5 Tips for Starting a Warehouse Business

5 Tips for Starting a Warehouse Business

April 10, 2018
Diana Smith

A warehouse isn’t a very expensive property nor is it especially hard to build and maintain. Nevertheless, it can be used as a basis for a lucrative long-term business. Retail companies of all types and sizes need warehouses to store goods. The same goes for drop shipping companies which are booming as of late.

Renting a warehouse is a business like any other and shouldn’t be taken lightly – if you want to make it in this industry, you should take your time to investigate the market and weigh all of your options.

Choose a market

The most important first step toward starting such a business is to choose a market to which you would cater. There are two ways to go. One is to set up a warehouse that can be suited to a variety of businesses and try to cast as wide a net as you can.

The other approach is to fixate on a niche market that requires a specialized warehouse (for instance, one suited to storing fresh produce). That way, you have a small market, but one you can dominate.

Get the licenses

Obtaining licenses and permits for a warehouse isn’t that hard, but it depends on the type of the facility and the area you’re working in. However, it’s essential for your business to obtain all the paperwork needed for running a smooth operation. Warehouses tend to work with a lot of different companies and there are payment delays, as well as numerous other problems. It’s better to run a business by the book in order to deal with these issues when they arise.

Being a member of proper professional associations could also help you find business partners and customers in need of your services.


The difficulty and the price of construction will largely depend on the terrain on which you’re building and the size of the warehouse. This isn’t a particularly difficult project to start, but when it comes to the concrete foundation, you should find experts that use the tilt up construction method.

There are also a lot of soft costs included in the construction that are hard to predict and calculate. These include design drawings, steps to ensure the ecological safety of the building and many others. These costs could easily exceed the price of the construction itself.

Keeping track of the goods

The most important part of a modern warehouse is the system that keeps track of its content and informs both you and the businesses using it about the goods. These shelving systems are becoming more complex and more automated every day.

Installing a system that will keep you alert about the amount of products you have and when they need to be replaced, will, in the long run, lead to savings and more efficiency. At this point, there’s almost no need for skilled laborers working in warehouses. This is a setback for the job markets, but it’s also something that makes investing in warehouses more lucrative.

Delivery systems

In the end, a warehouse can be lucrative only if you’re able to deliver the goods you’re storing quickly and safely. This doesn’t have to be something your company does on its own, it can be left to the businesses using your services, but it is a natural path of expansion.

The warehouse should be located somewhere where there’s enough space to build and expand, but it should also be well connected to the nearby city area, where there’s a need for your services. You should also think about investing in trucks and other vehicles that can provide the delivery.

Warehouses are lucrative business ventures and they are easy to set up. However, running them and making a profit takes hard work.

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