What (Really) Goes Into Starting A Successful Courier Business

Did you know that 82% of consumers are willing to pay more to support small businesses? Well, it’s true!

If you’re looking to create a startup and have it succeed, a courier business is an awesome choice. Shipping services are something that everyone can use, and people are willing to pay more to support a courier startup rather than using government shipping. This is especially true since courier services are faster and more reliable than their larger parcel carriers.

But how can you create a courier service business?

Read on to answer this question and learn some courier business ideas for entrepreneurs.

Understanding Courier Business Services

As you likely know, a courier service business facilitates shipping operations. They help to get parcels and printed documents to the desired destination. Couriers are distinct from parcel carriers for a few reasons:

1. They tend to be smaller privately-owned organizations
2. They offer faster, more reliable delivery
3. Customers get frequent tracking updates and information
4. They offer more customer service
5. They offer international shipping
6. They handle customs and other international shipping documentation

So… why is a courier startup a good choice in today’s market?

In 2020- the last available reporting year- people shipped over 20 billion parcels from the United States. This is likely due to the rising popularity of eCommerce since 73% of people are shopping online more than ever before.

The rising number of parcels makes courier services a more competitive market. More eCommerce businesses, big-name brands, and individuals will be in need of fast shipping both domestically and internationally.

Your Vision and Mission

The first step towards starting a courier business is to brand yourself.

You’ll need to think about where you want your business to go. Create a brand vision statement that declares where you want your brand to go in the future. This statement can be a single sentence such as:

“An international shipping service where people can ship all legal goods internationally.”

You also will need a more specific mission statement. This is a few sentences that talk about the ways that you intend to help people accomplish their goals. An example would be:

“We’re committed to providing people with same-day delivery domestically and 4-day delivery internationally. We work with every client individually to come up with a shipping plan that suits your individual needs.”

Of course, these are simply generic examples. There are many ways that you can make these statements your own.

Coming Up With a Brand

The next step of branding yourself is the creation of an actual brand. You need to make your startup unique and memorable. People need to be able to remember something related to your business so that it becomes ingrained in their minds.

One of the most important aspects of branding is a logo. Think about an apple with a single bite out of it, a checkmark, or golden arches. We never said Apple, Nike, or McDonald’s, but you almost certainly thought of these brands!

Your logo should be something simple and visually appealing. This will give people a visual symbol to remember your brand by.

Your brand name is another critical aspect of branding your courier business. Keep it short, sweet, and relevant to your services.

You can use your last name, a word related to shipping or parcels, or even a clever pun. If you’re unsure of what might make a good name, you can generate some online in minutes! You’ll get tons of great options to choose from. All you have to do is become a Bizology Pro Member!

Puns can also be saved for your slogan. This slogan needs to be catchy and memorable while tying into your services, name, and brand voice. Alliteration and puns are good options, but you can also use part of a vision statement to put more information out there.

Deciding Where (and How) to Operate

Once you have a brand, it’s time to consider business logistics. Even if your end goal is shipping to 100 nations worldwide, this is not a feasible or realistic service for a small startup. Instead of going for this initially unattainable goal, ask yourself:

Where does the majority of my target audience want to ship to?

Realistically, domestic shipping is where you will likely begin. However, this is an extremely broad area. You may need to initially focus your efforts on a single region.

The best way to decide where to operate is by finding your niche. Identify an audience that needs courier services and talk to people in that audience. Some ideas for niche audiences might include:

• Attornies looking to ship legal documents
• eCommerce businesses looking to ship products domestically
• eCommerce businesses in specific industries (for an even narrower target market)
• Catering services looking to send out prepared meals
• Subscription box services looking to send out monthly parcels

This is a great way to get a quick start when finding your target audience.

Once you have a niche, you can identify those who fall into it. For example, if you’re looking to become a subscription box courier, look at popular subscription boxes online. You’ll likely find trends when it comes to parcel size, delivery location, and client demographics.

You can use this information to find clients later.

Creating a Budget

Like all startups, you need to create a meticulous budget before beginning your business. This process can be broken down into six simple steps:

1. Looking into your projected revenue and income
2. Subtracting fixed costs that are necessary to running your business (supplies, payroll, taxes, office rent, etc).
3. Identifying variable expenses
4. Setting aside money for unexpected fees that might come up later
5. Writing out a profit/loss statement
6. Outlining your business budget going forward

Take a thorough look at how you can perform each of these steps.

Pro-Tip

You can cut down on fixed costs in a few simple ways. This will allow you to start a courier business for virtually no fees. Some things that you can do include:

• Using vehicles that you already own for pickups/deliveries (rather than purchasing a new one)
• Using tools such as printers, label makers, and shipping containers that you already own
• Buying necessary materials that you don’t have used online (for a reduced price)
• Working at home (assuming that it is legal) rather than shelling out rent for an office space

This will save you money so that you can invest it elsewhere.

Determining Legal Structure

One of the simplest but most important steps when starting a courier business is to determine how it will be run. You have three basic options:

1. A sole proprietorship in which you own the business by yourself
2. A limited liability company (LLC), which is a type of business allowed by state stature to shield the business owner from debt liability (in exchange for a fee)
3. A corporation that is completely separate from its owners but rather is its own legal identity

Small businesses are unlikely to be corporations because of the costs involved. You also want to retain some control over your business. Whether you choose a sole proprietorship or LLC depends on your individual needs and the protection you want.

Accumulating Necessary Items

Once you decide on the type of business you want to run, you’ll need to gather the materials you will need to begin a courier business. For packaging, means that you will need:

• Packaging materials (mailing envelopes, shipping boxes, etc)
• A printer (for shipping documents)
• An industrial label-maker (to create shipping labels)

For delivery, you will need:

• A pickup/delivery log
• A vehicle
• Vehicle maintenance materials
• A cell phone with GPS capabilities

For marketing, you will need:

• A website
• Digital ads (for Google Ads, social media, and more)
• An SEO package to generate organic web traffic
• Fliers and brochures
• Posters and billboards

For operating, you will need:

• A registered DBA
• A vendor’s license

Pro-Tip

You will need specific documentation depending on whether you choose to run a sole proprietorship or LLC. Research the specific requirements of these two business types. You may want to alter your legal structure depending on what documentation you’re willing to sign.

At this point, you’re ready to go and find customers. Good luck!

Launch Your Courier Startup ASAP

So, how can you launch a courier business and have it succeed?

There are tons of steps that go into this process, but it’s easy when you break it down into parts. Now that you know some of the top ways that you can get your startup off the ground, it’s time to start shipping.

We’re committed to helping you succeed in a competitive market. Join Bizology Pro today for instant access to all our courses, resources, and more.