The logistics industry is certainly among the best industries to join. With a market size of $10.41 trillion in 2022 and projections to surpass $14.08 trillion in 2028, it’s a worthy industry to venture into.
But what does the logistics industry entail?
Logistics involves everything related to the movement of products from the manufacturer or producer to the final consumer.
It covers all the activities supporting goods movement from production and distribution to warehousing and delivery.
This makes it a massive industry with endless opportunities for those who want to start businesses here. So, is your dream to have a business in the logistics sector? This piece is what you need.
It compiles a comprehensive list of the most profitable business ideas to consider in 2024. This way, you don’t pick just any business idea; you choose one that promises a high return on investment.
What are these ideas?
Table of Contents
Top Profitable Logistics Business Ideas
If you want to make good money with your logistics business, here are the best business ideas to consider:
Warehousing
Warehousing tops our list of the most profitable logistics business ideas to start. Why? While it requires substantial upfront capital, the profits are appealing.
What does warehousing entail?
The idea is to own or have storage facilities (warehouses) where products can be stored for brands and companies that want to avoid the hassle of running warehouses.
You are renting out the storage space.
With a warehouse, you could be contracted to store anything from raw materials to spare parts, agricultural finished goods, packing materials, etc. You are ready as long as your warehouse can handle the items.
However, ensure your warehouse has a tracking system to track what is getting in and going out. It should also be insured to avoid possible losses, have enough security, and conduct regular maintenance.
A Shipping Company
Sounds complicated. Well, it isn’t!
It doesn’t have to be a big company. You can start a shipping company with a few vehicles and motorcycles.
Shipping means transporting goods or merchandise from the seller to the customer. The ecommerce industry has made the sector explode as the demand for shipping small packages skyrockets.
While shipping services might include overseas services, you can start small by serving local customers and expand later. Going international requires collaboration with more prominent freight companies, as you might need help to acquire your resources.
As for income, you can easily make over $500,000 annually.
Open an Order Fulfillment Center
An order fulfillment center is more than just a storage space. It also includes the distribution of stored goods or products.
A fulfillment center usually deals with small consumer goods with a high turnover.
The job entails receiving, storing, and distributing goods. The more goods you can store and deliver to the intended customers or retailers, the more money you earn.
This type of business is also called pick, pack, and ship because you are responsible for the entire process from when the order is placed to when the product is delivered to the customer.
Note: You should own or lease a warehouse to hold the goods. You should also have an automated order fulfillment system.
You can ensure efficiency and timely delivery with suitable systems and strategies. This, in return, earns you trust among the clients, resulting in more work and money.
Freight Forwarding Business
You can also make good money as a freight forwarder. This job involves acting as an intermediary between importers and export shipping businesses.
Your work is to arrange the shipping logistics. These include the storage of goods before shipping, as well as clearing with customs.
However, you are not directly involved in shipping goods as a freight forwarder. You are the link between the transporting companies (air, road, or rail) and those needing shipping services.
If you want to do this, learn more about the job here. According to ZipRecruiter, freight forwarders in the US can make up to $65,500 annually.
Car Rental Business
This is among the logistic businesses anyone can start as it doesn’t need any qualifications!
You can start your car rental business targeting retail or corporate clients. Retail clientele includes individuals who rent cars for a short period.
On the other hand, corporate clients rent cars for more extended periods. They require transportation for their employees or customers and will enter into long-term contracts.
When starting a car rental business, the best idea is to target busy areas like airports, commercial offices, or railway stations. These areas have high traffic, presenting more business opportunities.
Start a Moving Company
A moving company is one of the most profitable logistics business ideas you could adopt. And the best thing? You could start the company with just a single truck.
If you have experience moving things, especially the intricacies of handling home and office items, you are good to go.
You don’t even need a sophisticated system. You only need a truck, a few dedicated workers, and expertise.
According to IBISWorld, the profit margin in the moving industry is around 4.3%. As such, for every dollar a moving company charges, the profit is 4.3 cents. So, since the average moving cost per task is between $500 and $2000, you can quickly see how much profit these guys make.
Join Food Delivery Apps
If you want a simple way to earn extra money, joining food delivery apps is a good idea. For starters, you don’t need any capital. You are good to start as long as you have a car, scooter, bike, and smartphone.
With food delivery apps, you make money by picking up food orders from restaurants and delivering them to clients. It could be to their homes or offices.
Some of the best apps to join here include Uber Eats, Doordash, Instacart, Shipt, and GrubHub. Getting started on these platforms is also easy.
The main requirements for most of them are:
- Be an adult – 18 years or older
- Have a driver’s license
- Smartphone
- A bike, scooter, motorcycle, or a car
- Clean background check
While some platforms might include more requirements, you can quickly get a good app with these.
According to Indeed, drivers are paid an average of $19.13 per hour. A good job also comes with tips and bonuses.
Logistics Training and Consultancy
Those with a strong logistics background and knowledge can make money through training or consulting.
For instance, you can start classes for logistics training where you charge a certain amount per hour to train interested people.
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You could also start a consulting firm to offer consulting services to those in the industry.
That’s not all. You can create and sell an online course if you want something passive.
Companies who want to start in-house logistics or those providing third-party services can buy such courses.
You can make reasonable amounts of money if you are good at it.
Trucking or Hauling
Trucking is another logistics business that can earn you good money in 2024. It involves hauling goods from producers, warehouses, or shippers to intermediaries or customers.
This might be a lucrative business opportunity if you have trucks or can hire some. You can decide to focus on long-haul trucking or short-haul trucking.
In long-haul trucking, companies use larger trucks, mostly 18-wheelers, to transport goods over 250 miles.
On the other hand, short-haul tracking involves transport services for shorter distances (below 250 miles). These services mostly use smaller trucks instead of 18-wheelers.
The good thing with this business idea is that there is always something to transport.
Most big companies, including shipping companies, don’t own trucks. Therefore, they enter into contracts with more minor third-party hauling services for their deliveries.
Delivery Tracking Company
You don’t have to own trucks or warehouses to make money in logistics. Even other less capital-intensive options like delivery tracking can earn you good money.
What does this entail?
It simply means monitoring cargo or parcels in transit. It involves tracking every step of the goods delivery process, from the client to the customer.
This helps ensure that nothing goes wrong during the process and that if it does, a solution is delivered in good time.
Tracking could be divided into two categories. One is real-time location monitoring, usually ideal for office and home deliveries.
The second option involves using barcodes, GPS, and other tracking technology to monitor more oversized cargo in transit.
This is undoubtedly a lucrative logistics business idea if you have the know-how and resources.
Start a Towing Business
Towing service involves transporting stalled vehicles or any other car that can’t or shouldn’t move independently. This could be due to accidents, mechanical failures, or exceptional cases like repossessed vehicles. Either way, towing services, ranging from 42.5 to $7 a mile, pay well.
However, it would help if you had the proper licenses and machinery to start a towing business. You must also have adequate expertise and experience in this. This is because some jobs can be quite complicated and risky. You’ll be called to remove vehicles from ditches or tow cars in collisions – the opportunities are immense.
You can start it small by offering towing services to people in your local area. Later, as the business grows, you can expand your operations to serve the state or even provide national services.
Junk Removal Services
These are some of the services that will always be in demand. As long as people consume junk, it will always need moving. Therefore, starting a junk removal company could be a profitable business idea.
Both businesses and homes require such services. They could hire you to move trash, broken furniture, or unused stuff that needs disposal. You could also be employed to haul items during foreclosure.
The good thing here is that the startup capital is more minor. You are good to start even with one box truck and two or three employees. Ensure you have the proper licenses and permits to start junk removal services.
Also, ensure that you’ve done enough market research before starting. Learn about other companies offering the same services and the rules and regulations governing such business operations.
How to Run a Successful Logistics Business
Having the best business idea is not enough to create a successful business. So, what do you need?
Market Research
The most viable business idea will only work with a proper market. Therefore, conduct thorough market research once you’ve identified the business you want to start. This way, you don’t enter into a company offering merger returns or losses.
Identify your Strengths
Another important point is knowing what you are good at. Only follow a business idea with experience or know-how because it sounds lucrative. It will, in most cases, fail and result in losses.
For this reason, evaluate your strengths and expertise. For instance, starting a trucking business is ideal if you’ve been a truck driver. Also, if you’ve been into marketing, you can become a digital marketer for logistics companies. This way, you can fully utilize your skills.
Have a Business Plan
Go in carefully! After conducting market research, devise a business plan. This plan should include your goals and how you intend to achieve them.
It will also spell out your operations, number of employees, profit projections, and a time frame for breaking even. This way, you will stay within your goals.
Understand the Area Regulations
Every state has its rules and regulations regarding logistics businesses. Therefore, before going further, try to learn and understand them.
If this sounds complicated, you can seek legal advice from law practitioners. They can advise you on the best route to follow or what is needed.
Get the Right Tools of Work
Every business has its tools of trade. If it’s a truck hauling company, get the trucks. Suppose it’s warehousing, leasing, or building a warehouse. And if it’s food delivery, start with what means you have, whether a car, bike, or motorbike.
You need an efficient system in some businesses, such as warehousing, freight forwarding, or order fulfillment.
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