How to Start a Small Courier Delivery Business

Courier service business is lucrative despite the challenges of operating such an enterprise. There are many big international companies providing effective delivery service. However the sky is large enough to accommodate local delivery services and companies.
The focus market is different therefore providing good business opportunities for small companies. A small courier service could start from home or an office environment. The service involves pick-up and delivery of packages to arranged destination.
 Although the business model is straightforward the organizational aspect should be flawless. Courier services handle both large and small deliveries of goods and documents.
There are three ways to run a small courier service. The business could operate as a franchise, one man business or hire staff. The basic requirements are mode of transportation, safe handling and good storage facility. Others are comprehensive logistical data and tracking.
The size of the operation depends on your business plan. Other important considerations are fuel price, insurance and obtaining operational permit.
Courier Delivery Business
Transportation
Transportation is an integral part of the business. We assume your courier service is focused on a small geographical area. Running an international one is capital intensive and the logistics is very complicated.
To run your localized courier service you can least a van or purchase one for the business. Other modes of transportation used by courier services are buses, motorcycles, tricycles and cars.
Define your Territory
It is important to define your territory for better service and effective delivery. Small courier companies work within a certain demography. They offer 24 hour pickup service and have lots of interpersonal engagements. Make sure your customer base knows your designated area of operation.
Permits and Licenses
You need proper insurance cover for the vehicle, packages and courier. The company is required to apply for a commercial license and business name.
Incorporate the courier business as a limited liability company or sole proprietorship business.
Try to design a nice logo and slogan for the enterprise. Some courier services add service charge, value added tax and other state provisions.
Invest in Software
Courier Company works with sophisticated tracking software to aid prompt delivery. Hire an IT expert to develop software for your business.
There are many online resources that offer both free and paid software. The software should also include a good GPS tracking system.
Lease an Office
The office you rent should have ample parking, storage and reception area. Hire a secretary or receptionist to provide customer service.
The office should have the basic equipment such as computers, fax machines internet connectivity and dedicate phone line.
Start up Cost
The major expenditure is buying a vehicle for the business. Others are fuel costs, lease arrangement, permits, liability insurance and marketing. You need working capital to pay staff, buy protective gear for dispatch riders and maintenance.
Pricing
Without competitive pricing you will not attract customers. Conduct a survey of courier companies in your locality. Find out the charges and speed of delivery. This will provide a clear picture on charges and other related issues.
Promote the Business
 Contact private residential homes, offices and schools in you community. Provide colorful brochures, hand bills and banners. Print complementary cards, signage bards and billboards. Offer discount to repeat customers with nice incentives.
Use electronic media targeted at your community and local publications. Use yellow pages, online classified websites and social media advertisement. Try to work within a reasonable budget during your promotional campaign.
Build a Website
The website should target your community and municipal. Makes sure the website is attractive and has a shopping cart. Use social media advertisement to drive targeted traffic to your website. A website is very important in the courier delivery business.
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