The logistics industry in India is set to touch a new milestone of Rs. 58,000 Crore in FY 2019-20 with a present growth rate of 20% – a 3.1% increase from FY 2018-19. As per the Economic Times, the influx of eMart conglomerates like Amazon, Flipkart, Walmart, Mahindra Logistics – has led to this escalating rise in the logistics business in the country.
Now, although the present Indian market looks ripe to set-up a logistics foundation – it is a challenging task nonetheless. Even though the logistics firms form a crucial link between consumers and sellers – efficiency is the key in this scenario. Therefore, as entrepreneurs seeking to set-up a logistics firm in India, you need to consider various factors first.
Here is a step-by-step on how to start a logistics business in India –
- Draw up a business plan
Analyse the current market as a precautionary measure to start a venture from scratch. This will provide you with the information to chalk out a plan and set it in motion.
While researching, consider lenders to opt for business loans, as these keep your company financially healthy.
Henceforth, study your competitors to find out what they offer and do not. Based on that research, for a business model that sets you apart from your competitors.
- Search for logistics business opportunities
Once your plan is set to motion, it is time to find your scope of operations. Hire an analyst team to brainstorm and come up with unique business ideas that will prove beneficial for your logistics firm.
Due to stiff competition from the rival firms, you need strategies to outperform them. Thus, your logistics business model must have a USP that will draw prospective buyers away from the existing big-ticket players and pull them into your favour.
- Identify your assets and the software that needs to be purchased
Depending on your logistics model, set forth the equipment you need to purchase and assets you must acquire. For instance, if you are placing your business on a 2PL model, purchasing or hiring trucks and vans might suffice.
However, if you settle on a 3PL model, you need to invest in hiring out premises for warehousing and equipping your logistics firm with the best-in-industry software.
Whatever your business model might be, make sure you invest smartly in the essential technology that every start-up business needs. Having real-time updates via live tracking and state-of-the-art inventory management systems is also crucial for a logistics business.
- Take legal matters into consideration
Obtaining a logistics firm is only the first step for your business. Along with that, you also need to take into account legal matters.
You may need to register with authorities like –
- Air Cargo Association of India
- International Air Transport Association, etc.
Registering with government and IT departments will safeguard your legal name via a trademark. This step is vital for a line of business, including logistics.
- Avail funding for your business
Once you have drawn out a feasible logistics business model, you can optimise it by availing capital from financial agencies like Bajaj Finserv. With a small business loan at your disposal, you can optimise your logistics for efficiency in storing, shipment and delivery. With a handsome amount of Rs. 30 Lakh and zero-collateral, it makes a stress-free financing solution.
With stable financing at your fingertips, your quest on how to start a logistics business in India gets a lease of life. All you need to do now is use your vision and scale up your firm’s growth trajectory.