"Aim for success, not perfection. Never give up your right to be wrong, because then you will lose the ability to learn new things and move forward with your life. "
- Dr. David M. Burns
With the increasing number of e-commerce stores, there is a huge requirement for transport, inventory, and delivery services. That’s where logistics comes into the picture. There is a vast scope of starting a logistics business. Let us tell you how to start a logistics business in India.
There are so many types of logistics business that you can start based on your interest and resources. Some of them are courier services, air cargo services, warehousing services, or third party logistics.
Here are a few things that you would require to start a logistics business in India.
Create a logistics business plan
Like any other business, at first, you need a proper business plan or business model to start with. It serves as the foundation for your business. For any business to thrive, the foundation has to be strong.
It’s important to consider all the aspects of a logistics business and then come up with a solid plan or strategy. Make sure to look at both the positive and negative side of it. It’ll help you plan a better strategy.
Funding and Investment
The investment required for a logistics business depends on the type of business you would like to do. For instance, Courier and Freight Cargo Services requires less investment when compared to Warehousing Services. It is so because warehousing would require a designated place, equipment, and employees for a smooth operation. Hence, it’s vital to decide the services and come up with an investment plan.
Register your business
Now that you have a logistics business plan, the next step is to register your business. Make sure to get all the necessary compliance certifications beforehand so as to save yourself from any issues in the future. In India, it’s essential to be a part of industry forums like the Institute of Logistics. Along with registering your business, you also need other registrations like DGFT registration, Registrar of Companies, and Income Tax Department Registration. It’s not so difficult to get a license for the transportation business in India.
Business Risk Involved
Risk management plays a significant role in the development of a business or company. The logistics business is a dynamic one, it requires collaboration and effective work strategies. With so many things included, like injury of an employee, damage to the vehicle, theft, or any other mishap, it’s essential to have insurance that will help you compensate for the incurred losses.
Research about your competitor’s journey thus far and analyze it. It will help you understand the market and prepare accordingly. Study all about their business and also find out the weak points of your competitor so that you can provide solutions around that and do better.
Have the necessary software
No matter what kind of logistics business you’re planning to start, the software is the primary thing you would require for the firm. Since most of the services would be for the e-commerce industry, it’s essential to have software. It will help you track the goods and manage orders using the inventory management system.
Choose a real location for your logistics business
Logistics business requires a lot of things, from a dedicated place for storage to a small office for backend work. It’s a step by step process where one has to process the order carefully. Having an office will also help you with client meetings as they won’t have to come to random locations. Not just that, it will also make the shipment process easier.
Hire the candidates
The logistics business is booming, and it’s employing millions of people in India. Once you’re done with the planning and implementation process of your business, start hiring for people. Hire for individuals who qualify for the job. Also, it’s even better if you can provide training to the employees for a couple of months.
To conclude, the logistics business is the need of the hour as more and more people are buying and selling things. However, you must consider all the possible options and have the right resources to start.