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| How to start a pickup and delivery business |
Here is your opportunity to take in cash from international import transactions. Starting a pickup and delivery business can be a lucrative venture if you live near a bustling metropolis and you are a fast worker.
Many large companies would rather hire a local, same day courier or delivery service than deal with shipping companies like UPS or FedEx.
If companies have deliveries that need to be made within a matter of hours, a courier delivery business is only option available and which is economically feasible.
Compared to other businesses, you can start a courier business relatively cheaply. After looking into what it would take to start a delivery service, I discovered that it is rather easy and inexpensive business to start.
What Exactly Does A Courier Do?
A courier (or an errand boy) is a person who pickups and delivers goods, letters, official documents and sometimes, pets to and from various places such as business, airports, hospitals and even people's homes.
These delivery services are in great demand, because there is always someone who needs a package delivered to a nearby airport, market, office, town or state within the country.
And this is where a courier is needed. UPS and the Post Offices have set schedules and will only pick up at certain times, whereas a courier can often deliver or pickup the item at any time of the day or night, when it's needed.
How Much Does It Cost to Start A Courier Or Delivery Business?
The delivery service business has more than enough room for new players. Are you dreaming of starting your own pickup and delivery service business?
Well, the best way to go about starting a courier/ delivery service business is by exploring your availability options
You can operate a pickup and delivery service in several ways. You can team up with an established courier/delivery company and have them subcontract business.
When you subcontract, you do the legwork for your client company. That is the essence of your role. You provide the transportation and manpower necessary to deliver and pickup parcels.
Subcontracting is an ideal option for people with limited know-how of the industry and is the perfect way to ease your way in the courier service world, to speak.
It is also the least expensive option, but it comes with a catch. True, you don't get to spend much, but you don't get to earn much either. This option leaves you with the lowest profit and growth potential.
Therefore, starting your own pickup and delivery service from scratch on the other gives you the highest profit potential. It also provides you the chance to expand your business much faster compared to subcontracting.
However, be prepared to shell out more than capital initially. In starting a courier/or delivery service, expect to be swamped with decisions to make. Check here in this post:
3 Steps For Making Decisions On Delivery Service Business
Step 1: Find What Types Of Parcels You Want To Deliver
Decide what type of parcels you want to deliver. Will your service be limited to envelopes and small packages? Will you include large cargoes?
Naturally, your decision will depend on the capacity of your storage and transport vehicles.
Do you want to deliver sensitive cargoes such as medical and industrial chemicals?
If so, you and your crew must be knowledgeable in handling these substances. Do you want to deliver perishable goods?
Considering that this type of cargo is time sensitive, your transportation and manpower resources must be adequate.
You must have manned units readily available at a moments notice. The ability to deliver a wide variety of cargo will augment your potential to earn.
However, expect to spend more initially. Take delivering perishable goods for example. You may need to invest on refrigerated trucks for this.
Step 2: Find The Scope For Your Service Area
Decide on the scope for your service area. In other words, define the limit of your parcel destination. Up to what part of the global do you intend to deliver?
Will your service be limited to a single state? Can you handle deliveries from coast to coast? Do you have the resources and network to deliver internationally?
Keep in mind that the same rule follow: the wider your geographic scope, the bigger the amount you need to invest at start up.
Step 3: Decide The Price List For Service
Decide how much you want to charge your customers per parcel/per mile each. There are several factors to consider in setting up a price list.
First thing to consider is the mileage and the amount of gasoline that will be consumed from Point A to Point B. Two, the number of parcel deliveries to be made at a particular area.
Three, will the delivery be a point A to Point B scenario or will you be able to accept deliveries from Point B to back to Point A?
Consider this. Four, the rate your competiton charges their customers.
Find calculation carefully so that you may not want to lose profit or want to lose your customers to your competitors on delivery service.
On a final note, factors itemized above are only a small fraction of the big picture. If you are serious in starting your own courier service, here are tips to help you get started:
9 Tips On How To Start A Pickup And Delivery Business And Realize Huge Income.
Tip 1: Get Your State Map On A Compass
The easiest way to determine your driving area is to get a state map, find your location and then make a circle with a compass with your town or location as the area in the centre where the compass point is.
From this point move the compass outward as far as the miles you are willing to drive to a location, ie: 30 miles, 50 miles, etc.
Once you find the right area of miles, make your circle with the compass; you now have your area of service for your new courier business. I bet you are getting excited already and you should be.
Tip 2: Find Your Business Brand
FedEx is a business name. DHL is a business name. UPS is a business name. Find what business name you want to set up to be recognized locally and internationally. Your business brand must be short and easily sound.
Once you have figured out a business name for your delivery service, contact your local licencing office. A good place to find out where to start is the general information number at city hall or company names registeration centre.
They will be able to point you in the right direction. Make sure you file the necessary paperwork.
Tip 3: Decide The Type Of Packages
You must decide what type of packages or things you will pick up and deliver, and how many miles you will travel.
If you live in the country, it will be harder due to the distance involved between, for hospitals, airports, and businesses, and if you live in the city, you will have to deal with traffic and lots of stop and go driving, so both have their advantages and disadvantages.
Tip 4: Check Price Charged By Your Competitor
Look online for price charged by other, nearly courier services. Also, take notes on what their terms of service and billing are. Never copy their forms, simply use their ideas and make your own contracts.
Figure out what prices you will charge your customers. Type up a copy of your prices and terms. Make several copies.
Tip 5: Find Which Vehicle
Decide which car or truck you will use for your delivery vehicle. Bike is a great advantage in courier delivery service because it will enable speed and as well overcome traffic.
Make sure your car is tuned up and clean, if that is your desire. Purchase magnetic signs for your vehicle or bike. Your vehicle will need to be clearly marked when picking up and delivering orders.
You can find wording samples and prices online. Also be sure to check your local sign shop. If you order magnetic signs for your car from a local sign shop, give them your contact information.
They are a potential customer and will be likely to choose you over any other company as you are their customer as well.
Tip 6: Professional Appearance
Order custom screen printed shirts. You will need to show up for pick ups and deliveries with a clean, professional appearance. Logo Apparel will help to establish your credibility.
Make and hand out flyers and/ or business cards to local companies any where that may need courier service.
You should also place business listing for your delivery business on Ad campaign websites such Google AdWords, Facebook ads, Instagram ads and also place a small ad in local newspaper's under the sections: Services Offered or Work Wanted. You can also place flyers on store bulletin boards.
Word of mouth is a great and free way to augment or increase your customers. When you start getting calls from customers, be sure to write down directions carefully, and what is to be picked-up and delivered.
When the job is completed, it is a good idea to telephone your customer and tell them that the job has been completed.
Tip 7: Offer Wholesale Contract Price
If a business will be for a reptitive customer, offer them a discount. Be clear about how often they will need to use your service to receive their discount for free. Get the contract information in writing.
Contact real estate offices, banks, mortgage companies, print shops, sign shops, screen printing shops, lawyers, and doctors to let them know about your service.
Drop off your business card and flyers as some companies often have timely material that they need delivered for court cases, hearings and real-estate closings.
Lawyers are often primary customers for courier and delivery services. Dress to impress when you are soliciting at these offices, in order to make a good first impression.
Tip 8: Purchase GPS Navigation Unit
A GPS will help you locate any delivery addresses that are unfamiliar to you. Keeping maps in the vehicle is also a good idea, just in case your GPS is not working or is not taking you exactly where you need to be.
Always on time. Only in the event of an emergency should you be even a little bit late, contact your customers and give them a status update.
Tip 9: Be Patient With Your courier Business
Remember that it could take a year or so before your delivery business takes off. Be prepared to hire a second driver should your business grow beyond your ability to handle it yourself.
If you want to add revenue stream, become a notary public. It is fairly easy to do. Many important papers will need to be delivered, signed (and witnessed by a notary). If you offer this service, you will make more money and your service will be greatly appreciated.
Final Thoughts
At last, you are advised to get more experience in the industry. You must gain experience in the industry and attend seminars or training to enlighten you more on how to avoid potholes in the business and to enlighten you more on how to keep the business growing.
This article is not my own idea on how to start courier service business. It is my interview business columnist on 'Top Story' in the local paper I read ago and place in writing on brief what l learned and understood how courier/ pickup and delivery service business works.
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