9 Ways on How to Start a Clearing/Forwarding Business

How to Start a Clearing and Forwarding Business: Do you have the dexterous spirit of a hustler?

Do you have any aim of starting a clearing and forwarding business though you have no idea how to go about it?

Do you need a clearing and forwarding business plan or practicability study?

Then read on as I serve you an elaborated guide on how to start up a clearing and forwarding business.

If you have business management skills and logistics.

In addition to an entrepreneurial spirit.

You may just be ready to attain how to start up a clearing and forwarding business.

How to Start a Clearing/Forwarding Business

As a clearing and forwarding company.

It is your job to pose as a negotiator between client companies.

And shippers who need their facilities and services.

Their assignments also involve paying up your duties and taxes.

Clearing your goods from the ports, transporting your consignment to your suitable destination, etc.

Occasionally, freight brokers are conferred to as clearing and forwarding agents.

Now from an introductory look at this industry.

I can eagerly attest to the verifiable truth that there’s so much money to be earned as a clearing and forwarding agent.

The agreeable part is that this business can be done almost anywhere.

How to Start a Clearing/Forwarding Business

In any country; as far as international trade still occurs and your country is a participator, you are in business.

So, as you’re now in Nigeria or probably anywhere else in the world, be it Canada, China, Brazil or India, or even in the U.K or Ghana.

It is possible for you to set up this business and earn profitable income based on commissions for all successful transactions and deals.

If you are still inspired in discovering how to start a freight forwarding business, then keep on reading.

Clearing and Forwarding BusinessClearing and Forwarding Business

How to Start a Clearing and forwarding Business and Make Money

1. Make the decision:

Yes, no one wakes up and leaps into an industry without due carefulness and some personal evaluation.

The clearing and forwarding industry is a very tough one.

So you need to totally decide if this business is for you.

Can you cope with deadlines and demands from clients?

Are you prepped to bargain hard with companies, clients, haulage or trucking companies, and customs agents alike?

Are you prepped to discover the deftness to be in the freight forwarding business?

These are a few questions you must answer.

Read on: Top 50 Profitable Business with low capital 

2. Gain the necessary experience:

license and skills in both business management and logistics are vital.

When contemplating starting a clearing and forwarding business considering there are a lot of formalities to be ascertained before a transaction can be achieved.

You have to negotiate with custom agents, shipping companies, clients, etc, and deal with the competition.

Moreover, you also need to unmask yourself to learn how precisely the clearing and forwarding business actually works.

You can do so by gaining experience or researching from a creditable company first.

This way, you get to attain the ropes along with the ins and outs in the industry.

Which will definitely come in handy when starting your own company.

3. Identify a niche:

Another substantial step to starting up a clearing and forwarding business is deciding the actual niche you want to cater for.

This decides your area of adroitness.

There are many indentations in the freight forwarding business and I pledge that you can’t handle them all.

You may want to concentrate on the agricultural industry or procure the chemical industry.

You may want to spot immediate or accessible areas or any other locations.

I even know a few clearing and forwarding agents that just concentrate on clearing cars from the ports, you can actually do the same.

4. Come up with a business plan:

To get everything arranged, it is also commendable that you come up with an elaborated business plan.

This way, all items embroiled on how to start up a clearing and forwarding business from the capital to invest in equipment and facilities.

From the progression to management before the marketing strategy will all be ascertained well.

Most businesses function without a blueprint.

You can always gain an advantage by functioning strategically with a plan.

5. Get your project funded:

Depending on the specific niche you want to cover.

Your capital needs may alter.

In any case, you need to be able to think about all your reasonable options to get the essential funding.

It is substantial that you have at least enough money to settle your costs for the first three months of activities.

You also need to comprehend that you may need to settle the shippers yourself first as some client companies are frequently late in resolving their invoices.

6. Get the necessary license:

To start up a clearing and forwarding business, you need to get your business clearing license from the customs.

The one thing I have noticed in this business is that nearly all clearing and forwarding agents are not really licensed.

What they do is look for clients, get the contract, take their cut, and hand the contract over to the licensed freight forwarding agents.

You can decide to do this if you are starting with a very small capital or better still.

You can just go for your license.

After collecting your license.

You need to decide your business location and build up your business office with all the essential equipment.

Will you establish your office very close to the seaports or not? You alone can decide that.

7. Get a Lawyer or Attorney:

You also need to hire a reliable lawyer to handle the projecting of the business contracts.

He can additionally help you with the rest of the legal stuff that you need to be the best in this business.

8. Network with the shipping companies:

Another perspective of the clearing and forwarding business.

Which is specifically of great importance is growing your network list of shippers and potential client companies.

That may need your services as a clearing and forwarding company.

You absolutely need this to be successful in this business.

9. Source for clients:

To get money coming into your business, everyone needs clients.

This is where the actual need for marketing comes in.

You can spend some money on advertising or you just network with other nonlicensed freight brokers.

And as your company advances, you may want to think about hiring more people to help you control the demands of your flourishing clearing and forwarding business.

As a final note, I want to certify that the clearing and forwarding business is very lucrative but it is suffused with twists and turns.

Getting to the top relies on a complete understanding of the industry and your ability to manage the frequent challenges of the business.

If you need a complete business plan, please let us know. Or, you want us to help you set up any business, kindly contact us. Otherwise, please check out these other business ideas.


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Comments (5)

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  1. Moses Oluwadare says:

    Thanks for this piece. I will appreciate if you can send me a business plan on Clearing and forwading business in Nigeria, Covering , Sea, Land and Air cargoes
    Thanks

  2. Akeem Adegbite says:

    This piece is very helpful. Great information work. Thanks you.
    I will be extremely grateful if you can send me a business plan on clearing and forwarding business and of course covering sea, land, and air.
    Lastly Sir. Are there clearing and forwarding companies that accept apprenticeship?
    Thank you.

  3. Mubarak says:

    On clearing and forwarding

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