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 in two ways. One is by purchasing a franchisee 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 in two ways. You can subcontract your order to an established courier company. It is 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 phones, and a two-way radio system.
7 Steps to Start a Profitable Courier Service Business
1. Create A Business Plan
There are a lot of important considerations 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 to your company? 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. Some of the important topics that must be addressed in your courier service plan document:
- Initial and recurring costs
- Target customers
- Pricing strategy
- How do you plan to promote your courier business?
2. Get The Registrations & Licenses
You must obtain a courier license from the local authority. Every municipality has its own regulations for issuing courier licenses to both drivers and courier companies.
So you must check this with an attorney. Contact with a tax consultant. Get advice about tax responsibilities and other statutory formalities. In addition, take helps 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.
3. Procure Vehicles for Transportation
Means of transportation are 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 of commercial vehicle loans for purchasing the vehicles. Mobile phones and GPS systems are the most important tools in this business.
4. Hire Employees
Put some effort into human resource planning. Hire skilled and experienced staff. Ensure they can put value addition to your startup. Each and every organization maintains its own operating procedures.
Therefore, you must give training to your staff. First off, you will need to deliver people able to transport products. Look for people who have clean driving records.
5. Fix The Charges
Pricing is an extremely important aspect of a successful courier business. Courier rates vary by size, weight, and parcel destination. However, rendering great customer service and reliability will ensure long-term success. The industry is definitely competitive. And there are several parameters, you must consider in fixing the pricing.
6. 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 a 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 customized software for every need of the business.
7. Promote 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 a 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.
Starting any business is stressful. However, try to be persistent. It may take a while for a new business to become established so don’t expect success to happen overnight. In the courier service business, 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 prospective customer in the courier service business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.