How to Start a Logistic Company?

yamahamoto on 24/06/2024 - 14:30
Last edited 24/06/2024 - 19:23 by 1 other user

A relative of mine just recently migrated to Australia who is looking to start a logistic company.

They have “connection” with a specific overseas airline that would keep their cost low. I think what they want is an air freight courier business specialised to 1 country. I tried Google but not getting the right answer. Does anyone know where can I find out what is required for such business?

Thanks in advance.

Edit: people will laugh at the word “connection” but it is what it is. It’s not what you know it’s who you know.

Education & Work

Comments

  • CrispyChrispy on 24/06/2024 - 14:32
    +14

    😭

  • randomusername2017 on 24/06/2024 - 14:40
    +31

    "connections"

    @SchapelleCorby

  • Wiadro on 24/06/2024 - 14:45
    +8

    abn is a start

    • jv on 24/06/2024 - 15:06
      -1

      acn

    • boomramada on 24/06/2024 - 15:06
      +4

      then concealed white powder within furniture or something and imports them

      • morse on 25/06/2024 - 05:20

        Just ask Tom Dutton

      • R4 on 26/06/2024 - 16:22

        Apparently, there's just as much money to be made in 'importing' vapes and tobacco - with minimal penalties if caught.

  • Boioioioi on 24/06/2024 - 14:45
    +27

    If you dont know how to do the business you probably should not do the business. Spend some time learning

    • mrvaluepack on 25/06/2024 - 13:20
      +15

      If everyone had that mentality, the economy would die. We need entrepreneurs and more risk takers. More money spent on anything = better for economy.

      • pulpfiction on 25/06/2024 - 16:10
        +2

        mrvaluepack is correct. Literally every entrepreneur starts this journey. From Zuckerbeg to Scotty.

      • Antikythera on 25/06/2024 - 23:57
        +1

        yes the economy does need people to lose their life savings now and then. not everyone can make a profit. everyone else's profits have to come from somewhere. but if it were my money I'd look more to buy a proven business or start a business in an industry where I already had experience.

        if the OP's friend has capital to bring into this country there are definitely brokers who facilitate buying existing business and could possibly be the people to speak to about starting a new business also.

        • pulpfiction on 26/06/2024 - 06:49

          They made no mention of life savings. Nor do you need a lot of capital to start (basically none). Capital is for scaling once you have a business.

  • sumyungguy on 24/06/2024 - 14:45
    +11

    Freight forwarding is not regulated in Australia. Also seach under ABF, CTO & Tariff Classification System. A good starting point will be to find out whom is the CTO for the airline in question. Your friend would be listed as the notify party on the AWB.
    How to become an International Freight Forwarder or there's an intro course

    • yamahamoto on 24/06/2024 - 16:21
      +1

      Thank you. I will look into this.

    • kaleidoscope on 26/06/2024 - 00:11
      +1

      This guy knows!

    • tessel on 26/06/2024 - 13:29
      +1

      Mate, you were raised properly. Nice to see.

  • AustriaBargain on 24/06/2024 - 14:57
    +1

    He should probably do his own research into this to find out the realities of doing that in Australia so he can form his business plan around those realities.

  • kekw on 24/06/2024 - 14:59
    +41

    bro try to start a potential multi million dollar company by asking on ozb 💀💀

    • CrispyChrispy on 24/06/2024 - 15:01
      +5

      i have never seen a more perfect pfp

    • yamahamoto on 24/06/2024 - 16:24
      +2

      You gotta ask what you don’t know

    • Juggernauto on 25/06/2024 - 09:24
      +4

      Next up they going to ask "how do I start a company to rival Amazon?"

    • smartazz104 on 25/06/2024 - 12:26
      +1

      Nah as we all know, the only way to potentially make millions in Australia is through property investment. You want to start another kind of business, be prepared to be buried under red tape and bureaucracy.

  • Broke-Ken on 24/06/2024 - 15:38

    A relative of mine just recently migrated to Australia who is looking to start a logistic company.

    I think what they want is an air freight courier business specialised to 1 country.

    Which Country?
    Have they looked into the competition? How would the differentiate themselves from the existing businesses?

    Is there a demand?

    How much do they have to invest in said business?

    • netjock on 24/06/2024 - 16:00

      How would the differentiate themselves from the existing businesses?

      "Connections" with said airline

      It is pretty funny putting all your eggs in the one basket

      Hopefully it isn't airline of one of those countries that have global reach or you could get snatched off the street one day and end up in a black site.

      • MrThing on 24/06/2024 - 16:02
        +8

        The airline is Bonza

      • 1st-Amendment on 24/06/2024 - 16:43
        +3

        It is pretty funny putting all your eggs in the one basket

        You can still make money in a niche business. If this is what I'm thinking, the 'connection' has access to available capacity on an airline on one particular route so in theory could ship stuff international in spare capacity for peanuts and make a margin. The retail price for air freight is massive so there is an angle there.

        • netjock on 24/06/2024 - 18:05

          You can still make money in a niche business

          Of course you can. Why do you think installing air con for like $699 works. If you can do 3 a day you're good. But that is free market.

          Putting all your eggs in the one basket is depending on those "connections"

          In China plenty of people got rich with connections but the problem is when they come after corrupt officials. Connections is basically a subsidy. It is bound to end well, especially when you might get blackmailed out of all your money before they dob you in.

        • gromit on 25/06/2024 - 16:05
          +1

          relying on spare capacity could be a very dangerous venture unless you have rock solid contracts in place to provide that capacity as it can disappear overnight due to the airline cutting back on the route (e.g. like many of the Chinese routes due to reduction in tourist traffic).

  • Drakesy on 24/06/2024 - 17:49
    +3

    Oh dear….

    • Gunnar on 24/06/2024 - 18:59
      +6

      Look buddy, there are no stupid questions, just stupid people

      • Drakesy on 24/06/2024 - 19:44

        Had me going for a second there :)

        OP is the person that would put "professional entrepreneur" in their Linkdin

        "Director of the next Tesla"
        "People just don't understand the goldmine I'm sitting on with my network"

        "You'll see in 5 years when I'm asking what colour is your Bugatti"

        • Gunnar on 24/06/2024 - 20:20

          All part of the never say die, never think things through nature of Ozbargain forums!

  • Gdsamp on 24/06/2024 - 20:33
    -2

    starting a logistics company? In Australia? Wow, good luck with that. Everyone thinks they can just jump into air freight with a "connection." You might as well ask a koala for business advice. By the way, did you know that the Great Wall of China is not visible from space? Anyway, maybe try Googling harder. Cheers.

    • Antikythera on 26/06/2024 - 00:01

      my mailbox is visible from space. unless google maps has redacted the Great Wall i'm guessing you can see that too.

  • BewareOfThe Dog on 24/06/2024 - 22:43
    +3

    There used to be so many courier/logistics companies in Australia. Its very competitive, and so many have merged, downsized, or been taken over by other companies (Hills, TNT, discount freight, security express, McPhee, Cope). You also need an agreement, with other couriers, in areas that are unviable to service. An example of this is the dungog area in NSW. There is really only 1 company that services the area, and most companies, hand it over to them, which may take a week for the parcel to get there. Some companies like border express may go there once a fortnight.

  • SlickMick on 25/06/2024 - 08:33
    +3

    Sorry OP, this site can be ruthless when the request is outside our scope to help.

    I know of people who did what I assume is exactly what you're asking: they saw a need for logistics between thier country of origin and thier new home, and an opportunity to fulfill it. I understand that they were successful, so don't let all the negativity here get you down.
    I totally agree, it can be hard to find where to start. Don't give up.

    • yamahamoto on 25/06/2024 - 10:11
      -1

      Thanks. When you don’t know something you either ask or you talk it down.

      • Thinkswithelbow on 25/06/2024 - 13:01
        +1

        Oz Bargain isn't the right place to ask.
        Go ask ocau or whirlpool or fo d a small business forum on the internet and ask.

        • yamahamoto on 25/06/2024 - 14:05

          I dont know about ocau so I’ll check it out. Whirlpool deleted my post citing it is not a forum to ask for stuff like that.

  • Baysew on 25/06/2024 - 11:23
    +4

    If in Victoria start with Support for Victorian Businesses.

  • azero on 25/06/2024 - 11:42
    +2

    There are a lot of cargo companies that does shipping between Australia and a single other country (usually the founder's home country) and make millions.

    They usually use specialised grocery shops from that country as their drop off locations and generally not known outside of the specific community.

  • joka on 25/06/2024 - 11:49
    +1

    I am pretty sure that right now in your case, its about what you know, not who you know. Which is i am afraid to say, not much.

  • mrvaluepack on 25/06/2024 - 13:23
    +1

    Starting an air freight courier business in Australia, especially one that specializes in services to a specific country, can be a promising venture. Here's a step-by-step guide to help your relative get started:

    1. Business Registration: The first step is to register the business with the Australian Securities and Investments Commission (ASIC)⁶.

    2. Business Plan: Develop a comprehensive business plan that outlines the business model, market analysis, financial projections, and strategic partnerships, like the one with the overseas airline³⁴.

    3. Industry-Specific Licenses: Obtain any necessary industry-specific licenses, which may include a freight forwarder's license or heavy vehicle operator's license⁷.

    4. Insurance Coverage: Secure the appropriate insurance policies, such as workers' compensation, public liability, and vehicle insurance⁶.

    5. Council Approval: If operating from a commercial premise, get council approval and a lease agreement if renting the premises⁶.

    6. Health and Safety: Establish health and safety policies and procedures to comply with workplace regulations⁷.

    7. Financial Viability: Ensure financial viability by setting up a business bank account and considering options for funding, if necessary⁴.

    8. Operational Considerations: Decide on the operational aspects, such as the type of shipments, storage facilities, and transportation logistics⁴.

    9. Marketing Strategy: Create a marketing strategy to promote the services offered, focusing on the unique selling proposition of specialized services to one country⁴.

    10. Compliance: Stay compliant with all relevant laws, including the Competition and Consumer Act, Australian Consumer Law, and privacy regulations⁷.

    It's important to conduct thorough research and possibly consult with a legal professional to ensure all legal and regulatory requirements are met. Additionally, having a clear understanding of the logistics market in Australia and the specific needs of the target country will be crucial for success.

    For more detailed information and guidance, your relative can visit websites like Sprintlaw³, TransVirtual⁴, and business.gov.au⁷, which provide resources and advice on starting a courier or freight business in Australia. Good luck to your relative on this new business venture! 🚀

    Source: Conversation with Copilot, 25/06/2024
    (1) What are the essential legal documents and … - Sprintlaw Australia. https://sprintlaw.com.au/sprintlaw-q-a/setting-up-a-logistic….
    (2) How To Start A Courier Company | Sprintlaw. https://sprintlaw.com.au/articles/how-to-start-a-courier-com….
    (3) How to start a courier business in Australia - TransVirtual. https://www.transvirtual.com/blog/how-to-start-a-courier-bus….
    (4) Transport, postal and warehousing industry | business.gov.au. https://business.gov.au/Planning/Industry-information/Transp….
    (5) . https://bing.com/search?q=start+air+freight+courier+business….
    (6) Star Track. http://www.startrack.com.au/.
    (7) Best 12 Tips To Start A Freight Company | Ausie Logistics. https://ausielogistics.com.au/how-to-start-a-freight-company….
    (8) How to Start a Logistics Business in Australia in 2024-25: Complete Guide. https://ondemandint.com/au/start-a-logistics-business-in-aus….

    • yamahamoto on 25/06/2024 - 14:00
      +1

      Thank you

    • oO0Dam0Oo on 25/06/2024 - 19:06
      +2

      Chat GPT? 🤣

      • mrvaluepack on 25/06/2024 - 19:12
        +1

        Copilot

        • Antikythera on 26/06/2024 - 00:02
          +6

          OP already has the airplane part sorted he doesn't need a co-pilot.

  • El cheepo on 25/06/2024 - 13:30
    +2

    Is it a legitimate connection that will give a written contract and has authority to do so? Will it all be above board legally?
    If so, What advantage is that airline getting out of selling spare space to you?

    Sounds suss as hell…

    If it ain’t 100% legit, your business is better off being an unofficial side hustle.

    • endotherm on 25/06/2024 - 18:29
      +2

      Agree. If your "connection" is just a mate that works as a flight attendant and can carry a bit of extra cargo no questions asked, then I don't think it is going to work out. If you are mates with Richard Branson or Elon Musk, and they are prepared to go into an above-board deal with you, then you might have a chance.

      • El cheepo on 25/06/2024 - 18:36

        As i read this thread i was thinking: man, everyone is giving this guy a bit of a hard time and then as i thought about it more i was like… what kind of airline isn’t already absolutely squeezing every revenue source possible…

        This dudes connection is surely just a mate with some spare space 😂

  • Herbse on 25/06/2024 - 13:33
    +1

    Step 1 - come up with a hair brained idea
    Step 2 - ask Ozbargain how to do it
    Step 3 - do it

    Profit

  • localhost on 25/06/2024 - 14:33
    1. Buy a truck.
    2. Get driving license.

    Oh, wait…

  • RT47RT on 25/06/2024 - 15:05
    1. See Avis or Sixt
    2. Buy cereal.

    Would have been up and running for a whole day by now.

  • pulpfiction on 25/06/2024 - 16:21
    +1

    Step 1. Don't register a business. Don't give it a name. Don't make a website. Don't build process and automation infrastructure.

    Step 2. Find someone who needs to ship something to said location. Give yourself a margin greater than the industry average. Offer to ship stuff for them.

    Step 3. Get a testimonial and use that to get more clients (repeat step 2 and 3 for a bit).

    Step 4. Work on items in step 1 while you scale.

    Source: I've launched multiple successful businesses and help founders scale and get exits. Also, read Kagan's Million Dollar Weekend (he founded AppSumo and a bunch of other sites).

    Edit: A connection is a great start!

    • yamahamoto on 25/06/2024 - 17:47
      +1

      Thanks for the tips.

  • LFO on 25/06/2024 - 18:36

    Does anyone know where can I find out what is required for such business?

    Probably connecting with an existing, operating, small, local, logistics could help to start locally.
    Are you also planning a fleet of vehicles or just subcontracting?

    Interesting indeed.

  • oO0Dam0Oo on 25/06/2024 - 19:08
    +1

    Sadly corruption is rife within the logistics industry in Australia. Particularly in lower management. Ghost loads in road transport are the norm.

    • hibiscus on 25/06/2024 - 21:05

      Oh.. do tell!

  • hibiscus on 25/06/2024 - 21:06

    Relying on a single “connection” is fraught, you’d be vulnerable to blackmail and other leveraging. Would have to be an iron clad agreement where everyone knows where they stand.

  • weee on 25/06/2024 - 23:58

    that's quite a connection yet they need a 'relative' to ask a nonchalant question on ozb, you think ozb is that cheap??

  • Typical16-bitEnjoyer on 26/06/2024 - 07:21

    Start with school or a business course.

    This is the equivalent of asking how to be a F1 driver and having a connection who owns a go kart.

  • pformag on 26/06/2024 - 09:53

    Without a customs broker, you pretty much can't do much.

  • cashless on 26/06/2024 - 11:25
    +2

    Check out Aramex.
    Then do everything differently to what they do.

  • mini2 on 26/06/2024 - 14:04

    A single country could work; there are specific freight businesses that only cater to China, the Philippines, Taiwan, etc.

    How are you going to service the last mile from your hub?

    How are you going to sort out ABF-related crap?

  • DiscoJango on 26/06/2024 - 14:15

    I ship to you. Verrry cheappp. Veerrry nice.

  • R4 on 26/06/2024 - 16:16

    Mmmm. I'm looking to start a business but where to get some advice? I know, I'll ask for the opinions from the punters on a discount website - where there are more opinions than assh@les.

    • endotherm on 30/06/2024 - 00:46
      +1

      I think there are more of the latter.

  • browser on 26/06/2024 - 17:01
    +1

    The answer you seek is part of the start up cost.

    Like any business, you are not going to find step by step instructions off the internet. You maybe able to get some general advice but end of the day you (your relative) need to invest the time to understand or to pay someone for the information (accountants, lawyers, custom brokers), or to acquire an established logistic setup.

  • SydBoy on 27/06/2024 - 07:15
    +1

    Thought of starting a company to be entrepreneur is good, but if your mate or you know nothing about business in Australia then best to start working for logistic company in Australia.

    Remember, no one in their right mind will serve the success receipt of their business here on OZbargain or on any other forum.

  • tanguyen on 27/06/2024 - 09:11

    Just imports? No exports?

  • stingy-oz on 27/06/2024 - 12:40
    +1

    had some experience but generally you wanted to start with some level of specialisation. This could be customer base (SME or Larger business or ecom based), or you can go with specific city, or you just going to be a local importer/exporter, or are you going to be specialising on the leg between certain countries etc. Such a large topic it's really hard to nail down with just a post.

  • ripesashimi on 27/06/2024 - 13:06
    +1

    I worked as an admin in a logistics company for 2 years.

    I'm no expert but the company went under due to goods not being accepted by border force leading to excessive storage fees and failed auctions. There are heaps of legal disputes. We were being chased for costs, costs that we need to chase from clients. The owner asked me to provide whatever their solicitor needed. The solicitor explained to me that all these issues are preventable if the company engages a solicitor at contract stage.

    I say get a lawyer early and have them look over everything for your peace of mind. Prevention is cheaper than proceedings.

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