Starting a parcel delivery business is a fabulous idea. Moving packages and documents quickly and efficiently is something that businesses rely upon and many will rely upon couriers as a supplement to their business. Instead of expanding their own company and increased costs, they look for a service that will satisfy their needs.
Potential Running Costs
While this may seem like a very simple business to start, and it is, there are considerations that must be taken regarding startup costs. A quick review of the following list should help you make sure that all costs are considered before opening up for business.
• Licenses. You will need to have specific licenses to operate a business. Make sure that you contact the appropriate agencies and make sure that you have all the right licenses and permits and their associated costs.
• Phone Service. You will need to have multiple phone lines to operate a courier business. If you are using mobiles instead of land lines, make sure that you find a carrier that will provide you with the most services at the lowest cost.
• Uniforms. Your business will look more professional if the courier arrives dressed in a uniform.
• Office Space. You will need to have a base of operations. While you may not require a posh office space in the middle of downtown, you will still need a space to use as a base. Make sure that you consider operating costs for maintaining that space such as utilities and local business rates.
• Van Insurance. Make sure that your vans are properly covered and carry enough coverage on them to protect your business in the event of an accident. Carrying the “bare minimum” policy may destroy your company should you get sued and the policy is not enough to cover the damages. Van insurance is different to car insurance and you should satisfy yourself that any policy provides sufficient coverage for all areas of your business. Comparing quotes from across the market is easy with websites such as www.monkey.co.uk. Comparison websites such as this, allows you to review coverage options from a range of insurers and find the best premium price to suit your budget.
• Employee Costs. There are always expenses related to employees. Insurance coverage and taxes are generally the two largest expenses.
• Office Costs. You must account for your office costs. Computers, printers, printing supplies, brochures and marketing material and advertising must all be accounted for in your budget.
• Payroll. Although every business owner desires to be an immediate success, the truth is that it takes time to create a successful business. Make sure that while you are establishing your business, you have enough money on hand to cover payroll, even if you are not bringing in enough sales to do so at that time. Try to maintain an account that is equivalent to three months’ salary for all employees.
As you can see, there is much to be considered. However, this is not any different than the considerations you must take when starting any type of business. Of course, there will be other expenses that crop up when you are starting a business that is not mentioned here. That is to be expected. Budgeting for the “what-ifs” is also something that every potential business owner must do when they are preparing to open a business.
See also this new article: Commercial Insights from HULT Private Capital on Investing in Start-Up Businesses
Author Georgina Clatworthy is a former small business owner and now writes informative articles on topics relating to business and startups. It can be tempting to cut corners when starting a new business especially when money is tight, but using comparison website, www.monkey.co.uk will help you find the right level of insurance coverage for your vans at a premium you can afford, ensuring your business is full protected from the start.
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