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The logistics industry is responsible for transporting commodities, materials, and products all over the world. Here's how to start your own business

5 Logistics Career Tips for Starting your Own Business

5 Logistics Career Tips for Starting your Own Business

Posted by: , 16 March 2017
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The logistics industry is responsible for transporting commodities, materials, and products all over the world. It handles shipping, trucking, air freight, and other forms of transport both nationally and internationally. Logistics also involves warehousing material as necessary to keep business's supply chains running smoothly.

There are billions of dollars in the logistics industry. It's a highly competitive field. Virtually every form of business - from manufacturing to importing to retail sales - requires goods to be moved between multiple locations in order to turn a profit. The logistics company that can meet its customers' needs in a timely and affordable fashion stands to make significant profits, but minimizing costs without compromising on the quality of service is a constant challenge.

If you're thinking of getting into the logistics field yourself, it will take considerable capital investment to get off the ground even if your ambition is to start a small local firm. The good news is that a properly managed logistics firm can be a highly profitable venture, and the potential of expanding your company into a million-dollar business is always present. To understand how you can get started, simply take a look at this template for forming a logistics company.

#1) Educate Yourself

Logistics is definitely not the sort of industry you enter on a whim. You need a thorough grounding in both general business management and the specific concerns of the industry. Look for logistics courses at nearby colleges and check out online resources, too. Remember that logistics embraces many forms of transport at many different scales; you may find it helpful to concentrate on the specific types of work that most interest you. Don't forget that practical experience helps, too; working for a logistics company yourself will give you valuable experience. Here are some good tips for planning.

#2) Plan Your Business

Like any serious venture, a new logistics company needs a well-thought-out business plan before you get started. Come up with a mission statement for your new company and map out where you want to take it within the next five years. Study the market you intend to serve. Look at how your potential customers are currently meeting their logistics needs and identify how you are going to distinguish your own logistics services from those of competitors. You need to invest enough time in the planning process to generate a useful and instructive vision that will help you make important decisions.

#3) Registration And Licensure

Your company needs to be properly established as a legal entity. The best way to start out is by founding your company as a private limited liability organization. Remember that selling stock and taking your company public is always an option for the future. Check the local laws governing logistics work in your state and secure the necessary licenses you need to operate.

#4) Collect Your Capital

As noted above, logistics can be an extremely capital-intensive business, especially when you're starting out. As part of the planning you've already done, you should have developed a firm idea of exactly how much money will be required to get your company up and running. If you have the necessary funds on hand, that's all well and good. What if your resources don't yet meet your needs? It doesn't mean you have to give up your logistics dreams. Here are potential funding sources you can turn to when you're getting started:

* Partner Up: This is a particularly attractive option if you possess all of the technical know-how necessary to get a profitable logistics firm off the ground. Find a company or individual who can provide the capital you need to get rolling in exchange for a share of the profits. Make sure that the divisions of responsibilities, profits, and liabilities are all clearly defined at the outset.

* Find Investors: To start a private logistics company, what you'll need is an "angel" investor. This is an individual or firm looking to put money into a brand-new business without exercising much direction in the running of the company. Angel investors typically get paid by taking a previously-agreed-on slice of the company's profits.

#5) Find Physical Facilities and Vehicles

Your new company needs a real-world home. Even if you do not intend to delve into the warehousing side of logistics, it's still important to have a physical address to share with your customers. If you are handling warehousing, make sure that the spaces you secure for these operations are conveniently located to meet the anticipated needs of your customers.

If you are looking to purchase trucks for distribution then you will need to find trucks for sale before you start your venture. There are a number of things to look for – do you go second hand, buy new, what size, how much etc. It’s often best to get an expert if you aren’t 100% certain.

#6) Insure Your Business

There are unavoidable risks to shoulder in the logistics business. A road accident might cause you to lose a load of products intended for one of your customers, for instance. In a situation like this, your company would have an obligation to make the loss good by repaying the customer in full.

Insurance coverage is essential in order to help insulate you from these sorts of damages and costs. Proper insurance will help you deal with both foreseeable and unforeseeable expenses. Paying for good insurance isn't cheap, but it can rescue you from all sorts of hassles further down the line.

#7) Market Your Services

Though there's plenty to be said in favor of word-of-mouth advertising, you don't want to rely on it entirely. When you're launching a brand-new company into an established market, it's especially important to distinguish yourself and let potential customers know you're in business! Here are a few basic promotional steps you'll want to take:

* Establish a professional online presence with both an informative website and a social presence on the networks used by your potential customers.

* Pay for ads in prominent locations (magazines, websites, trade journals, etc.) catering to your target audience.

* Create customized service proposals for manufacturers, importers, and other companies in your area that could benefit from your services.

 

#3 General Tips For Growing Your Firm

Once your logistics firm is up and running, your next concern should be to establish a firm pattern of growth. The following tips are vital for that:

* Create A Strong Brand

Branding makes your company identifiable and sets it apart from its competitors. Take time to ensure that your brand conveys a positive message to potential customers.

* Reinvest In Success

Your early profits should be plowed back into your company to strengthen it and prepare for expansion. Stability can be a tough goal to reach, so make full use of the money you earn.

* Rely On Professional Expertise

You can't reasonably expect to handle every sort of professional service in-house, especially when you're starting out. Form working relationships with reliable professionals that will expand the range of skills available to your company. Get a good accounting firm to handle your finances, for instance.

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I'm an executive career coach, leadership development consultant. I'm interested all things at the intersection of leadership and communications. I blog about it here and at pure-jobs.com/blog. I work with CEOs, senior leaders and teams at companies ranging from small, private businesses to the Fortune 50. I enjoy hearing new ideas! Send any articles, tips or cool thoughts on leadership my way.

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