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. [1] X Research source 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. [2] X Research source
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.
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.
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. [3] X Research source Understand the costs that will be involved in the business. For example, if you want to do business in Florida, it will be a little different cost structure than Delaware, which has different tax laws.
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. [4] X Research source 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. [5] X Research source 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. [6] X Research source
A courier business is not consider a professional field like medicine or psychiatry. Therefore, you do not need a professional license to practice. However, most states do require a business permit and certain tax forms for you to legally operate. [7] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Use SBA. gov to find state specific information. The necessary licenses, as well as the processes involved in obtaining said licenses, varies greatly by state. The SBA website allows you to search by your state and can walk you through the process the right license to operate a courier business in your state. If you’re confused by anything, the website should provide contact information regarding which offices in your state can help answer questions over a phone. You should also talk to a business lawyer throughout the process to make sure you’re following all regulations properly[8] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Before getting a business license do your research. Check that the company name is not already a registered trademark or there is a website with that name. Consider who are going to be your competitors.
First off, you will need delivery people able to transport products. Look for people who have clean driving records. You should also keep physical fitness in mind. If you have people making bike deliveries, for example, you’ll need to find people physically capable of riding a bike long hours. If you’re going to have couriers transporting large objects, make sure employees are able to do heavy lifting. You will also need a variety of administrative positions for a courier company. Who will answer phone calls and deal with customer concerns or complaints? Who will keep track of the location of items? You’ll need a customer service team, a sales team, and other basic administrative employees. Seek people out who have experience working with people and are friendly, respectful, and outgoing. You’ll need to conduct some training with new employees. Every business has certain ethics and standards it strives to live up to. Think of a training policy ahead of time and spend some time going over ideas on how to best instruct your employees.
Forming an advertising campaign is difficult, especially if you’re doing it for the first time. However, the advantage to a campaign is that you have full control over how your product is advertised and the image you’re presenting. Prior to starting a campaign, think of how to brand your business. Is your appeal lower costs? Reliable drivers? Do you deliver items that other companies might not? Spend some time forming a fun, engaging advertising plan. [11] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Be upfront about certain facts when designing things like fliers, websites, and press releases. What services do you offer? How can customers obtain these services? What are your rates? What promises or guarantees are you giving? Customers are more likely to contact your business if the information is presented in an accessible manner. [12] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Knowing your audience can help you decide when and where to advertise. Having an online presence, for example, can help with a younger crowd. If you’re advertising for an older generation, you might want to stick to more traditional forms of advertising. Knowing your audience will allow you to most effectively deliver your message. [13] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source If you’re new to running your own business, you might want to consider taking a marketing, graphic design, or business course.
Before starting a business, see if you have the personality traits of a good entrepreneur, such as tenacity, drive, flexibility, and the attitude required for the job. It is necessary to build a strong team as an entrepreneur, know where your faults are, and either delegate them or hire someone else to improve the situation.
