How To Start An Express Courier Company?

Written by on October 4, 2013 in Career - No comments | Print this page


fedex courier planeCourier companies today provide a very valuable service to businesses and individuals alike. They deliver important packages containing important items and data without which most businesses will find it hard to function.

However, with very high customer expectations the competition is fierce. The increasing numbers of ecommerce companies have fueled the trend for better, speedy delivery services.

This makes it important that you offer a package which attracts more customers than your competition. Below we look at a few key points you should pounder when considering getting into the express courier service industry.

How do they work?

A courier company is responsible for delivering mail, packages and messages which is a lot quicker, more secure and offers real time tracking to differ it from regular snail mail. Couriers are more expensive than regular mailing services and so they are used by people who consider their packages very important which warrants the cost.

There are various types of courier services which range from ones operating in small towns, cities to ones that operate on a global scale.

In large cities like Melbourne and Sydney motorcycle and bicycle couriers are common for consignments that require delivery within close proximity.

Anyone wanting to get into this industry needs to have very good knowledge of how the industry works, the market and finances. Good customer service is also crucial to becoming successful in this industry.

 Law governing courier services

There are no particular laws attached to courier businesses but there are obviously insurance issues that you should be aware of as well as safety and health standards.

It is also important to note that the latest regime for vehicle fringe benefits tax, the change of which saw a different tax rate applied to over 570,000 vehicles which were purchased on salary sacrifice that replaced 20% of the FBT rate.

The latest senate hearing estimated that it would create fewer advantages for 60% of present vehicle users.

 Competition and Research

People who are new to the industry are strongly encouraged to join a large industry body like the Logistics Association of Australia. The current membership of the body consists of logistics professionals, transport experts, operations, distribution centers, inventory and contracts.

It also includes educators and consultants. The body also provides systems and equipment to various providers. The LAA is also a management for professionals in manufacturing, purchasing, sales and marketing. This makes it an ideal forum for the interchange of ideas and professional development.

 Earnings and potential costs

The biggest expense for people in this type of business is staff wages and vehicles. Startups can expect to begin making a good profit post their third year of trading.

If you are known locally for your reliability and very good service, the word of mouth will certainly do your new business a great deal of good. This means that on average you can earn around $60,000 a year.

 The average day 

 According to many people who work in this industry every day starts out and ends differently than the last. But management spends a lot of its time communicating with people across the covered region.

There will be meetings to discuss issues, how to perform optimally and also meetings with clients and influencers. As an owner of a business of this nature it is important to be flexible because you could be talking with the customer’s CEO one minute and then to a courier the next.

This is what can end up making the day somewhat challenging because not being able to communicate your ideas correctly or getting an influencer onboard can cause a great deal of stress.

Like every other business it is important that you do your research prior to getting into the courier business. The more you find out about it the better off you will be. It is an added advantage if you’ve spent some years working for an express courier service either domestic or international.

That said research can help clarify most of the questions you may have about how things work and what it will cost you to get in. Many people may consider starting out small like covering an area like Sydney or Melbourne by hiring a few men and women to work as bike couriers. This can then further be expanded to cover other adjoining cities and towns.

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John Doe is a special interest news gatherer for franchise and entrepreneurs. He previously worked for DHL as a logistics manager.


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