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.
Below are the tips you can follow when setting up your own logistics company:
Funding and Investment
The first step that any logistics company would need to take is to seek investment. Amount of investment in logistics business will depend upon the services that you wish to start. A simple brokering and freight management service will require less capital compared to a 3PL service. It is important to identify the niche services that you wish to target and prepare an investment plan based on it. Finding investment in logistics is relatively simpler in India because of liberal FDI norms and active interest shown by large private equity players.
Get Licensed
If your business is engaged in exporting or importing by water, you will need to be licensed by the U.S. Federal Maritime Commission. If you plan to ship freight by air, you will need to obtain a license from the U.S. Department of Transportation. Other federal regulatory agencies that oversee licensing for logistics firms include the Federal Motor Carrier Safety Administration, Customs and Border Protection and the Transportation Security Administration. Depending on which U.S. states you operate in, you may need to obtain additional licenses, including oversize and overweight permits for interstate trucking.
Obtain Equipment
After you have obtained the capital necessary to start your logistics firm, you will need to purchase loading equipment and vehicles capable of moving large quantities of freight such as planes, ships or trucks. Because of the expense associated with these kinds of purchases, Entrepreneur magazine suggests renting equipment until your business begins to turn a profit.
Get the Right Technology
In this modern world, living with the technology will be an added advantage for efficiently running your logistic company. Researching and settling up with logistic-management software will keep in loop about your logistic happenings from the place you are. Additionally, plan to provide your transporters with cell phones or some advanced technology that will help you track their location. By doing this you can have a complete control on your logistic business.
Exploit Your Experience and Connections
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.
