Do you love to drive around the town and do errands at anytime of the day? How do you feel if you would get paid for completing the errands? Starting a courier business is the biggest scope to earn while delivering parcels to various locations. The services are offered to the individuals and businesses that need to have or drop off their goods quickly and effectively. A courier business deals with picking up packages and delivering them from one place to another in exchange of fees. Starting a courier business is a lucrative option to start a business from home with the least investment.
Pros and Cons of Courier Business
Along with the benefits, every business has its own advantages and disadvantages. So before starting a business it is very important to have a look at the both side of the coin properly.
Pros of Starting a courier business:
- Very less competition.
- The start-up capital will be low if you already have a vehicle.
- In-demand services in various locations.
- Profitable business. Initiating your own business over the franchise will increase your profit.
- Best suitable business for those who love driving and explore places.
Cons of Starting a courier business:
- Unpredictable gas prices may affect the profits.
- Need to spend a lot of time on the road.
- High cost of vehicle maintenance and fuel cost.
- Higher risk of accidents.
- Need to deal with higher traffic jams.
- May need to travel away from home.
Steps to Deal with the cons of the Business Plan
As every business have it own pros and cons, so it’s important to know the steps and procedure to cope with the disadvantages.
Fixation of Price : Considering the price offered by the competitive service provider, it is important to fix the charges by taking few things in accounts like: –
- Fluctuating gas prices.
- Insurance and maintenance cost of the vehicle.
- Salary of the staffs
- Operating costs and
- Earn a feasible profit to continue the business.
Time Management : The goodwill of any business is the most important aspect of being successful and the basic function of a courier service is to deliver the packages to the destination on time. So commitment of the delivery period is very important and need to keep few things in account before setting the time:-
- Traffic : Inside the city, you may face a lot of traffic issue during the pick hours i.e. between 8 am to 7 pm in India and it may cause longer time to reach the desired destination.
- Weather : Heavy rains during monsoon and dense fog during winter may cause hindrance in driving.
- Condition of the Vehicle : If the vehicle is new and in good condition, then it may travel faster and help in delivering quickly.
- Availability of Staff : You may not be able to travel all the time and have to depend on the staff sometimes for delivering. An experienced delivery staff is must hire.
Insurance : Insurance is a must or the courier business and it makes sure that you are not held liable for the damage or lost of the items during delivery. Insuring the vehicle used is for the delivering purpose is also needed and sometimes health and other policies are required for the employees depending upon the size of the business.
The careful implementation of the above steps may come as a great help to cope with the disadvantages of the starting a courier business and can be used for the benefits. Now let’s find out the steps and requirement of starting the business.
- Capital : If you are already having a vehicle than the initial need of capital is very less and you may just need to pay for the infrastructure and for the legal procedures.
- Office : You can make the separate area of your house as your office like the garage, it will again reduce the establishment cost and it also doesn’t matter if the office is not located at the front or in a popular location.
- Branding and legal formalities : Give an attractive name to the business which may after few years become famous in all over the world. Apply for the necessary required license as per the policies of the state. Get the vendors license as you need to charge sales tax to the clients.
- Choose the clients : Will suggest choosing both residential and corporate clients as this will bring more number of customers. Also, decide the type of package you will be dealing with.
- Establish Links : Get contact with all kind of business setups, small or big as they need regular service for delivering documents or others and are the most profitable clients.
- Pricing : Get proper information’s and do a thorough survey of the prices that is being charged by your competitors, do an analysis of your expenses and fix the charge accordingly.
- Advertising : How will the people know about your service? Create a website of yours and place in the top searches of courier service in different search engines. Distribute your business cards to all the possible clients and start a strong advertising campaign. Once the business starts to flow, you may give little loose to the promotion but can’t stop.
- Hire Employees : Has soon the business is getting a good number of clients and you have started to rock and roll, start hiring for new staffs for delivery or to handle the office related works.
Always remember all famous courier services even Fed-ex, Blue Dart started from ground zero and now has reached the sky. So always keep your focus strong and dedicated. Starting a courier business is one of the best business ideas which needs very less investment and can fly high with your strong dedication and hard work and over that you can start it from your home also.