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Starting a courier company seems like a great idea. What could be better? Flexible working hours, being your own boss, working with top companies to deliver their products or corporate gifts. Despite all the advantages, there are plenty of risks that come with starting your own courier company. Here’s some of the major ones to think about before you start a courier service in your own area.
Earning Potential
Of course, if you are thinking of starting a courier business, you are going to want to have an idea of your earning potential with the endeavor without having to pay for business consulting. Obviously, courier service rates vary depending on location. You are more likely to earn more money in urban areas that have a lot of businesses and office buildings. Either way, you can anticipate around $36/hour for light courier services using a car, truck or minivan. If you dedicate full time hours to your courier services business, you stand to make roughly $72,000 in a year. This is a great start. Conduct further research regarding courier service prices and fees in your area before even thinking of setting prices for your courier business.
Competition
One of the hardest things that comes with starting up your own delivery company is competing with other couriers that are already out there. With so many experienced, knowledgeable and established businesses working with companies like Parcel2go to guarantee the best possible prices when shipping, it can be hard to compete when you’re in the initial stages of setting up your company and wanting to make a profit. Certainly, you have to be willing to work hard to compete in the courier industry.
Budgeting Problems
When starting up, it’s highly likely that your budget will be quite small. Factoring in all the important things you need to buy in order to properly establish your business is going to be tricky, and this is made even worse by it being such a competitive market. From making sure that you have top quality vehicles, to the right insurance and being able to offer all of the best and quickest delivery service, budgeting at the beginning can be quite challenging. So, be sure to have adequate business funding or alternative lending options other wise you run the risk of running out of capital.
Regulations
There are many rules and regulations that you must abide by to legally run your own courier company. Being caught out for not having the right licenses and insurance, plus all of the correct documentation to prove it. A mistake in this area could be the end of your business before it has even got off of the ground so it pays to be extra cautious and make sure everything is up to date and complies with the most current rules. Of course, you do not want to run into government violations. These can be come a large operational and financial burden on the company.
Hiring And Training
A risk that comes with all business in any co-working space is who you hire. But, this is especially important with couriers as driving can be dangerous. Be sure to make sure you’ve done all the right checks on your employees before giving them a job. Courier employees need to be skilled at operating vehicles and highly trustworthy with company packages. This includes checking their driving license and whether they have a criminal record. Random breathalyzing is also recommended.
There are many risks involved with starting a courier service of your own, so it’s well worth taking the time to weigh up all the pros and cons of establishing your own delivery company before making the investment.
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