In a fierce football match, the unhealthy and limping key player, from the dominating side, opens the match as a level playing ground. Any of the sides could spring surprises and win. Well, let it be your side!
The business that comes under the nomenclature of ‘Courier Services’ has to do with the receipt of documents, parcel, cargo, etc. from the public, individuals, organizations and so on, for the sole purpose of delivery to the addressee.
Payment is normally made to the courier company directly on a kind of ‘cash and deliver’ basis, or on other agreed terms for the service.
The movement of goods and services is not a recent development; the exchange of gifts is forever going to continue.
Therefore, courier services, as a business, will certainly grow by the day above what is experienced today. Hitherto, the acceptance and delivery of items in the country used to be the exclusive responsibility of one public organization. It is believed that the economic downturn that affected several public enterprises also had its toll on this setup.
The increase in volume of items for delivery, increase in destinations and the inability of that organization to cope with the rise, made the gate to be flung open for private participation. This is the level playing ground. As you operate, do not ignore the presence of the referee (the licensing and regulatory authorities).
There are local operators as well as international firms already on the business scene. They are not enough. Visit their cargo shed, you will be amazed at the heap and stack of onward bound documents, parcels and cargoes, waiting for days to be lifted. Or do we say they are inefficient? That is the opportunity beckoning you to come in and operate. Bring in your expertise and change the business landscape for the best.
Requirements
- A registered business with the Corporate Affairs Commission (CAC).
- A valid feasibility report of the business, an office, vehicles, weighing instruments, documentation (receipts, waybill, vouchers, etc.).
- License to operate; duly issued to your company by the Postmaster General upon your payment of N1million fee.
- Goods-In-Transit (GIT) Certificate from a reputable insurance company.
- Experienced staff and many more.
The business is capital intensive. It could take up to N5million and above to start it. Prior to its commencement, you need to have available vehicles, offices, staff, tools and other equipment. Also, an inspection team from the licensing authority would first visit your office to ascertain your preparedness, in terms of man and material resources, on the ground. The wide access to venture capital and other long term credit facilities makes it worthwhile recommending a business such as this to entrepreneurs.
The courier services business requires huge capital outlay where your company is to provide all it entails. You do not need to raise the entire needed fund before the take-off of this dream project. Your ability to pay the license fee of N1million, and put a few other things in place is enough. In a nutshell, you need between N2 million to N3 million to put up a structure that can effectively commence the courier services business.
The rest, you have to out-source. Go into an agreement with established road transporters, airlines and shipping companies for arrangements to convey to intended destinations, unaccompanied goods. In Nigeria, nearly every state operates Mass Transit Service Vehicles. Not all of these operate courier services. If they do, most of them are not formally licensed to operate. Get your license and go into partnership with them. It does not really matter the length of time it takes to perfect the arrangement with other companies.
Every project has duration; from the starting date to completion takes time and other resources. In all cases, to ensure you have a valid and executable contract, have a legal practitioner draft your agreement, and memorandum of understanding (MOU). Based on the agreement, your business interest with the clients and other parties like transporters, airliners or shipping firms is protected.
Set aside a good chunk of money for publicity and awareness creation exercises. You will soar when people get to know of your services.
Returns
First, the returns on investment (ROI) will come in trickles. Be established; be known to render efficient, courteous services. The moment that is achieved, your daily earnings will run into hundreds of thousands. Not all routes are viable.
There are routes which command very high traffic. Upon a visit, in a single day, you are likely to lose count of the number of documents, parcels, cargo that are sent en-route Lagos to Port Harcourt, Lagos to Abuja, Lagos to Warri, Lagos to Kaduna, to Enugu, etc. In the few established firms, customers wait endlessly in the queue to send their items. A letter less than 20 grams attracts a fee of about N600 and so on. A fifty kilograms carton, of say books, could attract a fee of N3,000 and above.
Caution
The items are unaccompanied, they are parceled and handy. Theft and pilfering are regular occurrences in any poorly managed courier firm. Clients need the assurance that whatever they send will get to its destination.
Delay discourages and turns away customers. And they start looking for alternatives. One customer satisfied and retained will publicize your firm through referral.
Put up a good, efficient system, and watch your business flourish.
One Comment on How To Set-up Profitable Courier Service Company – A Step-by-Step Guide
Wow!It's so impressive,I'm really interested but I can't afford to raise the amount for the license.Am well educated on it.I put on my best to discuss this with a friend who has money but doesn't know how the money will work for him.All the best, thanks for this great opportunity.