The general public and several businesses are going to need ways to get their stuff from one place to another. So if you are considering starting a shipping business, you are in for a fast-growing industry. It is a type of business that helps generate good revenue – thanks for so many businesses today that depends on importuning and exporting to survive.
The word “shipping” is not only limited to boats. It is also being used for other forms of transportation too. Many shipping companies in the US today makes billions of dollars annually from their business. A company like CH Robinson was reported to have made 13.1 billion in sales last year. Of course, that would have increased greatly this year.
So if you think starting a shipping business is for you, you are sure to make good money out of it. However, shipping business is not just about owning a ship and delivering cargo across the sea. There are other several factors to consider to make sure your business thrives. In this article are some important things you need to know and consider before starting a shipping business.
Factors to Consider When Starting a Shipping Business
#1: Know what you will be shipping
This is perhaps the first thing you need to figure out when starting this type of business. You need to understand the kind of things you will be shipping. That will determine what type of delivery means you will be using.
If you will be shipping things like chemicals, wastes, or even live animals, you will need to know the laws that govern such deliveries. You will also need to know about custom procedures and the right ways to package such products. Since you will not be starting a shipping business that will be shipping just anything, you need to take this factor seriously.
#2: You will need a business plan
You can start this type of business without a blueprint. You will need to figure out what your funding sources will be like. Sometimes, you will need to identify who to partner with if you are starting on a budget. Having a solid business plan can help make things way easier for you.
Your plan should include some figures, facts, and strategies you intend to use to run a profitable business. You will need to identify your target market here, skills, core competence, cost, price, etc in your business plan. All these are also what your investors will like to see when you approach them. A good business plan helps convince potential investors faster.
#3: Consider your start-up cost
Although this should be included in your business plan, there is still a need we emphasize more on it. Don’t be like many businesses out there that fail because of money problems. Therefore count your costs very well before starting a shipping business.
Running a shipping business is not cheap. It requires a lot of money and resources. Therefore, if you think you don’t have big money for buying equipment, getting a warehouse, and many more, you might want to consider other businesses.
#4: Consider your office location
Your location also matters to the success of this type of business, especially if you are new to the market. So when looking for an office to use for your business, don’t go to places where competition is very stiff. It’s recommended you look for a market where there is a high demand but few shipping companies. Remember, people will patronize you more if you are easy to reach for them.
#5: Staffing
Since the shipping business is a technical one, you also need to hire technical people to work with you. You will need an experienced captain and several technicians on board to sail the ship. Also, you will need employees to handle customers order, manage inventories, and accounts. However, it is not an easy task to find competent people to do these jobs for you. You may need to hire professionals to help you with your staffing.
6: Design a good marketing strategy
Irrespective of how good your business is, if your marketing strategy is bad, your business will fail. You will need to design a good marketing strategy to keep your business ahead of your competitors. Nevertheless, you need to know that marketing a shipping business is not the same way you do for other businesses. So you will need to learn the curves and bends involved in marketing such a business.
Final Note
Starting a shipping business is good and promises to help you generate huge revenue in no time. However, it is a technical business so you need to understand the curves and bends before venturing into it. Above are some important factors anyone should consider before starting a shipping business. Put them in mind, and it will be super easy for you to run a profitable shipping business.
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