Top Tips For Starting A Courier Business

There is a lot of business available for couriers, especially at the moment, when demand for online delivery is even higher. Despite this demand, a lot of people are unsure about whether or not they ought to venture into setting up a courier company or business. Whether you are new to the delivery industry or have been working for another courier company are have the experience to consider starting up a company of your own, follow some of these tips to help you make those all-important first steps to get started on your new business and your courier delivery service.

Make A Business Plan

Like any new business, you need to make a clear business plan before you start doing anything else. Your business plan should include your expenses, competitive pricing, and profit margins. You must have a clear vision of how you will be able to make money and what kind of courier work you intend to take on. Establish where you will get new business from and think carefully about how you will retain clients. You can use delivery quote comparison sites to secure some new business, especially when you are starting out and still have a limited marketing budget. The clients you find through services like that could become your regulars and loyal customers if you can provide a good level of customer service.

Get Your Vehicle

You need to decide if you will buy or lease your delivery vehicles. You will need a practical vehicle that is safe, reliable and has a good fuel economy. If you decide to buy a vehicle, make sure you get it checked out by a competent mechanic (click here for a truck inspection service) before you part with your cash. Make sure you include the depreciation in the value of your vehicle in your business plan too.

Organize Office Space

If you set up an office in your home, contact your local zoning office to make sure that you are legally able to run a business from your home, according to local laws. If you decide to rent office space instead, consider location and cost, and add these into your business plan.

Purchase Materials And Equipment For Your Courier Business

The materials and equipment that you will likely need for your courier business might include things like cell phones, two-way radios if you’re hiring one or more employees, office supplies like envelopes, pens, pencils, and notebooks, a GPS unit, and computer software to help you to track pick-ups, deliveries, invoicing, and bookkeeping. You might also want to purchases gas cards for your employees and ledgers and to track the usage of gas and how many miles have been driven every day.

Start Marketing

Get your marketing underway. Start by contacting some local businesses to market your courier services. Lawyers, banks, corporate offices, notaries, hospitals, medical offices, and individuals in your local community may have all need of a good courier. Have a brochure made that will highlight the information about your offerings, such as the services that you offer, your operating hours, your delivery options, and your contact information. You can advertise your courier services in online and print business directories. Go to local trade shows and conferences for small businesses to network with potential clients. Set up a simple website that includes your contact details too, and use delivery comparison websites to help you to generate your first leads until you can secure some regular clients.

Start Hiring

Hire one or more employees if you think you want to be the one who manages the offices and not be the one out making pick-ups and deliveries. Make sure that before you hire anyone you carry out a thorough background check and credit check before you hire them to work for your company. All your employees must have clean driving records, and reliable transportation if you want them to use their own vehicles to make deliveries. If you want to make the deliveries yourself, you will need to hire someone that you will manage the office. Make sure you have the correct qualifications before taking them on to do this.

Delivery Options

Decide early on whether you will offer different options for delivery, such as one-hour delivery or an overnight service. You will also need to decide the type and size of materials delivered, whether you will be offering more specialist delivery services such as confidential material or oversize items.

Develop A Pricing Structure

For example, decide whether you will charge less for letter delivery than you would for a heavier parcel. If you are going to offer same-day or one-hour delivery, think about the time and effort it will take for you to provide these services.

Estimate Your Ongoing Costs

When you decide on the pricing for your services, you need to remember to take into account all your expenses and make sure that these are covered and you will still turn a profit by knowing your ongoing costs so you can set your prices and rates accordingly. Take into account the cost of petrol or diesel, and vehicle maintenance when you set up your price structure. Cash flow can be a problem for any new business so you should make an estimate of what you will earn in your first year as part of your business plan and work out how many jobs you will need to take on in order to cover your costs and make a profit.

Check Your Insurance

An accident or other unexpected problem can cause some serious problems for a new business. Make sure that you have insurance that is suitable for a courier company. Make sure you insure the contents of your office as well as your vehicles and your employees.

When you set up a delivery or courier business, you need to work out revenue streams and expenses as well as thinking about how you can win business. These tips should help you to get on your way.