In this world full of business ideas, you may be wondering how to be creative? Well, tell you what, you don’t need to come up with a unique idea to start a business.
How about taking someone else’s business and making it yours. Confused?
Warehouse business is a relatively unique idea that is propelling at great speed. A warehousing business, in a nutshell, is providing a storage facility to manufacturers. Your job as a warehouse business is to store the retailer’s goods until they are sold off to a customer.
Now, this may come off as simple and easy, but there are many prospects attached to it. You would need to ensure timely pickup and delivery while also maintaining the correct environment for the said product.
Warehousing business is not limited to storage only, there are many other areas that you can explore like, Third-party logistics, inventory management, and order fulfillment services.
We know this may come off a bit difficult to digest, but we have got you covered. Here is a complete warehousing startup checklist that can set you going!
Six Steps To Starting A Warehouse Business
Just like any other business, this business too requires a plan of action. It is needless to say that without a thorough plan, no business is successful. We have broken down the plan into pointers so that it is easier to follow.
1) The Research
There is no war won without a strategy and a good strategy requires facts! Just like everything else in this world, you will have competition in this field. The best way to beat the competition is to study the patterns and be well versed with your industry’s rules and regulations.
Research on how the business works and what works for people. Try and find soft points that you can target. Read about the policies and see how you can work your way with them.
Then look for a niche, what kind of business do you want to align with. What areas are yet unexplored and how can you pave your way in?
2) Getting the Equipment and Papers
To run a warehousing business, you would need the right equipment. This could vary from special places for fragile item storage or a cool unit for edible items.
Before you hop on to this bandwagon you will have to know what kind of equipment would be required for this. Warehouse business is not just a four-wall room, you would need the right equipment for transport, lifting, and storing.
Once the physical aspect is sorted, you will have to see the legal aspect. Know what papers and documentation you would need. How would you make yourself authentic and work in alignment with the law?
A few papers that will be important for you are: employment and tax identification numbers, tax permits, and registration papers.
3) Hiring Manpower
As apparent, the warehousing business is not a one-man show. You would need to put the best team together to ensure smooth operations. We advise you to start with the lead roles and let them decide on the other employee hiring.
A few key roles that you would need manpower for are:
- Shipping specialist
- Inventory management
- Warehouse manager
- Material handler
- Shipping associate
4) Finding the Customers
Now that you know what you need to do, look for the people who would need you. Your customer base, in the end, is what makes or breaks your business. The safest and most obvious choice in a warehousing business is an eCommerce store.
Another safe bet would be newbies who have little space to keep inventory in. The key, however, is to offer each customer a USP (unique selling proposition). Diversify your services and create an individualized service for each customer.
5) Sealing The Deal
Once you know the customer, make an offer that offers value for money and is irrefutable. Research, make cold calls, and find out what the customer wants.
Know your numbers and be open to negotiations. If you end up having a meeting, make sure that your presentation and numbers are worthy of sealing the deal.
6) Automate Your Warehouse Business
No matter how new you are, you would always need a system, software that can help automate your operations. A Warehouse management software will be your knight in shining armor.
You would be able to:
- Automate exchange of data
- Automate a chunk of business processes
- Offer a variety of options and customizations
- Integrate other services to your core offering
Now that you have a plan ready to set in motion, here is a word of advice: there is no success without hustle. Make sure you work hard, do your research, and are well versed with whatever industry/business you are entering in.
That being said, the warehousing business is gaining interest because of the high-profit margins. You would need to be lucrative and innovative. Just make sure to follow the warehousing business checklist before you hop on to this business and you are all set to go.
We have given you the direction, it is you who could make the warehousing business journey worthwhile.