How to Start a Logistics Business in A Few Simple Steps

Nikita Arya
Nikita Arya Apr 08 2019 - 3 min read
How to Start a Logistics Business in A Few Simple Steps
Logistics plays a crucial role in planning, implementing, and controlling the flow and storage of goods and services for the customers' requirement. This article aims to provide a few simple steps to own a logistics business with all the relevant info. Read on....

The constantly evolving world changes the demands of people. This is how the market welcomes various new business ideas in the economy of a nation. Logistics play an important role in any of the business ideas for that it plans, implements and controls the flow and storage of goods and services in order to meet all that the customers demand.

Logistics management is an essential factor in making a company’s operation successful and has a direct impact on its bottom line. And logistics in itself has become quite a successful business because of its increasing demand by other companies. The logistics’ industry employs more than 50 million people in India.

Are you fascinated with logistics as a business? Then, keep on reading this article as here we unveil how to get started with a logistics business in a few simple steps.

Funding and Investment

As soon as you decide to start a logistics business, the first thought should be to seek investment. The range of investment varies from service-to-service in logistics. Generally, there are four types of logistics services: Courier and Freight Cargo Services, Air Cargo Services, and Warehousing Services and Third Party Logistics. For each of these services, a different amount of investment is needed. For instance, the first one requires less capital than the third one, simply because of the services they offer.

As a logistics’ business owner, it is important to identify the niche services that you wish to offer to the customers and prepare the investment on its basis. 

Compliance and Registration

In every other business, certain registrations and certifications from the government is required. A logistics’ business too requires certain registrations and government compliance. When we talk about getting compliance from the Indian government, getting registered with associations like International Air Transport Association (IATA) and Air Cargo Agent Association of India (ACAAI) is essential and useful for freight forwarders. Likewise, becoming a part of industry forums such as CII Institute of Logistics is also necessary to raise logistics industry related issues. Other important registrations include DGFT registration, Income Tax Department, Registrar of Companies and related government departments. 

Business Risk

The next step is to look at the business risks. India is a developing country and risk management plays a crucial role in a business idea like the logistics’ business. Since the business of logistics is quite  dynamic  with multiple partners and vendors involved in the entire operation, the risk of claim is very high as well. So, to cover all the liabilities, business insurance is a must. Some of the major liabilities’ issues emerge from cargo damage, theft, injury, environment damage among others. Therefore, it becomes important to understand the risks involved in executing any contract as a logistics’ business owner.


Analyzing competition is an important aspect of every business idea. This helps in understanding what the market is all about. And it also helps in customer acquisition at large. For instance, if you are to start a third-party logistics service, you would have to study various industries and products in order to understand the logistic needs in such industry. This helps in identifying the opponent’s weak points and providing the efficient solution to the public that your competitor fails to provide.


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