Quick Overview of The Courier Business
A Courier business can be a low-investment startup. You may transport important documents, flowers, small packages, or even biological samples.
The biggest issue that separates this a privately owned company from the larger delivery companies like, UPS and FedEx is same-day service and odd hour deliveries.
While these larger companies may guarantee next day service, small couriers tend to operate inside a less-than-24-hour time frame.
This may require working later in the day to deliver all your packages. One key to success in this industry is on-time deliveries and careful handling of packages.
Courier Business Considerations:
There are a few things to consider when starting out.
First, think about the location. Small towns and rural areas may not need a courier service at all.
Second, think about the type of service that you would like to start. Some couriers only pick up and deliver medical packages, and for example, court documents.
Finally, think about the size of vehicle you will need. Larger vehicles can carry bigger packages, but require more fuel, and are harder to park.
Courier Skill Set:
- Good driving skills
- A good sense of direction and navigation
- The ability to lift heavy packages
- Loading and organizing packages that can be delivered according to route
- The ability to schedule deliveries and pickups
- Good communication skills
- Operate and park a vehicle in high-traffic areas
- Use GPS
- Time management
- Dispatch management
- Must be highly organized
- The ability to meet strict deadlines
- List of Common Business Skills
Approximate Daily Hours Needed To Run A Courier Business:
General Hours of Operation:
While most deliveries fall within the normal hours of 9:00 a.m. to 5:00 p.m., other delivery jobs may require delivery at any hour of the night.
Before and After Hours:
Plan for about an hour’s worth of paperwork, vehicle inspection and clean up before or after each day.
Employee & Job Consideration During The Start-up Phase Or In the Future:
- Common staff positions needed to run some businesses
Approximate Minimum Courier Startup Cost:
The average startup cost can be very small if you already have a reliable vehicle and GPS; however, it can cost several thousand dollars for a new vehicle, GPS, and dispatch equipment. Another cost factor is commercial insurance. All cost depends on the type of vehicle you want, the insurance rates in your area as well as if you will operate from home or an office.
Equipment, Supplies, & Services During Start-up OR In The Future:
- Reliable vehicle(s)
- Moving dolly (possibly)
- GPS or quality map
- Courier software
- Dispatch equipment
- Storage area
- Skids and shelving for storage
- Essential office Equipment
Monthly Expenses to Consider:
- Vehicle insurance
- Cargo Insurance
- List of common business skills
- Possibly a CDL (commercial driver’s license)
- Commercial vehicle insurance
- Cargo insurance
- Dangerous goods certification
Courier Business Pros and Cons:
- Service is in high demand in many areas
- In some cases, you are able to set your own hours and limitations
- Low startup cost
- Low operating costs
- Very profitable with the right market
- Odd hour pick-ups
- Some jobs may require you to travel away from home
- Lots of time on the road
- High vehicle and fuel costs
- Vehicle maintenance cost
- Increased risk of accidents
- You’ll most likely have to deal with traffic jams on a daily basis
- may be difficult to have a steady stream of business unless you can land a few contracts that have consistent deliveries.
Type of Customers You Need to Attract As A Courier:
According to the Messenger Courier Association of America (MCAA), customers may include biomedical labs and other medical facilities, financial companies like banks, and law firms. Other customers may be manufacturing plants requiring time-sensitive deliveries as well as other types of establishments in need of quick deliveries.
Courier Business Statistics:
The MCAA reports that there are over 7,000 small business couriers involved in the multi-billion dollar industry.
The Bureau of Labor Statistics (BLS.gov) report that there are about 122,000 couriers and there is no estimated change over the next decade.
Courier Business Revenue:
Revenue differs depending on location and how you charge. Couriers can charge by the mile, hour, or a flat rate depending on zones.
For example, Clutch Couriers based in Santa Cruz, CA charges $10 USD for basic deliveries inside of Santa Cruz, and rates increase the farther the delivery is from the city, up to $40 USD. Clutch Couriers also charges more for rush deliveries and court deliveries.