Starting Your Own Warehousing and Distribution Centre


Daring to dream and making that dream happen is half the battle—or so the famous adage says (we put a spin to that, but essentially, you surely get the point). No matter how seemingly impossible it is to have your own warehousing and distribution business, it can come true if only you have the guts to make everything real and running. “Entrepreneurs have many available opportunities when starting a small warehouse business. Many small businesses or independent contractors do not have the space for storing their products. Their options may be huge warehouse facilities, which are extremely expensive, or impractical self-storage units. To keep costs down when starting a warehousing business, you must determine what types of products you want to store, such as paper products, books or electronics, to determine the building size you need,” wrote Rick Suttle in his article titled How to Start a Warehousing Business

Starting your own warehouse business means you have to begin researching how the industry is running—as surely, there are other already successful warehousing companies and fullfilment centre that you need to compete with in your area. Rick Suttle further shared, “The average warehouse business costs between $10,000 and $50,000 to set up. You will want to obtain some initial background information about the warehousing industry before starting your venture. Start by searching the yellow pages or other business listings in your area for warehousing companies. Visit their websites to determine what services they offer, and the types of customers they serve. Call warehousing companies outside your city as they are more likely to discuss various issues they face or pitfalls to avoid when getting started. Visit these warehouses so you can better understand how the operations work. Target small businesses who may need warehousing services, such as small book distributors. Create your own niche in the market by differentiating your services from competitors.”

warehouse storage

The second best step to take—once you have already researched about the inner workings of the other warehousing businesses and upon learning about some product that are often in need of fulfillment services—is to secure the necessary licenses and permits for the business. Never get yourself into anything not legit or you will just waste all the good ideas, investments, and good intentions. You may register for a DBA should you prefer to utilize a fictitious name for your company.

Third is to raise the necessary capital for the warehouse and distribution business. Will you be leasing an already existing building or will you construct your own? How many storage units can you initially purchase? How about the inventory software? You might also want to start screening people to join you in the workforce. How much will their salary be? What other equipment would you need to buy to get the business running? It seems like a lot of work but everything is doable if you have the time and patience to get down to the details.

Lastly, find out where to find the clients. Since you are already busy with the other concerns of the business start-up, you might need a marketing team to assist you in this stage of your business journey. Will you go for advertisement on prints? Are billboards are an option? How about simple starting with basic flyers and brochures firsts? Or go one-time big-time with commercials? The choice is yours. Just make sure you have enough budget for this or your setting yourself to fail. Be pragmatic and always take calculated risk to avoid getting bankrupt even before breaking even with the investment you gambled on.

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