Things You Must be Aware of Before Starting a Shipping Company

As you may know, since you’re reading this article, shipping businesses and companies are part of a fast-growing industry that doesn’t seem to stop developing.

Given the increasing number of online shops/ stores, more and more shipping solutions are needed for owners to make sure that their products reach their customers. Moreover, owners of shipping businesses also enjoy good revenue due to the large amounts of exports and imports – naturally.

However, starting a shipping company is not that easy. Unlike a simple startup or an online business, a shipping company requires more than just the basics of a company. For example, owners of such companies may have a DUI lawyer to support employees whenever something happens in transit – obviously, there’s no room for mistakes.

Here are some of the things that you have to be aware of before starting a shipping company!

The Importance of a Business Plan

A shipping company is as simple as it gets – a shipping company! There’s not much that one could say about it. However, even though what a company does is quite simple and straightforward, its owner is required to come up with a comprehensive business plan that would prevent the failure of his/her company.

Such a plan should consider strategies, figures, and facts that you’ll use when starting your shipping company. Moreover, if you rely on an investor for the initial funds, you’ll need a more than solid plan – one that covers skills, target market, cost, price, core competencies, financial plans, and so on.

The Starting/Initial Costs

You do have to take into account the initial costs of starting such a business – because they are not low costs, not at all!

For example, depending on what type of shipping company you want to start, you may spend as little as $15,000 for basic shipping equipment and vehicles or as much as $10 million for a cargo ship!

Besides that, you will also need around $15,000 for office equipment, then around $1,000 to incorporate your business in the US, more than $5,000 for the license, permits, and insurance, and roughly $50,000 in rent for a warehouse or office in the US.

The Marketing of Your Business

Like any other business, a shipping company must have a marketing strategy and approach advertising as well.

Regardless of how bad or good your business is, you should never postpone or cancel marketing, because it can help you get in touch with more customers and, overall, grow your business significantly.

Even though the demand for shipping companies is high, you should never let destiny and facts be the only ones to affect your company’s growth. Good marketing can bring international fame if done correctly.

The Bottom Line

Obviously, a shipping company comes with a lot of work – for both the employees and the owner, not to mention for the ones in charge of marketing and finances.

On top of that, you need to know all of the things that come with such a company – namely, the high initial costs that may affect your budget and make you reconsider such a business.

In short, as some people say, don’t start a business until you know how it’ll look five years from now – determine if you’ll be able to manage it or not!