Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$600

$4,700

Equipment & Supply Expenses

$66

$700

Vehicle Expenses

$2

$10,004

Software Expenses

$162

$3,069

Advertising & Marketing Costs

$75

$5,286

Total Startup Costs

$1,279

$38,326

4PX Worldwide Express

4px.com

1,969

ShipBob

shipbob.com

5,266

Sendle

sendle.com

10,931

Ninjavan

ninjavan.co

14,318

XPO Logistics

xpo.com

28,304

DCL Logistics

dclcorp.com

152,637

REEF Technology

reeftechnology.com

161,290

Geodis

geodis.com

187,955

LMI

lmi.org

206,344

Shapiro

shapiro.com

252,046

Kenco Group

kencogroup.com

287,135

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Meaningful business connections

You never know who you will meet as a logistics business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Logistics Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With starting a logistics business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A logistics business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Security Issues

With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.

Low margins

The gross margins for your logistics business are typically around 47%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the logistics business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a logistics business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.