To start with, drafting a courier business plan is important prior to start a new business, as it acts as a vital document in availing funding support (if required) from financial institutions during the course of business. It also helps in finding investors who can make business sail through initial ripples. A courier business plan should consist of all business-related information like details of employees, budget, investment, working capital amount, information related to logistics, equipment and machinery to be used, details of marketing and advertising techniques, etc.
9 Simple Steps to Start a Courier Company in 2023
1. Finalizing the business segment or market to serve
The foremost thing to starting a courier business is to make sure which type of parcel to be delivered on same-day or time-bound local delivery. The parcel could contain documents, goods, products, food items, antiques, etc. Each and every requirement of the prospects are to be met in order to make the courier company a success.
2. Raising funds from Investors
To start a company or to set up a network, business owners need to raise funds from investors at the initial level of business. It is meant to be one of the prominent parts of Indian business culture.
3. Setting up or leasing a logistics company
Source of transportation is necessary to carry out delivery of products. As the size and weight of consignments may vary, therefore spacious vehicles are preferred by courier companies. Courier vehicles that can be used include cargo vans, lorries, small trucks, bikes or tempos.
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4. Purchasing essential equipment
For packing and carrying parcels, certain essential equipment is required like various types of cartons, boxes, dollies, hand trucks, tapes, cargo straps, moving blankets, and GPS devices and smartphones for better connectivity.
5. Finalizing a name and legalizing the courier business
The next important task is to finalize a name for the business that further needs to get registered under The Company’s Act 2013. The courier business can be registered as a sole proprietorship, partnership firm, private limited or public limited company, limited liability partnership, etc.`
6. GST and Service Tax Registration
After the company registration process, business owners need to file an application for the GST and Service Tax registration, to be recognized as a legal entity of supplier of goods and services.
7. Opting for Business Insurance
As a business owner of a courier company, he/she bears the responsibility of safely delivering valuable parcels to its customers. Therefore, to minimize the risk with the business or the parcels, business insurance is mandatory to protect business owners from the losses, if incurred. The insurance policy also becomes essential, as it forms trust with customers regarding their items and company.
8. Setting up of Rates or Margins
Businesses with exceptional customer service and competitive rates with lesser margins always win the race. However, there are a few hidden or less known charges that should also be kept in mind while finalizing the rates, such as vehicle maintenance costs, bookkeeping fees, social security taxes, business permit renewal charges, salary hikes, and rent appreciation, etc.
9. Build a courier Tracking App
Reach out to a software development company to build a courier tracking app for customer’s convenience, as this app shall remove vague delivery estimated times and provide accurate delivery timings for each parcel. The courier tracking app shall offer real-time information of parcels to its customers.
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Comparison of Interest Rates on Business Loan Offered by Top Banks/NBFCs in 2023
|Axis Bank||14.95% - 19.20% p.a.||Apply Now|
|Bajaj Finserv||9.75% - 30% p.a.||Apply Now|
|Flexiloans||1% per month onwards||Apply Now|
|HDB Financial Services Ltd.||Up to 36% p.a.||Apply Now|
|HDFC Bank||10% - 22.50% p.a.||Apply Now|
|IDFC First Bank||10.50% p.a. onwards||Apply Now|
|Indifi||1.50% per month onwards||Apply Now|
|Kotak Mahindra Bank||16% - 26% p.a.||Apply Now|
|Lendingkart||12% - 27% p.a.||Apply Now|
|Mcapital||2% per month onwards||Apply Now|
|NeoGrowth Finance||19% - 24% p.a.||Apply Now|
|Tata Capital||12% p.a. onwards||Apply Now|
|UGRO Capital||9% - 36% p.a.||Apply Now|
Things to consider:
- To choose between leading courier companies in India
- Registering as a Legal Entity
- Filing Tax Registrations
- Obtaining Licenses for concerned authorities
- Legal, written and signed agreement with the Franchise
- Funding or Investing working capital as per business requirements
- Financial credentials, such as bank statements or passbook
- Approval Letter from the Courier Head office
- Agreement on Logistics between the Franchise and Courier Company
Leading Courier Companies in India
- Blue Dart Express Ltd.
- DHL Express India Privaste Ltd.
- DTDC Courier and Cargo Ltd.
- FedEx India
- First Flight Courier Ltd.
- Gati Ltd.
- Indian Speed Post
- Indian Postal Services
- Overnight Express Ltd.
- The Professional Courier Network Ltd.
- TNT Express
If business owners are planning to create a unique brand or want to patent their desired name of the company, they can apply for Trademark Registration and get their name registered. Lastly, if courier business deals internationally, then business owners need to have registered under Courier Imports and Exports (Clearance) Regulations, 1998. Therefore, by considering all these steps and measures, it shall be simple and convenient to start a courier business.