Setting your business not only fulfills your dream but also offers boundless freedom. Serving others through your entrepreneurship needs gut, hard work, time, and of course money. Though there are no specific rules to start a business, it is essential to set a guideline to get your business off the ground systematically. You need to have the right resources, proper network, strong marketing strategies, and an effective budget plan for your business. In this article, we have listed down some simple steps to generate a decent income from your courier business. Check it out now!
What is the courier business?
Transporting and shipping packages to the intended destination across the city quickly and effectively is all about a courier service. An individual courier can be someone who owns a sole proprietorship, an employee, or a large company. Delivery of the package is the main service and the customer is charged as per the weight of the package or the distance it would travel. Hence, transport cost is the main expense in this business.
Check out the section below to know more about the types of courier businesses.
Types of courier business
Though this business is all about delivering the package to the specified destination, it is categorized based on the location they serve and the speed of delivery of the goods. Following are the types of courier services that you need to know before you learn about how to start a courier business:
It is also known as local services and they serve a particular location or city. As they focus on a specific geographical area, they are quite fast and reliable to the customers.
As the name suggests they transport packages worldwide. One can try out international transport to expand their business depending upon the availability of the resources. This includes airplane travel, shipping, or international custom requirements.
As the name indicates it caters to those clients who are in a hurry. If you have started your courier business and specialize in speedy delivery then you would surely attract a good number of clients. Time-sensitive delivery is generally preferred by those who are in the legal, medical, and financial sectors.
Steps to start a courier business
Whatever business you start, deep and thorough research is the key to success, besides hard work. If you are wondering how to start a courier business, follow the below steps so you can set off your business easily. Let’s discuss more on this!
Choose your niche:
Courier business comes with a wide range of services. Pick the specialty that best suits you. Before you decide on a particular niche, do remember to research well about that service, the requirements, the target market, service area, and various other factors. Choosing the correct service depending upon the above factors will help establish a strong expectation about your business revenue, funding, and experience. Moreover, it will also guarantee satisfying services to your clients which will shoot up the number of clients you get. You can work on the following services:
- Next-day delivery
- Same-day shipping
- Luggage delivery
- Commercial package delivery
- International shipping
- High volume pallet shipment
Plan your legal business structure:
Sort out the legal sides of your business first. Design your business structure and get it registered. The legal standing of your business will decide your tax payment, employment policies, and other legal aspects. Ensure that you have also applied for EIN to make the tax payment hassle-free. There are four general types of business structures and they are sole proprietorship, general or limited partnership, LLC, and corporation.
Purchase required supplies:
Purchasing the required supplies and arranging the vehicles is the next step to move on. To become successful in courier service, your first and foremost requirement is transportation, which needs to be of high grade to provide quick and safe delivery to your clients. Besides, you need to keep other essentials handy to get access right away. Here are some of the basic requirements:
- Paper goods for official requirements.
- Technological requirements like phones, laptops, wifi, etc., to run your business.
- Moving and packaging material for shipment.
- Vehicles like car, vans trucks, etc
- Tractor for larger goods.
- Protective requirements for hauling like cargo strap, blankets, etc.
It is important to secure your business with effective insurance coverage. Being a professional you need to understand that you are liable to deliver the package intact no matter what it is. To get over the potential issues you need to insure your business so that you gain customer trust and enhance your business credibility. You can insure your vehicles, drivers or employees, cargo, and even business equipment.
Set your service rates:
Deciding your service rate is not easy all the time. This is one of the key aspects of a successful business and one needs to master the art of accurate pricing. Charging less or more can have a serious impact on your business health. Business operation requires certain expenses, which include insurance premiums, fuel cost, packaging material, phone bills, internet cost, office rent, etc. This even includes the service charge of the specific location as well. Eventually, all these factors decide your service rates and help you to fix our prices.
Customer service standard:
A strong customer service skill can help you achieve more new clients. Train your team to offer great service that would change your company culture and would hold a great reputation in the market. Time-sensitive deliveries and good communication are key to maintaining customer standards. This can get you good reviews, which can give you a high-standard portfolio of your potential clients.
Figure out your marketing strategies:
Great marketing plans can set your business standard high among your clients and help you stand out from others. Track new advancement, customer demand, and future opportunities to build your marketing strategies. Fine-tune your branding message by hiring marketing and advertising professionals to grab the attention of potential customers. Some of the common ways that you can try out for brand marketing are social media platforms, email marketing campaigns, printed advertisements, blogs, incentives and discounts, referral programs, etc. Moreover, set your KPIs to track your success and decide your future goals accordingly.
FAQs related to courier business services
The amount earned from courier services depends on the country you live in. Courier businesses in small towns will earn less than those in big cities. But the average per hour earning from a courier business is around $36.
No special training or certification is needed for setting up a courier business.
The basic supplies that you need are:
2. Software for business finances. For example, get Billbooks to create estimates and invoices and track your payment details.
3. Phones, laptops, etc.
4. A day planner or scheduling device
5. Hand truck for hauling heavy loads.
You don’t need to set specific hours to invest in. You can keep this as a part-time business as well. But the preferable business hours would be between 8 am to 5 pm. This does not mean you can not work at other times or on weekends. You can fix the working hours that suit you best.
The start-up cost is not very high. You need to get a vehicle which you can get by applying for a loan. So the monthly EMIs, premiums of insurances, licensing fees, and cost of other supplies would be your first investment, which won’t cost you too much.
Yes, there are ways to promote your business for free. You can write press releases and advertise in local newspapers. You can even write website blogs to promote your business.
There are a lot of services available in the courier business and the client list is too long. But mostly, people from legal, medical, and financial sectors, shop owners, architects, banks, property managers, etc., avail themselves of courier services.
Courier business does not require huge capital and does not need specific training. This is one such business that can help you make money without much effort. But you need to upgrade your skills and follow basic guidelines to start your courier business smoothly. Moreover, get your estimates done and send the invoices to your clients on time with Billbooks.