There are several factors to consider when starting a packing and shipping business. Today, over 90% of global trade happens through the packing and shipping industry. Indeed, many companies ship their goods around the world through aircraft or ocean vessels. Of course, domestic shipping may just employ cargo trucks. As an aspiring packing and shipping company owner, understand the most important factors that go into shipping both internationally and locally. This way, you can create an efficient business that takes care of both small deliveries and bulk shipments. Read on to learn about what to consider when starting a packing and shipping business.
Consider your location options when starting a packing and shipping business. Place your storefront near other businesses that rely on shipping companies to export and import their products. For example, look for bustling towns with clothing stores, food markets and find warehouse space within buildings. Verify you’re not too close to other pack and ship stores. Of course, choose a space large enough to package items, store materials and set up equipment. Ideally, your location should handle more inventory and machines than your current capacity. This way, you can keep it as your business grows. Surely, you should think about your location options to start your packing and shipping business.
In addition, the different licenses are another consideration you’ll need to start a packing and shipping business. Pack and ship companies usually require business and retail licenses as the bare minimum. Since every state and city has different regulations, you should check with your local government to verify your business idea is legitimate and legal. Then, you can obtain your employee identification number (EIN) from the IRS. You’ll need this number to hire employees, open a business bank account and file taxes. Of course, consider the different licenses you’ll need to start a packing and shipping company.
More so, you should consider the different risks involved when opening your packing and shipping company. Verify your business uses the proper Standard Operating Procedure to meet all industry regulations and laws. You should also arrange the proper insurance policies like property, liability and workers compensation to use towards claims. More so, learn how to handle counterparty risks if investors, creditors or customers do not fulfill their financial agreements. When shipping globally, consider the jurisdictional risks if international laws unexpectedly change. Ideally, you should work with an agent who knows how to deal with implementing risk assessment for businesses. In short, think about the risks you can encounter when you open a packing and shipping business.
Specialized Shipping Methods
Moreover, consider specialized shipping methods when you start your packing and shipping business. For example, perishable items may require different insulation, refrigeration or airtight wrapping for protection. Know how long perishable items can sit in transit before spoiling. For temperature sensitive items, you can use special foam packages or dry ice to keep them fresh. If your products need to maintain a specific temperature, you can use insulated bags and boxes. Of course, think about the shipping time as you determine your packing materials. Certainly, consider specialized shipping methods when you start a packing and shipping company.
How To Market
Furthermore, you should consider how to market your new packing and shipping company. Every individual or company that ships or gets items delivered is a potential customer. Although regular consumers ship less than commercial customers, you should still market to both parties. Create business cards, brochures and flyers to advertise your business. In addition, visit local companies and offer first time shipping discounts for new customers. As shipping peaks during the holidays, you can also advertise in newspapers and social media to reach more customers. Definitely, how to market is another consideration to make when starting a packing and shipping company.
There are several factors to consider when starting a packing and shipping business. First, consider your location option to start a company near different businesses and stores. In addition, you’ll need different licenses from the government to be considered a legitimate company. More so, think about the different risks you can encounter and how to mitigate them. Then, consider specialized shipping methods to send sensitive products globally. Furthermore, you should know how to market your company to gain new customers. These are the factors to consider when starting a packing and shipping business.