Starting your Transport and Logistics business can seem like an overwhelming prospect if you’ve never done it before. Luckily, plenty of other entrepreneurs have done this, and you can benefit through the wisdom they gleaned from their successes and their business mistakes. At gofreighthub.io, we are proud to be a leading 3PL company in the United States. We have over 20 years of experience providing quality transportation and logistics services to businesses of all sizes.
The fact is, the journey can be an incredibly lucrative venture, but it’s also one that requires quite a bit of preparation. From obtaining the necessary license to researching your routes and regulations, there are quite a few things to keep in mind before you can get started on the right foot. Luckily, with these seven steps to starting a transport and logistics business, you’ll have no trouble setting yourself up for success!
Step 1: Research The Market
You’ll need to do some research to find out if a transport and logistics business is viable in your area, but there are several ways you can conduct market research. One way is by visiting warehouses and trucking stations in your area and asking how much they spend on shipping. Another way is to reach out to an experienced trucking broker and ask them how to build a local transport company.
Also, once you know that a transport and logistics business is viable, it’s time to decide what type of business will work best for you—will it be packaging companies? Warehousing? Maybe hauling freight across state lines? The type of transport or warehousing service that makes sense for your community will vary based on its size, needs, and regulations.
Step 2: Budget For Upfront Costs
If you are thinking about starting a transport and logistics business, one of your first considerations is likely to be how much it will cost. Depending on what you’re trying to do, that figure can vary dramatically: To lease or buy vehicles and equipment, for example, costs can range from tens of thousands to hundreds of thousands.
Startup costs for a courier service might be less than $10,000. But it doesn’t have to break your bank account to get started; with some preparation and planning, you can launch a transport and logistics business while minimizing upfront costs.
Step 3: Choose The Right Name For Your Transport And Logistics Business
Let’s face it—the name you choose for your transport and logistics business could make or break its success, especially in competitive markets like dispatch services, freight forwarding agencies, shipping companies, and trucking firms.
Step 4. Find A Partner
If you’re going to start a transport and logistics business, it pays to bring in a partner—you’ll have someone you can brainstorm with and bounce ideas off of. If possible, look for someone who has relevant experience.
For example, if you’re starting an airline company, look for an individual with airline experience. Not only will they help you make sure your business idea is viable, but they can also help fill any gaps in your knowledge of how to run an air transport company.
So who Should You Partner With? Ideally, you should find a partner that has more experience than you do. A little extra expertise never hurts anyone! However, don’t just go on gut instinct or use someone simply because they already know something about what you want to learn.
Step 5. Set An Opening Date
When you know how many shipments you’ll have in hand, call around to all your friends and family to ask for free boxes. Once you have a stockpile, visit local dumpsters to see if they have any large cardboard boxes that businesses are throwing out. If so, go ahead and take those as well.
You can always put them on craigslist or offer them up at a yard sale later! This will allow you to test everything out before renting or buying anything. It also reduces waste by limiting initial startup costs without requiring you to throw things away prematurely.
Step 6. Register Your New Company
Once you have your business plan together, it’s time to register your new company. Some countries (like those in the United States) allow for online registration of a business. If not, go down to your local government office and ask about their formal processes for registering a business.
You can begin incorporating all of your various business assets, such as vehicles and equipment, under one umbrella when you’re finished with that. Congratulations! You are now officially open for business. Make sure to share your exciting news on social media so friends and family can congratulate you too!
Step 7. Start Operating
Now that your application has been approved and you have all of your licenses, permits, and insurance in place, it’s time to get started. Congratulations on starting a new business! Although you have completed all of your training and gotten all of your certifications and licenses, nothing can prepare you for what happens on the job.
You will make mistakes and miscalculations, but that is how you will learn how to run a business properly. What was once just an idea is now a reality; whether your business takes off or not depends entirely on your ability to provide consistent quality service and complete any tasks that are necessary to keep growing and moving forward.
Remember: if you want something bad enough, there are no obstacles that cannot be overcome! But, on the other hand, if you give up before even trying, then no one will ever know how great of an entrepreneur you could have been!
Daunting But Not Impossible
Transportation and logistics businesses come in many shapes and sizes. It may seem daunting to start such a business, but it’s certainly not impossible if you know where to start. The seven steps above help you get you on the right track. However, If you have any questions along your journey, feel free to reach out to our team of experts at Go Freight Hub, we’ll be more than happy to provide practical answers to your questions. Good luck!