Logistics is a popular business and involves transportation, storage, delivery of goods, etc. The major reason behind its popularity is that logistics is insanely profitable. You can start this business with just ten lakhs in India. This business has multiple benefits, like incentives and tax deductions. Moreover, the profit margin for this industry is around 47%, so you can make huge money in less time. After learning all of this, you must be thinking about how to start logistic business. Don’t worry; in this blog, we are sharing the steps to start a logistics company in 2024, so keep reading.
Before moving to how to open logistics company, you should know that there are different kinds of logistics businesses. Scroll down to find out the different logistic business types.
Types Of Logistic Businesses
Below are the four types of logistics businesses which you must understand to learn how to start logistic business.
- Courier Services
This logistic service involves door-to-door pickup and delivery of packages, mail, documents, etc.
- Air Cargo Services
Air cargo services provide international shipping for lightweight packages and heavy cargo via air, often with short notice.
- Warehousing Services
Warehousing services include providing storage space, staffing, equipment maintenance, packaging, shipping, etc.
- Third Party Logistic
The third-party logistics collects, stores, and delivers packages on behalf of other businesses.
Now that you know about the types of logistic businesses, let’s also find their key functions before moving on to how to start logistic business in India.
Key Functions Of Logistic Businesses
There are seven key functions in the logistics business. Scroll down to find out about those functions.
- Order Processing
Order processing refers to planning, executing, and controlling the order of goods or services.
- Material Handling
Material handling involves transporting goods from one place to another, including loading, unloading, stacking, sorting, packing, etc.
- Warehousing
It means storing goods at the logistics centre before shipping them to the customer.
- Inventory management
Inventory management involves overseeing the amount of inventory in logistics centres, ensuring enough stock is available as per customer requirements and all items are safely stored.
- Transportation
Transportation means sending goods from one location to another using trucks, ships, trains, or aeroplanes.
- Packaging
Packaging is preparing the goods for shipment while ensuring that they remain safe during transit or storage.
- Monitoring
Monitoring involves tracking logistic operations so that all activities are performed efficiently and at a low cost.
We have covered the types of logistics business and its crucial functions. Now, you are ready to learn how to start this business. So, scroll down and keep reading to learn how to start logistic business.
How To Start A Logistic Business
Follow the below written steps to learn how to open logistics company in India.
- Find your Niche
To learn how to start logistic business in India, you first need to conduct thorough research. It will help you understand which services to provide, what area to cover, etc.
- Choose A Business Model
The next step to opening a logistics company is choosing a business model. You can choose from sole proprietorship, partnership, limited liability company, etc.
- Map your Costs
Mapping costs is one of the major points when learning how to open logistics company. In this process, you will make a budget for your business, including vehicles, insurance, marketing, equipment costs, etc.
- Get licences
If you are wondering how to start logistic business in India, you should get all the required licences and permits from relevant government agencies. Depending on your service, logistics licences will differ, such as customs broker licences, warehouse operators licences, motor carrier licences, etc.
- Open A Business Account
The fifth step is opening a business account for seamless transactions. You can also be involved in funds if needed, like business loans or investments, and this account will help you store the funds safely.
- Advertise your Business
Advertising is crucial for a business, especially when competition is fierce. You must also advertise your logistics business so that others know about you. You can use social media for advertising and staying connected with your audience.
- Purchase Equipment
The next step for people wondering how to open logistics company is buying equipment such as carts, pallets, picking machines, etc., arranging vehicles, and other resources. It will help you operate your business efficiently.
- Hire employees
If you have purchased all the equipment, vehicles, etc., now is the time to hire staff. To start your business, hire drivers, warehouse workers, office staff, etc.
- Find Clients
It is the final step to learning how to start logistic business in India. Find clients through marketing and networking efforts and try to retain them with quality services.
Now, you must have understood how to start logistic business. In 2024, there will be fierce competition; however, India has a lot of opportunities. Also, you must have heard, “If you do not try, you will never succeed.” So, be dedicated to your work and march towards your goal, and you will definitely grow a huge logistics company.
