India?s booming economy has propped logistics business, both hyper-local as well as inter-state. India is poised to remain on the high trajectory of GDP growth in the forthcoming years. The first target is to become a USD 5 Trillion Economy by 2025, followed by bigger goals. It goes without saying, this is the best time to invest in a logistics company or start one of your own.

As a logistics company owner, it's essential to consider a few things before starting up. Here are some of the pointers.

Human capital and operating expenditure

This may sound obvious but this needs to be emphasized in the right earnest. You have to get your finances right even before anything else. Your overall startup costs will depend on the size of your company and whether or not you need to purchase equipment like trucks or vans.

You should assess your capital expenditure and operating expenditure carefully. Take the help of a competent chartered accountant for the same. Bad financial planning is among the main reasons for start-up failures.

Human capital is yet another critical factor that can make or break a start-up. Until you have an exceptional team in place, you would not go far. To take off the burden of HR services, you should look for payroll services and contract staffing services. Weavings is one of the most reliable and respected companies you should look for.

Define your business model

You need to determine and finalise the business model before moving ahead. You can either go for the aggregator model or build your business from the scratch. In the former, you would get a commission while in the latter one, you would create more wealth for yourself and your stakeholders.

If you are creating your own logistic company from scratch, you would need to build infrastructure and hire plenty of manpower. You are well-advised to hire a blue-collar agency, like Weavings - one of the best contract staffing services, to get things done quickly.

Do your homework diligently

When you start a new business, you religiously follow the basic 4 Ps of marketing. A logistics company is no different. You need to assess your product (your offering, your USP?s), the pricing (how will you compete against your competitors), place (assess whether you wish to be a local player or wish to have a pan-India presence) and promotion.

Then you should also do the SWOT analysis. A detailed assessment of your strengths, weaknesses, opportunities and threats would help you with the strategic planning leading to building a successful company.

Final words

Starting a logistics company can be a rewarding experience, but it's not without its challenges. Before getting started, make sure you have a clear idea of what you're getting yourself into. Consult with an experienced business advisor to help you navigate the waters. We believe that if you follow the tips contained in this article, you will have no trouble starting a successful logistics company!