Is Starting a Courier Service A Good Business Idea?

In today’s lightning-fast world, people want their products delivered to them as and when they want them. That is why the courier service business is thriving as more and more companies look for ways to meet this demand.

Starting a courier service business in the UK can be a lucrative venture if you have the right mind-set, adequate capital and access to enough potential customers. The UK courier services industry is worth £1 billion, which means there is plenty of scope for new players to get in on this market. But before you start a courier service business, you need to ask yourself these questions: Do you have what it takes? Are there enough potential customers with an appetite for your services? Are you ready to commit time, energy and money?

What does it take to start a courier service business?

No matter which business you choose to start, it is important that you make a proper business plan first. This will help you decide how much capital you need, how many customers you can expect, the nature of your products or services and whether - or not - there is a demand for them.

You must, then, be prepared to invest time and money into developing your business, which will include purchasing any necessary equipment, securing office space, hiring staff and applying for the necessary licences and permits. You will need to be prepared to invest in logistics, such as purchasing a vehicle or vehicles, perhaps hiring drivers, and even hiring staff to handle dispatching orders and managing accounts. You will also need to invest in the necessary computer and communications equipment to track and monitor the flow of goods and customers.

Is there enough demand for courier services in the area you’re based in?

One of the most important aspects of starting a courier business is deciding on the location of your business. This is because you need to be located where there is a high demand for your services. You should conduct a market analysis to determine whether there is a sufficient demand for your services in the area where you want to base your business.

You should first decide if you want to go for a road, sea or air delivery service. Although road service might be cheaper to start, air delivery services are in great demand because products are delivered faster and competition is lower. You should also find out the number of businesses in your area that ship products in and out of the country. If there is a high demand, then it might still be a good idea to start a courier service in that area.

Are You Willing And Able To Risk Losing Money Initially?

Even though starting a courier service business might seem like an attractive proposition, you need to be prepared that you might lose money initially. You need to be patient and be willing to invest time, energy and money to get your business off the ground.

You should have enough money to cover the cost of setting up your business and making the initial purchases of equipment and supplies, especially if you are planning to lease office space. You should also expect to lose money in the start-up phase because you probably won’t be able to recoup your initial investment for at least a year or two.

Moreover, you need to be prepared that when you first start out, you might not get as many customers as you anticipated. During this time, you need to be patient and keep marketing your business, trying to attract new ones.

A Good Business is One That Meets a Need

One of the first challenges that you will face when you start a courier service is deciding what services to offer, and which ones not to offer. You should ask yourself if there is a demand for the services you want to offer, and you should avoid offering services that your customers can easily get from other sources.

Instead, you should focus on services that are in high demand, but are not being supplied in the market. If you can’t find one that meets a need, then you can try to develop one by either adding or removing features from a service that is already available in the market.

For instance;

• Do your local smaller supermarkets offer delivery services? Could you set one up for them?
• Could local manufacturers offer their products online with a guaranteed next day delivery?
• Do local rising DJs or rock groups need a reliable transport firm to take their equipment to and from gigs?
• Is there a local market for overseas relocation? Would local restaurants like to provide complete party-at-home facilities complete with meals, drinks, tables, chairs, the full package?
• Would electrical retailers or manufacturers appreciate help with delivering friges, freezers, washing machines?
• Can estate agents have your details for clients who may want light removals?

It's surprising what you can dig out with a little thought, and some advertising or telephone calls.

You Should Be Passionate About What You Do

Starting a courier business is a big undertaking and it is important that you are passionate about what you do. If you are zealous about your job, then you are more likely to give the best customer service and work harder to grow your business.

Keeping your customers happy can be challenging, especially when you are just starting out. You need to be willing to go above and beyond for every customer, regardless of how busy you are with your other orders. Otherwise, you are likely to lose customers and have a hard time replacing them with new ones.

How Much Will It Cost to Start A Courier Business?

The costs of starting a courier service business will vary from one person to another. It will depend on the type of service you want to offer, the location of your business and the type of equipment that you plan on buying. You may plan on being a one man band at first with a single van or if you are more ambitious and have more capital the sjy is the limit.

For instance, if you want to start an air delivery service, then you will need to invest in a fixed-wing aircraft since helicopters are not suitable for air delivery. If you want to start a major road delivery service, then you will need a large fleet of vehicles. You should also estimate the costs of leasing or purchasing office space and hiring staff.

Is Your Service Unique?

Another important aspect of starting a courier service is to make sure that your service is unique and cannot be easily substituted by other people. If it is, then there will be no reason, initially, for people to choose your business over your competitors.

You should also make sure that you are able to maintain a competitive advantage over your competitors. This doesn't mean means that you should always be cheaper - too many businesses take that route and end up going broke - but you should be able to respond to customer demands faster, deliver products more efficiently and provide better customer service than your competitors.

Final Words: Is Starting a Courier Service Business A Good Idea?

If you have been reading this article and have been nodding your head in agreement, then it’s highly likely that you have been considering starting a courier business. You have an added advantage if you have been dreaming of owning your own business but are not sure what type of business to start. Courier businesses are a good idea if they can be started with minimum investment and if they provide a service that cannot be easily substituted by other companies.

If you start a courier business, make sure that you are ready to work hard and put in long hours because it will probably take time for your business to generate revenue. You should also make sure that you have enough capital - under-capitalisation has ruined many an otherwise excellent venture.