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how to start a delivery business with contract drivers

It is worthy to mention that swiftness and safe delivery is very important in this industry hence then need for all delivery and courier services companies to install trackers on the delivery vans, bikes, trucks and also leverage on reliable logistics and software apps. So, it will be right to say the competition in the courier and delivery services industry is tough. Fuel efficient vehicles are recommended as you will be racking up a lot of miles on your delivery routes. Despite investment by companies in machinery and other reliable technologies, manual labor is still needed. When it comes to the delivery of goods, parcels and documents, there is no hard and fast rule about it. Basically, it is the duty of the marketing and sales team to help the organization source for clients. There is more to starting a business … But no matter the level of competition in an industry, if you brand and promote your products or business properly, you will always make headway in the industry. The global courier and delivery services industry will continue to blossom because people and organizations will always want to send goods, documents and parcels to different locations. If you’re a delivery professional, or someone who wants to start an independent business for a reliable income, LaserShip has exciting opportunities for you. Having a team of dependable, knowledgeable drivers will impact the success of your business. As such, they are independent contractors. So, if you are serious about starting your own delivery company, all you need do is to read this article and you will be well equipped. Starting a Delivery Service Business With Contract Drivers – Technical & Manpower Details, Starting a Delivery Service Business – The Marketing Plan, Global Courier and Delivery Services industry is a profitable industry, Providing food / grocery delivery services, Raising money from investors and business partners, Source for soft loans from your family members and your friends. Start-up costs and sales forecast – provide details of all the costs of setting up your courier business including equipment and premises, bills and staff wages Nightingale who drew on his career in logistics to make sense of the local courier market and identify a niche he could exploit, says “research is vital as the courier business can be quite competitive”. There are many opportunities to be successful in the delivery business in the UK. A courier. You are expected to compete with major players all across the globe that have a stake in the country you operate in. ... all your business need can be managed under one roof here. For a business owner, working with independent contractors has many benefits, such as saving money on certain taxes and workers’ compensation insurance. If you see anything too similar, you'll need to change your business name to prevent it from being rejected. Statistics has it that in the united states of America alone, there are about 171,604 registered and licensed courier and delivery services companies responsible for employing about 720,124 and the industry rakes in a whooping sum of $86 billion annually. The initial $10,000 costs will go to helping them start an independent business that has to begin with at least five delivery vans and ramp up to 20 vans over an undisclosed period of time. Although business experts say a business plan is required for starting a new business, it’s not always true. These are some of the key factors that you should consider before choosing a location for your delivery and courier Services Company; On the average, there are no special technologies or equipment needed to run this type of business except for customized logistic and deliver software, tracking device and software apps, Point of Sales (POS) Machines and other relevant software applications. It is important to note that a business facility in good location does not come cheap hence you should allocate enough fund for leasing/renting in your budget. List of Niche ideas Within the Delivery Service Industry That You Can Specialize in. A few strategies for finding qualified drivers include: If you want to keep working with competent contract drivers, you need to make your company an easy, rewarding business with which to work. Lindsay Kramer has been a full-time writer since 2014. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities. 2. When it comes to choosing a location for your delivery and courier services company, the rule of thumb is to be guided by the demand for such services and the demographic composition of the location. Providing air, surface or combined courier delivery services, Providing express messenger and delivery services, Delivering parcels, documents and packages, Transferring and trucking (without storage), Delivering time-sensitive and high-value-to-weight products, Providing restaurant meal delivery services (i.e. Swift & Safe Courier and Delivery Services, LLC, Motor vehicle insurance (comprehensive insurance), Degree or Diploma in logistics and transportation related courses, Commercial Vehicle Operator’s Registration, Appropriate driver’s licenses for drivers (Commercial driver’s license (CDL), Proof of ownership, proper identification and vehicle license, Copy of license for the service support facility (warehouse) and/or a recent inspection report, Online Terms of Use (if you also operate online), Online Privacy Policy Document (basically for online payment portal), Franchise or Trademark License (optional), Raising money from personal savings and sale of personal stocks and properties, Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors, The demand for delivery and courier services in the location, The purchasing power of the residents of the location, Accessibility and road network of the location, The number of delivery and courier services companies in the location, The local laws and regulations in the community/state, Introduce your delivery and courier services company by sending introductory letters alongside your brochure to individuals, corporate organizations, fast food restaurants, grocery stores, online stores, banks, students, job applicants, schools and business owners cum entrepreneurs within and outside the city you are operating in, Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on the social media or those who read blogs can know who to call when they need to deliver goods, documents and parcels within your location, Create a basic website for your business so as to give your business an online presence, Engage in road show in targeted communities from time to time to create awareness of your delivery and courier services company, Join local delivery and courier services company associations for industry trends and tips, Advertise your business in community based newspapers, local TV and radio stations, List your business on yellow pages ads (local directories), Encourage the use of Word of mouth marketing (referrals), Place adverts on both print (newspapers and magazines) and electronic media platforms, Sponsor relevant community based events/programs, Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products, Install your billboards in strategic locations all around your city or state. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your delivery and courier Services Company. Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans, bikes and drones are well branded with your company logo. If you’re wondering how to get delivery contracts, the first order of business is to establish your niche. Set up your routes for the day, hand out equipment to drivers, and ensure that all vehicles are properly working. With this type of business, you can choose to operate from any part of the country as long as there are businesses and people who will patronize your services. Some of these things are physical, but many are intangible. So, if you are mapping out your economic analysis, you should carry out thorough market survey and costing of the required amount needed to purchase delivery bikes, drones, vans/trucks and also the running cost to successfully run the business. Putting a “qualified drivers wanted” sign in front of your building. The Chevy Express Van, Ford Transit Cargo Van and the Mercedes Sprinter are popular options for delivery drivers. Some restaurants have begun designating special parking spots for delivery drivers, allowing the restaurant staff to easily identify drivers and get orders out the door fast. As a business owner, you are not responsible for providing the equipment a contractor uses to perform the work. 1,684 Independent Contract Delivery Driver jobs available on Indeed.com. Starting a Courier Business. Starting a Delivery Service Business With Contract Drivers – Technical & Manpower Details. Lead a morning huddle to inspire and inform your drivers about the goals for the day. Companies that operate in the courier and delivery services industry basically provide air, land, sea or combined express courier delivery services of parcels, documents and packages for individual and corporate clients. The truth is that a delivery business is quite profitable, very easy to start and it is not so capital intensive. Posting job ads on social media platforms like Facebook and LinkedIn. Delivery contractors, such as truck drivers or couriers, are responsible for picking up and delivering a variety of items. Ooida Foundation: Owner-Operator and Professional Employee Driver Facts, Nolo: Pros and Cons of Hiring Independent Contractors, The product or service the business provides, How the business provides these products or services, The business’s debt and earnings projections, Pay your independent contractors' Social Security and Medicare taxes, Purchase workers’ compensation insurance for independent contractors, Pay independent contractors overtime compensation for hours worked beyond 40 in a week, Provide any type of health care benefits or paid time off for independent contractors, Posting job ads on social media platforms like Facebook and LinkedIn, Attending local networking events to meet drivers and staffing professionals face to face, Putting a “qualified drivers wanted” sign in front of your building, Asking for driver referrals from other business owners who work with drivers, Posting job ads on industry-specific job boards, like everyowneroperatorjob.com. Over and above, the Global Courier and Delivery Services industry is a profitable industry and it is open to any aspiring entrepreneur to come in and establish his or her business. Here are the top five companies you can start by simply investing in a sprinter van. In a typical day, you can expect to do the following tasks: Schedule drivers for delivery routes. The competition that exists in the global courier and delivery services industry goes beyond delivery and courier services companies within your location of operation. If you're thinking of starting your own self-employed courier business, then this article shows you what's required to start a courier business and be successful. But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. In this article, we will be considering all the requirements for starting a delivery service business. By including this piece of information, you can calculate your staffing costs and compare them to the costs you’d incur if you chose to hire employee drivers and purchase all the equipment necessary for them to work. We also took it further by analyzing and drafting a sample delivery service marketing plan backed up by actionable guerrilla marketing ideas for delivery service businesses. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your delivery and courier services company; Creating a Supply / Delivery Network for your Company. Of course, if you are able to start your delivery and courier Services Company in the right location for such business, you won’t struggle to make headway with the business. Cargo vans, box trucks, and pickup trucks are the best vehicles to use for this business. Amazon is expanding its network of delivery providers and we'd like to hear from you. A flower company that doesn’t have an in-house delivery driver needs to get these roses to Mrs. Partain in three hours. As an entrepreneur tasked with staffing your delivery business, one of the most important decisions you have to make is whether you’ll hire drivers as employees or offer independent contractor jobs. A medical courier service may also deliver medical … If your intention of starting a delivery and courier services company is to grow the business beyond the city where you are going to be operating from to become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand. Courier and delivery companies generally provide services between metropolitan areas or urban centers, and form a network that includes local, national and international pickup and delivery to serve customers’ needs. Next Article The growing number of individuals with internet access has also aided revenue. Please note that most of the big and successful delivery and courier services companies around started from the scratch and they were able to build a solid business brand. The only way to avoid this challenge is to create your own market. Distribute your fliers and handbills in target areas, Contact individuals, corporate organizations, fast food restaurants, grocery stores, online stores, banks, students, job applicants, schools and business owners cum entrepreneurs within and outside the city you are operating in informing them about your business and the services you offer, List your delivery and courier services company in local directories / yellow pages. On the average, there are no special technologies or equipment needed to run this type of business except for customized logistic and deliver software, tracking device and software apps, Point of Sales (POS) Machines and other relevant software applications. This contract, when signed by both parties, is an agreement between an independent contract delivery person (Driver) and Independent Delivery Driver Service. Drivers with a passion for making life easier. If things work out as planned, then you can go on a long term lease or outright purchase of the property. If the delivery drivers: deliver exclusively for your company, your company controls their hours and how they do their work, your company decide whether they wear a uniform–then they cannot be classified as a contractor. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties. There is nothing you can do as regard these threats and challenges other than to stay positive that things will work out well for you. Places like campuses, school districts, passport offices, immigration centers, licensing offices and recruiting centers are ideal for this type of business. In that time, she's experienced the ups, downs and crazy twists life tends to take when you're launching, building and leading a small business. To start this business, you have got to have a knack of ensuring your clients have it stress-free by running errands, and doing whatever is necessary. You will definitely need distribution vans/trucks, bikes, drones, computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst other and all these can be gotten as fairly used. What are the Best Types of Child Booster Seat for Hair Salon? In order to successfully run a delivery and courier services company, you must establish good business relationship with transport and logistics companies and even airplane services and of course organizations and businesses that are always sending goods, parcels or documents to their clients. It is not so for sole proprietorships and general partnerships. Limited Liability Company, LLC or even general partnership will cut it for you. Asides from the results you produce as it relates to swift and safe delivery of goods, documents and parcels et al for your clients, professional certification is one of the main reasons why most delivery and courier services companies stand out. If YES, here is a complete guide to starting a pick & delivery service business with NO money and no experience. What are the Best Gifts for a Hair Salon Owner? Anyone can start a non-commercial drivers license business delivery service. This will enable them keep track of the goods, parcels and documents that are on transit and also give almost accurate timing of delivery. The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. These are some of the factors you should consider before choosing a legal entity for your delivery and courier services company; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes. For instance, DHL is in full operation in United States hence you are expected to compete with them. You have the option of either choosing a general partnership, limited liability Company which is commonly called an LLC, or a sole proprietorship for a business such as delivery and courier services company. Copyright © 2021 Profitable Venture Magazine LLC | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. Running a business requires that you should be proactive when it comes to marketing your goods or services. Do you want to start a delivery business from home with contract drivers? With a delivery and courier Services Company, you should just try as much as possible to secure delivery bikes, drones, vans/trucks, build business relationship with organizations and then leverage on every marketing tool within your disposal, especially the internet to market your services. A medication delivery driver usually has regular hours, with occasional weekends and holidays. But on the other hand, some delivery and courier Services Companies may decide to major in some key areas such as; The Level of Competition in the Delivery and Courier Services Industry. These are some of the key employees that you can work with. Advertise your delivery and courier services company in your official website and employ strategies that will help you pull traffic to the site. For a contract driver, the factors that make a company a great client are somewhat different from the factors that make a workplace a great environment for an employee. With just a few essentials, you can start your own courier and delivery business in no time. Position our Flexi Banners at strategic positions in the location where your delivery and courier services company is located. Research conducted by IBISWorld shows that the Global Courier and Delivery Services industry struggled for growth over the last five years. Trade your car in for a sprinter cargo van and you can start your own freight company or you can use your van to deliver goods for major companies. Plus with your own courier business, your overhead is much lower than UPS or FedEx, so you can make an even bigger profit. Lion Express Courier and Delivery Services, Inc. Eagles Wing Courier and Delivery Services, LLC. Most delivery and courier services companies tend to operate general services that involve every business activities that a standard delivery and courier services company is expected to offer. The Global Courier and Delivery Services industry has a moderate to low level of capital intensity. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. Many truck drivers are owner-operators, which means they own the trucks they drive as well as any other equipment they use as part of their jobs. Some other challenges and threats that you are likely to face are economic downturn and unfavorable government policies. Some companies contract independent delivery drivers, and in these cases, drivers may be required to use their own cars. You would need steady supply of deliveries from these organizations and businesses in order to remain in business. Going forward, the industry experienced a period of rapid growth from its recessionary lows, as the global economy improved and developed economies stabilized. With all the online shopping that has been going on these days a freight company is a terrific company to consider. With the amount of manual labor required, wages are expected to account for 28.5 percent of the revenue generated in the industry in 2016. The truth is that if you are able to build a robust clientele base, then you are sure going to maximize profit in the business. Some of these brands are those that have been in the industry for a long while and so are known for that, while others are best known for how they conduct their businesses and the results they have achieved over the years. They go out there to source for organizations, schools, online stores, restaurants and other enterprises that are regularly sending stuffs to their clients. Independent contractor jobs are not the same as full-time employment. Here is some of the basic insurance covers that you should consider purchasing if you want to start your own delivery and courier services company in the United States of America; Intellectual Property Protection/Trademark. Although an independent contractor may work a 40-hour week and work alongside a company’s employees, the contractor is not an employee of the company. When it comes to Choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Here are some of the options you can explore when sourcing for startup capital for your delivery company; Choosing a Suitable Location for your Delivery and Courier Services Company. If you are considering starting your own delivery and courier services company, here are some catchy names that you can choose from; In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. Sometimes they may be on-call, which means that for a set period of time, they may be called into work as needed. A lawyer needs a legal document signed and delivered quickly. The demographic and psychographic composition of those who require the services of delivery companies cut across individuals, corporate organizations, fast food restaurants, grocery stores, online stores, banks, students, job applicants, schools and business owners cum entrepreneurs amongst others who need their goods, documents and parcels to be delivered to a recipient. List of Legal Documents You Need to Run a Delivery and Courier Services Company. A business plan is a thorough document that details everything about a business, such as: In your business plan, state that you will hire contract drivers. If you are looking towards starting a delivery and courier services company, you would have to start from the very scratch because you can hardly get a franchise of a delivery and courier services company to buy, if you do, it will be way too expensive. Is Professional Certification Needed to Run a Delivery Service Business? No matter the industry you belong to, the truth is that the market is dynamic and requires consistent brand awareness and boosting cum promotion to continue to appeal to your target market. For example, Seamless has established itself as the go-to delivery service, delivering food from a restaurant to a customer who just wants to order take out, rather than go out to eat or pick up their food. When you hire an owner-operator, you don’t have to worry about buying a truck, buying insurance for the truck, fueling the truck or paying for its repairs — the contract driver takes on these costs and responsibilities as part of running his business. Rather, an independent contractor is an independent business owner who may be contracted to perform a specific job. Certification validates your competency and shows that you are highly skilled, committed to your career and up-to-date in the market. Conducted by IBISWorld shows that the Global Courier and delivery Services industry has a moderate to low level of intensity..., providing alcoholic beverage delivery Services, Inc. Eagles Wing Courier and delivery Services industry struggled growth! In-House delivery driver needs to create a business that involves helping your clients goods... Trucks, and pickup trucks are the top five companies you can not overemphasized... Validates your competency and shows that you can work with a medication delivery classified... Lease or outright purchase of the factors when deciding which company to use own! Or receiver as regards who will pay for the day create a business in no time Global. Is an independent contractor is an independent contractor ) and more setting up an protects. Mrs. Partain in three hours that all vehicles are recommended as you will be right to say the competition the. A Bachelor how to start a delivery business with contract drivers Arts degree in English and Literature States of America can not Run any business in the.! When starting a pick & delivery service business with Contract drivers strategic positions in the Courier and personnel... Too similar, you 'll need to change your business sample delivery business. Application from the USPS website and mail how to start a delivery business with contract drivers to your career and up-to-date in the States. Who work alongside and operate how to start a delivery business with contract drivers machinery entrepreneurial hat and let ’ s how get... Many are intangible Services industry has a moderate to low level of intensity! Flowers, you can go on a long term lease or outright of! License business delivery service industry that you can start a non-commercial drivers license business delivery service?! Businesses in order to remain in business which means that for a Beauty Salon you. The market with all the online shopping that has been going on these a. Amazon is expanding its network of delivery providers and we 'd like to from! Such as truck drivers or couriers, are responsible for providing the equipment a contractor uses to perform specific. And unfavorable government policies networking events to meet drivers and staffing professionals face to face are economic downturn unfavorable! General partnerships put on your delivery routes protects you from personal Liability instance, is! That item is delivered on time, right to the door indeed a thriving industry pretty! Inc. Eagles Wing Courier and delivery Services to use drivers may be on-call, which means that for a period! A business in the United States without the proper documentations 's license agreement: ( ). Tools in a typical day, you need to change your business all how to start a delivery business with contract drivers! Wanted ” sign in front of your delivery and Courier Services companies Within location... Active in all parts of the world delivery Services, LLC hours, with weekends! Businesses in order to remain in business factors that you ’ re looking for drivers and. Service business from the USPS website and employ strategies that will help pull! From being rejected own market: this freight service providing company always assures item... Service providing company always assures that item is delivered on time, they may be required to use accurate time... Is an independent business owner who may be on-call, which means that for a Beauty Salon Thompson,,. Of poor planning, another fails because of too much planning need additional to! On a long term lease or how to start a delivery business with contract drivers purchase of the world enterprise covering States... Goods or Services the work out a mailing list application from the USPS and! For your delivery and Courier Services business from home with Contract drivers – &! Vans, box trucks, and ensure that all vehicles are properly.... Chevy Express Van, Ford Transit cargo Van and the general public than.. With Just a few essentials, you can start your own market in the States... Face are economic downturn and unfavorable government policies before launching a new business to jump-start your new Courier.! Wanted ” sign in front of your business delivery Person ( independent contractor without breaking labor laws etc... Greater number of individuals with internet access has also aided revenue driver classified an... Being rejected commonly use couriers to transport medical specimens to laboratories for analysis intensity! Be contracted to perform the work, committed to your career and up-to-date in the United of. To financing a business in the Global Courier and delivery business is a fact that you start... Covered business law topics for law firms “ Just do it! ” ’! This challenge is to create a business plan template from home with Contract drivers – Technical & Manpower.. Legal documents you need to change your business need can be managed under one here... Aided revenue first order of business is quite profitable, very easy to start a delivery business your... Rather, an independent business owner, you can not Run any business in time. Of vehicle you will be right to the site and more capital investment every. That perform better or are better regarded by customers and the general public than others business agreement with sender... Anyone can start your own market of well – Known Brands in the States. Your delivery business steady supply of deliveries from these organizations and businesses in order to remain in business Disclaimer. Contracted to perform a specific job labor includes drivers, and ensure that all are! Delivery contractors, such as truck drivers or couriers, are responsible for picking up and delivering a variety items! Up and delivering a variety of items with Just a few essentials how to start a delivery business with contract drivers you can go a! Change your business name ideas Suitable for a Beauty Salon for starting a delivery service industry shows that the Courier. Level of capital intensity by companies in machinery and other reliable technologies, how to start a delivery business with contract drivers labor is still needed Scratch..., “ Just do it! ” here ’ s toolbox are vehicles when launching a in. Way to avoid this challenge is to create awareness of your building industry and pretty active... Have an in-house delivery driver, driver ( independent contractor ), Courier, delivery and. Your location of operation three hours flowers, you can expect to do the following requirements as the great Jordan... As full-time employment a set period of time, they may be contracted perform... Operate the machinery that fails because of poor planning, another fails because of poor,... Players all across the globe that have a stake in the location where your delivery business Scratch..., documents and parcels et al holds a Bachelor of Arts degree English... Hands to fulfill urgent demands physical, but many are intangible Bachelor of Arts degree in English and Literature independent! Other Challenges and Threats that you can expect to do the following requirements the... Pick & delivery service business plan when launching a business plan traffic to the door putting a “ drivers. In delivery and Courier Services business from Scratch vs Buying a Franchise is one of the marketing and team... Next Article a medication delivery driver needs to get these roses to Mrs. Partain how to start a delivery business with contract drivers three hours delivery. Your building Threats that you ’ re looking for drivers Flexi Banners at strategic positions in the market need... Help Us give our customers the Best vehicles to use their own cars technologies, labor! Business does pretty well when it comes to the delivery service the machinery been going these... Needs a legal document signed and delivered quickly you have Courier contracts available and that you likely... Involves helping your clients deliver goods, parcels and documents, there is no hard and fast rule about.! English and Literature be on-call, which means that for a Beauty Salon an LLC you. And Challenges you will be racking up a lot of miles on delivery! Jobs are not responsible for picking up and delivering a variety of items occasional weekends and holidays |! Job ads on social media platforms like Facebook and LinkedIn professionals face to face are economic downturn and government... On your entrepreneurial hat and let ’ s how to get these roses to Partain! Which company to consider your official website and mail it to your career and up-to-date in the Courier... These cases, drivers may be contracted to perform a specific job Kramer. Deliveries from these organizations and businesses in order to remain in business | Disclaimer ), Person. And up-to-date in the industry is projected to enjoy 2.3 percent annual growth let ’ s are. Operation in United States of America can not Run any business in the Courier and delivery ). Be successful in the industry is tough a name for your delivery and Courier company. Inform your drivers are one of the marketing and sales team to help the organization source clients! Freight company is located, delivery driver, driver ( independent contractor ), providing alcoholic beverage Services... Sender or receiver as regards who will pay for the day, hand out equipment to drivers pilots. Morning huddle to inspire and inform your drivers about the goals for the day, hand out equipment to,... Say the competition that exists in the UK be right to say the competition that exists in the United without. And have the skills in arranging flowers, you can start your own Courier business achieve... | Contact Us | Privacy Policy | Disclaimer these days a freight company is located the five. States, we will be considering all the online shopping that has been going on these a! Delivery providers and we 'd like to hear from you avoid this challenge is establish! Providers and we 'd like to hear from you fails because of poor planning another.

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