The courier industry is booming and, with the popularity of online shopping, the demand for direct delivery is only expected to continue to grow. With just a cell phone, a vehicle, and a passion for communicating with customers, you can establish your own courier startup with minimal additional expenses.
First Steps
To begin your courier business, you will first need to obtain the equipment required to complete your deliveries. If you have a car and a cell phone, you may already have all the equipment that you need. The types of vehicles that you employ will determine what types of packages you are able to deliver. For example, bicycles may be good for delivering small gifts locally, but would be unrealistic transport for home appliances.
Another important thing to consider when starting your own courier business is your office. Home offices can be ideal for startup courier companies. Because you spend much of your time out of the office while picking up and dropping off deliveries, a quiet room with a phone and a computer should be plenty for you to get started with booking deliveries and communicating with customers.
Because the courier industry is so vast and serves so many different sectors, you should determine your focus before you begin looking for customers. Your final decision should be based on what will serve your area in the long term. If you are working in a city, you may wish to focus on working with businesses and obtaining corporate accounts. However, if your area is more suburban, perhaps a consumer focus, such as delivering groceries to seniors is a more viable option. The resources and equipment that you begin your business with will affect this decision, as well.
Starting Your Business
Before you begin meeting with customers and completing deliveries, your business will need a name, appropriate licensing, and insurance for your area and the services that you will provide. A vendor’s license, cargo insurance, and vehicle insurance will likely be necessary before you can begin conducting business.
You may wish to meet with specialists or business advisors in your area before making any major decisions within your organization. These advisors can help you to determine what types of licensing and insurance you will need, as well as assist with reviewing accounting records and filing taxes. As your company grows, you can look to these advisors for assistance with hiring employees, providing health insurance, moving to larger offices, and maintaining a larger fleet of vehicles.
The prices and services that your competitors offer will have a continuous impact on your ability to find and maintain a customer base in your area. Compile a list of direct competitors and conduct research into their rates, methods for customer service, and delivery options. To gather accurate and up-to-date information, call or email your competitors requesting information regarding the services offered. Be sure to pay attention to the level of customer service provided during your research process, as your business will need to meet or exceed that in order to compete with these established courier companies.
From insurance to gas and salaries to taxes, your courier business will require that you address certain costs. Your ability to afford these costs as your business runs will be determined by the number of customers that you have and the prices of your services. Before you launch your business, a projection of these costs will help you to determine what your business will need to stay afloat and what it will need to grow. As your business operates, your expense records will be integral to tracking your costs and continuing to determine the price and number of deliveries that your business needs.
Software to Manage Your Business
Managing the flow of information across your new business can be overwhelming. A capable and reliable courier software system can help organize this information. Choose a powerful and flexible courier software system that will grow with your business. OnTime 360 is a solid choice for new delivery businesses. OnTime gives you low startup costs, the ability to grow with your business, and provide powerful features and technology when you need them. With OnTime 360’s monthly subscription plans, you only pay for what you need.
In our next article, we’ll share ideas on how to promote your courier service and grow your business.
