5 Tips for Starting a Warehouse Business

warehouse photo

Jamie Herrera, Negosentro | In a modern world, it might seem particularly hard to find a line of work that isn’t already oversaturated with competition. Still, where some see an obstacle, others see an opportunity. Never in the human history were there so many retailers out there, which means that never before was there a bigger demand for warehouse space. Because of this, starting a warehouse business seems as a great idea in 2017. Here are five tips on how you can do this with great success.

Gather all the information

For starters, you need to learn as much as you can about the warehouse industry, in order to know what exactly you are pitting against. For instance, you need to know exactly how much money you will need for this venture. An average warehouse business costs somewhere between $10,000 and $50,000 to set up, but as you can see, there is a great discrepancy between these two figures. One of the best ways to do so is to contact warehouse owners in your vicinity and inquire about such issues. Sure, they might be reluctant to give away sensitive information to their future competitors, but you can at least get some outlines on what to look out for.

Gather funds

The next thing you need to do is find a way to gather the funds you need. Those who plan getting investors, need to be aware of the fact that they alone must invest at least a portion of the funds necessary (12 to 20 percent). So, in order to get what you need, you might go to a credit union or bank and apply for a loan, sell an asset or create another stream of revenue to fund it. Regardless of what you choose, you need to keep in mind that gathering just enough to launch isn’t nearly sufficient. It might take months (even up to 2 years), before your company is self-sustainable, which is something you need to add to count on as well.

Getting the right software

Depending on the size of the warehouse and the nature of goods you are storing, you might need some extra assistance in managing it. The first thing you need for such a thing is a workforce with a certain amount of experience on their side. Aside from this, you might also require getting an adequate warehouse management system. Such a software can provide you with both inventory management tools but also a mean of tracking the transportation of the goods coming in and out of your warehouse. Needless to say, this amount of control can really raise the quality of your business to a whole new level.

Providing necessary equipment

In the end, what you need is all the necessary gear to run a warehouse. For start, you need a lot of labels and signage that will help you find your way around the place. Next, you need personal safety gear, seeing how warehouse business isn’t precisely considered to be a low-risk line of work when it comes to the rate of workplace injuries. Finally, you need things like stock carts, rolling ladders, pry bars, tape dispensers, hand trucks and many other similar items. For those who have some particularly high shelving, buying or renting scissor lifts is highly advisable.

While this is far from all you have to do in order to start to successful warehouse business, it is as good place as any to start at. For example, you also need to get all the right licenses, even though this mostly depends on the regional laws and regulations. Once you have all of this covered, the only thing left for you is find a way to get new customers and gradually expand your business.

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