“How to Start a Courier Business?”
Comment Page 3

@ravi badiswal getting appointed as a franchisee depends on the area of your proposed business as the existing companies may already have an franchisee in that area, it would be good if you can first make a market study of prevalent rates available also as to how much of business you will be able to generate and to which destinations etc (start first with your contacts)this will be helpful when you meet with bigger courier companies as you will be able to discuss your commitments of volume based on which you will be able to avail a better buying rates, further most big companies take a security down payment which will also be based on your volumes portrayed it is a rather lengthy process to explain here however if you need more concise details please mail me your plans at uconexp@ rediffmail.com i may be able to suggest a course of action. rgds glen

@Amit Singh, @amit singh please refer to my comments no 365 made to ravi badiswal, may be if you send me details i could make some suggestions to you too regds glen

@Arshad Khan It would be advisable to first try and find out rates that are available in the near by area you can do so by meeting with some other courier companies and requesting for rates as a customer please ask them for a rate for different destinations, by doing so you will have a idea of the sell rate prevalent in the market, do a small research the kind of courier that you will be able to pick up on a daily / weekly basis and to the destinations thru your contacts friends and may be some companies. After you have some ideas of the loads/ tonnage with approximate weights to each destination it will be easier for your to contact the main offices of the bigger courier companies and bargain for purchase rates,in case you feel that you have good enough courier to start sending it directly to destinations such as metros you may contact mid level consolidators in the metros to service you which will be the best step to enhance your own brand but all this depends on your ideology of business and to what level you wish to take your business to and also what kind of investment you are able to make. I hope that you find the same helpful for further quires please do not hesitate in contacting me directly on my email as provided please do give me more details for me to understand your situation and provide suggestions. regds Glen

@Angel, at the outset let me wish u all the best on your new venture, courier business is one of the fastest growing business world wide and more and more people are getting into this business however while this is a good sign for customers it has its negative side too, the mushrooming of courier companies means more competitive business leading to a number of fly by night operators, who would get into cut throat business not taking into consideration cost factors of overheads thus cutting corners where service levels are concerned. This often leads to good customers being vary of newly established companies even if the service levels are good, the chain reaction caused is lesser and more difficult to get business and the road to success longer.

My word of advice for you is not to worry about competitors and their strategies as what works for them may not work for you …..!!! I would think that main principles one needs is that of honesty and patience one needs to plan and be able to put ones finances as per the requirement of business practices as it may not be all cash transactions, depending on the type of growth and requirements of customers one may have to expend credit for a longer period that one avails. Building ones own network also takes a bit of investment but towards the end of the days it gives you the best of service levels which are controlled directly by you. Business promotions are best met with personal visits and meetings as advertisement in papers local channels and hoardings are a bit expensive and one should plan accordingly however emails flyers etc are the best way to advertise within your area to start with.
Regards, Glen

@ezekiel, read my reply to @Arshad Khan. To my knowledge all these ompanies would require you to give an approximate commitment of weekly /monthly tonnage based on which they will provide you with rates. Also you may like to do some home work on the service provider who has the best services to the destinations that you would like them to service as each of these companies have their plus and minus service areas once you identify the best service provider for you it may make sense to work with them even if they are not the cheapest. regards and all the best, Glen

@Sampada Dhole, it is rather difficult to pin point figures the requirement of capital depends on the amount of business and the kind of business you wish to do, location and cliental requirements, a start up capital on a very low key should cater to an office space telephone electricity stationary,staff salaries and other daily expenses along with a credit standing for at least 2 months rotation for the amount of business done on credit if you cater to only walk in customers then you will not have to extend any credit meaning you need to only cater to expenses as the number of walk in customers may not initially take care of expenses in general a minimum mark up of 15 % is expected as returns it could even go up to 25 to 30 % depending on your service network and kind of cliental hope this was helpful. regards Glen