What are the things you have to keep in mind when starting a logistics business?
- Funding and Investment
- Figure out what kind of licenses and permits you need
- Study the Competition
- Develop a Business Plan
- Get Insurance Coverage
Starting a logistics firm will enable you to be immersed in various other industries. A logistics firm is a company that is responsible for storing and delivering the products of other businesses. Whether you choose to specialize in the import and export of goods in and out of the country or may concentrate on ground transportation within the area, you can try shopping at truck dealerships offering Japan surplus or Philippine rental services to get started.
Maximizing the selection of trucks for sale at Philippine markets will help you decide if you would want to venture into shipping, trucking or conducting transportation services, this is because a successful logistics company will need to have the means of freight transportation at its helm.
Logistics call on a highly specialized operation that will require patience, persistence, and careful planning, more so than any other business. If you are jet set on being a logistics provider, you will be tasked with the challenge of coordinating your warehouse, inventory, shipping and security requirements of your clients’ products. But all of this would be worth it as a stable source of income.
Read on below to see how you can begin a successful logistics business:
Funding and Investment
As the first step in starting a logistics company, you would need to seek investment for your venture. The amount of investment in the logistics business depends on the services that you wish to provide for your clients. A simple brokering and freight management requires less capital and this would allow you to establish the proper footing in starting a logistics business.
You should identify the niche services that you wish to focus on and prepare an investment plan based on the requirements you set for this. Try applying for loans or find a partner to help you put up the business.
Figure Out What Kind of Licenses and Permits You Need
As with any business, you have to secure a variety of licenses and permits. You would have to comply with Bureau of Internal Revenue (BIR) requirements like a tax identification number (TIN), Barangay Clearance, Department of Trade and Industry (DTI) Registration Certificate, Mayor’s Permit or Business Permit, and the optional SEC Registration Certificate.
Of course, if you have already taken those trucks for sale from your Philippine supplier, you also have to arrange the necessary documents to get them on the road as well. These are all crucial in starting your logistics business in order to maintain a smooth operation without drawbacks from missing permits or licenses.
Study the Competition
Before launching your logistics company in your chosen location, you also have to find out how you will fit in the competitive landscape of this industry. This will help you set up the necessary business objectives and it will help you out in foreseeing the goals you would want to achieve.
Studying the competition also means that you can scope out the needs and wants of your target market. Establish strength on what your clients would want from a logistics service that they have not seen from your competition.
Develop a Business Plan
As previously mentioned, a business plan is also a vital ingredient in setting up your logistics firm. Writing out your specific plan will help you discover the areas in your business that you can focus on or those which you have overlooked. It will also help you finalize the details of how you would secure the income that you will generate from the business. Solving your early cash flow needs should be part of a prior business plan.
Develop a good relationship with your bank or the stockholders of your firm so that you would not encounter problems along the way regarding funding. Keep in mind that you should put growth at the forefront of your vision for your company and this will help you keep out of trouble.
Get Insurance Coverage
Running a logistics company would require you to have an effective risk management strategy. For instance, your company’s truck encountered an accident on the road and these led to a severe damage to the driver and the vehicle or if they would be involved in an incident resulting in the loss of the clients’ products, then your company would be responsible for paying back the damages that have been inflicted.
The way to reduce the risk involved in these situations is to get an insurance plan that will help you to be secure in times of unforeseen damages in the future. There are affordable insurance premiums to get you started and this will save you a lot of expenses when the time comes that it should serve its purpose.
A logistics company would be a stable business in the long run. Just make sure that you are equipped with the proper machinery and efficient workforce to maintain its versatility as a business. Follow these tips so that you can have a successful business and with the various truck rental shops like Autokid, you can acquire the necessary vehicles to get you started.