Everyone has been talking about the huge increase in demand for courier services recently, which may have led you to consider starting up your own delivery business.
While it is true that now is the opportune time for new courier companies to launch, before you take the bull by the horns, there are several things you need to carefully think about.
Here are five things you cannot afford to overlook.
1. The Type Of Courier Business You Want To Start
One of the first things you need to consider is the type of courier business you are going to set up. You will need to choose the type of vehicles to use. That could be vans, cars, motorcycles, or bicycles. You could even begin a drone courier business.
The type of transportation you choose will affect the items you can deliver, depending on things like weight and size. You then need to determine whether you will provide standard delivery options or things like same-day deliveries.
Of course, you also need to think about what types of items you will deliver. Your courier company could deliver standard packages, specialist items like medical products, or food takeaways, for example.
2. The Size And Location Of Your Storage Facility
Once you know what types of vehicles you will use and how big a fleet you intend to operate, you need to consider the size of your storage facility.
For most types of courier businesses, you will need a warehouse to store and sort packages and a parking lot for your fleet of vehicles.
Though, if you are operating something like a small-scale cycling courier business, your facility needs will be much less.
3. Potential Delays
Even with a carefully thought-out plan in place, delivery issues can happen. If a courier company is to be successful, it must deliver items on time. So, you must be ready to deal with common issues as they occur and take steps to prevent them from happening in the first place.
For instance, your drivers could run out of gas, experience vehicle breakdowns, or get delayed in traffic jams. Running out of gas can easily be prevented by ensuring your drivers always check their fuel levels regularly.
Breakdowns can be prevented by ensuring vehicles are checked and well maintained. And traffic jams can be avoided by using route optimization software that plots the best routes and alters those routes by taking real-time data about traffic into consideration.
4. How You Will Build Your Brand
If you want your courier business to be successful, you need to compete with other delivery companies. One way of doing that is to spend time building your brand.
When you choose a strong and memorable business name that is relevant to your industry, create a professional logo that will stick in people’s minds, and create a company mission statement that lists your company values, you will be able to grow your brand quicker.
5. The Pricing Structure
Another way of becoming a top player among the competition is to get your pricing strategy right. You should begin by researching the price points and different options that other courier companies use.
When you are just starting out, it can be a good idea to undercut your competitors, but you still need to make a profit, so do not undercut so much that you are barely breaking even.
One of the best ideas is to create various price points. Offer lower prices than your competitors for standard deliveries but charge higher for first-class services like same-day delivery.
The longer you spend calculating different costs and options, the more you will be able to create a pricing structure that is profitable, helps you to compete against your rivals, and at the same time, provides value-for-money for your customers.