Below is the basic checklist that you would need to launch your own courier business in the United States of America and most likely in other parts of the world; The total fee for incorporation – name check and filing – would cost $200 Liability insurance and business license would cost $500 Business cards, fliers and handbills would cost $100 Yes. A clear plan is essential for success as an entrepreneur. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses. 14 Business Startup Costs to Plan For. A rush job typically costs more. Certain state permits and licenses may be needed to operate a delivery service. LLC formation packages usually include a free year of registered agent services. Therefore, most delivery service business owners need to have a driver’s license. The independent contractor model is easier to scale, and it ensures businesses only have to pay deliverers if they make deliveries. You can acquire your EIN for free through the IRS website, via fax, or by mail. Competition in the courier industry is stiff, but providing great customer service and reliability will go a long way toward ensuring long-term success. Part Time: Can be operated part-time. You can fix any problem that comes your way. A national survey of couriers found that the average deliverer makes $34 per hour. You’ll be responsible for hiring the employees, managing your team, and working to deliver packages seven days a week, 365 days a year. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing. You will need to register for a variety of state and federal taxes before you can open for business. A larger vehicle, such as a van or SUV, is less fuel-efficient, but it ensures that a courier service can accept all kinds products. A delivery business’ largest startup cost is the acquisition of a suitable vehicle. Deliverers sign up to drive for a company, and they’re given a percentage of the delivery charge on all deliveries they make. A service may specialize in a specific type of delivery, such as delivering food, or it might deliver all kinds of packages. Partnering with local flower shops, cake shops and pizza places can provide steady business. The advantages are hard to deny: Almost every person or business eventually needs something delivered by hand sometimes, a few need this service on a daily basis, there are relatively few start-up costs, overhead is … A delivery service business may be a good choice for someone who is physically fit and has reliable transportation. US Small Business Associations directory of local business resources. Being able to gracefully respond to requests will help ensure customers are satisfied with the service provided. Before you start you … Contact a local commercial insurance broker to find out how much it will cost to insure your business. The most vital tools in a courier’s toolbox are vehicles. If you’re not experienced or disciplined to … A delivery service business owner spends much of their day taking delivery orders, picking up packages and dropping them off. Take our Entrepreneurship Quiz to find out! Visit Website. Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. The second-largest startup cost is often insurance. The right formula based on traffic, distance, vehicle wear, and courier service competition will give you a leg up. Choosing the right name is important and challenging. Coupled with a climate of increasing inflation and budget cuts, the need for outsourcing courier services to independent contractors such as us is further compounded. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. Courier services could be that model, if it’s done right. Get more ideas with our Business Ideas Generator. This may involve accepting orders, passing them onto drivers and ensuring deliveries are made in the most efficient manner possible. “If you want a business you can start quickly and inexpensively, you cannot do better than a courier service” A courier service has low start-up costs. Some of these things are physical, but many are intangible. Almost every business will need to finance equipment immediately. Have a Professional Service Form your LLC for You. We’ve gathered necessary and useful information to help you succeed both professionally and personally: If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant. Although this won’t increase revenue, it will greatly reduce operating expenses because fuel is one of the biggest ongoing expenses. In addition to suitable transportation, depending on the types of parcels you will be delivering, you will also need to invest in a courier's license, a two-way radio system and moving dollies. Like any business, a courier service encounters problems from time to time. Startup Costs: $10,000 - $50,000. Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more. A vehicle doesn’t need to be fancy, but it must be reliable. You can start an LLC yourself and pay only the minimal state LLC costs or hire a Business Formation Service for a small additional fee. Learn how to start your own Delivery Service and whether it is the right fit for you. In business law, this is referred to as piercing your corporate veil. When starting a courier service, concierge service, or other delivery service, there are certainly a few things that you will have to have in order to get off to a good and profitable start. A delivery service provides fast, often same-day delivery, within a particular area. These steps will ensure that your new business is well planned out, registered properly and legally compliant. For a 50-litre tank that needs to be filled every few days, that eats into a courier company’s budget. Copyright © 2020 Entrepreneur Media, Inc. All rights reserved. Many other free and inexpensive advertising methods, like creating a website, posting on social media and putting up flyers, can also be useful.