Whether you’re starting a 3PL company or any other business, there are some key things you need to know before getting started. The last thing you want to do is jump into something without being fully prepared and fail.
You should know these four things before starting your 3PL company to give you the best chance at success.
License and insurance requirements
Before you can even think about starting your 3PL company, you need to ensure that you have the proper licenses and insurance. Depending on your state, the specific requirements may vary. However, in general, you’ll need to obtain a business license, a DOT number, and liability insurance at a minimum.
You’ll also need to make sure to properly insure your vehicles. If you’re using your vehicle for business, your auto insurance will likely not cover you. You’ll need to get a commercial auto insurance policy to ensure you’re properly protected.
Finding the right customers
Finding the right customers is one of the most important aspects of starting a successful 3PL company. You want to ensure that you’re targeting businesses that will be a good fit for your services.
For example, if you specialize in Hazmat shipping, you’ll want to target businesses dealing with hazardous materials. You can set yourself up for success by carefully choosing your target market.
Creating a strong business plan
It’s important to have a strong business plan in place before starting your 3PL company. Your business plan will be your road map for success and help keep you on track as you grow your business. Be sure to include both short-term and long-term goals in your business plan and strategies for achieving those goals.
Warehouse space and equipment
Last but not least, you must ensure you have the right warehouse space and equipment before starting your 3PL company. The type of space and equipment you need will depend on the products you’ll be shipping.
For example, if you’re shipping perishable items, you’ll need a refrigerated warehouse. Or, if you’re shipping large and heavy items, you’ll need a forklift and other heavy-duty equipment.
You can also improve efficiency in your warehouse and save money by investing in warehouse management software. This type of software can help you keep track of inventory, manage orders, and automate many of the tasks associated with running a warehouse.
Starting your own 3PL company is a big undertaking—but it’s also extremely rewarding. Before getting started, ensure you’re licensed and insured, have the right customers in your target market, have a sound business plan, and have the appropriate warehouse space and equipment for your needs.
Taking care of these things up front can set your business up for success.