Do you want to create a logistics company? here is a complete guide to starting a logistics business with no money and no experience .
Ok, so we have provided you with a detailed example of logistics company business plan template. We also took it a step further by analyzing and writing a sample logistics business marketing plan backed by actionable guerrilla marketing ideas for logistics companies. In this article, we will cover all the requirements for starting a logistics business. So put on your entrepreneur hat and let’s move on.
Why start a logistics company?
An entrepreneur is basically someone who provides products or services in exchange for remuneration. This means that if you want to do any type of business, it has to be a business designed to meet the needs of people. These could be people in your immediate environment, in your country, or on a global platform.
Of course, starting a business is difficult, but there is one business that you can start with little problems – the packaging and logistics business. The packaging and logistics activity is an activity which ensures the consolidation of shipments, the preparation of sales documents, packaging, packaging and other preparation of goods for transport. With this type of business, you can work from any part of the country as long as there are businesses and people who will frequent your services.
The truth is, starting a packaging and logistics business is a lucrative business and it is very easy to start one, even if it is capital intensive. Getting the right environment ( motorcycles, drones, vans and trucks, etc.) and the right tracking devices are some of the secrets to running a successful packaging and logistics business.
Therefore, if you are serious about starting your own shipping and logistics business, just read this article and you will be well prepared.
Complete guide to starting a logistics business
- Industry overview
The freight packaging and logistics services industry is the industry which is responsible for providing packaging and packaging services for the transportation sector of the economy. The industry includes companies that provide shipment consolidation, sales document preparation, packaging, wrapping and other cargo preparations for transportation and logistics consulting services.
Some of the key factors that will drive the growth of this industry include the growth of the manufacturing sector, consumption, international trade and increased technological dependence, which will open up new opportunities for logistics consultancy and consultancy services, especially for the distribution chain and logistics networks. We do not exclude the fact that technology can also kill some jobs in industry.
The freight packaging and logistics services industry is indeed a very successful industry in most countries of the world. It is the main sector of the economy of the United States and generates the exorbitant sum of 2 billion dollars. Coming from more than 6,414 registered and licensed packaging and logistics companies each year across the United States of America, the industry employs more than 31,785 people. No company in this sector has a dominant market share in the United States.
Research conducted by IBISWORLD shows that wrapping and packaging services that are not directly related to the automotive business account for about 71.7% of industry revenue. Packing and wrapping involves storing the cargo in a variety of containers, including crates, pallets and plastic bags.
Many companies also offer specialized services which include the packaging of unique products such as industrial equipment, artwork, and weapon systems. Industry players can also offer cargo consolidation. Consolidation involves combining many small, frequent shipments destined for the same geographic area into one large shipment to reduce shipping costs per unit. This service aims to benefit from a variety of freight rate reduction programs.
Sure, starting and running a packaging and logistics services business can be complex and capital intensive, but it can actually be rewarding at the same time. can start a business with more than a dozen employees from a large office building, and for aspiring entrepreneurs who may want to start with a shared office space and a handful of employees.
The packaging and logistics service industry will thrive because people and organizations will always want to send goods, documents and packages to different places. While the industry seems oversaturated, there is still ample room to accommodate budding entrepreneurs looking to start their own packaging and logistics business.
Also, the packaging and logistics service industry is a lucrative industry and any budding entrepreneur is open and can start a business. You can start small in one or two public institutions operating at local and national level, or if you have capital and businesses you can start with a large number of stores in key cities, delivering goods and packaging to both at the national level. and internationally.
Launch of a logistics company Market study and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those in need of packaging and logistics services, which include individuals, households, businesses, traders, manufacturing companies, and business owners, including contractors who need to deliver their goods, goods, documents and packages, etc. consignee or warehouse.
So if you want to define the demographics of your packaging and logistics business, you need to include all of these. This should include vendors and warehouse operators, retailers who want to move their goods from one location to another, manufacturers, households who want to move from apartment to apartment, businesses who want to move from one apartment to another, office to another. , government agencies that have a reason to move goods and materials from one place to another, churches and faith-based organizations that want to move tools and equipment, etc. from one place to another,
List of niche ideas in the logistics industry that you can specialize in
Most packaging and freight logistics service companies typically use generic services, which include all of the activities the business is expected to provide for a standard packaging and logistics company. This is why there does not appear to be any niche in the industry.
But on the other hand, some packaging and logistics companies may decide to focus on certain key areas such as;
- Packing of goods for transport
- Packing of goods for transport
- Packing of goods for transport
- Consolidation of cargo
- Preparation of sales documents
- Storage of goods before and after transport
- Consulting in physical distribution
- Logistics consultancy
- Packaging services for transport and storage services
Level of competition in the freight packaging and logistics services industry
Competition in freight packaging and logistics services goes beyond competition in freight transportation. packaging and logistics service companies in your place of operation. You are expected to compete with major players around the world with a stake in the country in which you operate.
For example, DHL operates in the United States, so you have to compete with them. So it’s fair to say that the competition in the packaging and logistics industry is fierce.
The truth is, regardless of the level of competition in the industry, if you have done your due diligence and properly brand and market your product or business, you will always advance in the industry. Just make sure you are positioning your business correctly, implementing a safe and fast shipping process, and knowing how to attract and reach your target market.
But beyond that, there are several small, medium, and large shipping packaging and logistics companies scattered across the United States. Therefore, if you decide to start your own packaging and logistics business in the United States, you are bound to face stiff competition from packaging and logistics companies inside and outside. of your company.
List of famous brands in the logistics industry
In all sectors, there are always brands that perform better or are better perceived by customers and the general public than others. Some of these brands are the ones that have been around the industry for a long time, while others are best known for the way they run their business and the results they have achieved over the years.
These are some of the leading packaging and logistics companies in the United States of America and around the world;
- USA Logistics Transportation Inc
- USA Logistics Inc
- Dachser Transport from America
- American Logistics International LLC
- Ceva Logistics North America
- Nissin International Transport United States
- Scotlynn USA Division Inc.
- Excel Logistics USA Inc
- American export lines
- United States InterCargo LLC
- Senko USA Inc
- Fyke Trading USA Inc
- Tankstar USA Inc
- Liberty Logistics United States
- Sterling Logistics
- Yusen Air Sea Services United States
- XPO Logistics
- Yamato Transport United States
- Castle transport service
- Transport Lac Express USA Inc.
If you are looking to successfully start a business and maximize your profits, you need to make sure that you are getting economic benefits. Do the right analysis and try as best you can to adopt the best practices of the industry in which you decide to develop your business.
The fact is that the activities of packaging goods and logistics services are not environmentally friendly activities; In fact, you will come across several small, medium, and large packing and logistics companies in major cities in the United States of America.
So, if you are planning your economic analysis, you should conduct a thorough market research and estimate the amount required to purchase delivery bikes, drones, vans / trucks, rent storage space, and exploit the cost of running the business. a successful business.
Also, if you are planning to start a packaging and logistics services business, your concern should not be limited to the cost of purchasing delivery bikes, drones, vans / trucks. Warehouse Leasing, Hiring Employees, Branding, and Building a Reliable Customer The point is, if you are able to build a strong customer base, you are sure to maximize your business’ profits.
Start your packaging and logistics services business from scratch rather than buying a franchise
In the truest sense of the word, there is no hard and fast rule as to how you are going to start a business. Basically, you need to be guided by your overall business vision and mission statement.
If you want to start a freight packaging and logistics services business, you will have to start from the very beginning as you can hardly buy a freight packaging and logistics services business franchise or it will be too expensive.
Additionally, starting a packaging and logistics services business from scratch is less stressful than other related businesses which typically require detailed development and strict licensing requirements before starting a business.
With a freight packaging and logistics company, you should try to ensure delivery of bicycles, drones, vans and trucks as much as possible, establish business relationships with key stakeholders from multiple industries, then use all the marketing tools at your disposal, especially on the Internet to promote your market. services.
Please note that most of the large, successful packaging and logistics companies started from scratch and were able to build a strong business brand. Success in business requires dedication, hard work and determination.
Threats and potential challenges you will face when starting a packaging and logistics business
If you decide to start your own packaging and logistics business, one of the main challenges you are likely to face is having well-established packaging and logistics companies in your area. The only way to avoid this problem is to create your own market.
Some other problems and threats you are likely to face are the economic downturn; if the economy is in bad shape, businesses like packaging and logistics companies, etc. usually try to keep old clients or even take on new clients.
In addition, unfavorable government policies can hamper economic growth. Your packaging and logistics company. There is nothing you can do about these threats and challenges except to make sure that all is well with you.
Creation of a legal company for logistics Legal issues
- The best legal entity to use for this type of business
When planning to start a packaging and logistics services business, the entity you choose will largely determine the size of the business. some packaging and logistics companies are developing their activities for the neighborhood market, some for the city market and others for the national and global market. Sole Proprietorship for a Packaging and Logistics Services Business Usually, a sole proprietorship should have been the ideal business structure for a small packaging and logistics services business, especially if you are starting out with moderate start-up capital and are you operate in a small area with a van. and less than a few employees.
But if you intend to grow your business and source all over the United States of America and other countries around the world, choosing a sole proprietorship is not an option for you. A limited liability company, LLC, or even a general partnership will do this for you.
LLC training protects you from personal liability. If something is wrong with the business, only the money you invest in the limited liability company is at risk. Limited liability companies are simpler and more flexible to operate, and you don’t need a board of directors, shareholder meetings and other management formalities.
Here are some of the factors to consider before choosing a legal entity for your shipping and logistics business limitation of personal liability, ease of transfer, acceptance of new owners, investor expectations, and of course taxes.
If you take the time to critically research the different legal entities that will be used for your packaging and logistics services business, with the ability to franchise and deliver goods, cargo, packages and documents, etc. . across the United States. In America and other countries around the world, you will agree that a limited liability company is the most appropriate. You can start this type of business as a Limited Liability Company (LLC) and in the future turn it into a “C” corporation or an “S” corporation, especially if you are planning to go public.
Attractive business name ideas suitable for a packaging and logistics company
When it comes to choosing a name for your business, you have to get creative, because whatever name you choose for your business, you’ll have a long way to go to get a feel for what. is the business. It is generally the norm for people to follow the trend of the industry in which they intend to operate when naming their business.
If you’re thinking of starting your own shipping and logistics service business, here are some catchy names to choose from;
- Spencer JT® Freight Packaging Logistics, Co.
- Pelican Husky ™ Freight Packaging Logistics, LLC
- Citywide® Freight Packaging Logistics,
- Alpha Greene® Freight Logistics Company
- Lester Mendez Sons Freight Packaging Logistics, Inc.
- Harry Kester Brothers Freight Packaging Logistics, Inc.
- The Real People® Freight Packaging Logistics, Inc.
- Safe Hands® Freight Packaging Logistics, LLC
- Mike Nelson Group® Freight Packaging Logistics, Inc.
- Maryjane Roberts® Freight Packing Logistics Group
In the United States and most countries around the world, you can’t run a business without some of the basic insurance policies required by the industry you want to work in. Therefore, it is important to budget for insurance and perhaps consult an insurance broker to help you choose the most suitable insurance policies for your packaging and logistics business.
Here are some of the basic insurance policies you should consider when buying if you are looking to start your own packaging and logistics business in the United States of America;
- General insurance
- Health insurance
- Liability insurance
- Risk insurance
- Credit insurance
- Vehicle insurance (comprehensive insurance)
- Deposit insurance
- Workers compensation
- General disability insurance costs
- Group insurance for business owners
- Payment protection insurance
Protection of intellectual property / registered trademark
If you are planning to start your own packaging and logistics business, you generally will not need to file for intellectual property / trademark protection. This is because the nature of the business allows you to successfully run your business without any reason to challenge anyone in court for illegal use of your business intellectual property.
But if you just want to protect your company logo and other documents or software of your own, or even jingles and multimedia production concepts, you can apply for intellectual property protection. If you want to register your trademark, you must begin the process by filing an application with the USPTO.
Do you need professional certification to run a logistics business?
Apart from the results you get in fast and safe delivery, professional certification is one of the main reasons why some packaging and logistics companies stand out.
If you want to contribute to the packaging of goods, in the field of logistics services, you should strive to obtain all the necessary certifications in your area of specialization. Certification validates your competence and shows that you are highly qualified, committed to your career and up to date in a competitive market.
Here are some of the certifications you can aspire to if you want to run your own packaging and logistics business;
- DAS certification
- Diploma or diploma in progress in logistics and transport
Please note that you can successfully run a packaging and logistics business in the United States and most countries around the world without gaining professional certifications if you have sufficient experience in the packaging and logistics services industry. .
List of legal documents you need to run a freight packing and logistics services business
The importance of having the necessary documentation before starting a business in the United States The States of America cannot be overstated. It is a fact that you cannot conduct business successfully in the United States without proper documentation. If you do, it won’t be long before the long arm of the law catches up with you.
Here are some of the basic legal documents you need to have in place if you want to legally operate your own packaging and logistics business in the United States of America;
- Registration certificate
- Business license
- Tax identification number / Tax identification number
- Business plan
- Non-disclosure agreement
- Commercial vehicle operator registration
- Appropriate driver’s license for drivers (Commercial Driver’s License (CDL)
- Assistant license for assistants
- Proof of ownership, correct identification and license of the vehicle
- a copy of the license from the technical support center (warehouse) and / or a recent inspection report
- Employee Handbook
- Employment contract (letter proposal)
- Operating Agreement for LLC
- Insurance policy
- Online Terms of Service (if you also surf the Internet)
- Company charter
- Memorandum of Understanding (MoU)
- Franchise or brand license (optional)
Financing of your packaging and logistics activity
Starting a packaging and logistics services business can be profitable, especially if you choose to start on a small scale with just one van serving in a community or city. Buying a motorhome, bicycle or drone etc. is part of what consumes a significant portion of your start-up capital, but if you decide to start a large-scale business with a standard warehouse, a fleet of vans / trucks, bicycles and drones and even cargo planes, then you will need to find a source of funding to fund the business as it is expensive to set up. a standard large-scale packaging and logistics company with delivery networks scattered throughout the United States of America and around the world. p90>
There is no doubt that when it comes to business financing, the first thing to consider is writing a good business plan. If you have a good, achievable business plan document, you may not have to work on your own before convincing your bank, investors, and friends to invest in your business.
Here are some options you can use when finding seed money for your packaging and logistics services business;
- Collect money from personal savings and sell stocks and personal property
- Raise funds from investors and business partners
- Sale of shares to interested investors
- Apply for a loan from your bank
- Introducing your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source of concessional loans from family and friends
Choosing a suitable location for a packaging and logistics company
While a packaging and logistics business can thrive in most locations, when it comes to choosing a location for your packaging and logistics business, you should be guided by the demand for such services and the demographic composition of the cation. Of course, if you can set up your packaging and logistics business in the right location for such a business, you won’t have to struggle to be successful in this business.
It cannot be stressed enough that the location you choose to set up your packaging and logistics business is the key to your business success; therefore, entrepreneurs are ready to rent or rent an object in a visible place; a place where the demographics are made up of people and businesses with the purchasing power and the necessary lifestyles. If you’ve made the mistake of starting your packaging and logistics services business in an area where you are unlikely to have access to good roads, a hidden, hard-to-find place, you will be fighting to grow your business. business.
<First of all, before choosing a location for your packaging and logistics services business, be sure to do a thorough feasibility study and market research first. It cannot be excluded that you will come across a similar business that will simply close the store in the place where you want to open yours. That is why it is very important to gather as many facts and figures as possible before choosing a location to start your own packaging and logistics business.
Here are some of the key factors to consider before choosing a location for your packaging and logistics business;
- Location demographics
- Request for on-site freight packaging and logistics services
- The purchasing power of the inhabitants of the place
- Accessibility and localization road network
- The number of companies engaged in freight packaging and logistics services at the site
- Local laws and regulations in the community
- Transport, parking and security
Start a technical and personnel company of a logistics company
On average, no special technology or equipment is required to run this type of business except for customizable logistics and delivery of software, trackers and applications, point of sale (POS) machines ) and other related software applications. In addition, you will definitely need distribution vans / trucks, bicycles and drones, computers, internet equipment, telephone, fax machine and office furniture (chairs, tables and shelves) and the like, all of which can be used. be used fairly.
When it comes to renting or buying outright storage space, the choice depends on your financial situation, but the truth is, to be safe it is advisable to start with a short term lease / lease. during the operational test of the company on the site. If all goes according to plan, then you take a long term lease or buy a property directly.
When it comes to hiring employees for a standard packaging and logistics company, you need to develop a recruitment plan. Knowledgeable CEO (you can fill this role), administrator and human resources manager, transportation and logistics manager, warehouse manager, sales and marketing officer, dispatch services, van drivers, bookkeeper and cleaners. Here are some of the key people you can work with. On average, you will need a minimum of 5-10 key employees to run a mid-size but standard-size packaging and logistics business.
Business service process included in the packaging and logistics of freight transportation
When it comes to the transportation, storage and delivery of goods, cargo, packages and documents, etc., there are no strict rules. Fundamentally, the marketing and sales department is responsible for helping the customer find a source within the organization.
They go there to find traders, warehouse operators and retailers who want to move their goods from one place to another, manufacturers, households who would like to move from one apartment to another, corporate organizations who would like to move from one office to another. another, government agencies that have a reason to move goods and materials from one place to another, churches and faith-based organizations that want to move tools and equipment, etc. from one place to another, non-profit and charitable organizations, organizations that have a reason to transport goods and materials from one place to another in and out of town in which they operate.
Once the transaction is completed, the carrier drivers load their vans / trucks or bikes directly from the customer’s location or warehouse if the goods are delivered to the warehouse and then the goods are delivered to the location planned. Either they collect cash on delivery from the recipient or they pay the sender. Typically, a business agreement will be made with the sender or recipient to determine who will pay for the services.
It should be noted that fast and safe delivery is very important in this industry, therefore, all freight packaging is required. and logistics companies that install trackers on their vans, bikes and trucks, etc., and use reliable logistics and delivery applications to track goods, packages and documents in transit, and provide delivery terms.
It is important to clarify that a packaging and logistics services company may choose to improvise or adopt business processes and structures that will ensure their efficiency and flexibility; The above business process of a freight packaging and logistics services company is not built in stone.
Creation of a logistics company marketing plan
- Marketing ideas and strategies
Usually, running a business requires you to be proactive when it comes to marketing your products or services. If you decide to start a packaging and logistics services business, you need to make every effort to use strategies that will help you attract customers, otherwise you will probably have a hard time with the business as there are good brands. known which determine the direction of the market for companies. freight packaging and logistics service industry.
Here are some ideas and marketing strategies you can use for your packaging and logistics business;
- Introduce your packaging and logistics business by sending cover letters with your brochure to individuals, households, businesses, vendors, manufacturing companies and business owners, including contractors, including to the inside and outside the city.
- Internet advertising on blogs and forums, as well as on social networks. media such as Twitter, Facebook, LinkedIn to get your message across so that social media users or those who read blogs can know who to call when they need to deliver or transport cargo, merchandise, documents and packages, etc. at your location
- Create a basic website for your business to have an online presence
- Direct marketing of your services
- From time to time participate in roadshows in targeted communities. it’s time to market your packaging and logistics business
- Join local packaging and logistics associations for industry trends and advice
- Specify the days of discounts for your customers
- Promote our business in community newspapers, local TV and radio stations
- List your business on the yellow pages (in local directories)
- Encourage the use of word of mouth marketing (referrals)
Strategies Boost the notoriety of your logistics company and build your corporate identity
If you intend to start a packaging and logistics services business and expand your business outside of the city you intend to work in to become a national and international brand, you must be prepared to spend money to promote and promote your brand.
Regardless of what industry you belong to, the truth is that the market is dynamic and requires consistent brand awareness and promotion to continue to reach your target market. Here are the platforms you can use to boost your brand awareness and identity. for your packaging and logistics company;
- Advertise in both print media (packaging and logistics newspapers and magazines). ) and electronic media platforms
- sponsor relevant community events
- use on the Internet and social networks such as Instagram, Facebook, Twitter, YouTube, Google +, etc. to promote your freight package and logistics services
- Install your billboards at strategic locations in your city or state
- Take part in roadshows in targeted neighborhoods from time to time to learn more about your packaging and logistics business.
- Distribute your flyers and leaflets in targeted areas
- Contact individuals, households, businesses, traders, manufacturing companies and business owners, including entrepreneurs, among others, inside and outside the CIS. You inform them of your activity and the services offered
- List your packaging and logistics company in local directories
- Promote your packaging and logistics business on your official website and use strategies to help drive traffic to the site
- Place your Flexi banners in strategic positions where your packaging and logistics business is located
- Make sure that all of your employees are wearing your branded shirts and that all your vehicles and trucks / vans, bicycles and drones etc. have your company logo etc.
Create a reliable delivery network for your logistics business
In order to run a successful packaging and logistics business, you need to establish good business relationships with shipping and manufacturing companies and of course organizations. and companies that always move goods and goods from one place to another. To stay in business, you will need permanent contracts with these organizations and companies.
Also, if you are just starting out, you might not be able to own an airplane or a fleet of vans, or even drones that make your job easier. That is why you should seek partnerships with key stakeholders, such as large logistics and transportation companies, as well as airlines, capable of delivering goods anywhere in the world on schedule.