Kudos for launching a business into these uncertain times. Starting a logistics business is always hard. At the moment it may be a bit harder. However, there could be positives. You might be starting just as things are starting to kick into gear again. This means that there may be gaps for you to launch into, where before the industry might have been saturated. (Image Credit: Andreas Lischka/ Pixabay)
The circumstantial arena your launching into won’t be the be all and end off regarding whether your business will succeed or not. You can avoid things like bankruptcy no matter the environment so long as you put in the prior research needed. These tips can help you ensure your logistics business does well. But remember, every business is different and unique, make sure you apply tips to your business bearing this uniqueness in mind.
Safety Comes First
No matter what niche you’re looking to launch into, you have to remember that safety needs to come first. This is safety for all facets too. If you’re using trucking safety is paramount as you’ll See Below.
You also need to ensure your warehouse is safe and that everyone there is well trained. Any accidents are your responsibility unless you’ve properly covered yourself. Insurance is needed. Accidents happen in transit all the time especially if you’re using vans or trucks on the road so make sure you get the right insurance to cover you and your drivers. You also need to cover yourself by doing the right levels of driver checks. Make sure they have the correct licenses to deliver the loads you need to carry.
Otherwise, you could find yourself in hot water. Training is a must too, especially if drivers are using different vehicles for the first time. If you have a commercial truck, you must be sure you have the proper commercial trucking insurance coverage. Having inadequate insurance coverage can leave you with a lot of risks. Always put safety at the front of what you do because it allows less chance of cargo to be damaged too, keeping clients happy.
Find Your Niche
The logistics business is quite a closed off industry to get into. This means that most startups are by people who have an actionable plan, and by people who have prior experience in the industry. This means they’ve found an opening to be exploited or they’ve pulled some clients with them on their journey into their own business.
Finding your niche is important. A blanket approach works in certain situations but mainly logistics is around carrying certain types of goods. With trucking for businesses you can be taking refrigerators one day and furnitures the next.
Or you can specialise in hazardous waste or materials. Maybe you can look into carrying abnormal loads. They are all niches in the industry, and finding one to settle into might make your landing a lot easier. The likelihood is that you’ll already know exactly what niche you want to launch into. If you don’t, you need to get back to the drawing board and work out how you’re going to tackle an industry which is dominated by monopolized courier and logistics services.
There’s always a way, you just need allowed and what isn’t. Again, if you’re using trucking you need to be aware that rules differ in different countries.
This isn’t just driving and speed laws, but regulations on the times drivers can spend behind a wheel without a break. This is before you come to the loads being carried. Know what you’re dealing with before pressing ahead and the whole thing will be easier. Remember, rules change, so implement a system where you’re alerted if things are to change in the future to stop you getting caught out.
Protect Goods At The Warehouse
Depending on your businesses operating model you may collect the goods and store them in your warehouse before transporting them to their destination. If this is the case, you need to ensure the items are safe because they’re in your possession and you’re liable for them.
If things get broken or damaged, you will lose out in reputation and the client may go elsewhere. Protecting the goods all depends on what they are. You may need to use refrigerators to keep perishable goods in check and from going bad. You might need good security for high price items. This means ensuring you have good locking systems in your warehouse, with CCTV and security guards in certain circumstances. Mainly, make sure you have good insurance which covers a wide variety of issues and errors.
This way, whatever happens, you know you’ll be covered and your logistics business may survive the fall out of any issues. Because acts of god are natural. Floods may occur, as might earthquakes depending on your location. Get covered and be prepared to pay a premium if you want ultimate peace of mind. On the same note, if you don’t use your warehouse and find yourself needing one you can easily rent space, just make sure the intended warehouse has all of the above securities in place. You’ll pay more for one which does, but it’ll be worthwhile especially if it’s for a short period of time.