How to Start a Courier Company
Couriers transport small or large packages such as medical supplies, legal filings and subpoenas, business copies, research documents and bank documents to business professionals such as doctors, real estate agents and lawyers. Unlike the big-name, national delivery services, which operate on set delivery schedules, courier companies pick up and deliver packages within the hour, depending on driver availability. If your community can support it, starting a courier company could prove highly lucrative. According to Entrepreneur.com, you need between $10,000 and $50,000 in start-up capital.
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Things You'll Need
- License
- Business license
- Liability insurance
- Commercial vehicle
- Commercial insurance
- GPS tracking
- Courier software
- Drivers
- Website
Instructions
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Determine the type of goods you will deliver to establish which types of vehicle, equipment and licenses you will need. For example, you will need special equipment to store or secure perishable goods and hazardous materials. If delivering large packages, you will need a van or truck.
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Contact your city hall to determine which licenses, if any, you need. If operating large-capacity vehicles, you will need a commercial driver's license. If transporting hazardous material, you will need a HazMat endorsement with the Transportation Security Administration.
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Register your business at your county clerk's office. Purchase liability insurance insurance for your business. Your bank may be able to connect you with a provider. Otherwise visit Netquote.com to find providers in your area.
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Find a location for your company near your clientele, such as near a busy business park, courthouse or downtown. When selecting your locale, consider traffic and access to alternate routes.
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Purchase fleet vehicles, moving dollies and uniforms. Procure cargo vans and trucks if hauling large packages. Then contact your auto insurance company to obtain commercial auto insurance for each vehicle. If your company can't provide coverage, they may be able to recommend another one that can.
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Purchase courier software with GPS that tracks drivers, calculates their commission, calculates prices based on your criteria, helps ease online ordering, tracks client information, offers two-way dispatch to drivers and determines the best route.
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Hire drivers with cleaning driving records for your courier business.
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Contact competitors to learn what their rates are. Then detail all of your expenses in a spreadsheet or software program such as Quickbooks and create a price list.
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Purchase a domain name, website template and website for your courier service. A web host may provide all three or you can purchase each individually. Hire a Web designer to help you set up a professional site. On your site, include an About Me page, a privacy policy, your commitment to customer satisfaction, the services you provide, your service radius, information about expedited deliveries and a list of prohibited items.
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Tips & Warnings
Offer 24 hour service.
Offer a variety of services such as "expedited," which is immediate delivery; three-hour delivery or same day.
Advertise by sponsoring a fundraiser.
If you live in a compact city, it may be financially advantageous to offer a bicycle courier service for local deliveries. It eliminates gas and expensive maintenance costs.
