How To Start A Courier Service

See our Updated aticle - How to Start a Courier Business

How To Start A Courier Service- Background Info:

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A courier service is important because many types of the current delivery services work only on a set schedule.  This isn't helpful to a lot of people because they may have an emergency happen and need an important package to be delivered somewhere right away. 

If you choose to learn how to start a courier service, you will be agreeing to help these people out when they need you the most.  When you charge them for your service per mile, you can make good money with your service.

You will want to first determine how far you are willing to extend the range of your courier service and make your deliveries.  You will then need to determine how much you will need to charge per mile driven to make your courier service be profitable. 

If you are going to learn how to start a courier service, you will also want to be sure that you will have the business to make it successful.  Find out if there are any other courier services in your area and how much they charge.  If there are none, try to find out why.

How To Start A Courier Service - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a courier service:

• Bookkeeping
• Advertising/Marketing
• Scheduling
• Computer literacy

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a courier service:

• Use GPS and/or mapping software, maps

How To Start A Courier Service - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - Some courier services remain open during only business hours, although if you want the best chance of getting a lot of business that people will pay you well for, you may want to be a 24 hour service.  Not many couriers will remain open for 24 hours and this will help people in their emergencies, making you more successful.

Hours Needed to Prepare - Before Opening and After Hours Activities - At the end of the day, you will be doing bookwork and mapping the next day's route(s).

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis, although you may want to have someone who can help you out and fill in for you in case you get sick, busy, or have two very important deliveries to make at one time.

Number of Employees - Once Your Business is Up and Running Successfully:

• Website maintenance
• Record/Bookkeeping
• General office
• Customer Service

Here some of the skills necessary to run this type of business other than the necessary business skills:

• 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

Licenses:

Depending on the types of packages which you agree to carry, you may need special licensing if some of them are potentially dangerous.  You will also need local permits to perform your business, if needed.

Approximate Minimum Start up Cost:

Bare essential: - If you have a dependable vehicle, you may not need to pay anything in startup costs, besides an increase in insurance which may come about. 

Minimal exposure - There are several ways to advertise for free. Other than this, you will only need to spend money on advertising to let people know that your courier service exists and is open for business.

Necessary Equipment Necessary to Run this Business:

Necessary Start-Up Equipment & Supplies:

• Computer
• Printer
• Cell phone
• Website

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

• You will need proper identification with the name of your courier service as well as your ID to show people when you are handling their packages.  Without this identification, they will not want to hand their packages over to you and this will be a problem.
• You may want to invest in a GPS to help you find your way while delivering packages.  This will help you get places more efficiently and quicker.  This will make your customers happier and more likely to hire you again.

Monthly Expenses To Consider:

• Wages
• Phone/cell phone
• Internet access
• Permits
• Advertising/Marketing
• Electricity
• Water

Special Requirements and Considerations For This Business:

• Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they’re not getting from the other businesses. And keep from emulating the competition’s strategy. Instead, make the most of your own advantage points.

Pros And Cons of Opening A Courier Service:

The Pros of Running a Courier Service:

• The work is generally easy because you only have to pick a package up from one location and deliver it to another. 
• You also get to set how much you are going to charge these people per mile as well as the range limit of where you are willing to deliver to. 
• The work is not difficult and it requires no more skills than the ability to drive a car and a sense of direction.
• There is a demand for good couriers

The Cons of Running a Courier Service:

• People may call you during their emergencies, which could be at all hours of the night and in any sort of weather.
• Work may be slow during certain time periods and the wear and tear on your vehicle may potentially grow expensive. 
• You could also end up paying more with your insurance since you now use your vehicle for commercial purposes.
• Sometimes you have deliveries that come in at the same time and you can't be at places at once.

Type of Customers You Need to Attract:

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.

Courier Service Statistics:

Little or no change is expected over the 2008-18 decade. Although individuals and businesses continue to value package delivery services, the need for document delivery services has been greatly reduced due to the widespread use of computers and the Internet. Many documents, forms, and other materials that were once hand-delivered are now transferred in digital format.

Revenue:

Median hourly wages of couriers and messengers in May 2008 were $11.22 per hour. The middle 50 percent earned between $9.08 and $14.10. The lowest 10 percent earned less than $7.88, and the highest 10 percent earned more than $17.77.

Resources:

Equipment and Supplies:

GPS Equipment on Amazon

Courses:

World Courier

Courier Training Classes

Forums:

Indeed

CodForum (UK)

Franchises:

Courier Franchise Sales

Associations:

The Messenger Courier Association of America

Express Carriers Association

Software:

ASCAR- Courier Tracking System

Courier Complete

Courier Business Software

Related Businesses:

• Bicycle messenger service
• Message service
• GPS sales
• Mapping software sales/design

12 Steps To Starting a Courier Service

Before You consider a Courier Service, see 16 Questions to Consider Before Starting a Business

1. Ensure A Courier Service is for You!

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 Service Operates

How can you run a Courier Service 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 Service 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 Service

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 Service 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 Service. 

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 Service. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Courier Service see our guide on Financing Your Small Business

7. Legalize Your Courier Service

In order to run your Courier Service 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 Service with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Courier Service

In order to run your Courier Service 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. Set up Your Accounting System

Running a Courier Service 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 Service. See Setting Up Your Accounting System for more on this topic.

10. Acquire Customers for your Courier Service

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

11. 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.

12. Insure Your Courier Service

Make sure you have the proper insurance for your Courier Service. Without the right coverage you could lose everything you've worked for. For tips on insuring your Courier Service, see our free online guide:  Insuring Your Small Business.

Courier Service Issues:

Estimating Startup Costs - Find out if you're forgetting something

Business Location - Choosing A suitable one For Your Courier Service

Build or Buy A Business? - Buying an existing Courier Service

Business Builders For Your Courier Service:

Starting A Business - Free Online Guide

Business cards for Your Courier Service

Business Plan for Your Courier Service

Business Insurance for Your Courier Service

Small Business Loans Finance Your Courier Service

Small Business Marketing For Your Courier Service

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