How To Start Courier Business In South Africa

What is Courier Service?

A courier is a company, an employee of that company or a person who delivers a message, package or letter from one place or person to another place or person.

How To Start Courier Business In South Africa

1. Choose The Right Vehicle

To start your courier service you will need a reliable source of transportation to deliver packages. Many full-time couriers choose cargo vans for this type of delivery service as they provide the largest amount or cargo space to transport the items that you are carrying for customers.

If you don’t know much about buying a cargo van you can read some reviews for the 2020 models here. If you want to lower your monthly payments we suggest trying to lease a van or you can shop for a used cargo van. Alternatively, a pickup truck with a covered bed can also be a good option.

2. Buy The Right Equipment

Having the right equipment will make your courier delivery business more efficient and save your back from the pain of carrying boxes. The type of equipment that you need will depend in part on the types of items that you will pick up and deliver for your customers.

If you are mostly delivering parcels or boxes a simple dolly or hand truck is essential. You can buy a standard dolly for about $20 at major retailers like Home Depot, Lowes, or Target or you can buy moving equipment online here and have it delivered through Amazon. Other items you may need include cargo straps, moving blankets, and tape.

3. Name Your Business

The name you come up with is representative of your business values and mission. Before you decide on a name make sure you check with the secretary of state in the place that you want to do business to make sure the name is not already taken by another business. You should also check sites like GoDaddy to make sure you can get the domain name of the business that you want.

After you name your business you will need to set up a legal entity. If you are the sole owner of the business a Sole Proprietorship may be best. If you have business partners an LLC (limited liability corporation) may be a better fit. LegalZoom is a good resource for finding out if your business name is taken and registering your business entity with the state.

4. Insure Your Business

Your courier company will need business insurance for your vehicle, cargo insurance, and possibly liability insurance as well. Having an insurance policy is also essential for building trust with customers. Many businesses and individuals will avoid working with a courier service that is not properly insured.

Contact a local commercial insurance broker to find out how much it will cost to insure your business. This cost may vary based on location, types of deliveries you make, and the perceived risk.

5. Marketing Your Courier Services

Now that you have your vehicle, equipment, and a name for your courier service, it’s time to start marketing. You can first communicate to your friends and family to start off using your social media networks like Facebook, Twitter and Linkedin. You should create a business page on each of these social media properties.

Most courier businesses will need to market to other businesses who are looking for a courier. This can be done by making a list of businesses that may need a courier service and then cold calling and emailing prospects, or drop off your business cards.

Online marketing and advertising can also be a low cost and effective way to target business owners. Google Adwords and Facebook both have easy to use self serve platforms. You can target customers based on keywords they search for or their interests/demographics/location.

6. Join The GoShare Team

There is only so much you can do operating by yourself. Some common challenges you will face are building trust, accepting payments, and finding new customers. GoShare is a platform that connects drivers with trucks and vans to people and businesses who need an on-demand courier service.

GoShare is a trusted partner that handles payments, provides supplemental cargo insurance, and has an expert team of marketers generating demand from new customers.

7. Save Your Receipts

As a small business owner, tracking your expenses is very important. Some expenses related to operating your courier business may be used as a tax write off. You should also keep track of the miles you drive as this can be used as a tax write off as well in some cases.

Frequently Asked Questions (FAQs)

How do I get a courier license in South Africa?

Contact the business license bureau of your local municipality government office. Ask about the required forms and fees to start a courier business.
Complete the forms legibly. Answer all questions in the form.
Take the form to the licensing bureau. Hand the form to the clerk with a check for the fee.

How much do courier companies make in South Africa?

How much does a Courier service make in South Africa? The average courier service salary in South Africa is R 144 900 per year or R 74.31 per hour.

Is a courier service a good business to start in South Africa?

A courier business can be a lucrative venture with relatively low overhead — your biggest expense is often your delivery driver’s time (which could be your own), and fees associated with your vehicle, from liability insurance to mileage, to maintenance. Plus, if you’re working for yourself, you get to be your own boss.

How much does it cost to start a courier business?

Ans. The minimum start-up cost for a delivery service is INR 1 Lakhs.

How much a courier company earn in South Africa?

You have to be 12th pass for doing this at the minimum. After deducting all the overhead expenses, the monthly income comes to 20000-25000 rupees from this work.

How do you get a courier contract?

With services and fees clearly outlined, a courier is in a good position to start finding and bidding on delivery jobs. One effective way to start is reaching out to local businesses that are frequently in the need of deliveries.

Is a courier business profitable in South Africa?

Couriers make on average $36 an hour, and provide a much-needed service for any community. With a little hard work, your courier business can be profitable in no time.

What equipment is needed for a courier business?

Purchase materials and equipment for your courier business. Materials and equipment include cell phones, two-way radios if hiring one or more employees, office supplies, such as envelopes, pens, pencils, notebooks, a GPS unit and computer software to track pick-ups, deliveries, invoicing and bookkeeping.

What equipment is needed for a courier business?

Is it worth becoming a self employed courier?

It will take some time to establish yourself and to increase your ROI, but be patient – it’s worth it. You can expect to earn up to 45% more than an employed driver. Learning to make use of networks like Courier Exchange will help you maximise your profits.