Everything You Need to Know Before Starting a Warehouse Business

Everything You Need to Know Before Starting a Warehouse Business

Starting a warehouse business isn’t without its difficulties, but it can be done if you want it badly enough.

This post will tell you everything you need to know before you begin, so you can feel confident in your entrepreneurial choices!

If you plan on being a top warehouse business owner, you need to make sure you’re educated enough about the services that are big in the industry.

Unfortunately, history has proven that not many entrepreneurs are capable of running a profitable warehouse business.

Many of them don’t properly weigh up the competition in their area before beginning their venture.


Looking at the Competition

Look at your competition so you know exactly who you are up against.

Then consider how they became successful and what lessons you can learn from them.

You’ll also need to differentiate yourself to make sure you stand out in the market.

It might help you to already speak to a successful person in the business to get good advice.

It’s probably best if you contact businesses outside of your area, as they’ll be more likely to give you good advice.


Determining Building Size

In order to keep your costs at a manageable level, you need to know exactly what to store.

You might want to store books, electronics, or something else entirely. By targeting small businesses who may need warehousing services first, you can slowly build up your client base.

You could even consider creating your own niche in the market.

Depending on the size of the building, you’ll also need to consider the costs involved; heating for instance. Winrow recommend that you write everything down so you don’t get any surprise costs.


A full working warehouse

picture author: Flickr


Start Up Costs

To start up a warehousing business, you could be looking at anything from £10,000 to £50,000.

You may already have some start up capital, but you might want to look into finding investors or getting a loan. For this, you’ll need to put together a business plan.

Also, consider ways you can save money so you don’t blow your loan/budget too quickly.


Hiring Employees

You won’t be able to run a warehousing business alone.

You’ll need to hire employees to take care of certain tasks and do some of the heavy lifting. It’s very important that you know your responsibilities when hiring employees, and that you don’t hire employees you don’t need.

Whenever you hire an employee, it should do one of the following things for you:

  • Save you money.
  • Save you time.
  • Make you money.


Building a Client Base

When you’re ready to go, building a client base is your next big concern.

You can sign up with certain associations in your area who will point clients in your direction. You can also advertise on the radio, TV, in the paper, etc.

Something else you definitely need to do; create a website.

If you don’t have one of these, you’re already losing out to your competitors. Get a professional site built so you clients contact you and read up on you the easy way.


Starting a warehousing business will be hard work, but it’ll be worth it.

These tips should hopefully start you off on the right foot.

Don’t let the thought of hard work put you off – this will be the best thing you ever do if you do it right!


Author: Erik Emanuelli

Hi! I am Erik Emanuelli : entrepreneur, traveler and blogger. You can follow me on Twitter, add me on Facebook or circle me on Google.

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  1. Very informative post Erik. I didn’t know much about Warehouse businesses until I read this post.. You have mentioned a few pretty awesome tips that are MUST if an entrepreneur is going to have success in this arena. Thanks for sharing.. keep smiling

    Post a Reply
    • Thank you Shalonda,
      giving back positivity and good energy! 🙂

      Post a Reply
  2. Hi Erik,
    Indeed, starting warehouse business could be difficult. It is not a stroll in the park. Knowledge, skill and determination is needed for it, just like many other businesses.

    However, apart from the need to understand the competition, building size, start-up costs, employees to hire, and client base, it is also crucial to understand the – above average – the essence of good stock keeping.

    This proficiency with which this is done will go a long way to determine the success of the business!
    This comment was shared in kingged.com where this post was found.

    Post a Reply
    • Hi Sunday,
      as any other business, starting a warehouse commercial activity requires preparation and hard work.
      A business plan is always the best thing to do. And a Must!

      Thanks for taking the time to read and comment.

      Post a Reply
  3. Hi Erik

    Thanks very much for sharing your wisdom, I was just wishing to have some strong in-put on starting a business in warehousing, and I had two others with me once they heard of the money they can make off of it, but when I told them it will be hard work, I have not heard from them again on this venture. However I am still encouraged even the more after reading your theory. I will continue working on my business plan and Look for others that have some ambition and courage, because I can see that it could pay off well with the right plans and team.

    Thanks A Lot

    Julia S Coulibaly,

    Post a Reply
  4. Looking at the competition when it comes to running a warehouse, sounds like a good way to get ahead of the market. That is smart to be aware others with a similar market, so that you can be as competitive with your prices and stock as possible. As a consumer I know that I tend to look for the best deals. Seeing that the product is better at one place, price wise or quality wise, can definitely sway persuade my choice.

    Post a Reply
  5. Hi Erik ,
    Thank you for an informative post regarding a warehouse ,I am yashas from Bangalore (a metropolitan city , centre for hi-tech industry) looking forward to start warehousing Nd logistics here in Bangalore as I own a warehouse of 60,000 sq ft ,so let me know if I could help me by sharing more productive things about warehousing

    Post a Reply

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