Starting my own company

[JCKST1]

I am currently 19 years old and I am looking in to starting my own courier business. Reason for doing this is I cant find any work that I am looking for.
I am a time served plater, Since leaving school at 16 I have worked my arse off to get the qualifications i have now which are listed below;
NVQ Level 2 In Fab + Welding
NVQ Level 3 In fab +Welding
BTEC National Award in Manufacturing Engineering
BTEC National Certificate in Manufacturing Engineering
Level 2 Autodesk Inventor 3d
Level 2 AutoCAD 2d

I left to go travelling last year around Asia, Australia and parts of Europe. On my return I am really struggling to find work, I have had a couple of Job offers one being NDT Inspection but the job just wasn't right and one doing CAD in London which again wasn't (Would be getting paid a really low wage, just wasn't possible to live in London).

I am now looking in to opening a courier business. My plan is to open a North East Same day collection and delivery service. My main competitors are obviously the big companies such as DHL, City Link etc but there prices are extortionate. Were I live I could cover a 50mile radius and charge at most for a large parcel (Flat packed table, bikes, wardrobes etc) approx £55 were as other local and big companies are charging in excess of £100! Even for similar deliveries to the same town (1-2miles max) they are charging £84 where as i would be charging £15 for under 10miles.

All parcels would be loaded on to my LWB van and kept there until delivery no sorting office for it to get lost! Guaranteed the same day.

I would hopefully be looking at Engineering firms, Car garages/mechanics, Furniture delivery (Customer not business) and general deliveries.

What do people think of this? Much money to be made?, could the company grow, Hopefully after a year or so could employ people, Would you pay £40 to have something coming from approx 30 odd miles same day or do you think its too expensive.

All help, Tips and comments welcome and thanked.

Jack

[firesafetydave]

The only problem i can see is someone phones you at 9 for a pick up 20 miles away for a drop off 15 miles from where you were. whilst on route you get another call for a pick up 20 miles in the other direction but you still have 10 miles to go for the first drop off. it sounds like it could easily lead to having to say no to people or letting them down, definitely not something you want to do with a new business.
I wish you luck though.

[JCKST1]

At first that was my initial problem but then I thought I could set the day out in sections e.g Maybe 8-11 collections, 11-1 delivering then 1-5 collecting and 5-8 delivery.

I wont need as much time delivery as collecting as hopefully I have a couple/few going to the same place or near by.

Thanks

[rog007]

There's a whole series of issues you need to cover to ensure success, but a simple one is-what's the back up plan for the day your van won't start? What's your plan when you're too sick to work? What happens when you go on holiday? If you can't service demand, people will go elsewhere. Good luck!

[JCKST1]

I wont be taking any holidays till things hopefully take off then I can employ someone to cover.
I have another vehicle that could at a push be used as a courier van. If im sick then i will just have to man up and do it, if i really am bad i know people who would be more than willing to cover me for a little cash.

Thanks

[MentalSarcasm]

JCKST1 said:

At first that was my initial problem but then I thought I could set the day out in sections e.g Maybe 8-11 collections, 11-1 delivering then 1-5 collecting and 5-8 delivery.

I wont need as much time delivery as collecting as hopefully I have a couple/few going to the same place or near by.

Thanks

In that case you'll need to set cut off points for final orders, so anything for the 8-11 am collection has to be booked by 8pm the day before (so for 9:30am collection on Friday they must have booked it before 8pm on Thursday) and anything for the 1-5 collection has to be booked before 12pm, and offer Saturday deliveries as well as quite a few courier companies will only deliver Monday - Friday but many businesses are open on Saturdays too nowadays.

You'll also need a second person to man the phones and potential emails (phone calls will be for deliveries within a day or two, emails will be people enquiring about more long-term possibilities that don't need an immediate answer) as you won't be able to juggle both while driving around, people won't be willing to leave phone messages if their delivery is important and needs to be dealt with within 24-36 hours, if no one picks up the phone they'll just give up and call the "more reliable" big-name courier companies instead. Give this person a map so they can pin your booked collections and they can probably work out which order to pick them up in as well and try to group collections in the same area into the same time slot.

You'll also need some kind of system set up for people to sign for the stuff you're handing over, not sure how much those wireless signature devices cost but it's a choice between those or photocopying a signed form if someone claims a delivery hasn't shown up (you'll also need to investigate insurance costs to cover you for the inevitable claims of "my delivery was damaged/broken/didn't show up at all").

That's just the stuff off the top of my head, you might want to have this moved to the "Business" section of PH.

[JCKST1]

Yeah ideally I would have cut off points but if not too busy will take orders up to 10:30 if their local for delivery at the next slot. I was also planning on doing 8-4 maybe on a saturday, get a few orders through, Ideally once i have a couple/few employees i would like to keep it 8-8 saturday and 8-4 on a sunday (Mainly normal deliveries)

My girlfriend is currently out of work to (Same boat as me) so she would be coming with me on deliveries, taking orders etc plus keeping the books right as shes excellent with that type of thing.

I was planning on looking in to the electronic hand held devices but may be able to get a load of slips printed out stating the time of collection plus delivery and then similar at the other end.
Shouldn't have any bother about parcels going missing/getting damaged as i will be taking care of every item like it was a china plate set and the longest they will probably be in the van is a few hours, No over night storage etc.

I will have to get courier insurance and a few other similar type things but hopefully it shouldnt be too much of a problem.

I would ideally like to get 10+ orders a day and a few contracts in about a years time then i can employ someone to take the load so im not going it all alone.

Im also trying to think of things a little different, E.g pet transportation i know a few people (Family members included) with dogs/cats etc that go to get their haircut, kennels etc but they struggle to get them in the car or simply dont want them their (My dad included in his 330d with full cream leather, not the best with two cavaliers drooling in the back leaving mountains of hair!)
Maybe advertising at furniture shops for the customers to ring and arrange if they want the item taking same day ideally a car parts shop would be good as its regular work.

Thanks

[New POD]

JCKST1 said:

Since leaving school at 16 I have worked my arse off to get the qualifications i have now which are listed below;
NVQ Level 2 In Fab + Welding
NVQ Level 3 In fab +Welding
BTEC National Award in Manufacturing Engineering
BTEC National Certificate in Manufacturing Engineering
Level 2 Autodesk Inventor 3d
Level 2 AutoCAD 2d


I am now looking in to opening a courier business.


Jack

fk that Jack, you need to start a fab shop. But in the meantime :

Can I suggest you apply to university and study an MEng in Manufacturing Engineering, do 4 years post graduate work, to get yourself chartered and then go Ltd Company Contracting. You'll make £65K turnover if you are any good. And at least £55K will be Profit (or Salary)

[McFsC]

Very strange this.

I was at my Grandparents new house earlier and as they have just moved in, are getting a lot of 'stuff' delivered ( from shops, storage, old house etc... ) and they mentioned how expensive it was. I then mentioned ( I'm 19 too ) that it would be interesting to see if you could make decent money by setting up a courier business.

I didn't really give it much thought as I am lucky enough to have a fairly well paid job and one that I enjoy with the chance of progressing quite a bit higher. However, the point is I still give it thought and at the time I thought it could make quite a bit of profit.

Let me/PH know how it goes and if there is much business/profit margins etc...

Good luck.

[JCKST1]

I would love to start a fabrication shop just don't have the money to start it!
Luckily due to my qualifications i managed to earn a lot of money in the 3-4 years i was in the game, Enough to pay for my year out and to leave me with a few ££££ to hopefully start and get this off the ground.
With out sounding daft, I have a real business head (Take after my grandad) and since the age of 13 i have completely supported my self and i dont mean a little pocket money here and there to get a 2l for friday night!

At the age of 14 i was making in excess of £1k a month selling high end mountain bikes and moto-x bikes ( I still do all the top end bikes now), I had top of the range denon surround sound, 50" plasma, xbox, ps3, slot machine, denon cd decks all in my bedroom and all paid for by myself.
Im hoping to take some of this luck in to business with me and get the ball rolling, It takes a lot to get my to quit!

Thanks everyone for the advice, Its really appreciated. Everything is being taken on board and hopegully will be built up on.

Im home from my holidays in a couple of weeks so will get a plan sorted while here and get things going hopefully next month..

[JCKST1]

Forgot to mention about the MEng route. I had the option to do this but after my apprenticeship I went travelling. As much as I like fabrication work there's not a great deal of money to be made, Always dies off back end of the year as well which means you have about 7-8 months to get your money for the year as you don't know what's going to happen.
If all else fails this was an option maybe next year if the courier route nose dives! Pray it doesn't.

[Xaero]

You might want to look at a new American company called task rabbit. They've done quite well in this arena and you'd do well to imitate them.

[McFsC]

I'm similar to you by the sounds of it. I started a very small company with my sister. I say with, I startd it and got her to do the work. We were helping the elderly/single mothers.

Baby sitting, clearing their gardens of leaves during the summer, small trips to the shop, ironing/washing, hoovering etc...

We were making enough to have a decent lifestyle for 2 young kids.

Like I said, let me know how it goes, it was only 6 hours ago I was thinking of doing the same ( see post above ).

Good luck again.

[anonymous-user]

Do you have access to the facilities to do a small steel fabrication job, and then courier the results to me in London? If so, I may be able to chuck some work your way. Do you think that you could make a couple of these? I could supply pattern patterns to be copied, pay up front for the materials and then pay you for the work and the delivery when ready, but, NB, the parts would have to be done very precisely.

[anonymous-user]

There is a real market for honest and competent mechanics to work on classic cars, or old cars out of the dealer system. Someone who can weld and fabricate metal parts could be very popular. I agree: the courier lark is likely to prove hard grind for little reward.

[JCKST1]

Sorry i dont have access to a workshop to would struggle making the parts, Otherwise i would have done it.

I think i will write my plan out then have a serious think. Like said i would have to make it unique and different/cheaper than else were. May have to think of some new business ideas..

Thanks

[BIG BAVARIAN]

Your biggest competitor could be this website http://www.shiply.com/ , you list the items you want shifting, then sit back and watch how low the couriers will go to get your custom.