Although in this world there are no such things as safe bets, we can say that the warehousing industry currently makes one of the safest investment options available to ambitious entrepreneurs. With the reports saying that the global trade volume will grow 10.8% by the end of the year followed by a 4.7% rise in 2022, we can only summarize all these goods will have to be stored and moved around.
This makes an excellent opportunity for you to tap into this trend and make you become a part of the global trading infrastructure by starting your warehousing business. Let us see how.
Collect background information and do market research
The logistic and warehousing industries are expected to see substantial growth in the following years but remember we are still talking about the global playing field. Planting your warehouse in an area that doesn’t see much traffic or commerce will surely set up your venture for failure. That is why you need to perform extensive market research and gather as much information as possible about local vendors and commerce background. Aim for important traffic nodes, business hubs, and developing communities.
Get access to local logistic manpower
This is yet another important factor you will need to take into account when deciding the location of your future business. Running a successful warehousing business means you will need to have access to highly trained staff in the following professions:
- Warehouse managers
- Distribution center managers
- Shipping specialists
- Inventory control managers
- Machine operators
If you are unable to fill in the ranks from the local population you will need to scout employees in other areas. So be sure to have this issue sorted out before proceeding to other location-agnostic problems.
Provide top-tier equipment
In spite of all favorable circumstances, the warehousing industry is still a very competitive playing field. The best way to come on top of it is to resort to the theory of cumulative success and try to make improvements in as many areas as possible even if they are seemingly marginal. So, do your best to give your employees access to the best possible equipment from heavy machinery to high-quality work boots. All these small improvements will produce considerable productivity spikes when put together.
Put your focus on automation and cloud infrastructure
Both these assets will make your business faster, leaner, and more efficient. The process of automation will eliminate the margin for human error, speed up the data analytics, and allow for easier decision-making. Similarly, cloud tools will instantly make your company scalable, eliminate the need to purchase and maintain expensive on-site tools and equipment and allow very high levels of remote collaboration. Keeping in mind the competitive nature of the industry, these benefits should not be overlooked.
Locate your future customers
We already mentioned why it is important to root your warehousing company in a busy commercial area. Now, you need to go one step further and research and reach out to future clients. Learning more about the local demand, nature of the commodities, and sales volumes will help you assess the future scale of your company. Joining organizations like Internal Warehousing Logistics Association will put you on the map and give you access to important people and figures from the industry. The rest is up to you.
Take care of the licensing
Last but not least, we need to mention the legal background of your future venture. In this regard, logistics and warehousing are somewhat specific since companies in the industry need to apply for a very specific set of licenses and permits all of which cost some money and take some time to be issued. You need to take these things into account when making final preparations for the launch. Permit issues can push all of your efforts behind the schedule and give direct competitors a considerable advantage.
So, these are some of the essential steps you will need to take care of before making your stand in the warehousing industry. Granted, this business field is blooming and it will continue to do so in years to come. But, favorable circumstances don’t always translate to success. Its keys lie in preparation. Now you know where to start.