How to Start a Courier Business
Make initial decisions on your service area and types of packages., Meet with business advisers., Gather the necessary equipment., Consider monthly expenses., Decide how much to charge.
Step-by-Step Guide
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Step 1: Make initial decisions on your service area and types of packages.
A courier service is a company that delivers packages from location to location.
If you're interested in starting a courier company, take some time to make decisions about your service area and the types of packages you'll be delivering.
What kind of parcels and packages do you want to deliver at your company? The answer to this questions depends on your own resources.
If you're relying on people using small cars or bikes, you may want to stick to small packages and envelopes.
If you have access to larger trucks, you may be able to make money making bigger deliveries.
Also, keep in mind there are specific regulations on certain types of packages.
Medical goods and industrial chemicals have specific handling and care requirements.
Your carriers may have to have specific certifications to carry such substances depending on your state.How big do you foresee your service area? Do you want to deliver globally, transporting packages across the country? Or do you want to stick to a small, local region? What scope are reasonably able to handle? A local courier business might be easier to manage as coast-to-coast delivery can be expensive and you would be competing with larger companies, like FedEx and UPS.
Spend some time thinking about how far your delivery range can reasonably be before committing to a courier business. -
Step 2: Meet with business advisers.
Unless you have a strong background in business, it's unlikely you can establish all aspects of a new business alone.
You'll need to meet with a variety of advisers to establish the terms of your courier business.
Consult a business attorney familiar with the courier service industry to advise you on matters such as local zoning laws, which is especially important if you will run the business from your home.
Consult an accountant to advise you on how to keep your business records, tax filings, the pros and cons of employees vs. independent contractors and setting up an accounting system.
You'll need to figure out how customers can pay and what kind of credit cards, checks, and other payment options you're willing to accept.
Consult an insurance professional to advise you on obtaining the proper business insurance for your office and its contents as well as commercial vehicle coverage, cargo insurance, worker's compensation insurance (if needed) and health insurance. , You'll need some basic, physical goods to start a courier business.
Spend some time gathering these materials as you move through the preliminary process of starting your business.
Decide on vehicle types.
If you're only delivering letters or small packages, consider using bicycles or small cars.
You may be able employees to provide their own transportation as long as their cars and bikes are able to pass certain tests to assure they're running properly.
However, if you're transporting bigger items you may need to use large, cargo trucks.
You will have to provide these types of vehicles to your employees.
You may need to take out a business loan to front the initial cost of trucks.Cell phones, clipboards, maps, and GPS systems are also important for a courier business.
If you want your employees to wear uniforms, keep this in mind as well.Once you're ready to start advertising your business, you'll need to put some money into this as well.
While you may not need to advertise in the early stages, as you'll be busy securing permits and making decisions regarding your business plan, it something to keep in the back of your mind.
You do not want to over budget.
As stated, you will probably some kind of loan to pay for early costs.
Talk to the business attorney you spoke with earlier and ask him about the logistics of securing a loan. , You want to make sure your business plan is feasible.
Spend some time estimating what your monthly expenses can be.
This information can be helpful down the road when deciding on how much to charge customers.
For a courier business, your main monthly expenses will be vehicle insurance, cargo insurance, and fuel.
There may be specific expenses regarding your personal business plan.
Make a list of potential expenses you may encounter each month to help you estimate your total monthly expenses.
Consider things like wages, marketing and advertising, utilities, and any interest you'll have to pay regarding loan costs., Considering your monthly expenses and other factors, you need to consider how much you'll charge your customers.
Spend some time thinking over the prices you'll charge as a company.
Consider your location.
In a bigger, metropolitan area you'll have to charge more to make a profit.
You should also look at your competition to get an idea of average rates.
If you can get by charging slightly less than the competition this might give you an edge.You should also study your target market.
If you're, say, delivering food and groceries in a college town you may have to keep your rates low.
However, if you're delivering pricey antiques and high scale items in an affluent suburb, you can charge more and still get business.With the help of an accountant, see how much you need to charge to make enough profit to maintain your business.
From there, tweak prices and rates when you can to make more money.
If you lack experience running a business, you may need to enlist the assistance of a professional here. -
Step 3: Gather the necessary equipment.
-
Step 4: Consider monthly expenses.
-
Step 5: Decide how much to charge.
Detailed Guide
A courier service is a company that delivers packages from location to location.
If you're interested in starting a courier company, take some time to make decisions about your service area and the types of packages you'll be delivering.
What kind of parcels and packages do you want to deliver at your company? The answer to this questions depends on your own resources.
If you're relying on people using small cars or bikes, you may want to stick to small packages and envelopes.
If you have access to larger trucks, you may be able to make money making bigger deliveries.
Also, keep in mind there are specific regulations on certain types of packages.
Medical goods and industrial chemicals have specific handling and care requirements.
Your carriers may have to have specific certifications to carry such substances depending on your state.How big do you foresee your service area? Do you want to deliver globally, transporting packages across the country? Or do you want to stick to a small, local region? What scope are reasonably able to handle? A local courier business might be easier to manage as coast-to-coast delivery can be expensive and you would be competing with larger companies, like FedEx and UPS.
Spend some time thinking about how far your delivery range can reasonably be before committing to a courier business.
Unless you have a strong background in business, it's unlikely you can establish all aspects of a new business alone.
You'll need to meet with a variety of advisers to establish the terms of your courier business.
Consult a business attorney familiar with the courier service industry to advise you on matters such as local zoning laws, which is especially important if you will run the business from your home.
Consult an accountant to advise you on how to keep your business records, tax filings, the pros and cons of employees vs. independent contractors and setting up an accounting system.
You'll need to figure out how customers can pay and what kind of credit cards, checks, and other payment options you're willing to accept.
Consult an insurance professional to advise you on obtaining the proper business insurance for your office and its contents as well as commercial vehicle coverage, cargo insurance, worker's compensation insurance (if needed) and health insurance. , You'll need some basic, physical goods to start a courier business.
Spend some time gathering these materials as you move through the preliminary process of starting your business.
Decide on vehicle types.
If you're only delivering letters or small packages, consider using bicycles or small cars.
You may be able employees to provide their own transportation as long as their cars and bikes are able to pass certain tests to assure they're running properly.
However, if you're transporting bigger items you may need to use large, cargo trucks.
You will have to provide these types of vehicles to your employees.
You may need to take out a business loan to front the initial cost of trucks.Cell phones, clipboards, maps, and GPS systems are also important for a courier business.
If you want your employees to wear uniforms, keep this in mind as well.Once you're ready to start advertising your business, you'll need to put some money into this as well.
While you may not need to advertise in the early stages, as you'll be busy securing permits and making decisions regarding your business plan, it something to keep in the back of your mind.
You do not want to over budget.
As stated, you will probably some kind of loan to pay for early costs.
Talk to the business attorney you spoke with earlier and ask him about the logistics of securing a loan. , You want to make sure your business plan is feasible.
Spend some time estimating what your monthly expenses can be.
This information can be helpful down the road when deciding on how much to charge customers.
For a courier business, your main monthly expenses will be vehicle insurance, cargo insurance, and fuel.
There may be specific expenses regarding your personal business plan.
Make a list of potential expenses you may encounter each month to help you estimate your total monthly expenses.
Consider things like wages, marketing and advertising, utilities, and any interest you'll have to pay regarding loan costs., Considering your monthly expenses and other factors, you need to consider how much you'll charge your customers.
Spend some time thinking over the prices you'll charge as a company.
Consider your location.
In a bigger, metropolitan area you'll have to charge more to make a profit.
You should also look at your competition to get an idea of average rates.
If you can get by charging slightly less than the competition this might give you an edge.You should also study your target market.
If you're, say, delivering food and groceries in a college town you may have to keep your rates low.
However, if you're delivering pricey antiques and high scale items in an affluent suburb, you can charge more and still get business.With the help of an accountant, see how much you need to charge to make enough profit to maintain your business.
From there, tweak prices and rates when you can to make more money.
If you lack experience running a business, you may need to enlist the assistance of a professional here.
About the Author
Katherine Gonzales
Brings years of experience writing about cooking and related subjects.
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