How to Start a Logistics Firm

How to Start a Logistics Firm. A logistics firm helps client companies import and export their goods. Related Articles. 1 Open a Freight Logistics Brokerage Company 2 Start an Import & Export Business 3 Start a Warehousing Business 4 Start a Trucking Company From Home. A logistics firm may specialize in the import and export of goods in and out of the United States, or may concentrate on ground transportation within the United States. Whether shipping, trucking or conducting air transportation, a successful logistics company will need to have some means of freight transportation at its disposal; this makes a start-up logistics firm an expensive investment. Gain Experience and Credibility in the Industry. Before starting you own logistics company, it is wise to gain experience in the industry by working in logistics. Such experience will help you to understand the ins and outs of the business. In addition, working in the industry will allow you to establish networks with companies that may represent future clients. Establishing credibility in the industry is critical for any start-up because clients need to trust that your firm will store and deliver their products smoothly and efficiently. Exploit Your Experience and Connections. Consider establishing your firm in a corner of the market to which your business relationships and knowledge are relevant. For example, if the bulk of your connections or work experience are in one industry, reach out to clients in that industry. If you have connections to or knowledge of a certain region of the world, open a firm that specializes in export to that region. Obtain Funding. The first official step of starting a logistics firm is obtaining capital. In order to do so, you will need to draw up a business plan to convince potential investors that you can make your company turn a profit. Include any connections that you already have in the logistics industry who are willing to give you their business. Commercial banks are one potential source of start-up capital. The U.S. Small Business Administration offers low-interest loans for entrepreneurs starting their own businesses. For example, the SBA 7(a) Loan Program offers financial assistance to start-ups, including some funds reserved specifically for companies that handle exports. Obtain Equipment. After you have obtained the capital necessary to start your logistics firm, you will need to purchase loading equipment and vehicles capable of moving large quantities of freight such as planes, ships or trucks. Because of the expense associated with these kinds of purchases, Entrepreneur magazine suggests renting equipment until your business begins to turn a profit.