Things To Know Before Starting A Logistics Company

No one decides to start a company and not succeed at it. Whether it’s transportation, manufacturing, distribution etc; everyone wants to succeed and make a profit. However, anyone who succeeds at running their company knows some secrets that others don’t.

The same applies to running a logistics company. There are certain things you must know before you start a logistics company. In this article, brings you things you need to know before starting a logistics company.

How To Start Logistics Business In Nigeria
How To Start Logistics Business In Nigeria

To start with, what’s a logistics company like…

Logistics Company

In these days of E-commerce, the online space is the go-to place for many people to shop for the things they need. Hence, once an order is made online, there is a need for the purchased goods to get to the final customer. This is where a logistics company comes in.

Logistics companies are a part of the supply chain management responsible for ensuring goods and services from sellers get to their final consumers. Some call it a delivery business while others call it a transportation business. Either way, at the heart of the logistics business, is moving goods from manufacturer or supplier to the final users.

Following the wake of Covid-19, the logistics business is now a very profitable business anyone can venture into. According to data from Allied Market Research, in 2017 the global logistics market was valued at $7.6 billion, and it’s projected to grow to almost $13 billion by 2027.

So for anyone desirous to start a logistics business, here are the things you need to know;

Pick A Niche

The logistics business is quite broad. Unless you have a huge capital, you might not be able to venture into all of it. So, when starting out, you need to find your niche. Do you want to be a local logistics company? Or an international one? Local logistics companies typically transport goods to a particular region or country. Whereas, an international logistics company offers their services at a global scale. This often involves air-based delivery or sea shipping.

Develop A Business Plan

Most companies fall because they have no plan. Developing a business plan will serve as a good road map for the logistics business you are trying to build. Your business plan should be a comprehensive document showing how you intend to run your logistics business, your goals and objectives and how you intend to achieve them. A well-written business plan also opens you up to funding opportunities. The information that should be in your business plan are:

  • An overview of your logistics business
  • Executive Summary
  • General company description
  • SWOT analysis
  • Market Research
  • Your Strategy
  • The Team
  • A marketing plan
  • An operational plan
  • Financial projection
  • An appendix

Funding And Investment

Money is an essential part of starting and running most businesses. The same applies to starting a logistics business. How much money you need depends on the niche you decide to operate in. The funding required for an international logistics company is way higher than a local. You have to be aware of the estimated amount you will need to start, at least. After knowing this, the next question is how do I get the money? If you are self-financing, that’s great! But if not, you need to develop a strategy to secure investments or get loans from the bank.

Licences And Permits

You should also bear in mind that you will be needing certain licences and permits to start your logistics company. The requirement varies greatly depending on the regulations of the country or state you want to operate in. For most regions, they require you to get a business permit and certain tax forms for you to legally operate. Additional licences and permits may also be required.


To make profits in your logistics business, then you need to price your services well. Usually, the right price should cover all your expenses and also leave some profit for you. Remember, you are not the only logistics company in town, hence, you will need to reasonably fix your prices while also covering all your expenses and making profits.


You need to be aware of the direct competitors of your business i.e those offering similar services as you. Your competitors are trying to convert the same customers you want. Hence, you need to study them and know their strategy. This way you are able to come out with a better plan/service/strategy that earns you a larger market share and makes your logistics company more profitable.

Office Space/Location

You will need to have a location to establish your logistics company. People are likely to believe you are credible if they see an address of where your company is located. Choose an area that is easily accessible and good enough for your business.


You will be needing insurance cover as you start your logistics business. Remember, the goods you are delivering are not yours; hence if something happens to it along the way, you will be held responsible. In some severe cases, you will be required to pay the full value of the goods that got damaged. Therefore, get insurance cover as you start your logistics company to avoid unpalatable situations.


Logistics companies have a high tendency to be profitable. To be profitable, bear in mind the major things stated in this article and implement them.

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