The global courier and delivery market worth is $326 billion, with more than 368,000 businesses.
Coming up with a great business idea can be challenging. It can be harder if you have never run any business before. If you have decided to become an entrepreneur or try something new, a delivery service company would be an excellent option.
The delivery sector has been proliferating due to the increased growth of eCommerce. Entrepreneurs who invest in this industry enjoy abnormal profits and job satisfaction if they are trustworthy and offer exemplary courier services.
The challenges are there, just like the other business. But the benefits of the industry outweigh the challenges, and that’s why the sector is worth investing in. Here is a step by step guide on how to start a delivery service company successfully.
Choose the Courier Service Niche
The courier and service industry has many subdivisions. The standard subdivisions/types of courier businesses include:
- Van courier
- Bicycle/motorcycle courier
- International courier
- Drone courier
- Same day delivery couriers
Your capital and personal interests will guide you into choosing the ideal delivery service business. If your capital is huge, for instance, an international courier would be the best.
The bicycle courier would be great if your capital is limited or if you want to start small and expand your business later.
Get the Vehicles
Vehicles are the main equipment for the delivery service business. The type and number of vehicles you need will depend on the type of courier business you choose and your financial muscles.
There is a vast market for both used and new vehicles. Getting the right one out of the sheer volume can be challenging and overwhelming. Luckily, you can rely on multiple websites that compare different cars to help buyers get the best.
For convenience, you should choose fuel-efficient cars that can go for many miles while consuming the least fuel. The fuel-efficient cars’ initial buying costs might be high, but the long-term cost savings are worth it.
You may also apply for your nationwide fleet card. The card helps you to shop for car fuel, track suspicious delivery activities, access your fleet data, and so on.
Gather the Other Equipment
Vehicles are not the only types of equipment you need to start your business. If you are transporting bulky goods, you will need trolleys to help carry the goods from the store to the vehicles.
A sack box may also be essential for small goods such as boxes. You may also need some stationery such as desks, chairs, pens, files, and printers to facilitate the goods’ delivery.
CCTV cameras may also be vital if you wish to monitor the employees’ activities for safety purposes.
The pieces of equipment may be too many to confuse you if you are not keen. To avoid forgetting, create a list of the things you will require. You may get inspiration ideas from online sources or entrepreneurs with well-established couriers and delivery businesses.
Name Your Business and Get the Legal Documents
The business name should be unique to avoid legal issues. It should also be related to your business. Besides the name, you may design a logo for your business so that your clients and competitors can identify your business with ease.
You can then start the legal business registration process. At this stage, you can decide if your business will be a sole proprietorship or you will find partners.
The sole proprietorship business registration process is quite easy. But for partnerships and big companies, you will need to hire a lawyer to oversee the process and make sure that each partner abides by the business rules.
You should have some legal documents during the registration, including business ownership proof, business operating license, etc.
Every business is risky, and a delivery company is not an exemption. Insurance protects you and your clients against any financial risks or injuries which may happen in the line of duty.
Besides your business insurance, you should apply for comprehensive auto insurance for your cargo vehicles. The insurer(s) should be reputable and affordable.
Customers will trust you more when they learn that your business is insured, compared to when you are not insured. So don’t forget to mention to your clients that the delivery service is insured and will take full responsibility in case of fire, theft, or any danger that happens to the goods.
Find a Store
Modern courier and delivery firms carry out most of their operations online. However, an online store is still vital for storing non-perishable goods that don’t need immediate delivery.
You can have more than one storage unit according to the size of your firm. Nevertheless, the ideal storage unit should be spacious, neat, and the locality should be safe to guarantee your clients’ goods’ safety.
Open Bank Accounts and Plan on Pricing Structure
It’s essential to separate your personal finances from business money. Unless you have an existing business bank account, you should open at least one business account.
Ensure that the banks you open accounts accept international payments if you will be offering international delivery services.
You might plan on the payment methods that your clients will be using to pay you at this stage. The ideal payment method should be simple, popular, and the processing fee should be reasonable.
Create a Website
You will need an impressive website for your business.
Nowadays, most customers use search engines whenever they need a delivery service. If you don’t have the website, you will miss the customers who use online means to look for services.
The website you create should not only be impressive, but it should also include all the information regarding your services. Here are great tips to follow when creating and designing a website for your courier and delivery business:
- Customize for mobile
- Include the contact information on the first page of your website so that your visitors can reach you with ease
- Include a call to action at the lower part of your website
- Do not clutter your page with unnecessary information which might turn off your visitors
- Improve the loading speed of your website
Do not hesitate to hire a website developer and designer to make your page as attractive as possible. You might also check your competitors’ websites to know what you will add or remove to make your website outstanding.
Find a team of qualified employees to help you manage your business. Be keener on the type of employees you hire on your customer service desk. Many clients consider customer service first when looking for a service delivery firm they can trust.
Since the hiring process can be tiring and time-consuming, you may outsource great courier and delivery talents who have worked in the delivery industry before.
Market Your Business
Your new courier and delivery business will remain unknown to the public unless you market it. Thanks to digital marketing, there are numerous effective marketing methods that you can embrace to advertise your business.
One such method is the use of social media. Facebook, Instagram, Twitter, and the other leading social media platforms that boast millions of followers.
Facebook, for instance, has more than 2.45 billion active users. You can target those users by creating a professional business account and asking them to follow you.
Marketing requires consistency. If you choose social media marketing, be consistent on your posts, and provide detailed information regarding your business. A reputable social media manager can help you oversee your social media accounts.
You can consider other marketing methods that include influencer marketing, email marketing, pay per click, etc.
The traditional methods can be effective as well. For instance, you may inform the local business owners that you have a courier and delivery firm so that they can recommend clients to you.
Traditional marketing can be harder compared to digital marketing. Nevertheless, you can print flyers and business cards, which are easy to carry and supply to create more business awareness.
Join a Delivery Service Firm Community
You need other people’s help to grow. That’s why it is advisable to join one or more communities for courier and delivery businesses. When you join hands with like-minded people, you will continue to increase your knowledge about the business, and you will grow.
Just ensure that the group/community you join is legitimate, and it consists of positive-minded people who can only help you grow.
Monitor Your Business Progress
The last important tip for running your business in the delivery service industry is to monitor progress. Are you working at a profit, or things are going south?
You can only monitor your business progress when you keep business records. These records can include the delivery receipts, the balance sheets, P&L accounts, and so on.
Adopt the strategies which bring the most sales if your business is doing well. Similarly, drop the tactics which bring losses. Based on your records, you will know if you should expand your business or close it and try another niche.
Start a Delivery Service Today
Follow the above tips to open a delivery service business today. Don’t rush the process. Take your time to understand the basics and to avoid making regrettable mistakes. You may seek professional guidance regarding the same.
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