The things you have to do to start your own courier company include setting up the business structure and making a plan for operations. Many individuals who work in security, start their own businesses. A security company or a courier company are great small business models for those trained in security services.
Do you spend a lot of time each day running errands? Do you drive to different places each day? You can get paid to do this work for other people if you start a courier service business. So, how do you start a profitable courier business?
How Can You Start a Courier Company?
The first step in starting this type of business is to get motivated for the business to be a success, this entails being good at dealing with people. The entrepreneur should own a reliable vehicle, this can be a truck or a van, these types of vehicles and the motivation to be your own boss makes you ready to start a courier service business.
Develop a Courier Service Business Plan
At this step, the business owner has to meet and consult with a business attorney that is familiar with this type of nosiness, the attorney will give advice on matters pertaining to local zoning laws that are important if the business will be run from a cell phone. Necessary business permits have to be obtained after familiarizing with the industry, in addition to this, the pros and cons that come with incorporation of the business has to be discussed.
Find an Accountant or Bookkeeper
Consultation has to be made by an accountant that is specialized in a courier service business, the accountant will give advice on matters pertaining to setting up an accounting system, keeping business records, pros, and cons of hiring employees versus having an independent contractor.
Consider the Legal Structure of Your Courier Business
Taking care of legal items is one of the first things to do, first is making a decision on the legal structure of the business, this may be a sole proprietorship, limited liability company, or partnership business. The legal structure of the business determines the taxes that will be paid, the next step that follows is licensing the business within the state in order to get a federal tax identification number.
Getting insurance is another step. There are states that require a special kind of insurance for vehicles involved in courier services. Business liability insurance should also be looked after to protect the business from any event of claim or lawsuits.
Make a consultation with an insurance professional that has handled issues from the courier service industry, the consultant will assist in getting proper insurance for the business, in the office and the contents inside the office, vehicles, cargo insurance, compensation of workers insurance if the need arises, and health insurance cover.
Pick a Name for Your Business
After getting the insurance out of the way, the name of the business is picked, it should not be a name that is currently used within that area and it should be trademarked by the business owner. Considerations can be made for putting the town name in the name of the business.
Purchase Equipment and Materials
The next step involves looking into some equipment and tools. What equipment is needed for a courier business? The first item to find is a reliable vehicle. Next, you need a computer and a cell phone to communicate with customers, keep records, and get new business. Next, you need delivery equipment. This includes a GPS unit to help find pick-up and drop-off locations in various parts of the city.
In the event that you need to transport a heavy load, you will need a hand truck. Additionally, in some places, you are required to get a hand truck that can haul a minimum of 300 pounds. Having some moving blankets on the vehicle is one way of keeping the items safe.
Which App is Best for Couriers?
Today, there are many apps for freelance couriers. If you have a smartphone, you can work anytime you want. You can deliver items to customers at home or at their businesses. There are many apps to choose from, but the best ones fit your needs and pay the most. Additionally, if your company contracts work out, these apps can be a great place to connect with subcontractors.
Purchasing T-shirts and baseball caps with the name of the company printed on them make the appearance more professional. The process involves selecting a color to use and a logo. It may be time-consuming at first. However, having a standard uniform makes your workers recognizable to customers and is very important.
Next, look for a reliable organizer to keep track of all the appointments and jobs you have each day. A physical day planner, a smartphone app, or a program on the computer can keep track of the appointments. Additionally, you should get some business cards and a basic website so people know about the business.
Next, you need to advertise. Common methods are social media, websites, newspapers, craigslist, flyers to target customers, and passing out business cards. Soon the business will start rolling in. Starting a business is easy and it costs less than most people think. However, there is a lot of work when you first start a courier service. So, the business should first specialize in certain items. For example, envelopes, large shipments, small packages, and combination packages can maximize the profit potential.
Try Subcontracting for Another Courier Company
How do courier companies get clients? One of the least expensive ways to start a courier service is by subcontracting. You can offer your services to an established courier company until you get more customers. As the owner of the vehicle, you pick up the parcels and deliver them.
On the other hand, this option leaves the business with low-profit potential and inhibits growth. How do courier services make money? One better option is to start the courier business and hire the operator on the basis of revenue sharing. You pay a commission to them to make the deliveries. So then, you can concentrate on marketing, management, and building the business in general.
If you deliver some kinds of parcels, you need to invest in a courier license. You will also need moving dollies and a two-way radio system. The regulations vary depending on the municipality’s regulations on the issuance of licenses to the drivers and courier companies.
It is important to make a trip to the city hall or transport department and inquire about the license requirements. Rates charged by the courier company will vary depending on factors such as destination, size, and weight. This industry has stiff competition. Therefore, great customer service and being reliable go a long way in ensuring long-term success.