Logistics, The Undiscovered Treasure
With at least one new e-commerce website popping up every month in India, the magnitude of online trading in the country is anticipated to grow at a brisk pace. The success rate of any online store also depends heavily on the delivery policy. Clever management of logistics plays a vital role in assuring the delivery policy.
So, it is evident that the logistics sector is one industry that will grow along with the advent of online stores and the internet. If you are thinking of setting up a business now or venturing into a new business, it is time you channelize your entrepreneurial skills on the logistics business.
It takes some measures for starting a logistics business. Let’s see the steps one has to take to do that.
Getting Your Collar Soiled
When you’ve got your thoughts fixed on what you are going to do, it is mandatory to do some fieldwork on that particular sector. If you could get into any logistics company as an employee and get to learn the nuances of the business, you’ll get to know a lot about the business. However, if it is not possible for you to get into an employee’s shoes, maybe at least you could try hiring some reliable partner for getting some insights into the industry.
Exploiting The Opportunities
You have to study the resources and opportunities in the field before getting into it. The stats of 2014 indicate that the logistics business has a potential of around 50 billion USD in India, and is increasing every year at 7%. So, there is no need to have any second thoughts about the opportunities that exist for a new logistics firm. All you have to do is to establish a wide network throughout the country. An interesting bit of statistics reveals that the logistics department comprises 33% road, 26% air and 41% over sea. You should make sure that your services match that of your competitors in all the three areas.
Raising The Funds
You may have all your plans in place, including men and material for work, but the main thing lacking to run your business is money. Raising funds isn’t that easy for a start-up. However, there are certain quick-fixes to get funding at the right time. The first thing a bank will ask for is a statement showing your credit records, including proof of the requisite expertise in the field. It is advisable that you have sufficient collateral in your name so that the bank may give your business proposition the attention it deserves.
Passing Through Bureaucracies
Once you have the experience and knowledge on the functioning and modus operandi of logistics, you have to have your documents in order. Like any other business model, logistics also has its own share of tedious steps in the initial stages. International Air Transport Association (IATA), Air Cargo Agent Association of India (ACAAI), DGFT registration, Income Tax Department, are some of those bureaucracies that your papers have to pass through. Though the process is tedious, there are certain business consultants who can help you through out the process.
Getting Your Equipment
Once you are set and raring to go, you have to make sure that you are well equipped. You have to get your loading equipment to move the goods into trucks, ships or whatever. As these require intense capital investment at the very start of your business, it is advisable to hire these vehicles and equipment initially for some time. Over a period of time, once your business starts fetching enough revenue and breaks even, you can get your own movers and equipment.
These are the main pre-requisites to start your own logistics business. However, more specific information is available on business portals, and even browsing through for a few minutes will help gather more information.