How To Start A Courier Business

Courier Business Background Info:

A courier business can be a low investment start-up. A courier may transport important documents, biological samples, small packages, even flowers.

The biggest thing that separates this type of delivery business from the larger package companies like UPS and FedEx is same day service and odd hour deliveries.

While these larger companies may guarantee next day service, small couriers tend to operate inside the confines of a less than 24-hour day.

This may mean working later in the day to deliver all your packages. The key to success in this business is on time deliveries and careful handling of packages.

Courier Business Considerations:

There are a few things to consider when starting out. First, think about location. Small towns and rural areas may not need a courier service at all.

Second, think about the type of courier that you would like to start. Some couriers only transport medical packages.

Some may only transport court documents. Finally, think about the size of vehicle you will need. Larger vehicles can carry bigger packages, but have worse gas mileage then small cars.

Tasks And Skills Needed To Run A Courier Business:

Business Specific Tasks:

Bookkeeping

Invoicing

Scheduling

Computer operations

Customer Service

Advertising/Marketing

Industry Specific Tasks:

Operate and park a vehicle in high-traffic areas

Use GPS and/or maps

Time management

Dispatch Management

Approximate Daily Hours Needed:

General Hours of Operation:
While most deliveries fall within the normal business period of 9 am to 5 pm, other delivery jobs like organ transport can be at any hour of the night.

Hours Needed to Prepare - Plan for about an hour's worth of paper work, vehicle inspection and cleanup before or after each day.

Employees Needed To Run A Courier Business:

During the Start Up Phase: You can start this business yourself.
Once Your Business is up and running successfully you may need:

Drivers
Mechanics
Dispatchers
Accountants
Receptionists

Skill Requirements for This Business:

Good driving skills and record
Map reading or the ability to operate a GPS
The ability to handle light physical labor
The ability to schedule deliveries and pickups
Good communication skills

Courier Licenses:

You will need a business license and insurance. You will also need commercial driver's insurance.

Be sure to check with city hall to determine the exact licenses and permits required to run a courier business in your area.

Approximate Minimum Start up Cost:

The average startup cost can be very small if you already have a reliable vehicle and GPS. However, it can cost several thousand dollars for a new vehicle, GPS, and dispatch equipment.

Necessary Equipment:

Necessary Start-Up Equipment & Supplies:

Reliable vehicle(s)

Log Book

Moving Dolly (possibly)

Uniforms

GPS or quality map

Supplementary Equipment: - Equipment that you can acquire once your business is off and running:

Courier software

Dispatch Equipment

Storage area

Skids and shelving for storage

Monthly Expenses To Consider:

Fuel
Vehicle insurance
Vehicle maintenance
Rent or mortgage for office and parking lot
Utilities
Cell phone service
Wages
Advertising/Marketing
Office Supplies

Special Requirements:

Possibly a CDL (commercial driver's license)
Commercial Vehicle Insurance
Cargo Insurance
Dangerous Goods Certification

Pros And Cons:

The Pros of Owning a Courier Business:

Courier service is in high demand

You are able to set your own hours and limitations

Plenty of Travel

Low start up cost

Low operating Costs

The Cons of Owning a Courier Business:

Odd hour pick-ups

Some jobs may require you to travel away from home

Lots of time on the road

High vehicle and fuel costs

Vehicle maintenance charges

Increased risk of accidents

Type of Customers You Need to Attract:

According the Messenger Courier Association of America (MCAA) customers may include biomedical labs and other medical facilities, financial companies like banks, and law firms.

Other customers may be manufacturing plants requiring time sensitive deliveries as well as other types of businesses in need of quick deliveries.

Courier Statistics:

The MCAA reports that there are over 7000 small business couriers involved in the multi-billion dollar industry.

The Bureau of Labor Statistics (BLS.gov) report that there are about 122,000 couriers and there is no estimated change over the next decade.

Courier Revenue:

Revenue differs depending on location and form of charging. Couriers can charge by the mile, hour, or a flat rate depending on zones. For example, Clutch Couriers based in Santa Cruz, CA charges $10 USD for basic deliveries inside of Santa Cruz and rates increase the farther the delivery is up to $40 USD. However, Clutch Couriers charges more for rush deliveries and court deliveries.

Courier Resources:

Courier Companies: Many of these courier businesses offer full service websites that allow consumers to conduct a large portion of their business over the Internet.

Courier Business Plans: These web pages provide entrepreneurs with business plans and resources for generating the capital needed to start and maintain a courier business.

Courier Franchise: The following companies are interested in expanding through the sale of franchises. Each page provides a means for requesting detailed franchise information.

Courier Insurance: Purchasing business insurance is unavoidable. These web pages provide insurance information and the chance to shop for policies that will meet your needs.

Courier Publications and Articles: Each of these web pages offer insight into the courier industry and provide tips for both new and existing courier business owners.

Courier Forums: Engaging in conversation is a great way to foster creative ideas and find ways to better your business. These pages give users the opportunity to do this.

Courier Software: Businesses can't function without software. These companies sell high quality software for automating and streamlining all aspects of a courier business.

Related Businesses:

Bicycle messenger service
Message service