5 Keys to Logistics Startup Success

5 Keys to Logistics Startup Success”

A successful startup not only requires customer demand for a specific product or service, but also the support of an industry with a promising outlook. Luckily, the logistics industry offers plenty of opportunities in both areas. Logistics entrepreneurs wear many hats, from warehousing and maintaining inventory to implementing new ways to safely manufacture and ship goods or services. In all areas, logisticians must be meticulous planners and multi-taskers.

Startups are a challenge in most industries, and the logistics industry is no exception. However, here are five tactics to help point your logistics startup in the right direction.

Segment Your Market

Common sense will tell you to target as large a market as possible, but it makes more sense to maximize profits by focusing on a market you can completely own. Consider the following:

• Do you offer specialized services for a specific market? Who is most likely to use your service or product?
• How niche is your industry? Are there multiple competitors, or will your business be the first of its kind?
• What’s the demand in your location? Are you targeting the right geographical areas for your product or service?

Once you’ve segmented your market, identify how you can become a market leader and put it in writing. Build a business plan that highlights achievable, measurable business goals. This serves as a roadmap and a timeline to ensure your business is staying on track. As your business grows, you can add departments to focus on other market segments and increase your market reach.

Competitive Research

Before you even start selling your product or service, you need to know who you’re up against. What can you bring to the table that other logistics companies can’t? Whether your value proposition is using top-of-the-line technology such as drone deliveries or having the cheapest rate on the market, it needs to be at the heart of all marketing efforts. Once you’ve determined what makes your business different, you need to communicate why customers should pick your service over others.

Get Educated

Given the quickly changing landscape of the logistics industry, many universities are implementing logistics degree programs for more specialized, advanced training. A logistics degree program, particularly at a university focused on science, technology, engineering and math (STEM), teaches best practices and offers extensive hands-on experience with many of the new, complex systems used in logistics. Enrolling in a program not only gives you valuable experience in the logistics field, but also builds credibility. It provides a holistic view of the industry so students know what to expect before jumping into their careers headfirst. University programs also offer internship opportunities, which give students the chance to network and build contacts that could, one day, turn into future clients.

Embrace Technology

Although many logistics companies choose to live in the past, it’s crucial to embrace new technology with open arms. The future of the logistics industry depends on sophisticated technologies and platforms that simplify product distribution processes. There is an upfront cost, but cutting-edge technology and equipment pays for itself over time and saves money in the long-term. Technology such as radio-frequency identification (RFID), drone delivery, mobile apps, warehouse robots and self-driving vehicles will continue to offer logistics entrepreneurs the chance to disrupt the marketplace and gain an advantage over competitors.

Ask for Advice

You’ll make mistakes and learn lessons throughout the startup process, but you may save yourself some trouble by talking to fellow logistics entrepreneurs. Since they’ve already been through the process, they’ll have helpful advice on how to successfully launch a startup. Find out what they wish they knew when they first started, what their biggest challenges were and what tips they have for new entrepreneurs. Ideally, you’ll be able to walk away with valuable advice as well as a possible contact for sponsorship or new business.

Launching a logistics startup requires hard work, market research and perseverance, but the rewards are worth it. As a logistics entrepreneur, you have the opportunity to launch a startup that not only corrects flaws in shipping and distribution processes, but also sets the standard for conducting business in the industry.

Lauren Willison

As the Director of Admissions at Florida Polytechnic University, Lauren Willison is responsible for supporting the Vice Provost of Enrollment in managing recruitment efforts. She develops and coordinates on- and off-campus events, as well as manages the campus visit experience.