Pursuing Packages: 3 Steps To Take When Starting A Delivery Business
Online shopping has sky-rocketed in recent years. It accounts for roughly 14% of purchases made in the U.S. in total. In 2019, about 14.7 billion packages were ordered and delivered in this country alone.
Every one of those packages represents a delivery. So, of course, it only makes sense that as the demand for online shopping grows, so does the demand for delivery services. There are 247,466 courier and delivery services in the United States currently, and that number is expected to grow.
With that in mind, it’s not surprising that you’ve decided to start a delivery business. There’s a definite market and the potential for profit is high. That being said, there are three steps you need to take when starting a delivery business.
1. Find and Secure Your First Funding
The first step to starting any business is to find funding. Luckily with a delivery business, your main focus is going to be finding the funds for your vehicles. Depending on the size of your business initially, you may not even need a physical space right away.
If that’s the case, you’re in good shape, as you won’t need a huge amount of money to get started. So, how do you finance a new small business?
There are a few options available to you.
First, if you have professional contacts, family, friends, or business partners who are willing to help you, you should go to them. Explain your vision, goals, and plan for how to succeed. This is generally the easiest way to finance this kind of project, as it comes with no strings attached.
If that’s not an option, move on to option two. A bank loan.
Bank loans for small businesses are everywhere so you’ll have no trouble finding a bank that offers them. The real trick is getting approved. Most banks require you to have a good credit score and pass other background screening measures.
If that doesn’t work, you can always look into applying for business grants. They don’t usually have to be paid back and can be awarded for all sorts of things, from minority-owned businesses to working in certain areas.
They say that where there’s a will, there’s a way and that definitely applies to finding business funding.
2. Keep Your Fleet Costs Low
One of the biggest costs associated with starting a delivery business is going to be acquiring your fleet. Your vehicles are the biggest tools you’ll use for delivering your packages, and they need to be able to get the job done.
If you need to haul huge cargo, such as the post-thanksgiving Christmas shopping hauls, you can learn more about a truck with a towing package. With that on your side, there’ll be nothing you can’t haul.
Now, buying a whole fleet of these trucks right away isn’t realistic. They cost thousands of dollars, and you need several to keep your business going. That’s most likely not an option when you’re just starting out, and even if it was, it would kill your budget.
The workaround is to rent a fleet. You can get as many trucks as you need in a long-term rental contract so you have time to start building capital before you make those big purchases. The company will even pick the trucks up for you when your rental is over, so you don’t have to have your whole team drive them in.
Later, when your business is doing well, you’ll have a better idea of what kind of truck you need thanks to this rental experience.
3. Marketing Is How You Make It
With so many other delivery services out there, marketing is going to make or break your business. For people to choose you, they have to know about you and believe that you’re their best option. The best way to do that is through marketing.
You need a unique story, a personal touch that explains why you do what you do. This will become an essential part of your brand, which is essentially the personality of your company.
Besides having a good personality, your company needs to have something that makes it a tangible asset to the customer. Give great deals, excel at service, deliver where no one else does… give the customer a reason to believe you’re the best option.
To get this message out, create educational content about your business, personalize your marketing messages, invest in research, and let the data of what customers like from other companies drive you forward. This has been done before, and you can benefit from what others have learned.
If you’re pursuing the package delivery industry, you can use these three tips to begin building your mail-order empire.