Are you interested in starting a
courier service business? Do you need a sample courier business plan template?
Then here’s a detailed guide on how to start a courier business from scratch.
Now for those who don’t know what
a courier service business is or stands for, a courier service is a business
company that moves packages from one location to another for a fee. Popular
courier brands that have gone beyond just courier and delivery to full time
haulage and logistics include UPS, FEDEX, DHL, ABC Courier, etc.
Opening a courier business can be
a lucrative opportunity, but there are practical things to put into
considerations and logistics to be taken into account but you may tend to
overlook them. So without wasting your time, below are the steps to starting a
successful courier company.
How to Start a Courier Business –
Sample Business Plan Template
1. Prepare a business plan
Draft out a comprehensive business
plan following the guidelines available from your local Small Business
Association popularly known as (Business Centre Association), and pay special
attention to financial management details.
2. Decide the type of parcels you
will be delivering
The next step to starting a
courier business is to decide if your service will be limited to envelopes and
small packages or large cargoes. Naturally, your decision will depend on the
capacity of your storage and transportation vehicles. Will you will be
delivering sensitive cargoes such as medical and industrial chemicals? If yes,
then you and your crew must be knowledgeable in handling and conveying such
substances.
You may also choose to deliver
perishable goods. However, you must bear in mind that this cargo is always time
sensitive, so your manpower resources and transportation must be adequate. You
have to make your units to be well known.
Your ability to deliver a wide
variety of cargo will augment your potential to earn. However, you should
expect to spend more initial capital. For instance, to successfully deliver
perishable goods, you may need to invest in refrigerated trucks for it.
3. Decide on the scope for your
service area
In other words, you should define
the limit of your parcel destination. You have to decide and mark the globe you
will intend delivering. Also decide if your service will be limited to within a
state or country. Check if you can handle deliveries from coast to coast.
Observe if you have the resources and the network to deliver internationally.
Bear in mind that the same rule goes for all. Note that the wider your
geographic scope, the larger the amount you will be required to invest on
start.
4. Determine your price charge per
delivery
You have to establish a pricing
policy, and get it printed in an easy-to-read format. In setting up a price
list, there are several factors to consider. The first to consider is the
amount and mileage of gasoline that will be consumed from let’s say point A to
B.
The second factor is the number of
parcels to be delivered at a particular area. The third, you have to consider
if the delivery will be from point A to B scenario or if you will be able to
accept delivery from point B back to A. Four, consider the rate your
competition charges their own customers.
Finally, the factors listed above
are only a small fraction of the whole picture. Be advised that you must gain
hands-on experience in the industry if you are really serious to start your own
courier service and to gain this experience, working for a courier service
company is the only means to accomplish this. Working for a courier company
will enable you have a “feel’’ for how the system works.
5. Meet with business advisers
To have a successful head start, you
have to consult a business attorney that is familiar with courier service
business to offer you advice on matters like local zoning laws, which is
especially relevant if you will run the business from your home.
You should contact an accountant
that is familiar with the courier service business to give advice on how to
keep and maintain your business track records, tax fillings, the pros and cons
of employees versus independent contractors and how to set up and accounting
system.
You should as well consult an
insurance professional that is familiar with courier service business in order
to advise you on how to obtain the proper business insurance for your office
and also, its contents along with commercial vehicle coverage, worker’s
compensation insurance (if needed), cargo insurance and health insurance.
6. Get the necessary business
permits
You should as well obtain the
necessary business permits and you have to license your business and your
vehicle; have a discussion about the pros and cons of incorporating a company.
7. Get the necessary equipment
The material items that you will
need to start a courier business can be found on the list below. You do not
necessarily have to limit yourself with these items but a good courier business
will certainly require them:
A vehicle
Transportation is of the essence
in any delivery service. If you are planning to deliver big items and packages,
investing in a covered truck is your first step. If you are still learning the
ropes of the courier business, then it’s best to work with what you’ve already
got in the garage and deliver items which will conveniently fit in your current
vehicle.
You should also make sure as well
that you have the resources to cover for several weeks of gas expense before
your customers pay off their bills to you. And don’t overlook the insurance
policy of your vehicle as it should cover business use as well. Before choosing
an insurance company, you will need to know if you and your insurance company
are financially capable of handling any possible contingencies.
GPS System and Cellular Phone
A GPS system is also essential.
Nowadays many cellular phones have that feature, and it will certainly guide
you during deliveries. You have to buy street maps for the area you will be
covering. The maps are also available in book form and can be bought at almost
all the book stores. Even if you are having GPS, the maps are invaluable,
especially if the GPS is malfunctioning.
A cellular phone is also important
because it will enable you to contact your customers while on the road or
anywhere else, as well as to let potential clients contact you wherever you
are. You should as well establish a communication system between you, your
customers and your drivers, having in mind that it is illegal to speak while
driving on a cell phone in many areas.
A computer and a printer
You need to print out invoices,
tax records, and other such important papers for your courier business. You
will also need a database of your customers and the businesses that you’ve
dealt. These are some of the things that you need in starting a courier
business.
8. Market and advertise your
courier business
Buy tee shirts and baseball caps
with your business name printed on them. This will give you a more professional
appearance. Choose a colour, and use that colour on all conceivable piece of
equipment throughout the business, including personalized ink pens, clipboards,
notebooks and your vehicles as your business increases. You have to advertise
your courier service business by placing ads in trade papers, local newspapers
and hand delivering or mailing of flyers to local businesses.
How to Start a Courier Business –
Sample Business Plan Template
9. Run your courier business
At this stage, you are now set to
start and run the courier business; so here are some additional tips to help
you out. You should take your vehicles to a mechanic for a thorough overhaul.
For the fact that you would not want your vehicle to break down as soon as you
start the business, you should take it to a mechanic for thorough servicing and
you should as well consider having a back-up vehicle on stand-by. Make an order
for magnetic signs for your vehicles. You have to order for it because you will
need one for each front door of the vehicles.
You should consider dedicating one
credit card to all of your business expenses. It will be easier for your
accountant when it is time to reconcile your accounts and pay your taxes. Also
keep close records or tracks of your business mileage versus personal mileage.
Mileage for personal matters is obviously not tax deductible.
In conclusion, it is important you
know that your personality is another extremely essential factor if you want to
to starting a courier business successfully. You will need to be customer service
oriented, meaning that you are approachable and warm, caring and accommodating.
Building your customers’ trust is a combination of quality service and of
course, establishing good relationships with them.
Like many other businesses,
operating a courier services business requires a lot of patience and
determination. Expect a lot of losses, but with proper management and the right
connections, you will definitely make even more gains.
