How to Start a Courier Business

Courier services often offer a variety of services such as small package delivery, flower delivery, messenger services and court filing services. Couriers usually charge either a flat rate or a mileage rate. You’ll need reliable transportation and commercial auto insurance coverage. Your clients will mostly be business clientèle such as law firms, real estate offices, architects, doctors and other customers.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Reliable transportation/maintenance/repairs (preferably a car)
• Mileage log
• Business license/fees
• Home occupation permit/fees, if applicable
• Record-keeping
• Detailed, current maps
• Computer system (recommended)
• Office supplies
• Office (or office in your home)
• Cellular phone/service (recommended)
• Telephone
• Parking fees (advanced as needed)
• Gasoline
• Bank account (recommended)
• Commercial auto insurance policy
• Commercial driver’s license/fees
• Commercial license plate
• Trade name application/notary/fees
• Fictitious Business Name statement (FBN)/notary/fees
• Advertising costs
• Dispatcher, if needed

1. Outline and prepare a formal business plan which should include financial statements. Thoroughly research your competitors and analyze the situation. Also, you should determine what entity status you will be conducting business under (e.g., sole proprietorship, general or limited partnerships, LLC or corporation). You should protect your trade name against use by anyone else by filing a trade name application with the appropriate state agency, if possible. You should also set a fee schedule for both flat rates and mileage rates. Establish a policy about when you will be willing to advance fees such as parking or other fees.
2. File a Fictitious Business Name statement, if required. Generally, FBN statements must be notarized and recorded with the appropriate county recorder. There will be a filing fee. You should always keep copies of any and all filings relative to your business.
3. Apply for a business license, home occupation permit (if required) and pay appropriate fees.
4. Apply and pay fees for obtaining a commercial driver’s license. You will likely need to take a written test covering commercial driving. You should also purchase a commercial license plate.
5. Open a business checking account and pay fees.
6. Obtain, maintain and pay for state-required commercial driver’s insurance.
7. Open and begin to promote your business. It can be difficult getting businesses to hire you in the beginning stages of your courier business. One way to try to break the existing relationships that businesses currently have with competitors is to consider offering substantial introductory discounts for services or even provide a few free services until your business grows.
8. Maintain a mileage log for tax purposes.
9. Promote and advertise your business. A yellow page directory listing or ad will be helpful in getting word out about your company. Direct mail is another good way to advertise. You may want to visit businesses (especially lawyers) in person to tell them about your services.