How to Start

How to Start a Logistics Company? 7 Steps Detailed Guide

Whatever we use every day needs to be shipped and delivered to numerous locations before being sold and utilized. Logistics is a big game both locally and globally. A Logistic Market is a place where you may earn money. 

So, if you want to start a logistics company but don’t know how to do it, read this blog until the end. This blog will discuss how to start a logistics company from scratch.

Let’s start with the basics first.

What is a Logistics Business?

A Logistics Business or Logistics company stores and delivers other companies’ goods. A successful Logistics Business requires some methods of freight movement at its disposal, whether shipping, conducting air transportation, or trucking; this makes a Start-up Logistics Organization a huge investment.

These organizations/businesses must specialize in importing and exporting goods countrywide or focus on inter-state ground transportation.

How to Start a Logistics Company? 7 Step Guide

1. Determine Business Model

It would be great to decide what business model you would like to have. You can consider setting up your firm or getting a franchise. Determine whether your company will be a new venture or function as an existing company. Both of these business models have their pros and cons.

Considering the first model will allow you to innovate and execute new ideas, while the other needs less investment.

Also, define what kind of services you will provide. You can only pick and drop items, or you can even offer packaging and barcode printing. Besides this, if you want to have a warehouse or if it is more suitable, you provide small-scale services with end-to-end efficiency.

2. Register Your Company

Your next step is to register your company with the Government of India. If you fail to register your logistics company, you will not get a logistics license to function as a logistics company. After your company’s successful logistics registration, you will obtain three documents within seven days:

  • Shop Act Licence
  • Udyog Aadhar
  • GST Number

You will require these documents to own and function as a logistics business.

3. Register With Local Search Companies

Once you get your license, you must register with local search businesses such as JustDial and Sulekha. Registering on such platforms will help you get potential leads. They will send inquiries about your business or inquiries that are related to transport and related services to you. After that, you can then convert these leads into deals.

4. Know More About Transport Facilities in Your Town/City

Next, you must visit popular transport facilities in your city or town and try to negotiate with them. While you take care of getting the orders, your transport partner will be responsible for shipping the goods properly. 

If you have trucks, you can work as a fleet owner. In other words, you will handle the whole transportation process, and they will do the door-to-door delivery. Working with such companies can easily make about 25% of the deal.

5. Advertise Your Company

A book must be shared with all transporters and logistics businesses of the city/town. It would benefit if you got your company’s name in that book. It will help local transporters to notice your company, who will be pleased to collaborate with you.

Your ads will notify customers about your company, such as if you are a fleet owner, a commission broker, whether you take orders to deliver in North India or South India only, and other things.

6. Analyze the Risks and Apply for Government Schemes

The next thing you should consider is the level of market risks. India’s logistics industry is heavily dependent on risk management. Therefore, with so many suppliers and associates involved in the business’s overall operations, there is a high possibility of a dispute.

Thus, You must safeguard yourself and your company by buying enough insurance coverage if something goes wrong.

Cargo damage, stealing, environmental damage, injury, etc., can cause major liability difficulties, while company insurance can take certain liability issues.

You can also apply for government schemes such as MSME Registration to get benefits from the government and other financial institutions.

7. Grow Your Connections

Once your logistic company has been established as a big company, you must continue developing your connections for possible collaborations and deals.

If you are a beginner or new, you can visit Transport Nagar for 2-3 months, interact with transport owners and truck drivers, inform them about your new business, and share your visiting card. Ask them to contact you if they have an order you can fulfill.

Conclusion

After reading this post, you may have understood how to start a logistics company. Starting a logistic company involves complications, but you can grow your business with hard words and patience. Once you have successfully demonstrated your name in the transport domain, you will enjoy massive revenues and turnovers.

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