Businesses completely rely on logistics companies in India to deliver their goods and services to a particular place. It is because this industry keeps all the specific customers’ needs into consideration while moving, tracking, or delivering the product.
Moreover, they play a vast role in the Indian economy. It is worth 160 billion dollars currently and is anticipated to rise by 215 billion dollars by the end of this year. It is also efficient in providing employment to 22 million people.
It means that within several online marketplaces, it is a booming business. Therefore, it is the best time for you to create and run the most successful transportation company in India.
This blog is a detailed guide on what you need to know to run Indian Logistics Business.
Decide The Business Model
Choosing a business model is very significant for running one of the best goods transport services. Either start your own business or attain a franchise. However, ensure to research the pros and cons of both the business model as you can be more creative with the first option and invest less expenditure for the second one.
You also need to make a list of the services you will offer. Furthermore, you need to determine whether you require a warehouse or you will deliver the products on a small scale.
Today, sustainable businesses are trending a lot. Therefore, you can also go green while opening a business. Learn it on How Trucking Companies Are Going Green?
Register The Business
Once you have selected the business model for your transportation company in India, it is significant to obtain the appropriate registration and compliance certification. Like any other business, this business also requires registration and regulatory compliance. You need to register under the International Air Transport Association (IATA) and the Air Cargo Agent Association Of India. You also need to register with the Income Tax departments, the DGFT, the Registrar of Companies, and other departments of India.
Investment
Now you need to seek investments to make your goods transport services successful. The amount of investment will depend entirely on the services that the companies intend to do. For example, if you are setting up a freight forwarding service in India, you might need a capital investment of about 12 crore rupees. On the other hand, if you are setting up a brokering and freight management service, you will require less capital in comparison to the third-party logistics companies in India. Therefore, identify the services you need to offer to your clients before seeking investments. The liberal FDI norms make the process of seeking investment relatively straightforward.
Analyze The Risks And Apply For Government Schemes
Another this you need to consider for running a successful logistics company is the level of market risk. It is because this industry is heavily dependent on risk management. Also, the businesses require suppliers and other associates to conduct the overall operation, thereby increasing the possibility of disputes among them.
Therefore, it is advisable to protect your business by purchasing sufficient insurance coverage appropriate at the time when something goes wrong. Since cargo damage, theft, environmental damage, etc., tend to generate crucial liability difficulties, you need to look for insurance that is accurate for covering such liability issues.
You can also apply for government schemes such as MSME Registrations to acquire different benefits from the government and other financial institutions.
Conclusion
Planning and then taking the business forward plays a vast role in making your business a huge success. These tips will not only help you optimize your business process but also develop a sturdy relationship with the customer as a whole.