It’s no secret that people need to send documents and packages to others on a daily basis. The courier delivery industry is a global one that is worth billions of dollars each year.
It doesn’t matter whether you want to be a small, local firm or an international carrier like DHL. Running a business in the courier industry can be quite lucrative.
A lot of people keen to start a business in the courier industry aren’t too sure where to begin. If this sounds like you, this blog post is for you! Today you will learn how to set up your own courier business with just a few simple steps! Here is what you need to know:
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Are you ready to do a lot of hard work?
The one thing that some people new to the business world don’t realize is that running a business takes a lot of time, effort and money. As a startup business, it’s likely you will have to work long, unsociable hours.
You will need to carry out a range of tasks such as completing paperwork, and dealing with customers and suppliers. You will also have to take care of your accounts, and that often involves chasing people that owe your business money.
On top of all that, your job is to ensure your business is legal and above board. That means sticking to any legal obligations you might have for tax purposes, for example. As you can tell, there’s quite a lot of work involved in running your own business.
Are you are happy to take up the challenge? If so, you can take solace in the fact that the financial rewards of running your own courier business are great.
Finding your niche
It’s perhaps not surprising that the courier industry has a lot of companies trading within it. To start a successful courier business, it is important that you find your niche market within the industry.
For example, larger courier companies and carriers offer same-day services but at expensive prices. Your courier company could offer such services but at lower prices whilst still making a profit.
Firms like lawyers might need documents transporting to other lawyers or clients on a same-day basis. Because such a need is regular, you could offer discounted prices to them on the proviso that you get given regular work.
You might also find another niche area that your competitors haven’t taken advantage of yet. An example might be local florists that offer same-day delivery services for fresh flowers. You could have a fleet of refrigerated cargo vans to suit such purposes.
To cater to the niche market of delivering temperature-sensitive goods like fresh flowers, pharmaceuticals, or food products, you could partner with a reliable refrigerated van rental service like FridgeXpress. This will ensure that your customers’ products are delivered in pristine condition and at the right temperature. By providing such specialized services, you could carve a niche for your courier business and differentiate yourself from your competitors.
Those are just two examples of how you could cover a niche market. Whatever niche markets you choose to target is down to you. But it’s important that you choose a niche market that is profitable. Ignore niche markets that are seasonal or only have a limited scope for revenue.
Keep your expenses down
As a startup business, one golden rule that you must abide by is to keep all your expenses down as much as you can! It can be tempting to splash out on new offices, furniture, computers and even company cars.
While all those things sound great, in reality they could kill your new business before it even gets off the ground! Most people that run successful firms started out in modest surroundings. Some even started operating out of their garages at home!
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Working out of your garage might not sound appealing. But you could still work from home during those initial stages in your business. Things like leased offices, photocopiers and computers all increase your startup costs.
The key is to use what you’ve got and resist the temptation to buy anything! And if you do need to buy something, consider buying a used model rather than a brand new one.
Transport fleet
As you are starting a courier business, one thing you do need to have vehicles to transport people’s documents and packages in! You could always use your own car to begin with. But that will limit how much cargo you can carry.
If a customer asks you to transport a pallet of goods, for instance, how would you fit them into your car? The good news is that there are several options open to you for starting and growing your transport fleet.
For same-day and inner-city services, most people will only send documents or small packages. A cost-effective solution is to have at least one motorcycle in your fleet. The great thing about motorcycles is that they cost less to buy or lease than cargo vans, and they are cheaper to insure.
On the subject of motorcycle insurance, make sure you choose the right policy for your needs. A standard policy isn’t suitable for a motorcycle that gets used for business purposes. For instance, take the UK based bike insurance from Carole Nash. Their policies are only good for those using their bikes for social and commuting purposes.
Do a Google search for “business motorcycle insurance” and you will have plenty of insurers to choose from.
For standard deliveries of packages and boxes, cargo vans are the ideal vehicles for the job. I recommend leasing cargo vans rather than buying them. That’s because you won’t wipe out your cash flow or backup funds with huge payments!
And if you want to lower your cargo van costs even further, you could always hire owner-drivers on a self-employed basis! They supply their own vans and sort out insurance themselves. All you have to do is pay them for their time.
A lot of startup courier companies operate in this way, as it keeps things simple and lowers operating costs.
Advertising
While you will make some money from domestic customers, businesses will be your core source of revenue. When you advertise and market your new courier business, ensure that you target local businesses and organizations likely to use your services.
I hope you have found today’s guide useful. See you soon!
