Entrepreneurship and the young generation are synonymous in today’s world. Liberal business policies of the Government & state Governments as well as funding scenarios for start-ups have been a boon for young people, says PRADEEP SHUKLA
Take help to plan/Use Mentors
Logistics is a cost that everybody wants to decrease, so efficiency is the key. Logistics companies and service availers would also want the whole system to be responsive. When responsiveness grows, down goes the efficiency, cost of logistics is increased. So treat this part with utmost importance. If you are a low cost logistics model and give better costing and save your client some money, but lower on service levels, it will be an efficient model. If you plan to be a high end model with more cost, you automatically become more responsive, better service levels and you can charge your clients premium for premium services. This can be understood by different courier services. Few charge a very high price, and many others will charge you a low price for the same packet
Meticulously plan your finances
Have you heard about money guzzling businesses? This is one of them. With all practical aspects you want to see in this business, every step will require funds. Because you are a company which has very less to do with computers and technology and high on movement and/or storage of goods. You will need funds. My advice, at least keep 3-6 months money for turnaround of the invested funds. Payments from clients sometimes get delayed.
Network shamelessly
Trust me you have heard me correctly. Getting into business and getting a business are different things. You will need to connect to as many people as possible. Senior, juniors, contemporaries, everybody. Ask for help, hard-shell your start-up. Try to reach people who have higher positions in organisations, but treat them with respect and be humble. Do not act smart, you will get nothing.
Work for your employees
Personally, this is the most important thing, I love being an entrepreneur. If your team works for you, you work for them. While launching a start-up in this domain, you will need trusted people. Look for like minded people, take intelligent co-founders and on-board guys who can be in your thick and thin. If you are surrounded by good people, you get good business, you do good business, and you make good margins. Trust me on that.
Be asset light
Again, this can make you or break you. Do not purchase assets, if you can rent them. Do not invest in purchasing anything until and unless your client pays for it and the cost is amortised for the period of the agreements. Hire trucks, when required, hire warehouses when required. Hire computers as per your need.
Role of Information Technology
Pandemic created a situation, where technology has become the integral part no matter what domain we are working on. Similarly in the supply chain field IT plays a crucial role in tracking and monitoring. These tools are Warehouse Management System, GPS Enabled Vehicles , Transport Management System , Inventory Management System and many more.
Before equipping the technology one should understand the technology itself. There are start-ups who have invested a lot in technology but all money has gone in vain because it was not up to the mark of their requirement.
To sustain in the market we have to keep on upgrading our technology however, we must also adapt and choose wisely.
The Writer is Pradeep Shukla Group Director & CEO at PrimoLCS