Building Your Own Logistics Business

Starting your own logistics business can provide a stable, lucrative future if you plan responsibly and take advantage of opportunities when they make themselves available to you. Most industrialized companies require some form of logistics machinery in order to function properly, and you can forge an enterprise by catering to this need.


(1) Gain industry experience by working for an established logistics company. Most logistics companies tend to specialize in a particular area, and thus deal primarily with a small range of machines. Your logistics company should be based around the demands of your clients.

(2) Write a business plan that describes how your logistics business will operate and who your primary clients will be. The core of your business plan should be a financial overview of the company’s operations for the first three years. Your business plan will also be used to help persuade external bodies to invest in your startup if you don’t happen to be sitting on a pile of cash.

(3) Apply for an Employer Identification Number (EIN) for free at the IRS website. Your business license and state tax stamp applications can be fulfilled by visiting your state’s government website.

(4) Consult with an industrial real estate agent to find premises suitable for your logistics business. It should comfortably house all of the logistics machinery that you offer. A strategically-located business premise can drastically improve the chances of your company being seen by your potential market.

(5) Shop for business insurance that covers your property, equipment and any persons who access the premises. Browse price comparison websites to establish a benchmark quote, and then try to beat it by contacting insurance companies directly.

(6) Contact companies that manufacture logistics machinery, and try and secure exclusivity contracts with them. Selling a single brand exclusively may provide you with cheaper buying rates, which of course means a wider profit margin.

(7) Build your brand by distinguishing yourself from other logistics companies. You may undercut competitors’ prices, provide a wider or more specialized range of equipment, provide better customer service, etc.

(8) Promote your logistics business by advertising on the Internet and through the phone book. During your first few operational months, cold call businesses who you think would be potential buyers of your equipment. It is important to choose your clients wisely in the logistics business because you must consider long-term growth.