How To Start A WareHousing and Distribution Service
What is the best warehouse distribution business to start?
A warehouse can be defined as a commercial building for the storage of assortment of goods. Many groups of people use warehouse. Customs, manufacturers, importers, exporters, transport businesses , wholesalers make use of the warehouse in storing their products. The warehousing and distribution servicing business has proven to be a great investment to those looking for investment.
A warehouse does not necessarily need to be acres wide instead, spacious enough to hold anything your customers may want. Some warehouses hold large products like boiler parts, luxury cars, etc. while some others hold small products like auto spare parts, microchips, etc. many customers who sell products like bicycle parts, light fixtures need warehouses where they can store and have huge supply of them.
It is wise to accommodate customers whose goods can fit well into your warehouse, but don’t try to contain more than your warehouse can actually handle because it might disrupt your customer’s operation.
It is also wise to situate your warehouse in places far from your place of residence but close to other industrial building so as to enjoy external economies of scale. This place you are locating should be a place where customers will be able to access them.
Warehouses are usually characterized with large plain buildings equipped with ducks for loading and unloading trucks. Though, it depends on what your company is producing, it is best you locate your warehouse in places like seaports, airports and railways. This is important to the success of most profitable oil distribution company ideas.
Are there lucrative wholesale distribution business opportunities to start up? Entrepreneurs have numerous ideas when starting a service freight warehousing business. It is not new to us that some independent contractors do not have the required space for storing some or most of their products. The options available to them may be big warehouse facilities which might be quite expensive.
On order to minimize cost, it is advisable to determine the type of products you want to store such as books, paper products, electronics, so as to determine the building size you need. Many medical pharmaceutical distribution outfit owners discover that the warehouse and distribution service is a good way to conduct business.
Starting your own network distribution business model
Although, starting a warehousing and distribution service company requires huge capital to purchase warehouse facilities and properties, hire people who will work in the warehouse industry, purchase machinery to use, employ officers who will ensure the smooth running of the warehouse industry. These are the steps to take in starting up a warehousing and distribution business.
GATHER START UP INFORMATION: Research on the average amount to start up a warehousing agency business in your country. It is also advisable for one to make deep background information concerning warehouse industries before embarking on your venture.
Start by searching the yellow pages in your area for warehouse companies. Also, visit their website in order to determine the types of customers they serve and types of services they offer. It is necessary to call different warehousing companies outside your city as they are the companies that are most likely to discuss issues or pitfalls to avoid during starting.
Pay these warehouses visits so as to understand how the operations work. Differentiate your service from the competitors and create your own niche, target small businesses that may need warehouse services , such as small book distributors.
ACQUIRE THE REQUIRED LICENSES AND EQUIPMENT: It is advisable you register for a ‘doing business’, if you are thinking of using a fictitious name for your small food product distribution company. These forms can be acquired from your city administration office or country of residence.
Normally, the fee for application ranges from N5,000 and N10,000. A large part of your investment will go towards some equipment like forklifts, shelving units, freezers, refrigerators, crates, shelves, inventory software and computers.
The inventory software will help you in keeping track of storage items. You may need a truck if you get into distribution aspect of the business.
HIRE EMPLOYEES: If you offer distribution channels as a service, hire employees that are well experienced in logistics. Logistic professionals are very good in arranging track and shipping products to their destination point. They also oversee items entering the facility, as they are the one responsible for tracking when products enter the warehouse.
As a warehouse owner, employ an experienced shipping and receiving person who will assist checking items in as they arrive. This person can set up specific locations in the warehouse where storing each client’s item can be done.
Many warehouses label their sections with letters A to Z. Hire employees who will physically operate forklifts and lift items in your warehouse facility as well.
OBTAIN CUSTOMERS: In doing this, it is necessary you advertise in a good trade publication like ‘THE BOOK SELLER’ in which clients are most likely to read. Call on small businesses in your area where they sell the products you seek. Present these services to them , explaining all the benefits you can offer.
Leave business cards with different business owners who may need a warehouse for storing their products. Create websites while promoting it through local online yellow pages and search engines can be done. Here is home coffee wholesale distribution business plan sample attached.