Top Things You Must Know First Before Starting a Delivery Service Business (2020)

A courier or delivery business is an effective way to make great money nowadays as online food delivery has been progressing due to the pandemic COVID-19. Aside from earning a good income, you are also enjoying the benefits of being your own boss. However, if you’re planning to start your own delivery business, there are some important things you must know first. 

Things You Must Know First Before Starting a Delivery Service Business

1. There are legal matters you should decide on 

In arranging your courier business, there are several legal things you should decide upon. The first thing is, what is your legal structure? Is your business a partnership, a limited liability company, or a sole proprietorship? After that, you must license your business with your state. Also, you should obtain a federal tax identification number. This may appear like you have a lot of things to do, however, don’t allow these legal decisions terrify you. All you need to is to deal with them, and you’ll be legally fine and ready to proceed. 

2. It’s not only about successful delivering goods to customers 

Many business owners assume that having a 95 per cent success rate for deliveries is already great enough. However, it’s not. Consumers have increased their expectations and you have to know that delivery services demand more than just dropping off items if you want your startup to prosper. One of the most crucial success factors for this type of business is the overall experience for the customer. It’s also about the browsing of items, placing an order, and receiving it. The delivery should be convenient, safe, reliable, and on-demand. 

3. You will also need some insurance

Every business must have some type of insurance, especially if it’s a delivery business. Most states will require you to have some kind of auto insurance if you are using your vehicle for commercial purposes. Aside from that, you must look into business liability insurance for you to be protected if someone files a lawsuit or claim to your products and services. Remember, if this happens, don’t let it stress you out and horrify you. As long as you have business insurance, you’ll be on your way. 

4. You need a secured vehicle 

A delivery service business requires a reliable vehicle, otherwise, you’re going to experience a lot of issues. You don’t need to own a semi-truck or a huge van to be successful, however, you do need a car or a van that can take you from places to another with no problems. 

5. Don’t set your rates too high or low 

Of course, you would want to charge reasonable rates. The cost of your rate should make your customers happy, and can also help you receive the profits you deserve. It’s important that you don’t regulate your rates too high or too low. Nearly all couriers charge by every work done, instead of an hourly charge. Identify what works well for you. You may also adjust your rates if there are reasonable circumstances that you need to change. 

6. Hone your last-mile logistics 

It can be difficult to compete in this industry if you’re not experienced or trained enough to optimize operations. A delivery company must know how to optimize for last-mile logistics. After a shopper purchases the ordered goods, last-mile logistics necessitate delivering the items from distribution to an office or personal residence as quick as possible. During the final lap, there should be no excuses made, particularly with easily spoilt food. A self-sustaining contractor must have the passion or creativity to look for directions that overcome traffic, spot the exact location, depend on the mobile app to work smoothly and send users notifications to get their order. 

7. Work hard even if you’re in charge 

It feels great to start your own business. It’s the most effective way to avoid the 9 to 5 office jobs. You feel good that you finally get to be the boss of your own. However, you still need to work hard. Even if you don’t have to work long hours to get successful, operating your own business is not as easy as it looks. But trust yourself that you can do it! Every person who works hard will be successful before he or she knows it. 

8. Always be open for criticisms and other complaints 

Although you don’t want your delivery business to have complaints from customers, you will need them and use them as a way to enhance your service. Make sure that you check in with your customers on a daily basis. Identify the things that you do well in, and what you’re not doing well in. Assure them that they can be honest with you since it’s for the good. Never get defensive or begin an argument if they are complaining. Rather, you apologize and work on fixing their problems. If your customers see that you put extra effort to fix the problem, they will be more than likely to use your service and give it a second chance. 

9. Follow pandemic safety protocols 

Now that we are living in somewhat we all call the “new normal”, make sure that your delivery drivers and shoppers have the discipline to be obey health protocols such as social distancing and wearing masks and other protective equipment. For your safety practices, you may have a barcode scanning and contactless delivery payments and verifications.

These are the important things you should know before you start your own delivery business. Don’t be scared of them, they will help you out and avoid further problems to arise. Consider them as a motivation for you to be successful. Just work hard and before you know it, more people will use your service!

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