There are several industries that were badly affected by the Covid pandemic but also there are a few industries for them pandemic was a blessing. The delivery industry is one of them. As online shopping demands increased exponentially, delivery services also boomed in the last two years. 2022 is a great time to step into this industry.
Before starting out any business venture, you must have to keep an eye on your market competitors. According to IBISWorld, you’ll be competing with 31,315 postal and courier businesses currently operating in the UK.
Every business should have a specific goal and mindset. For a startup, competing with industry leaders like Royal Mail, DPD, Hermes is really difficult rather you should focus on setting up your own services, realistic targets and start small. Gradually, your business will grow larger and can compete with big others.
In this article, we’re guiding you to start a successful courier business in 2022.
Know the game before you start playing. The same applies to business. Do market analysis to know what niche can be good, who are competitors, what people are looking for, and what you can offer better than current courier companies. Do SWOT analysis as well.
Fix the right assistance area for your business. You can start with local delivery but make sure you go through the current market scenario. Analyze market data carefully, you don’t want a bad start for your business. Do you?
So before implanting your business, do this bare minimum research. After completing your research, make a future proof strategy that should assist you to grow and develop a strong business presence.
Setting up Services
Now you have the market analysis data with you. It’s time to move into the second step of your startup journey which is setting up the services that you want to provide to your customers.
You can opt for same-day delivery, next-day delivery, 4-hour delivery, or special delivery (medical goods, temperature-controlled delivery, fragile goods, hazardous materials). Specialist delivery will help you to stand out from saturated same-day and next-day delivery races.
Many industries need certain demands in delivery and solving these needs will allow you to attract customers without doing any magic.
Delivering medical goods and equipment is also a great option in this covid time. It’s an evergreen opportunity to start out with this essential industry. However, an in-depth report by efulfillmentservice, shows that the demand for same-day delivery rises over 75% but courier companies are failing to provide that kind of service.
Only 50% of the delivery companies offer same-day delivery. You can see here is a huge gap between the demand and supplier and it’s a great opportunity to fill this market gap by offering same-day delivery service.
Select the Right Vehicle
The main investment for a courier company is the vehicles. You need a reliable transportation medium to deliver packages. Now, in the market, you get many options but you have to find the right one for you.
If you deliver only in the local area then you don’t need trucks and big cargo vans. You can start with motorbikes and minivans only.
Traffic and package size also matter a lot. For heavy traffic areas, big vehicles obviously not recommended. And if your budget is tight then you can buy used vehicles as well. But if you choose to offer specialized delivery service then you need some extra facility in your vehicle like AC for medical deliveries. And having GPS in your vehicle would be the cherry on the cake.
Choose the Right Equipment
The right equipment will make your daily delivery easier and more efficient. The equipment list consists of a few must-have things like helmets (motorbikes), company uniforms, safety gloves (hazardous deliveries). To lift heavy couriers, you need lifting trolleys. Check the important courier equipment list here.
Register Your Business
Decide a name and logo for your company and register it. Also decide what kind of ventures you’re founding like a startup, private company, or a public company, and register according to that. If your business has multiple owners then LLC (Limited liability corporation) would be a good fit. But if you’re the only owner of your business then Sole Proprietorship might be the best.
Make sure the name you choose is not taken by someone previously. Also, get a domain name for your business from domain and hosting providers like Godaddy or Siteground. Set up your website with a professional developer.
List all the services, contacts, rates everything. It’s the digital store for your business. People will contact you for any kind of inquiries here.
Open a Business Bank Account
To track all the business transactions and separate your business expenses, profits from your personal funds, you definitely need to open a business bank account. You have to show your business registration documents in order to create a business bank account.
Get Business Insurance
Business insurance plays an important role when it comes to the courier business. Contact an insurance broker and get insurance on your vehicles and expensive equipment. In case you encounter any accident then the insurance can only pull you out from big damages.
Having insurance also builds trust with customers and other businesses as well. The cost of insurance depends on your business, location, and what plan you choose.
Market Your Courier Business
Now you have vehicles, all equipment, and business identity with you. It’s time to market your business. Let people know what your business can offer. To begin with, you can just ask your friends and relatives to share posts on their social handles mentioning what your company does.
At the same time create business pages with the name of your company on Facebook, Instagram, and Twitter. And start posting there regularly.
“Don’t find customers for your products, find products for your customer”
You have to target those businesses that need a courier service. Make a list of those businesses in your service area. And start reaching out to them. One of the most underrated but effective ways to reach any people is cold emailing. Write a well-structured email or you can cold call them as well. And also follow them up.
Social media advertising is a highly effective medium to reach out to your targeted customers. You can with a low budget every day and observe what works and whatnot.
If you have a big budget then hire a digital marketing expert and promote your business across all the social media. With the help of Facebook and Google ads, we can target a geographical location, interests of people, age group, business industry, and many such customizations to reach our target audience.
Decide Rates for Your Services
Now, this can be the difficult part of this whole journey. Look at your expenses, consider every single money that you spent and will have to pay in the future. For example, vehicle maintenance, insurance, business permits,
taxes – these are all you have to pay annually. So, count these all on your expense list.
Look what other company is charging for the same service. And finally, decide your rates. Make sure you’re not charging higher prices and also not making losses. Make it competitive and provide better service at the same rate. Your main goal for the first few months should be reaching a maximum number of people.
Once you served a few customers, take time to get feedback from them. Being customer-centric is the best way to develop your business. Record the feedback digitally for future reference. Focus on what customers expect from your service. Find the scope of improvement by analyzing the customer feedback data.
When customers get satisfied with your service, you can ask them for referrals. This is a great way to find more customers. The more you make good impressions the better customer retention you’ll have.
Start Expansion Planning
Growth is the ultimate goal for any business. And consistent improvement leads to growth. For expansion, good business volumes and service request is necessary. To meet that level, improve your current services and create a network by collaborating with other brands.
Hire people, reach out to more locations and build something more valuable to your customer’s eyes.
It takes time to build something from zero. And same goes with a courier business. The journey will give so much learnings and experiences that we can’t give you here. Follow these steps and you’ll be on your way to having a successful courier brand.