Cargo transportation business: how to open a logistics company?

To open a business in this area, you do not need to have an office, vehicles or warehouses. You can communicate with staff, partners and clients:

• in a virtual office, since most issues are resolved remotely;

• in a small rented office;

• in a meeting room in a modern business center.

If you don’t have your own fleet of vehicles, it’s important to have reliable partners with a fleet of vehicles and logisticians who will coordinate cargo transportation processes.

But it is necessary to have a well-built infrastructure in order to open branches abroad – this will allow you to work effectively in the international market.

Registration options:

• opening an individual enterprise will allow you to save on taxes at the start;

• register an LLC if you plan to grow, hire drivers, launch branches, including abroad.

This can be done by visiting the Federal Tax Service or online. Some banks provide such services.

Working with the self-employed

OKVED — All-Russian Classifier of Types of Economic Activity. The code is indicated in the application when registering a legal entity or individual entrepreneur. It is needed for the tax service and Rosstat.

General group codes for the provision of services in the field of “transport business and logistics”:

• automobile transportation – 49;

• air transport – 51.21;

• water transport – 50.40;

• sea ​​transport – 50.20.

Organizing a logistics business will require equipment. These are tools and machines that help effectively manage the delivery processes of goods.

For example, transport for loading, accounting systems, warehouse equipment, platforms for tracking delivery stages and control systems for checking the condition of goods (temperature sensors).

Hiring employees, creating a fleet of vehicles

At the start, you can get by with a small staff, hiring a sales manager and logisticians, and outsourcing the rest of the employees – an accountant and an IT specialist.

The first cars should be rented. When the logistics company business starts to develop, they can be leased. This will make it possible to reduce costs and payback periods. What to consider:

• there is a possibility of hiring inexperienced drivers due to a shortage of personnel;

• it is necessary to have garages and parking lots;

• you will have to invest in vehicle maintenance.

Under such conditions, the principle works more successfully: 30% – own fleet, 70% – hired. It is possible to attract transport organizations to cooperation, rent containers and equipment.

They depend on whether it is planned to create a vehicle fleet, rent an office, etc. If not, the mandatory expenses include:

• employees’ salaries;

• tax deductions;

• IT development;

• creation and maintenance of websites;

• advertising budget;

• servicing foreign organizations;

• variable costs.

The cargo transportation business is a highly competitive industry, so the minimum investment in the advertising budget will be 500 thousand – 1 million rubles. This amount includes:

• SEO optimization;

• contextual advertising;

• working with TG channels;

• work in social networks;

• UN;

• social media management.

Due to the increase in the key rate, the best option at the start is to have your own working capital or look for investors for the launch.

Minimum investment (excluding advertising costs, etc.): Initial investment in the international multimodal transportation segment — from 5,000,000 rubles, including working capital, costs of opening a company, payroll, banking services, office rent, software.

Profitability: 25—30%.

Payback period: up to three years.

Profit per year: about 1,500,000 rubles.

Most often, a contract is concluded with young companies on a post-payment basis, so an appropriate level of working capital is required. Even if we take the minimum, several employees are needed: a sales manager, a logistician, outsourcing of accounting and lawyers, software, office rent. If the plans include creating your own vehicle fleet, there will be more expense items.

They are like this:

1. Transport: fuel, vehicle maintenance and repair, car insurance.
2. Wage employees.
3. Operating: for licensing and permits, taxes and fees, utilities (electricity, water, internet).
4. Warehouse: rental or maintenance of premises, equipment for storage and handling of goods.
5. Marketing: advertising and promotion of services, participation in exhibitions and conferences.
6. Unforeseen: reserve in case of accidents, delays or damage to cargo.

They are like this:

1. Payment for delivery of goods.

2. Additional services: packaging, forwarding.

It is important to forecast gross profit: it shows the efficiency of sales. With a competent approach, a business can break even in about 6 months, then the company will start generating net income.

Logistics is going through a difficult period today: sanctions complicate supply chains, which increases the cost and delivery times. The foreign policy situation and the need to operate in a highly competitive environment require experts to be able to quickly adapt to changing market conditions.

An enterprise providing services for the transportation of various goods can be created without an office, vehicles, or a warehouse. But to succeed, it is important to have relevant experience from the start. If you don’t have it, it is worth completing courses or doing an internship in a successful company.

Despite objective difficulties, today this is a promising direction: trade turnover with many countries is growing, marketplaces and e-commerce are actively developing, which also affects the demand for cargo transportation.

Cover photo: Freepik