How to start a logistic business
A logistics firm is a company that stores and delivers the products of other businesses. They may specialize in the import and export of goods in and out of the United States, or may concentrate on ground transportation within the United States. Whether shipping, trucking or conducting air transportation, a successful logistics company will need to have some means of freight transportation at its disposal; this makes a start-up logistics firm an expensive investment.
Steps in starting up a Logistic business
1. Gain Experience and Credibility in the Industry
Before starting you own Logistics Company, it is wise to gain experience in the industry by working in logistics. Such experience will help you to understand the ins and outs of the business. In addition, working in the industry will allow you to establish networks with companies that may represent future clients. Speaking to Entrepreneur South Africa, director of logistics firm Transport Concepts Mike Johnston explained that establishing credibility in the industry is critical for any start-up because clients need to trust that your firm will store and deliver their products smoothly and efficiently.
2. Exploit Your Experience and Connections
In a Businessweek article, Gary Dale Cearley of logistics firm AerOceaNetwork suggests that you establish your firm in a corner of the market to which your business relationships and knowledge are relevant. For example, if the bulk of your connections or work experiences are in one industry, reach out to clients in that industry. If you have connections to or knowledge of a certain region of the world, open a firm that specializes in export to that region.
3. Obtain Funding
The first official step of starting a logistics firm is obtaining capital. In order to do so, you will need to draw up a business plan to convince potential investors that you can make your company turn a profit. Include any connections that you...