Startup Guide: How to Start a Courier Business in India

Devashish Shrivastava Devashish Shrivastava
Dec 11, 2021 9 min read
Startup Guide: How to Start a Courier Business in India

This StartupTalky post discusses everything you need to know about the courier business and how to a start courier business. It also addresses concepts like proof of delivery and the challenges of sending food items through courier. With an annual development rate of 25%, the courier industry is estimated to be around INR 4000 crore. There are about 2300 courier companies in India at present.

Courier business is all about plying goods from one locale to another in exchange for payment. A courier company delivers messages, packages, and mail. Parameters like speed, security, tracking service, and specialization decide a courier company's popularity and influence.

How to Start a Courier Business?
Importance of Giving Proof Of Delivery
Challenges Of Delivering Food Commodities via Courier Aid

How to Start a Courier Business?

Commencing a courier company as a career path is lucrative but it requires investment and preparation. How are you going to secure the delivery, what are the different modes of transportation you'll provide to customers, and what's the refund scheme? With the right arrangements and effort, you can take your courier company to the next level.

1. Initial planning

Initial Planning is a crucial aspect of a courier service in India. Decide your assistance area and the types of luggage you'll accept. Finalize on the different sections of the staff you'll employ customer service representatives, delivery boys, logistics helpers, accountants, legal aid, etc. What sort of packages your firm decides to transmit depends on your reserves. If you're depending on a bicycle, you may need to restrict the courier services to miniature containers and envelopes.

If you have access to huge automobiles like pick-up trucks and vans, be prepared to make wealth through enormous deliveries. Keep in mind that laws are applicable to certain types of cartons. For example, medical welfares and industrial chemicals have certain handling procedures and care ordinances.

The next factor to consider is whether you will be operating inter-state, intra-state, or both. While automobiles allow you to undertake road-based deliveries, do you have any other alternative in mind? What happens when the highways are closed? If you have the money and resources to engage transportation mechanisms like railways, airways, and shipping, then be ready with backup plans. It's good to have a number of alternatives at hand. Do you expect the transmission of parcels across geographies? What are you going to do when your courier business is dry on capital? These are some additional questions you need to answer.

A particular courier business may be easier to govern as coast-to-shore liberation can be valuable and you would be dealing with vast corporations. Spend some time figuring out how distant your labor range can be before taking action.


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2. Fulfill with business counsels

Unless you have extensive knowledge about a specific business, it's uncertain that you'll be able to organize all the facets of a related enterprise alone. It's preferred to include a mixture of consultants to ascertain the phases of your courier business. Discuss the business with an attorney who is aware of the messenger service industry and will notify you of the consequences. These include regional zoning constitutions which are particularly crucial if you operate the industry from your residence.

Ask an accountant to instruct you on how to protect your business documents, tariff filings, the adepts and hoaxes of workers versus autonomous contractors, and arrange an analysis policy. You will crave to comprehend how buyers can reimburse and what sort of credit cards, reviews, and other expenditure choices are acceptable.

Confer an insurance specialist to urge you on collecting reasonable business security for your department. Business security is more than just marketable vehicle coverage, cargo insurance, and employee compensation insurance. If desired, add health insurance as well.

3. Assemble the essential appliance

Spend some time arranging the appliances/resources as you stride through the introductory phase of beginning your company. Decide on the automobiles you'll employ. If you're only transmitting messages or small packets, contemplate using motorcycles or small cars. If you're transferring enormous commodities, you may need to use large baggage trucks.

You may need to procure a business loan to encounter the expense of procuring delivery vehicles. Cellphones, clipboards, graphs, and GPS networks are vital for the courier business. If you want your employees to wear uniforms, that's another factor you need to consider.

You'll also need to spend money on marketing mechanisms. In the beginning, it's imperative to build awareness among people about your courier company. Some marketing requirements include having a website, contact mechanism, and social media presence.

Above all, you need to have one or more warehouses to stock the inventory and to handle intermediate requirements.

Also Read: 31 Automobile & Car-related Business Ideas to start in 2021


4. Total Expenditure

Consider monthly payments. Expend some time totaling what your monthly costs can be. This data can be useful down the road when agreeing on how many customers you can acquire.

For a courier business, your major monthly outlay will be vehicle insurance, cargo insurance, and energy. There may be unique expenses considering your subjective business plan. Prepare a list of probable payments you may confront each month to enable you to calculate your entire monthly cost.

Evaluate items like earnings, transactions, and publicity utilities to get a clearer picture of everything that falls under expenses.


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5. What to charge?

Decide how much to charge after contemplating your monthly expenses and other characteristics. Expend some time revising the rates you will indict as a firm. Considering your locale to be in an enormous municipal region, you will have to indict more to give rise to revenue.

You should analyze your competitors to get an impression of regular taxes. You should also research your victim market. If you announce the service of transmitting equipment and groceries in a university town, your taxes may differ from that incurred when supplying the same in an upscale area.

If you are providing expensive heirlooms and tall hierarchy items in a prosperous suburb, you can charge more. With the benefit of an accountant, see what you need to charge to generate sufficient revenue.

Once your courier company's name has been established, you can tweak rates and prices to reap additional wealth. If you want help with managing business operations, you may want to enroll a specialist.

6. Franchising Option

Don't want to build a brand from scratch? You can look out for Best Courier & Delivery Franchise Businesses in India.

Importance of Giving Proof Of Delivery

Loyal customers are the key to a successful business. To sustain them, it is vital to offer good service. Sellers must make sure that the parcel reaches the exact person. Proof of delivery (POD) is an acknowledgment that the consignee has obtained the parcel.

Customers will accept a parcel only if it is in good condition. POD is important as it holds the responsibility of the goods transferred from the seller to customers.

Why do we need proof of delivery?

The parcel reaching the right customer is the secret sauce of maintaining a successful courier business. The destination may be an office or a home but if the recipient isn't there, the only option is to leave the parcel at the door. With POD, it's simple to allege on parcel delivery. POD solves delivery issues between the customer and the seller.

Types of POD

  • Paper POD - the signature of the recipient is taken on paper.
  • E-POD - a digital signature of the receiver is taken. It's simple to handle an E-POD and a copy of it can be easily sent to the shipper. Hence, POD enables hassle-free last-mile delivery.

Challenges of Delivering Food Commodities via Courier Aid

Before shipping, have a fundamental intention of storing food items and other perishable things.

  • Utilize barely dried food ingredients: Food items are susceptible to decay. Use warmed food components to avoid decaying. Store moist food commodities in airtight containers and have a smaller transit moment.
  • Packaging: Good packaging carries the freshness of the diet or toasted treats. Tight cooler stores keep the commodity of your packet refrigerated during transfer. While packing biscuits/chocolates, assure there are no spaces between individual units. Coat fresh food items with tissue paper and stuffed paper to cover the area in between them.
  • Prepare for the transit - Choose carefully: Choose a shipping firm that gives valid assistance and provides protected on-time, and cost-effective deliveries. If you're exporting perishable food items, choose the shipping company that proposes refrigerators for commodity items.

Conclusion

Starting any business is not difficult but maintaining it is harder. The same goes for a courier business. If you are dedicated to your business, you will definitely succeed. Follow the simple steps for your courier business ideas, and you’ll be on your way to owning a successful company.


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FAQs

What is a courier business or what is a courier service business?

A courier service is a service that allows someone to send a parcel or consignment from one location to another. Senders have the option to have their parcels collected by a courier or drop their parcels dropped at a nearby location to be picked up later by the courier.

How to start a courier service in India or how to start a courier service business?

  • Find investors from different sources and keep sufficient money in hand.
  • Legalize your business as a private limited company in India.
  • Application for the registration of service tax.
  • Build a team and invest in service quality and training.

What are things you must do before starting a courier business?

Items you must be done with before starting a courier business:

  • Develop a courier business plan.
  • Get reliable vehicles.
  • Organize a storage space.
  • Purchase equipment and materials.
  • Take out business insurance.
  • Give your courier business a name.
  • Get a logo.
  • Consider the legal structure of your courier business.

What is the cheapest franchise to start in India?

  • Stratus Building Solutions.
  • SuperGlass Windshield Repair.
  • Mosquito Squad.
  • Property Management Inc. Β 
  • Pillar to Post Home Inspectors.

How to start a courier company in India?

  • Get and connect with a reliable source of transportation.
  • Invest in the right equipment.
  • Find a unique yet engaging name for your courier business.
  • Consider the appropriate insurance.
  • Market your business wisely and mark your presence.

How to get a courier license in India?

  • Get a courier license by creating a name for your courier company.
  • Contact the local municipal government office to get the courier license form.
  • Fill in the application form with accurate information.
  • Submit it to the license bureau.

Is the courier business profitable in India?

Yes, courier service is a great business idea in today's time. It is a business idea with low investment and high profit. Maintaining a courier company is an excellent career prospect as well.

What are the courier business ideas?

Some courier business ideas: Food delivery, fruits and grocery delivery, laundry and dry cleaning service, bicycle service courier, Furniture delivery and assembly, etc.

How can I get a low investment franchise business in India?

Steps to consider before buying a low investment franchise business in India:

  1. Research.
  2. Identify individual franchise companies.
  3. Franchise qualification requirements.
  4. Submit request for consideration/application.
  5. Study franchise disclosure document.
  6. Disclosure period.
  7. Visit existing franchisees.
  8. Visit franchisor.

How to set up a franchise business in India or how to develop a franchise business in India?

Steps to set up a franchise in India with low investment:

  1. Determine the niche.
  2. Completing the formalities.
  3. Ownership.
  4. Licensing.
  5. Registration.
  6. Human resource requirements.
  7. Paying taxes.
  8. Managing currency risks.

Which is the best franchise business to start in India?

Best franchises: Affinity Salon Franchise, DTDC Franchise, Giani's Franchise, Lenskart Franchise, FabIndia Franchise, and Kake Di Hatti Franchise.s

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