How to Start a Small Courier Company

Couriers make deliveries for people and companies who don't have the time or resources to make them themselves. Couriers handle small items like business paperwork or books for a minimal fee. Courier flights are another important means of delivery. Smaller companies can fill a niche that's not serviced by FedEx or DHL. Because the profit margin can be slim once you've factored in employees, transportation and other costs, start with a realistic business plan.

Things You'll Need

• Vehicles
• Telephone
• Fax
• Email
• Pagers
• Staff
• Insurance
• Website
• Advertising

Instructions

1. Make sure your business plan includes the territory you intend to cover. A courier business in a large city might only cover the downtown area. Bikes are cheap, but have a limited range. Flights can go hundreds of miles. Figure your cost per mile, no matter the means of transportation, and weigh that against your potential earnings to determine how large a territory you can cover.

2. Create a reliable means to get courier jobs. Set up an office with telephones, a fax machine and email. Buy pagers or texting devices for all of your couriers. Communication will be the key to a successful business.

3. Hire a scheduler or purchase scheduling software to keep track of jobs, which courier performed the job, the fee charged and the method of payment.

4. Purchase the appropriate insurance for your business. If your couriers will be using their own vehicles, make sure they have enough insurance.

5. Decide what fee schedule you'll use. Some courier companies charge by the job, some by the mile. Your territory and costs will determine which is right for you.

6. Generate business by offering guarantees of on-time delivery, discounts for frequent users and coupons. Create a website and use keywords so that your courier service is the first to appear on search engines. Advertise in the local newspaper and business journals. Offer incentives for customers to recommend your company.

7. Set policies that take the safety of your couriers into consideration. Stress that they must obey traffic laws, insist that bike couriers wear helmets and take the fatigue that occurs during a long day into consideration.

Tips & Warnings

• Join the chamber of commerce and business clubs like Rotary International. Have your couriers wear uniforms or jackets with your company name prominently displayed.

References

• Small Business Planner
• Courier Company Customer Service

Resources

• Small Business Loans and Grants
• New York Bike Messengers Association
• Entrepreneur Magazine