A courier service provides a number of different services for businesses and individuals including flower deliver, court filing services, messenger services, document deliver and small package delivery.
Couriers usually charge by either the mile, which is currently at an average of 50¢ per mile, or a flat rate.The majority of customers are businesses such as real estate offices, doctors, law firms, architects and more.
Special Requirements:
This business is in high demand because services such as FedEx and UPS run on set schedules and a courier service is available for pickups and deliveries anytime, anywhere.
Equipment Necessary To Run A Courier Business:
Reliable vehicle(s)
Business checking account
Notebook to log mileage
GPS navigation system
Two-way radio service
Moving dolly
The Cons Of Running A Courier Business:
You may be called upon for pickups and deliveries at all hours of the day and night.
Some jobs may require you to travel away from home, requiring you to pay food, lodging, etc.
You will spend a lot of your time on the road and in traffic.
The pay for small jobs may not be that good
Location can be a disadvantage at times. For example, if you’re based in the city – you would have to deal with traffic etc.
High vehicle costs
Vehicle maintenance charges
The Pros Of Running A Courier Business:
Potentially lucrative career
Courier service is in high demand
You are able to set your own hours and limitations
You get to travel – move about, and not be restricted to one place
Great potential for income
Meet different people – helps in networking
Skills Necessary To Run A Courier Business:
The ability to operate a motor vehicles (good driving record a plus)
The ability to read maps and find addresses to make pickups and deliveries in a timely manner
The ability to understand and provide simple verbal and written instructions
The ability to handle light physical labor such as loading and unloading packages
The ability to effectively schedule deliveries and pickups
Licenses Necessary For Running A Courier Business:
You will need a business license and possibly a home occupation permit if you run your business from home. You will also need commercial driver's insurance to ensure that you are covered to operate your vehicle as a business.
You may also need to obtain a courier's license or a license to handle/transport hazardous materials. Be sure to check with city hall or your local transportation office to determine the exact licenses and permits required to run a courier business in your area.
As your business grows, you may wish to hire additional drivers with good driving records to help with the increased number of pickups and deliveries.
Employees are responsible for operating a vehicle in order to transport packages and materials from point A to point B. Job requirements also include maintaining a log of all mileage and activities, picking up and delivering small supplies and other items as well as receiving and relaying various messages.
Issues To Consider In Order To Be Successful With Your Courier Business
A reliable and punctual personality - While this is essential in any business, it’s particularly important in the courier business. Time is of essence and you need to make sure you deliver everything on time.
Familiarity with the working area, especially since you don’t want to waste time while doing pickups and deliveries
Safety - Safe driving record.
Products - There are courier businesses for just about everything. You may decide that you want to deliver mail and products to people.
You might even be available to deliver anything. Some companies focus on delivering foods from restaurants that don’t deliver for people that are too busy to go get lunch.
This could be a very successful endeavor too. The first thing you need to do is determine what it is that you are going to deliver to people.
Franchising Options - There’s always room for more in a courier business, and you can think of signing up with a franchise. The good thing about a franchise is that the company provides you with training, and all the technical know-how. This makes it easier to get a foot-hold in the courier business.
Transportation - The way you are going to be able to get around and deliver things to people is very important.
If you have a car then you will be able to deliver to many places quickly. The only problem that arises with a vehicle is that you may have parking issues with specific buildings and sides of town and you don’t ever want to be in a position where your car is towed.
If the area that you are delivering to people is within a few square blocks of a big city then you might consider a bicycle for your business. Not only will this get you in good shape, but it may be the best option. The important factor is that you have reliable transportation that provides quick service for delivery.
Location - Where you provide courier services is really important also. If you have people from across town that ask you for deliveries then you may only be able to do a few deliveries a day and it may not be worth it in gas costs.
The goal is to choose a targeted area that is highly populated with businesses and places so you can get a lot of business within same vicinity. Determine the location that is best for your business and you.
Attire - Starting your own courier business is a great endeavor but you still have to be professional, even if you are riding a bicycle.
This means that you should determine a type of uniform that might be right for you. The best thing to do is choose comfortable clothing that easily identifies you as the courier service. This may include buying polo shirts that have your business name on them.
The weather may play a factor if you are outdoors a lot and it is really hot. You might want to wear shorts. The goal is to always have the same thing on and polo shirts are the best thing that you can wear.
You may even change up the color and style. As long as you have a logo printed on what you are wearing you can be identified.
Audience - Your targeted audience for a courier business is very important to determine when you start working. Many people like to target big businesses. You might hit every business in the local city block on every floor of every skyscraper.
It would surprise you the work that you can get from these places. The goal is to have a specific audience that you are targeting. This will help you put together your marketing plan so you are successful.
Costs - Your costs will vary depending on the size of business you decide to set up. A few costs that you need to take into account:
Staff – how many employees will you have – expenses will be dependent on that.
Vehicle insurance – you will want to make sure to check if you would need additional insurance if you are using your vehicle for business
You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.
2. Understand How A Courier Business Operates
How can you run a Courier Business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.
3. Make Sure there is a Profitable Market for Your Business
What's the use of starting a Courier Business that is not profitable? You'll be putting all your effort in something that can't support itself or you. There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.
4. Create a Business Plan For Your Courier Business
A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Courier Business evolves. Read our free online guide on How to Write a Business Plan
5. Set up your Business Team
Setting up your team includes finding the right employees and professionals that will help you run your Courier Business.
You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.
6. Get a Small Business Loan if You Don't Have the Money to Start
If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Courier Business. This can be done as a small business loan, a personal loan, or other small business financing options.
In order to run your Courier Business legally you'll need to abide by government rules and regulations on the state and local level.
You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Courier Business with state and local authorities.
To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with6 Easy Steps to a Good Business Name.
8. Get Equipment for Your Courier Business
In order to run your Courier Business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.
9. Insure Your Courier Business
Make sure you have the proper insurance for your Courier Business. Without the right coverage you could lose everything you've worked for. For tips on insuring your Courier Business, see our free online guide: Insuring Your Small Business.
10. Prepare To Accept Money
You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.
11. Set up Your Accounting System
Running a Courier Business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Courier Business. See Setting Up Your Accounting System for more on this topic.
12. Acquire Customers for your Courier Business
In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See Acquiring Customers for more on this topic
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