A courier service business is all about moving packages from one location to another for a fee. It is an evergreen business. It is also a lucrative business opportunity. You can start the business by two ways. One is by purchasing a franchise of a reputed brand like FedEx, BlueDart or by commencing your own brand.
However, Initiating your own brand will allow you to secure more profits. In addition, you can start your own courier company by two ways. You can subcontract your order to an established courier company. It is a less expensive to start. However, You will also fetch less profit and expansion possibilities. Rather, it is more profitable to start your own courier service company outright. Therefore, you can run the business from home with computers, mobile phone, and two-way radio system.
Courier Service Company Business Plan
There are a lot of important consideration you must cultivate to start this business. That is why crafting a business plan is immensely important in this business. The business activity includes taking orders, collecting the packets, receiving fees and delivering the packets within the committed time. First of all, determine the area you will be covering. Decide what kind of parcels and packages do you want to deliver at your company? This is most important. In addition, Decide the type of packets your company will accept. It may be only envelopes or packets or some large cartoons or everything. According to this, you must plan for staffing, marketing, establishment cost, and transportation. A well-crafted business plan ensures initiating a business with fewer mistakes. In addition, it helps in arranging finance from the banks or investors.
Related: Where To Find Free Business Plan Template Samples
Get The Registrations & Licenses
You must obtain courier license from the local authority. Every municipality has its own regulations for issuing courier’s licenses to both drivers and courier companies. So you must check this with an attorney. Contact with a tax consultant. Get advice about the tax responsibilities and other statutory formalities. In addition, take help to establish a smooth accounting system. Get insured. In this industry, insurance plays an important role. Some of the basic aspects are commercial vehicle coverage, cargo insurance, worker’s compensation insurance etc.
Means of transportation is the most important equipment in this business. However, according to your plan procure the right vehicle. 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 can avail commercial vehicle loan for purchasing the vehicles. Mobile phone and GPS system are most important tools in this business.
Put some effort in human resource planning. Hire skilled and experienced staffs. Ensure they can put value addition to your startup. Each and every organization maintains own operating procedures. Therefore, you must give training to your staffs. First off, you will need delivery people able to transport products. Look for people who have clean driving records.
Fix The Charges
Courier rates vary by size, weight and parcel destination. However, rendering great customer service and reliability will ensure a long-term success. The industry is definitely competitive. And there are several parameters, you must consider in fixing the pricing.
Related: Pricing Guide | How To Price A Product | Simplified
Courier Service Company Setup
Now this is the time of starting the operation. Choose a catchy brand name with a tagline. A simple and meaningful logo is the must. Put your creative effort into it. In addition, you can use the brand name and logo in your employee uniforms and vehicles. Get the business cards, letterheads and brochures printed. However, you will need to pay attention to software. It is better to have a customized software for the every need of the business.
Promote The Business & Get Clients
- First of all, you must promote your business offline and online both.
- Plan an advertising campaign strategy.
- Prepare a press kit and send it to the local publishers.
- An SEO friendly website is must. Put some effort to attract new clients.
- Networking is a great way to meet potential customers. Join your local Chamber of Commerce and other civic organizations to meet business owners and tell them about your new courier service.
- In addition, make your company available in local business directories.
- Put some effort to have institutional clients. Due to the bulk amount, institutional billing is profitable.
Related: 40 Low-Cost Ways To Promote Your Small Business
Starting any business is stressful. However, try to be persistent. It may take awhile for a new business to become established so don’t expect success to happen overnight. In courier service company the list of potential customers is almost endless. Architects, engineers, contractors, printers, doctors and medical labs, grocers, pharmacies, caterers, flower shops, accountants, attorneys, busy individuals all are your prospect customer in courier service business.