The logistics and delivery industry is booming, and the Coronavirus pandemic has made our industry more in demand than ever. As one of the industries that has benefited due to lockdown, people have been made aware of the importance of courier and logistics services worldwide. This might have got you thinking, could I start my own logistics company? It’s an industry that isn’t too difficult to penetrate, however there are lots of things you need to think about before you go it alone.
Make sure you think about insurance.
When it comes to any logistics business, insurance is hugely important. More so than many other companies. This is due to the fact that other people’s possessions are literally in your care. It is your responsibility as the carrier to get the items from one destination to another safely, no matter the cost of what is being transported. Lamborghinis need to be transported from the factory somehow, and it’s these types of items that mean having the right insurance is imperative. Logistics also carries a high risk due to the fact you are dealing with heavy goods, international travel, and the safety of staff lifting goods as well as delivery and lorry drivers constantly on the road.
Finding the right insurance for you may be expensive, but it’s a worthwhile investment to ensure the financial security of your business.
Vehicles and equipment.
It’s difficult to think of an industry that deals with as many vehicles and equipment as logistics does. From loading equipment to packaging through to lorries, you need a lot of equipment to get your business off the ground. Before you think of the vehicles and equipment needed, you need to establish the following:
- Where will you deliver to? Just the UK or Europe? Or worldwide?
- How will this decision affect the equipment you need?
- What size goods do you expect to be transporting?
Once you have these questions answered you can then narrow down the equipment you need. For instance if you are delivering goods worldwide you will need to transport via ship or plane, which will incur large costs. Most people in this scenario start out by renting the vehicles necessary, even if it’s just a lorry, as you don’t want to overestimate and overspend on transportation methods you don’t need.
Employ Trustworthy Drivers.
Employing the best drivers is essential to the success of your business. Your drivers are the people who are in charge of the goods for the majority of the time and are responsible for their safe transportation from one destination to another. Don’t be afraid to do background checks on your drivers, if they are dealing with sensitive or expensive items, you need to ensure your customers’ goods are in safe hands.
Securing Deals and Suppliers.
This is where you start making money. Many modern businesses rely on logistics to help manage their shipping, so there is no lack of competition. More and more businesses are offering online services to sell their items around the world, so you need to focus on securing the right contracts. However, you need to come up with a way for your company to stand out. For example, at Caribou, we advertise our seamless integration service. Letting potential customers know that we can easily integrate our shipping with whichever platform they are using. If you are just starting out then you may benefit from ‘piggybacking’ off larger companies. For instance, reaching out to tenders that they don’t have capacity to service them, and win work that way!
The logistics industry is a very successful one, and more in demand than ever before. If you want to start your own business in logistics, then now is definitely a good time to get on board.