by Homerun Nievera, World Executives Digest |
So, you have decided to enter the world of warehousing? We salute you! This is a very bold and risky move for anyone, but one that can pay off tremendously if done right. Warehousing businesses are always in demand. A lot of small businesses don’t have a place to store their products, so they rent space in specialized warehouses, but you probably knew that already. Otherwise, you wouldn’t be opening your own warehouse business.
What makes a warehousing business successful? Honestly, a lot of things. Storage capacity, skilled employees, and availability are just some of the things you will need to consider if you want to succeed. With that in mind, we wanted to help you out a bit and that is why we have created this checklist for starting a new warehousing business.
Research the competition
Same as when launching any type of business, firstly, you will have to research your competition. Sometimes even the best-thought-out business idea fails because the time and place simply aren’t right. Research the area in which you plan to “open a shop”. Check if there are already any established warehouse businesses and find out what made them successful. It is often better to switch area than to try and compete with big players.
If you can’t move your business elsewhere, you should check out what your competition is offering and try to top that. When entering any market, you need to stand out from other businesses if you want to get noticed. No one will want to switch warehouses unless you offer them a good enough reason. So, be creative and create an incentive for people to come and check out what you have to offer.
Carefully select your workers
When hiring, you’ll need to be very careful who you pick. Warehousing business is tough and requires a lot of hard work. That is why it’s always best to hire people who already have experience in this industry. This way you will avoid potential warehousing disasters. Sure, rookies are a cheaper option, but in warehousing business knowledge and experience play a big role if you want to avoid screw-ups.
Find the right place
Location and size should be a primary concern for every warehousing business. When picking a place for your new warehouse you will need to consider a couple of things. First of all, the size. This will depend on your budget. Sometimes it’s better to open a smaller warehouse and equip it with top quality features. Pallet racking, shelving, forklifts, surveillance and security have their price and you will have to find a balance between the size of your warehouse and the quality of what you have to offer. The second thing is location. Your warehousing business needs to be easily accessible. If you deal with a lot of trucks coming in and out, you will need to be close to the main road.
Build a strategy to attract clients
Lastly, we would like to talk about the importance of having a strategy for attracting clients. If you go into any type of business blind, with no knowledge on how to attract clients, you will have a very short career. That is why advertising is very important. Go to local radio and TV stations, put adverts in newspapers, and contact potential clients yourself. Spread the word on what you have to offer and make sure to point out what makes you better than your competition.
That would be all. As you can see there is a lot to consider and plan out, but that is all a part of launching a new business. Nobody can guarantee you success, but if you work hard and follow our tips you will be on a good path.
Homerun Nievera is the publisher of WorldExecutivesDigest.com. He has interests in several tech and digital businesses as director and chief strategist.