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How to start a courier business in USA

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Category : > New Business Setup
Posted On : Mon Nov 14th,2016

An ultimate guide to set up a successful courier company in USA

Scope of courier business

A business include but not limited to render services to deliver goods including documents from one place to another place locally and internationally for a certain price via different transporting channels like road, sea, rail and air.


Decide Legal Structure for Courier Business

You may choose any form of business set up from the followings. But it is recommended to avail the services of an attorney or CPA.


  • Corporation: You may incorporate a corporation with at least one member. Corporation has a separate legal entity status from its members. Members have to appoint directors to transact business. Taxes are paid at corporation level and further at individual level from dividend payments to its members. You may also elect S-corporation status to pass through double taxation.
  • Limited Liability Company (LLC): You may also incorporate a LLC with at least one member. In LLC members enjoy pass through of taxation with the advantage of limited liability like in Partnership and sole proprietorship. We may called it a hybrid form of sole proprietorship, partnership and corporation.


  • Partnership: You may start a courier business with or without limiting the liability of partners. For partnership you have to at least two partners. Registration of partnership depends upon the nature and regional laws.


  • Sole Proprietorship: is considered a simplest form of a business structure. Fictitious business name should be registered with the county or the secretary of state to conduct business.


  • Limited Partnership: is a new form of business structure and you can create as a Limited Partnership, Limited Liability Partnership or Limited Liability Limited Partnership.


Feasibility study for courier business

This is the most important step. Prepare complete feasible plan which must consider the followings

  • Sources of finance (debt and equity)
  • Scope of operation (courier services to be offered)
  • Availability of resources (manpower, equipment, couriers channels etc)
  • Marketing prospects (Targeted Market and audience, customer behaviors, pricing etc)
  • Projected cash flow (inflow and outflow of cash)
  • Profitability analysis (return on investment, profitability index, payback period etc)


Set up an Physical location to start a courier service business

Organizing physical office space is mandatory to run your business. It may include various courier business chains multiple commercial points. You can offer an affiliate program service to increase your circle. It will reduce your expenses to establish extra courier offices.

Basic equipment and martial you need to set up a courier service business?

  • Employees (Office management, drivers, delivery staff)
  • Transporting channels (by land, by sea, by air)
  • Office supplies- stationary
  • Track-pick ups
  • Scheduler to order online and track the delivery


Departments needed for successful courier business

  • IT department (responsible for online tracking, internal networking, social updates, web updates, efficiency of networking, integration of departments etc)
  • Marketing Department (pricing, promotions, market research, market penetration, segmentation, etc)
  • Operational Department (responsible for timely delivery, handling, quality of service, etc)
  • Accounting and Finance Department (responsible for funds management, accounting reports, internal audit and compliance, etc).


Start marketing after setting up courier service business

Start your marketing with notaries, corporate offices, hospitals, medical offices, banks, and lawyers. Create a brochure highlighting your delivery options, hours, rates, distinctions, contact information and other courier services.

  • Create your business cards, postcards, and fliers to send your perspective clients.
  • Build an attractive website to generate new leads.
  • Provide consumer trusted seal option to get right feedback. It will increase the strength of your potential customers.

Set a pricing structure for your courier service business

Do a market analysis before setting your price. Check for the competitive prices for various courier packages and services. You can set your price structure as per your services and demand of the customer. It will include distance, material, and handling. All these factors will help you to build a pricing plan of your courier service business.


Which employees do you need to hire to open a courier service company?

Hire the employees as per your business demand. It will involve the business operations you are running on the local or international level. You need staff for office, pickups, and deliveries. Hire professional drivers for quick deliveries.


What delivery options you can offer in a courier service business?

Decide whether you want to offer overnight delivery service, one-hour delivery, or other delivery options. Also, decide the size and type of materials you are delivering such as oversize items or confidential material.


The Author of this article is a M.Phil in English Literature

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