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Monday, 13 March 2017

How to start a small courier service business

How to start a small courier service business
You may have seen a need for a courier service in your locality and you are nurturing the thought of starting one. Lucrative businesses are businesses that arise out of a general need; a bridge between societal gaps that rewards financially. One such business is the courier service business, and a number of entrepreneurs already know this.
Being part of this number, you might be nurturing considerations to go into this business. As you probably already know, courier services involve the transportation of parcels, goods, or any contained item via vehicle from one location to another.
 A number of renowned courier service providers include FedEx, UPS, and DHL. Starting a local courier service is a grossly interesting venture; and more profitable than it is interesting. Without further ado, I’ll go straight to the steps to take in establishing this venture.

1.Draft up a Business Plan

Just as in every business, a detailed plan must be made as to the management and registration of your business. There are local business associations, or more precisely transport associations you should look out for and meet their requirements. There are licenses and permits as well that you would have to get for the establishment of your business.
Asides these considerations, you should also make plans towards the staff you intend to hire. Possibly a number of drivers, administrative staffs, car washers, and one or two mechanics (you sure do not want to face the embarrassment of being associated with broken down cars).
You might also need to hire an accountant, to keep detailed records of all the incomes and expenditures of the company; this is important, especially for a starting company, so as not to run into losses without even knowing it.

2.Establish your Delivery Niche

What nature of parcels do you intend to deliver? You cannot deliver big cargoes when you do not have large enough facilities; neither can you deliver goods like tomatoes (that are perishable) when you do not have storage facilities, like a freezer.
You would have to recognize the areas your capacity covers at first, then as time unfolds, you keep expanding that area. Note that specialized knowledge is required to deliver certain items—like acids and alkali for school laboratories.

3.Geographical Coverage

Being a local courier, you must decide specifically the regions you intend to cover. Maybe communities within a metropolis, or intra-state courier, just map your geography well enough. But note that the wider the area you intend to cover, the more likely you are to earn and succeed.

4.Place your Price tags for Different Mileages

Pricing is one of the most integral and sensitive part of every business. You must bear competitors in mind, bear distance of the delivery in mind, cost of fuel, weight and volume of the parcel. Most of us have either sent or received a parcel, at least you should have some clue how the prices range, then guide yourself with those margins.

5.Equip your Venture with Standard Facilities

There are a number of characteristic facilities that are imminent for the smooth running of any courier business; the vehicles are as indispensable as the maps or GPS devices that would guide the drivers in navigating the territories that your company covers—through streets and major roads. You would also find it necessary to have administrative tools such as the printers and computers, both for the purpose of networking the firm and for paper works, like receipts and invoices.
A telephone should also be made handily available, so that communication with clients can easily be established. I remember GUO Nigeria delivering my laptop to me from a city over 610km away; I was simply notified on their arrival via a phone call, without having to bother myself as to whether there were delays on the road, or consistently checking up to ascertain the status of their travel.

6.Adopt a Suitable Insurance Policy

As to the welfare of the cars/trucks and the drivers who man them, there has to be some form insurance. The health of the cars and the workers in your company should be put into the hands of a good insurance company as it has proven to produce the effect of optimal productivity.
In this regard, it is important that you seek advice from experts and professionals in this line. Such experts would likely go as far as analyzing the costs that are safe to incur, and recommend the employment of accounting skills in your business.

7.Promote Your Business

Definitely, even in the face of competition, it is the sheer duty of the entrepreneur to advance his business to the highest marketing ranks. You could take advantage of the growing audience on social media, local newspapers, and special printings of your company’s logo on items like pens, tea-shirt, and fliers.
At this point you are good to launch your business and keep it running. You must maintain a good humor toward your customers so as to endear them to your company—never joke with customer loyalty.
Be prepared to spend money in order to ensure their satisfaction, then sit back and expect good returns. I must say that the courier business is not one for the feeble-minded, so you should be prepared to face some ugly and beautiful situations, however your skill of rationality would always suffice to save the day.Read more...

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