How to Start a Small Logistic Company

Between the need for companies to hire third parties to take care of the distribution of their goods and the growth of electronic commerce, there is an increasing demand for logistics services. And although it is a sector with well-known and well-established competition, there is still a gap in the market for the arrival of new players. 

Therefore, in this guide, we will give you the keys to consider how to start a small logistic company.

Preliminary Steps to Start a Logistics Company

Let’s start by defining a little what logistics is. Logistics companies specialize in the organization, storage, transport and delivery of products to their customers, large, medium, small companies or individuals. They take care of all the steps that must be taken to get the goods from point A to point B.

These companies can be national or international. Currently, some logistics giants are familiar to all of us (and we have likely used their services at some time): DHL, FedEx, UPS, Seur or MRW, for put some examples. But we can also find more modest companies. So we are facing a sector where competition is high.

But there is a positive point in this, and it is that it is also a sector that offers itself to specialization (for example, food transport, refrigerated transport, dangerous goods, live animals or final customer), so doing an excellent previous study, we can find a market niche that assures us a few clients.

That is not to mention all the opportunities that e-commerce offers, both from large companies such as Amazon. They hire external logistics companies to send their orders and retailers looking for slightly cheaper services. Perhaps we can find one—a business opportunity.

However, you must bear in mind that if you want to create a door to door transport company with a specific volume of clients, you will need to have the necessary capital to be able to acquire the facilities, vehicles, equipment and personnel to be able to carry it out, and it is not an investment little.

Yes, you can start modestly with just one vehicle and yourself doing door-to-door pick-up and delivery, but this way, you’ll have a hard time going far. If you want to dedicate yourself to this sector, you need to start with a minimum team to ensure that you serve several clients in times that are getting shorter and shorter.

For all this, the first thing you should do is outline a business plan with which you define the type of logistics company you want to set up.

Prepare a Business Plan.

A good business plan should give us ideas for viable transport and logistics projects based on a complete market study. We determine the needs of potential customers, current competition, and our environment’s particularities (communication channels, price of fuels, current legislation …).

Among other aspects, the business plan will help us determine how to set up a logistics operator, from the territorial scope that we are going to cover, through the type of goods that we are going to store and transport, in the kind of vehicles, equipment, personnel and permissions that we are going to need, which will also give us an idea of ​​the initial financing that we are going to need and how we plan to get it.

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