We live in a world of thriving global commerce, a world where shipping and logistics companies can thrive, even during uncertain times like we are experiencing right now. The novel COVID-19 pandemic is certainly impacting the shipping sector, but that doesn’t mean that you as an aspiring entrepreneur should abandon your dreams of launching your very own transportation company. In fact, now is the time to kick-start the necessary preparations to build a successful business in your region, one that you will be able to expand onto a national scale.
While the shipping industry is not that difficult to enter if you have the necessary capital, creating a model of business sustainability and ensuring the steady rise of your company might prove to be a cumbersome challenge. After all, you are entering a competitive field. With that said, let’s go over the five cost-effective tips that will allow you to build a thriving shipping business.
Consider the costs and obtain funding
Starting a transportation company is not cheap by any means, but that doesn’t mean that you don’t have plenty of funding options at your disposal. As with any other business, you can explore the options of traditional business loans, venture capitalists, and angel investors. Keep in mind that banks and private lenders won’t ask for a stake in your company, which makes loans a preferable option if you want to retain full and complete ownership.
To apply for the right amount, you need to calculate all of your startup and running costs. Be sure to list everything from such as licensing and training, tolls, fuel, asset procurement, asset maintenance, and upkeep, vehicle storage and security, payroll expenses, tech integrations, and marketing.
Procure the necessary equipment
To position yourself as a competitive player in the field from the very start, you have to show your clients and partners that you have the resources necessary to accommodate their every need, and that means that you have to obtain the right number of specialized vehicles. Buying trucks and vans is a complex process that includes many variables including monitoring new trends, so you will need to do some forecasting and demand-sensing beforehand.
Remember that you can’t hope to grow a transportation business with only a handful of vans, so you will need to invest in a fleet of trucks that have the capacity to handle all types of transportation jobs. Be sure to calculate the number and type of trucks you need in order to accurately set your interest rate and calculate a repayment plan that works for you.
Invest in localized marketing
While you could opt to kick-start a global venture, it’s almost always a better idea to start small in order to stabilize your position in the local market before expanding nationally and internationally. To become a strong contender in the local market, you need to invest in localized marketing and improve your brand awareness in the online world. This is especially important if you’re operating in highly-competitive markets such as Australia, which is a prime example of entrepreneurs utilizing localized marketing.
For instance, business leaders in transportation and logistics that operate in Gold Coast with local marketing agencies such as the Only SEO Gold Coast team that specializes in localized search engine optimization that helps a company rank high in the local search results and thus gains the brand exposure it needs to get ahead. Be sure to use the same mindset in order to position your brand in a market where you actually have a presence and solidify your standing, after which you can slowly expand your operation.
Integrate leading technologies into your operation
Technology is transforming the shipping, transportation, and logistics industries, which is why aspiring entrepreneurs, as well as established leaders, need to integrate technological solutions to build more efficient and effective operations. For example, there are many ways in which ERP software can help your new company thrive, ranging from automation to data analysis, from optimization to enhanced productivity, better time management, and more. Be sure to invest in the right technology from the start in order to minimize financial waste.
Obtain permits and certifications
Finally, you have to work with an experience legal team that will ensure your company has all of the legal documentation necessary to operate nationally, and even internationally. Laws and regulations will vary from country to country, so be sure to minimize the risk of errors and setbacks by having a professional guide you through the registration and certification processes.
Wrapping up
Building a shipping business is a lucrative decision, but that doesn’t mean that success is guaranteed. Use these tips to minimize risk and build a thriving company in the years to come.
