How To Start A Courier Business
If you have the entrepreneurial spirit and are looking to start up a new business
, you might want to consider going into business as a courier. There is plenty of room for growth in this industry. The following suggestions and tips can help you get started.Before you deliver that first package, there will be a lot of decisions to make. Will you wear a uniform? Will you and your employees wear an ID badge holder? Will you carry your IDs on a neck lanyard? Will you make deliveries by bike, car, or truck? The questions seem to be endless.
Your first step is to consider your options. Do you want to work with an established courier as a subcontractor? As a subcontractor, you wont have to dedicate much time to drumming up business. Instead, you will be responsible for picking up and delivering packages. Youll provide the manpower and the transportation.
Subcontracting is a good way to get your feet wet. If you dont know much about how the industry works, you can learn it all by subcontracting. It also minimizes your startup costs. The down side to subcontracting is that it can minimize your growth potential and earnings.
Starting from the ground up, however, means that a successful operation will lead more possibilities for growth and earnings.
The Big Decisions
What class of packages will you deliver? Some services limit items they carry to envelopes and small boxed packages. Others carry larger items and items that weigh a lot. The items that you can move will depend on your delivery method and the amount of storage space available to you.
Sensitive material delivery is another option, but you may need specialized training and certification to handle hazardous materials, medicines, industrial chemicals and cleaning solvents. If you deliver perishable items, you will need a way to keep the items refrigerated or be able to deliver them quickly.
The more materials you accept for delivery, the larger your earning potential. But you may also need more startup capital too. To be safe, its best to start out small and expand your business over time. You dont want to get too big too soon.
After you decide what you will deliver, you need to determine your service area. You cant be in all places at all times. If you live in a large city, you might be able to build a successful business by doing short runs for downtown businesses. You can earn money every time a law firm needs to hand deliver an important document to a client, for example. As you grow you can expand services to the city, state, regional or national level.
Finally, carefully consider your expenditures and the amount you will need to charge for your services. If you charge too little, you wont be able to stay afloat. If you charge too much, you might have a hard time finding and keeping customers. For help setting fees, call for quotes from the competition.
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