Home Insights & Advice Four thinks to consider before starting a delivery fleet

Four thinks to consider before starting a delivery fleet

by John Saunders
12th Nov 21 1:05 pm

Delivery services are in demand like never before. Therefore, you could very well be thinking of starting your own delivery fleet. However, you first need to consider the following four things.

1. The start-up and ongoing business costs

Whether you currently deliver packages with your car or are completely new to the courier industry, if you have the necessary business acumen, you could begin a delivery service with a whole fleet of vehicles. But before you do so, there are lots of things to consider.

Firstly, you need to carefully work out the costs for setting up and operating your business. You need to factor in countless items, including vehicles, driver and dispatcher wages, specialist handling and storage equipment, heavy lifting equipment, insurance, and route planning software.

If you want your delivery fleet to be successful, consider every detail and cost it accordingly.

2. The type of goods you intend to deliver and the type of vehicle you need

Once you have worked out the business costs, addressed the other areas of your business plan, and thoroughly researched the courier industry, the next vital element to consider is which vehicles you will use to deliver goods.

You could set up a cycle courier service, but by doing so, you heavily limit the sizes and volume of packages you can deliver. The same applies to using motorcycles and vans.

You need to know what type of delivery service you intend to run to help you determine which vehicle choice is best. For example, you could deliver for specific sectors like the medical industry.

Once you know what types of products you will be delivering, how frequently you will need to deliver, and what the most efficient way of delivering is, you can decide which vehicles are best for your fleet. Furthermore, you should consider the environmental impact of different vehicles.

3. How you will find customers

At the end of the day, your delivery fleet can only be successful if you have customers. It can take time to grow your client base, but you must have a solid business plan in place to know which customers you are targeting and how many you can expect to gain each quarter.

The first step is to identify your target market. For instance, you could primarily deliver medical products to care homes and pharmacies, in which case you would market to customers in that sector.

To gain new customers, you must prove you can provide quality service and competitive prices. Find reliable customers that will place repeat orders and make sure you know how you can make a profit for every single customer before you begin scaling your business.

In addition to finding regular customers, you need to make it easy for other customers to find you. Just like any successful business, you need to implement proven marketing strategies, both online and offline.

Employ a UX and UI expert to help you build a website that will attract customers and help your company rank high on search engines via good use of SEO methods, connect with your target audience on social media, post online ads, put up billboards and do leaflet drops.

The more people know about your company, the more customers you will gain. Simple.

4. It could be easier to acquire an existing business

Setting up any business takes a lot of hard work, and the above things to consider should give you a taste of just how much work needs to go into starting a delivery fleet.

But if you have the capital, you could avoid much of the legwork by acquiring an existing delivery company. You will then already have an established brand and customer base to build upon.

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