How to start a parcel courier franchise

Road delivery companies require little start up funds and minimum upkeep. Find out more about starting a haulage company with simple and affordable courier services

Many services are delivered digitally these days and email might have superseded the traditional letter, but there’s still a massive demand for courier companies. In fact, the internet has actually boosted the courier business as online buying and selling via the likes of Amazon and eBay mean there is a constant stream of parcels moving around the country at any given time.

However, it’s a competitive industry, dominated by the big names. For that reason, many people looking to start a parcel courier business opt to take out a franchise.

Parcel courier franchises vary in size and scope. At one end of the scale you have the courier operating from home and using a van to deliver consignments within a specified territory, and at the other are larger depot-based businesses with multiple vans and drivers working as part of a national network.

If you’re thinking about starting a parcel courier franchise, you won’t need any specific qualifications but knowledge and/or experience of the industry would obviously help. If you are looking at a large operation then a good business and managerial track record will stand you in good stead.

Whichever kind of franchise you’re considering, you need to prepare yourself for a lot of hard graft – working in the industry at any level involves long and unsociable shifts. In some cases, your business will be operating 24 hours a day, seven days a week, and 12-hour stints are not uncommon. If you’re working as a lone courier, the jobs can arrive in fits and starts, so you need to be flexible and make yourself available for work during long periods, day and night.

Costs obviously vary depending on the size of the business. A small courier service run from your own home will be relatively cheap to run – you’ll obviously need a van and a phone and pay the various associated costs, but your overheads should be fairly low.Whichever kind of franchise you’re considering, you need to prepare yourself for a lot of hard graft – working in the industry at any level involves long and unsociable shifts. In some cases, your business will be operating 24 hours a day, seven days a week, and 12-hour stints are not uncommon. If you’re working as a lone courier, the jobs can arrive in fits and starts, so you need to be flexible and make yourself available for work during long periods, day and night.

Costs obviously vary depending on the size of the business. A small courier service run from your own home will be relatively cheap to run – you’ll obviously need a van and a phone and pay the various associated costs, but your overheads should be fairly low.

However, you also need to consider the cost of buying the franchise. First, you’ll pay the initial lump sum to the franchisor, and then you’ll be charged ongoing fees, usually as a percentage of your turnover. Of course, it’s not a one-way arrangement – you’ll receive the franchisor’s help and support for various aspects of the business, possibly including training, equipment, marketing, advertising, stationery, etc. You’ll also have the benefit of trading under an established brand and business model.

However, it’s important to remember you’ll need the necessary working capital to get your venture off the ground. Also, even if you manage to get a business loan to start your franchise, you could be required to find at least a third of the setting-up cost yourself – and in some cases, as much as half.

The good news, though, is that banks are generally more willing to lend to franchises than businesses starting from scratch as they often see them as less of a risk.

Not all franchises are equal, however. Look at all your options and decide which is best for you.