3 Frequently Asked Questions About Setting Up A Courier Business

Setting up a business always brings with it a whole load of questions and if you’re currently looking at setting up a courier business, the following are three of the most frequently asked questions.

1. Can I work from home?

In a nutshell, yes, you can work from home if you’re planning on setting up a courier business, as you’ll be in your vehicle for most of the time making pick ups and deliveries.

However, it’s worth understanding that if you’re going to be storing items overnight for your clients before you deliver them, you’re going to have to have a safe and secure area where the goods can be stored.

OK, this might not be a particular chore if you’re only delivering a small parcel, but if it’s a large item or there are numerous goods to be delivered, this could prove to be troublesome.

Couple this with it being difficult to hire people when you’re working from home, as you have no real business premises and you have to be particularly strict with yourself if you’re home based, although working from home is a possibility, it’s not generally recommended.

2. What insurances do I need?

The type of insurances you’ll need for your courier business will depend largely on whether you’re going to work from home and if you’re going to employ staff, but one piece of insurance that you need regardless of any factor is courier insurance.

Different from other vehicle based insurance, such as your standard car insurance or even HGV insurance, you’re legally required to hold a suitable courier insurance policy if you’re planning on being paid or rewarded for the carriage of goods or services for business purposes.

And although you may not have heard of it before, courier insurance is actually widely available and easy to arrange.

3. How do I compete with the market leaders?

When you’re in the process of setting up – or thinking of setting up – any type of business, one of the most important procedures that needs to be carried out is market research to look at both whether there’s an actual demand for the services or products that you’re going to offer and the level of competition that you’ll be faced with.

This is exactly the same when you’re setting up a courier business and so before you even open for business, you should have a good idea of who your competitors are and simply put, if the competition is too fierce, you should be thinking about whether or not you should actually be opening at all.

Competing against established businesses is always difficult, but in the courier industry, where demand can be high in places but which can often be met by just one courier company, it can be particularly difficult to succeed, so you either need to have extremely competitive prices or offer something that the other companies don’t.

A popular business that suits a lot of people, these three questions and their answers should be fully understood before you set up your own courier business to ensure that you are as successful as possible.