A person spends a lot of time each and every day running errands, a person may be in a car driving to different places within a town, stopping here and there to complete several errands. Getting paid to do these errands for several people and businesses is a way of getting good money, and this is possible by starting a courier service business.
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.
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.
Consultation has to be made by an accountant that is specialized with courier service business, the accountant will give advice on matters pertaining to setting up an accounting system, keeping of business records, pros and cons of hiring employees verses having an independent contractor.
Make consultation with an insurance professional that has handled issues from 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 need arises, and health insurance cover.
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 an 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.
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.
The next step involves looking into some tools, the first one is a reliable vehicle, and computer and a cell phone; the cell phone and computer will be used for getting most of the business, and keep accurate records. Next is to look for optional items that can be put into considerations, this includes a GPS unit that is helpful for finding a pick-up and drop-off location in various parts of the city. Using a handheld map is much easier and safer, next is to look for a reliable day planner that will assist in keeping track of all the appointments and jobs to be carried out during the day. A physical day planner or another program on the computer can be used to keep track of the appointments, this is something that has to be looked into. You should get some business cards while you are at it, this is a great way to making people know about the business. In the event that you need to transport a heavy load, a hard truck will be required and networking will make things easier. You will be required to get a hard truck that can haul a minimum of 300 pounds and you have to be good. Having some moving blankets on the vehicle is one way of keeping the items safe.
Purchasing T-shirts and baseball caps with the name of the company printed on them makes the appearance more professional, the process will involve selection of a color to be used in any type of conceivable piece of equipment.
After all this has been done, advertising has to be conducted, there are various ways of advertising, common methods are newspapers, craigslist, fliers, passing out business cards, among others. Soon the business will start rolling in, starting the business is easy and it costs less than a ton of work, when starting the courier service, the business should first specialize in envelopes, large shipments, small packages and a combination package of all sixes so as to maximize the profit potential.
One of the least expensive ways of getting the courier service started is by subcontracting the services to a courier company that is established, this means that the transporting company will be supplied with transportation. You as the owner of the vehicle will pick up the parcels and deliver; on the other hand, this option will leave the business with low profits potential and the ability of the business to grow. One better option is to start the courier business outright and hire the operator on the basis of revenue sharing to make the deliveries while concentrating on marketing, management and building the business in general.
In order to add to a suitable transportation, based on the types of parcels to be delivered, investment in courier licenses has to be prioritized, this includes moving dollies and a two-way radio system. The regulations will vary depending on the municipality’s regulations on 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 and therefore, provision of great customer care services and being reliable goes a long way in ensuring long-term success.