Do you have to travel across the city quite a lot? Do you journey in your car? How would you like to help others while you travel and earn some money for that?
If you want to start a courier business, it is recommended to start with what you own already. If you want a low investment option, starting a business from home is the best option.
Before you go through the 20 steps for starting a courier business, have a look at the types of courier service you can cater to.
Types of courier services available in the market:
When you plan to start your business as a courier person, you need to identify a suitable service option and get it registered for the business. Here is the list of all important courier services-
- Standard delivery
- Delivery on the same day
- Delivery with drone
- International parcel delivery
- Courier Van
- Motorcycle-base courier
- Bicycle-based courier
20 steps to start a courier business:
It’s not very difficult to start a courier service on your own. Here we will discuss the 20 important steps on how to start a courier business –
1. Developing a plan for the business:
Do you have a courier business plan ready with you? If not prepare one by compiling the data on the below points of consideration-
- Business type
- Target client
- Budget to invest
- Expenses expected
- Profit expected
- Service charge
2. Choose the perfect vehicle for delivery:
Having a personal vehicle is very essential when you plan to start a courier business. Depending on the courier business idea, you need to decide on the type of vehicle required. If it’s a heavy delivery, then you need a car or van. But it’s like delivering a pizza, the work can be done with a motorcycle only.
3. Choose the courier type:
We have discussed the types of courier delivery services available in the market. Deciding on the delivery niche will help you identify the clientele and the type of vehicle you need.
Since you are starting afresh, try and choose a niche that requires the vehicle you already own. This will save your investment money.
4. Arrange for a space for storage purpose:
Delivery of parcels requires you to secure a space for storage. You will require this to store parcels when they need shipping to some other city.
5. Purchase correct equipment for courier service:
Of course, your vehicle is the primary tool in the courier service business. but you will be needing more. Other essentials here are-
- Mobile for communication
- Stationery supplies like pens, papers, stamps, tapes, glue, etc.
- GPS gadget for tracking the delivery
- Strong internet
You will require a dolly and cargo at times for shipping heavy items.
6. Buy insurance for the business:
Contact local insurers and get yourself business insurance. This insurance will protect you from losses and damages due to foreseen situations and will also care for the customer’s belongings.
7. Name your business:
Give your business a name that is relevant to the business and matches your niche. Apart from being relevant, you also need to be creative while deciding on the niche. Choose a name that makes you unique. Ensure you don’t have a name that confuses your clients.
8. Choose a logo for the business:
Choosing a name is not sufficient for registering your business. You need to prepare a meaningful and relevant logo as well. Create a unique and creative logo so that people can identify you from your competitors. Having a business logo gives your business a professional look.
9. Choose a legal business structure:
There are 3 major business structures to choose from, namely, LLC, sole proprietorship or DBA, and Corporation. LLC will protect your interest most. You need to decide on a structure and get the same registered.
10. Business registration:
Before you start your business, you need to get the same legal business structure registered with the State or Federation. You will also need to acquire necessary licensure and permits to avoid any future legal endeavors.
11. Separate your business bank account:
It is always suggested not to mix your personal and business money. The best way to do this is by separating your bank accounts. Open a current account for the business. You can also take a credit card as an when the business grows.
Only having an account might not meet all requirements. You also need to have a money-receiving account or credit card machine to collect the payments.
12. Determine a price list for the services:
To start your business, you first need to establish a price chart for the services you agree to provide. Not sure what to charge for the courier delivery? Have a look at your competitor’s rate in the market.
A thorough market study and understanding of your competitor will not only help with the price chart but also with apprehending the demands in the market.
13. Be competitive:
When you start the courier delivery business, you will see there are other established ones around. The competition is tough. To grab the market, you need to flash a competitive price for your services. This helps in building your credibility too.
Before you proceed with your business take a halt and check if you have proper accounting support. Do you understand the flow of cash in the business? You will be needed to keep a track of the expenses and tally it with your income to understand the success rate.
15. Understand the market:
Have you decided on which areas you want to deliver the courier? If yes, it’s time you understand the place geographically. This will save your delivery time.
16. Develop a website:
In the modern world, an online presence is a must. You need to purchase a domain name and set up your website for further processing. Online traffic is a great way to drive business and get reviews.
17. Active marketing:
If you don’t indulge in active marketing, your business is likely to be stuck in one place. Try social media marketing, digital marketing, and SEO practices. Advertising your brand is the best way to grab attention. In other terms, this can also be called branding to gain customers.
18. Customer Service:
An important part of a successful business is customer service. You need to provide all your clients with an exceptional delivery service. Ensure you always have happy customers so that they return to you. Retain clients and getting references is very essential.
19. Develop a tracking system:
You need a strong tracking system to keep these in the count-
- Customer orders
- Number of parcels in storage
- Expected date of delivery for all the stored items
- In-flow of payment
- Daily expenses
- Transportation cost
- Delivery completed and pending
- Feedback if any for improvement
20. Recruitment and growth:
As you grow your business, you will soon require manpower. Be prepared to recruit dedicated delivery persons to get the work done faster.
Courier service is a business you start from your home and take it to a higher level. Follow the above steps and success is sure to follow.