How to Start a Successful Warehouse Business in the UK (2024)

Many successful business owners or entrepreneurs in the UK ensure that their goods or products are packaged and set for delivery in good conditions before they get to consumers.

They monitor the storing and packaging of their products to enable them to deliver quality services and earn more profits in the process.

One of the ways they achieve this is through a warehouse storage facility or company.

Big and small manufacturers and wholesalers in the UK often require warehouses to help grow their businesses exponentially.

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Business owners who cannot afford a warehouse of their own usually lease warehouses from bigger businesses or warehouse storage companies to store and package their products.

This, therefore, makes the warehousing business highly lucrative.

If you’re looking forward to starting a profitable warehouse business, this guide is all you need to get started.

Whether you decide to start with a small or big warehouse, this guide will help you to begin the whole process seamlessly.

Ensure that you read the guide carefully if you want to know how to start a small or big moneymaking warehouse business in the UK.

Factors to Consider Before Starting a Warehouse Business in the UK

Whether you intend to start or invest in a warehouse business for your products or as a storage company for other businesses, the following factors must be put into consideration.

Budget

The amount of money you intend to use in starting the warehouse business often determines whether the warehouse will be a small-scale or large-scale business.

You need to have a good budget with a detailed estimation of the amount you’ll spend on purchasing the property for the warehouse, employing staff, and buying the required equipment for the business.

A budget will give you a good sense of direction and help you start the business seamlessly.

Location

Warehouses are usually located in strategic places across the nation, especially in urban areas.

This is to enable third-party logistics (3PL) services to easily transport products to the final consumers.

Therefore, ensure that your warehouse is situated in a place that is accessible and can easily be located.

Demand Ratio

Consider the level of demand for warehouse facilities before you begin the business.

This will help you to determine if you’ll have enough customers in the area and if they’ll always need warehouse storage facilities to store their products.

Doing this research is highly important to prevent you from running at a loss when you begin the business.

Return on Investment (ROI)

Do an in-depth study or analysis of the warehouses around your area to ascertain if starting up a warehouse business in the location will be profitable.

The ROI other warehouses generate will give you an estimate of what you’ll likely earn when you start your business.

Study Your Competitors

Carefully analyse how your competitors operate. This will give you an insight into how to do things differently to attract more customers.

Property Survey

If you intend to buy a warehouse, endeavour to do a thorough survey or assessment of the property before buying.

The crucial aspects of the property that you must look out for are the layout, building structure, floor plan, and vertical space.

The vertical space or height of the warehouse will help you to determine the capacity of goods the warehouse can accommodate.

Select Your Niche

When you store products in the niche you’re familiar with, it enables you to operate effectively and efficiently. This is better than just storing different types of goods.

Safety

There are safety standards that every business must put in place to protect lives and properties.

One of the ways of ensuring safety in the warehouse is by making sure that the building is constructed with strong and durable materials.

If you purchase the warehouse, renovate any part of the property that needs repair before using it for business.

Install anti-fire alarm systems to prevent fire hazards.

Also, the equipment you intend to use for the warehouse should be of the best quality to prevent accidents during usage.

Scalable Storage Facility

Look at the future potential of the warehouse. Does it have the potential of accommodating different storage options in the future? Is the warehouse scalable to make the business grow bigger?

These, among other questions, are what you should find answers to before starting the business.

Maintenance

In warehousing, maintenance is crucial for the successful operation of the business.

From the forklifts to the pallet racking and other warehouse equipment, everything must be maintained to prevent them from being damaged beyond repair or causing accidents during storage.

Benefits of Having a Warehouse Business in the UK

Owning a warehouse business in the UK provides many benefits. Some of them include the following.

Security & Safety

A warehouse business ensures that goods or stock are kept safe at all times. There are modern security facilities like CCTV and anti-theft alarms that help to protect goods from vandals and thieves.

Security is usually one of the reasons many manufacturers and wholesalers prefer storing their goods with warehousing companies.

Production Support

Manufacturers find it easier to cut down the cost of production by storing goods in the warehouse until they are needed.

This makes it easier for them to focus on other parts of production while being assured that their goods are in safe hands.

Safe Inventory

Apart from storage, warehouses also help manufacturers and wholesalers with packing and shipping goods to their final locations.

They ensure safe inventory and help to reduce production and distribution costs to their lowest minimum.

High ROI Potential

As long as people keep placing orders for products online, e-commerce will continue to be one of the most lucrative industries in the world.

And the demand for warehouse storage facilities will keep on rising. Therefore, you’re going to get the best ROI from your investment in the business.

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Increased Property Value

The growth of the warehouse as a business facility will most likely increase its value.

This is even more feasible if it is located in an urban area with modern facilities. One of the benefits of owning a warehouse is the versatility that comes with it.

The facilities are also scalable and can be used to start different businesses if you intend to sell them off.

Ultimate Guide: How to Start a Successful Warehouse Business in the UK

Having understood the various factors to consider before starting a warehouse business, it’s time to discover a detailed guide on how to begin.

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1. Set up Your Warehouse

Once your warehouse building is ready, set it up with the necessary equipment to enable you to commence operation as soon as possible.

Some equipment you’ll need include forklifts, material-handling equipment, pallet jack, hand trucks, conveyor systems, side loader, and weighing scale.

2. Get the Required Licences and Permits

You might not be allowed to begin your warehouse business if you don’t have the complete documents to do so.

Therefore, get licences, permits, and other tax documents from the government to enable you to operate your business legally.

This step is crucial if you intend to specialise in storing heavy equipment, chemicals, or any type of product that will be dangerous to the environment if they’re not handled properly.

Once you’re able to get all the required documents from the government of the state your warehouse is located, you can begin a hassle-free operation.

3. Build the Right Team

Here’s another important step you shouldn’t take with levity.

The type of people you hire will go a long way in determining whether your business will be successful or not.

So, hire individuals who are intelligent, experienced, and possess the skill sets needed to run your business smoothly and effectively.

Hiring the right people will save you a lot of time, resources, and the hassles of replacing your staff in the future. So, ensure that you get it right from the beginning.

The number of workers to hire often depends on the size of your warehouse.

If you plan to operate on a large scale and cover logistics services, then you have to hire your logistics team, warehouse manager, general workers, shipping specialist, and other key staff members.

4. Train your Staff

In warehousing, it is not enough to hire workers. You also need to make them undergo adequate training to enable them to perform their duties appropriately.

The training should also include safety techniques, accident prevention protocols, and exit plans in times of emergencies.

starting a warehouse distribution business uk

Since a warehouse is susceptible to accidents due to the heavy lifting of objects and machinery, this training will go a long way in preventing such accidents or mitigating them to the barest minimum.

5. Build Your Clientele

This is the next step to take once your warehouse and staff are ready to begin operation.

Even if you already have some clients or customers you’re working with, it’s always profitable to source more clients, especially when you’re operating on a large scale.

Some of the practical ways you can get clients are by attending business-to-business (B2B) conferences or seminars, networking with manufacturers and wholesalers and sharing your business flyers with your target clients or businesses.

6. Use the Internet

The internet is one of the most practical ways of gaining more clients and running a profitable business.

Many successful warehouse businesses leverage the internet to collaborate with online businesses or e-commerce stores and scale higher.

The various methods you can use the internet for your business are as follows:

Creating a Website

Create a website that illustrates what you do.

If 3PL is part of what you do, include it and other vital information about your warehouse. This will enable your target customers to reach you effortlessly.

The power of social media cannot be overemphasised.

Your warehouse business should have various social media accounts like Facebook, Instagram, LinkedIn, and Twitter.

This will help you to create various social media ads that will target your potential clients within your area of operation, and make them reach out to you for business.

Social media is also a viable way of keeping the communication line open between you and your clients, where you update them regularly about various offers or other vital information that they should be aware of.

7. Great Organisational Structure

how to start a small warehouse business uk

Every successful business has a great organisational structure. This makes it a very crucial aspect that you shouldn’t take with levity.

The first part of having a good structure is by making the workplace visually appealing and well-organised.

The offices must be well-equipped with office gadgets and accessories that will aid the seamless operation of the business.

The storage tools should also be properly arranged in their rightful places to make the warehouse look tidy.

There should be colour coding and useful signage that will help to prevent mistakes when receiving or shipping products.

Furthermore, organisational policies and procedures should be taught to the staff to help them develop a work routine and achieve the best level of efficiency for the warehouse.

Take Home

There is no gainsaying that a warehouse business is lucrative.

The continuous production of different products and boom in e-commerce will make warehouse storage services continually in demand.

However, a warehouse business is not a type of business you can start blindly. You must know the various procedures involved in starting and running it.

If you’re able to implement every tip shared in this article, you’d already be on the right track to operating a successful moneymaking business.

Keep in mind that you can also offer other services like ecommerce fulfilment alongside your warehousing business.

Compare Warehousing Companies in the UK

How to Start a Successful Warehouse Business in the UK (2024)

Remz

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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