Have you ever thought about starting your own courier business? Well, the time is now.
The year 2020 came with a radical shift: people stayed at home, schools and businesses closed, and people became more reliant on courier services than ever before.
People needed medication, groceries, prepared meals, clothing, the list goes on. And it wasn’t just in 2020 – the COVID-19 pandemic has changed consumer behavior forever. That’s why starting a courier company now can be a very lucrative business.
Whether you’re ready to quit your day job or you’re just looking for a second source of income, there are four steps to follow to make your dream a reality: find your niche, register your business, purchase a van, and insure your assets.
Establish Your Niche
Courier businesses offer a wide range of services. To get your courier business off the ground, you must do your research and decide on one specialization or service area. You may want to begin serving a local area before expanding to wider regions if you’re just starting out.
When choosing your specialization, you need to establish realistic expectations based on your experience level, funding, and level of commitment.
Some of the services courier businesses offer are luggage delivery, international shipping, same-day shipping, overnight shipping, high-volume pallet shipments, and commercial package delivery.
When deciding what services your business will offer, do some market research to determine if there is a demand for any particular service in your area. You should also think about how to set yourself apart from your competitors.
Register Your Business
You’ll need to choose a legal business structure when setting up your company. When you register your business as a legal entity, you will have four main options: a general or limited partnership, a sole proprietorship, a corporation, or a limited liability company.
The legal business structure you choose will determine your tax payments, employment policies, and even the division of your company’s assets, so it pays to select the structure that most suits your business’s needs.
You’ll also need to register for a business license to operate in the area you choose to conduct business. In addition to a business license, you’ll also need to apply for a federal employee identification number (EIN).
Purchase a Vehicle and Supplies
Once you have the legalities of starting a courier business in place, you can move on to the next step: securing your vehicle and supplies.
You can fund these expenses with your own capital or get cash from outside sources. If you don’t have the means to fund your business’ needs, consider applying for a small business loan.
To give your new business the best chance of becoming a success, you’ll need to purchase a delivery vehicle. For average-sized goods, you’ll need a car, van, or truck. If you plan to transport larger items, you’ll need a tractor or trailer.
Something to bear in mind is that purchasing a van or truck is a way to collect and deliver more packages at once, which is more far more economical than making multiple single-delivery trips.
You’ll also need to purchase office supplies, a standard dolly or manual hand truck, packaging and moving materials, blankets, cargo straps, and other protective items.
Get Business Insurance
For your courier company to be successful, you need to understand your personal and professional liabilities and choose the appropriate insurance coverage for the type of services you provide.
As a courier company, you are liable for the packages you transport and deliver. The appropriate amount of coverage will help you protect your business assets and your reputation with customers.
You need to insure your delivery vehicle, the cargo, and your business equipment to ensure you are covered in the event of an accident.
