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Three Strategies to Start a Courier Business with a Small Investmen

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You don’t need a huge amount of money and a fleet of vans to start a courier company. With just a small investment, you can begin a profitable delivery business.

You can set up a one-person operation, to begin with. As your business becomes more successful over time, you can then consider expanding. You could eventually own a fleet of vans that can compete with the likes of FedEx!

But let’s not get ahead of ourselves. First things first. Here are three great strategies for starting a courier business with a small investment.

1. Become an Independent Courier Contractor

Delivery drivers who work as employees for companies drive company vehicles and have expenses like fuel and maintenance paid for. They also don’t need to spend time finding clients.

On the other hand, an independent courier contractor is a delivery driver who uses his or her own vehicle.

Independent contractors work on behalf of one or more companies. They often have to find their own customers. There are also options for sub-contracting.

So, if you have only a small amount of investment capital, starting as an independent contractor could be a great first step.

You will only need enough money to cover the cost of vehicle purchase, if you don’t already have one, the costs of maintaining the vehicle, fuel, vehicle insurance, and items like a smartphone and a route planning app.

If you’re interested in becoming an independent courier contractor, you can learn more here.

2. Create an Effective Budget and Business Plan

If you’re more interested in setting up a business that doesn’t involve contracting out your services to another company, you can do so for a small amount of capital by choosing the right number of employees and the right type of vehicle.

Work out the costs associated with different operation options. For instance, you could calculate the cost of hiring six employees to cover a thirty-mile radius, driving vans, in comparison to six employees covering the same distance by bicycle or motorbike.

Once you understand the logistics of what you want to achieve, you can cost things accordingly and find out the best business route to take.

You’ll need to budget for vehicles, vehicle insurance, vehicle maintenance, employee wages and benefits, taxes, technological tools like accounting and route planning software, premises rent and associated costs, unexpected costs, and more.

So, the more time you spend crafting a detailed business plan, the more you can make the most out of your small investment and make your courier business a profitable one.

3. Create Strategies for Gaining and Retaining Customers

Every business needs customers. How will you find yours?

You must have a firm strategy for gaining and retaining customers before you launch your business.

Even with a small budget, you can find customers. But you’ll need to put the work in.

First off, you should consider whether you want to deliver standard packages or more specialized items. You also need to consider what package sizes you can handle. You won’t be able to transport the same goods on a bicycle as you could in a truck.

You could specialize in items like legal documents and medical supplies, in which case you’ll have a smaller pool of clients but it may be easier to find customers.

Whether you deliver standard or specialized packages, you should contact local businesses and reach out to people with marketing campaigns to drum up business when you’re just starting out.

You also need to pay attention to online marketing. In this day and age, having an easy-to-use and attractive website is vital, as is connecting with people on social media. Don’t only spend time coming up with effective strategies for finding customers. You also need to strategize for retaining those customers.


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