business? Have you considered logistics? Logistics is the business of moving products from the source to the customer or corporation. It can be very profitable and is a business you could set up from home. How do you do this? You have a few options on how to start, but there are some things you will need to purchase first.

Equipment You Need

Well, this is going to sound obvious but you will need to arrange some form of transport. When you first start out you are probably going to use whatever vehicle you have. The logistics business is quite competitive. This is because everyone with a vehicle has tried their hand in it at one point. Once you gain some business, you can look at buying or renting bigger transport like lorries. We do suggest you rent vehicles first. Buy when you know you can sustain the business.

Again, when you first start out, you will probably not be moving big pieces of equipment. The amount of equipment needed for loading stock will be minimal. However, when you grow this is something you will need to think about. You should also consider investing in the latest tech to make your life easier.

One thing you will need from the word go is a good measuring device for the stock you are transporting. You need to know exactly how much something weighs. This will allow you to work out delivery costs and ensure that all products are accounted for. Companies like Central Carolina Scale offer fantastic prices on all their products.

How To Get Funding

You know about the equipment, now you need to think about how to get your feet off the ground. You can think about applying for a loan. Some governments offer low-interest loans to encourage start-up companies.

You can also look into crowdsourcing. Crowdsourcing works by gaining smaller funds from a wide range of little sources to cover your start up costs. It can be very effective. However, you will need to present a clear idea and business plan. You will need to show investors that your business is sustainable and that their investment will not be wasted.

How to get a License

You will also need a license before you can start your business. What licenses you need will depend on where you are planning to transport goods and what vehicles you will be using. You may also need additional licensing if you will be transporting particularly heavy loads. We suggest you speak to a representative of your local government for more information.

It’s Not What You Know; It’s Who You Know

Our final piece of advice on setting up your own logistics business is this. If you are considering setting up a logistics business, you may have already worked in a section of that industry before. You will have sources and old colleagues, and you need to get in touch with them. Do not be reluctant to ask for help setting your own business up or even asking them to invest. You may have already worked for a big logistics company. Talk to your old boss and pitch them your idea for branching off. They may be willing to fund you.

If you get the right equipment, use your sources and gain funding you will have your business up and running in no time. But remember, it is easy to get started. The hard part is keeping it going and staying profitable. We wish you luck on your new business venture.

About the author

Chloe Harwood