Starting a Logistics Company in the UK (2024): 6 Simple Steps to Take

how to start logistics business

Are you an entrepreneur who wants to step into the logistics industry and start a business that relies on an essential aspect of the overall supply chain?

This could be one of the best ideas, business-wise, given that logistics is a much-needed field in the current climate.

Why is this field so important?

Supply chain management (SCM) is a crucial and indispensable aspect of any company that produces and delivers goods and products.


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With the rise of e-commerce businesses and online shopping becoming more and more the preferred way among consumers, there is no denying that SCM is highly important. And you cannot have an effective SCM without logistics, which involves transportation, storage, and distribution.

Because logistics companies have become more relevant and needed than they have ever been before, starting such a business is an excellent idea.

This doesn’t mean that, until now, it wasn’t necessary to have a logistics company or that the demand for them didn’t exist. It simply means that logistics companies are incredibly necessary for the current climate, with a consumer who values convenience and availability more than ever.

As mentioned earlier, the retail e-commerce sector is growing exponentially, with the number of digital buyers increasing massively in recent years. In 2021, this number was expected to reach 2.14 billion worldwide, up from 1.66 billion in 2017.

Whether you want to open a large logistics company with global transport or keep it small and only transport locally, there is no doubt that this business idea can generate profits when put into practice efficiently and effectively.

Therefore, to start and run a successful logistics business, it is crucial to learn all the necessary steps and gather all the relevant information to be highly prepared for this business endeavour.

Table of Contents

How to Start a Successful Logistics Business in the UK

The following 6 steps can help you plan the business and run a successful company.

1. Decide on the Size of the Business

It is of the utmost importance to decide and know from the beginning what type of logistics business you want to run and the size of it.

This means choosing between having a transport business that operates locally and globally.

Knowing this from the start helps you prepare for it, write a relevant business plan, get the necessary funding and invest accordingly in it. Only this way can you ensure that your new business has real chances to be successful.

Having a logistics company can be incredibly challenging, so it is crucial to be as prepared as possible from the first step of the process to overcome any business obstacles when they emerge. So, first things first – decide on the size and type of logistics company you want to run.

Related: 11 Best Logistics Companies in London

2. Write a Comprehensive Business Plan

This is an entrepreneur’s must-have item when they decide to start a business, regardless of its focus or chosen industry.

A business plan is necessary, given it contains everything from the mission statement, the company’s goal and objectives and how it plans to achieve them, expense report, investment strategies, brand identity, and so on.


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Not only is a business plan essential for entrepreneurs and the team putting together the company’s foundation to be able to lay this much-needed foundation, but it is also a necessary aspect to get funding or apply for a bank loan as a start-up company.

3. Get the Necessary Licences and Permits

Starting a logistics and transportation company in the UK cannot be done without the necessary licences and permits. This is the only way that your business can operate legally and adequately in the country.

Some of these documents include operator licensing, which is the legal authority in the UK that is needed to operate goods vehicles correctly.

 Apart from this, you will also need an EIN or employer identification number. This is necessary because it represents a unique number used to identify business entities for tax purposes.

Related: Best Warehousing Companies in the UK

4. Purchase Reliable and High-Quality Vehicles

It almost goes without saying that your logistics and transportation company cannot operate without vehicles. So, depending on the size of the business you decide on, you will need to purchase reliable and high-quality vehicles that fit the company’s needs and match the workload.

When researching vehicles, it is of the utmost importance to take into consideration the type of products or items you will be transporting and storing, as well as the number. Apart from this, the vehicles you choose should be of excellent quality, with all the maintenance checks in place.

5. Provide a Safe and Healthy Work Environment

The team you build consists of drivers, warehouse workers, and many more. Your employees will be working in every department from fleet management, order processing, research and development of new and effective strategies to those on marketing campaigns or the accounting department.

For every one of them, you must provide a safe and healthy work environment. That is the requirement for any workplace that employs at least one individual.

This means adhering to health and safety regulations to significantly reduce the risk of a workplace accident resulting in personal injury. If that happens, employees are entitled to claim compensation, as the accident occurred to no fault of their own.

According to specialists from How-To-Sue, individuals can also sue the NHS if they sought medical attention and weren’t properly taken care of. They were victims of a medical negligence case.

But to avoid these kinds of unfortunate situations, it is of the utmost importance to prioritise your employees’ health and safety. So, workers’ compensation insurance and other insurance plans, such as for the drivers while on the route, for trucks and cargo, are a must for your business.

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Related: 10 Best Ecommerce Fulfillment Services in the UK

6. Hire a Highly Skilled Professional Team

Last but not least, the team you build should be made of highly skilled professionals.

Because you have a logistics company that transports goods and items, you must hire highly experienced drivers that should have at least three years of experience driving large vehicles and transporting significant cargo.

Plus, they should also be tech-savvy or willing to learn how to operate new technologies, given that vehicles nowadays are updated with route optimisation and fleet management software programs.

This applies to your warehouse employees as well, given that there are many digital tools used to support and facilitate inventory, process orders, label stock, and so on. Therefore, it is crucial to allocate enough time to find the right people.

Compare Logistics Companies in the UK

Starting a Logistics Company in the UK (2024): 6 Simple Steps to Take

Remz is a professional who has been writing content for almost 10 years. He's a shipping and logistics enthusiast and the head of the Trust Heritage Logistics content team. He bagged an MSc degree shortly after graduating from the university with flying colours. When it comes to creating content, Remz loves to do in-depth research and provide amazing pieces of information that every reader will find helpful.

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