5 Ways to Successfully Start a Warehouse Business

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So, you want to create a warehousing business, but you are still unsure where to start from? You want to know how much this is going to cost, and how to promote your business to other entrepreneurs and small business owners? It can be a lucrative business, but it requires you to invest some money and hire qualified staff. In order to help you get your business up and running as soon as possible in a timely and cost efficient manner, we have prepared a list of steps for you to follow.

Decide on a niche

Creating a niche means that you have to plan what kind of items you wish to store in your warehouse. Having a clearly defined niche will mean that you will have enough space for your client’s wares. For example, you can choose to offer food supply storage to some restaurants, or store tools and building materials for big home improvement retail stores. This kind of planning is essential for your business when it is still in its initial phase. As you move on and start acquiring more capital, you can expand your business and your niche, even further.

Hiring qualified staff

In order to gain the trust of your potential clients, you will need to hire qualified staff to do the work efficiently and safely. Keep in mind that the employees working in a warehouse will have to do a lot of heavy-lifting and handling of fragile materials. Some clients will need you to be able to ship the product in a matter of hours, so make sure to have enough workers. Create a detailed procedure manual where you’ll organize and document tasks that need to be performed.

Financing your business

While you’re creating your plan on how to run the business, you can’t forget to include the financial part of it. Nowadays, it is estimated that a typical warehouse start-up business requires $20,000 – $50,000 to run. This means that you can consider funding the whole operation from your personal bank account. On the other hand, if you need to loan money, you will have to present your entire business plan to a money lender. Additionally, there are other factors (like experience in this type of business and paying collateral before receiving the loan) which determine whether or not you will be approved for one. The best solution, if you don’t meet these criteria, is to contact a small business administration for a loan because they provide grants to small businesses.

Research the competitors

Additionally, it’s extremely beneficial for you to research the neighborhood and competitors before you open your warehouse business. This can give you a perspective of what it is like to run this kind of a business in that particular neighborhood. Make sure to take notes of what kind of restaurants, workshops and other stores are in that specific area so that you can organize your business model according to the data you’ve gathered.

Getting the warehouse set up

First of all, it is important to lease a building that will serve as your warehouse. It is paramount that you have large doors and a shipping dock which will allow easy access to large trucks for efficient and practical storage and transportation of the goods. More importantly, you will need to find safe and sturdy shelving solutions for the wares. You should consider installing roller conveyors to transport your goods from the trucks to the shelves.

All in all, starting a warehouse business is a great way for you to experience being an entrepreneur. If you become really good at it, you can expand and start other kinds of businesses. All it takes is careful planning and the right attitude.

image credit: pixabay.com

Diana Smith