7 Tips For Starting Your Own Courier Business
/If you’ve ever wanted to work your own hours and be your own boss, opening your own courier business may sound like a dream come true.
Before you go ahead and take the plunge into financial freedom, however, read these seven expert tips to make opening your own courier company a breeze.
1. Choose A Vehicle That Meets Your Needs
Before you even begin to get your courier business off the ground, you’ll need a reliable vehicle. The vehicle you choose will depend on your needs – for instance, many courier companies purchase cargo vans to have enough space to transport small to medium-sized packages.
If you need to carry more packages than a cargo van can accommodate or if you intend to transport heavier loads over longer distances, a diesel compact or pickup truck with a covered bed is an excellent option. Bear in mind though that diesel trucks will require diesel engine road diesel or simply white diesel, not gas.
Alternatively, if you want to keep costs low, you can lease a van or truck, or shop around for a used vehicle.
2. Create A Business Plan
As with any business, you’ll need to create a detailed business plan for your courier company.
In the business plan, you must detail exactly how you plan to make money, how you will get and retain business, and conduct market research to see where you stand in the market and how you can differentiate yourself from your competitors.
A business plan is a way to get all your ideas on paper and identify any obstacles and pitfalls you may encounter, and it is also vital to securing loans and attracting investors.
3. Register Your Business
The name you decide on should represent your courier company’s mission and core values. Before you settle on a name, check that the name you’d like to use hasn’t already been taken. Then, you’ll need to register your business.
To become a legally recognized business, a company must be registered. You can register as a sole trader, a limited company, or a partnership – what you choose will depend on the size of your business and the number of legal shareholders.
4. Get Business Insurance
Your courier company will need business insurance for your vehicle, cargo insurance, and liability insurance. Ensuring that your business is insured will also help you build trust with your client base – many people will avoid courier companies that are not insured.
The type of policy you need will depend on factors including your location, your risk profile, and the types of deliveries you will make. The cost of your policy will also vary depending on your situation, so contact a few local insurance brokers and compare quotes.
5. Purchase The Correct Equipment
Making sure you have the right equipment before you begin transporting packages will make your job much easier and less labour-intensive – especially if you will be working by yourself. The equipment you need will largely depend on the size and type of packages you will pick up and deliver.
If the items you will be transporting are mostly boxes and parcels, a simple dolly or hand truck is vital to avoid back injuries from carrying heavy items. You can find a basic dolly at your local home depot, or you can order one online from sites like Amazon.
Other pieces of equipment you will need are cargo straps, tape, and moving blankets.
6. Market Your Services
Now that you’ve purchased your vehicle and equipment, and your business is registered, it’s time to market your business to potential clients.
You can begin by informing your friends and relatives to get word-of-mouth advertising, and you should also promote your services on social media platforms like Twitter, Facebook, and LinkedIn. Create a dedicated business account on all these platforms and share them with your contacts.
Usually, courier companies need to market themselves to businesses that need courier services. You should make a list of businesses that may need a courier company and start cold-calling or emailing them.
If you want another inexpensive way to market your business, Facebook Ads and Google Adwords are great ways to promote yourself to your specific target market.
7. Track Your Expenses
It is vital to track your business expenses right from the beginning to determine if your courier company is running at a profit or loss.
Keeping all business records and receipts separate from your personal finances will also make doing your taxes relatively painless.
Keep all your business-related receipts and invoices in their own files. It’s also a good idea to create an Excel spreadsheet to track your business finances.
