The number of people employed by warehouses grows by about 22% each year. This number indicates that the warehouse business is booming.
With eCommerce giants like Amazon and Walmart expanding and millions of little guys getting in the game, we need more warehouse space and more logistics solutions. Now is the time to get into the warehouse game.
If you’re ready, let’s get cracking. Here’s how to start a booming warehouse business.
1. Choose thy Niche
Where are you warehousing? What are people selling and shipping regionally?
Or do you want to attract the big boys by contracting out? You can garner some serious cash by offering a cheaper warehousing solution than the next guy.
2. Know thy Market
What are you warehousing? If you’re storing and shipping frozen goods, you’ll need your warehouse to be a massive freezer. What are the logistics of shipping frozen goods? Who sells and stores and ships frozen goods?
After gathering this information, you need to find out if your business idea will survive more than a year or two. While the warehouse business is booming, choose the wrong product to store and ship and you’re screwed.
If it’s frozen products, research the competition. Is that niche market adding more every year? Is it shrinking?
2. Research thy Competition Further
Double down on your competition research. This will reveal not only how much your competition owns of the market share, but what they’re doing.
Use your competition research as a learning opportunity. Where are they weak? Where are they strong? How can you learn from their mistakes?
You’ll understand how big of a mountain you need to climb. Is it possible to overcome the competition? Is the competition too fierce? If so, perhaps you should find a different warehousing niche.
3. Find Thyself a Cofounder
Building a warehouse business is overwhelming. If you take this project on by yourself, you will quickly burn out.
Not only will you suffer burnout, but you’ll suffer idea and decision fatigue. If you’re the sole person making decisions, you’ll quickly hit a plateau and your creativity will wane.
Instead, find someone who is willing to co-found the business with you. You will be able to bounce ideas off of them and then share the load. You’ll be happier and your business will be more likely to thrive.
4. Fund Thyself
It can cost up to $50,000 to startup a warehouse business. Do you have $50k laying about? If you do, then skip this step.
There will be expenses you’ve not thought about yet. You’ll need funding for everything from employee salaries to superior industrial products for cleaning.
Start this process early. It can take months to secure funding. If you’re not able to find investors, you’ll need a business loan. Business loans are difficult to secure and you might have to try multiple times.
Keep going if you get rejected for that business loan. Figuring out what went wrong the first time will make it more likely to get a loan the second time.