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Pankaj Tyagi
| Updated: 29 Jun, 2021 | Category: Startup India Registration

How to set up a Sustainable Courier Business in India?

set up a Sustainable Courier Business in India
Reading Time: 5 minutes

The advent of web-based companies and e-commerce establishments has speeded up the growth of the Courier Business in India lately. The nationwide lockdown during the COVID era has helped this business model thrive rapidly. Anyone looking ahead to underpin a stable source of revenue can jump into this venture without any second thought. If you are intending to get started with this business model, then this blog for you.

What is a Courier Business?

In business parlance, the courier refers to a process of delivering packages, parcels, or any ingredient to a predetermined destination in a definite time frame. Being an imperative facet of the logistic ecosystem, a courier business can function autonomously or via strategic partnership with another entity. Thus, it can be said that the primary function of such establishments is to deliver goods in standard packaging to the relevant individual in a time-bound manner. 

Courier solutions are rendered in five different forms as follows:

  • Warehousing service
  • Pallet courier service
  • International courier service
  • Overnight courier service
  • Same day express courier service

Each form seeks different logistic capabilities, operation management, and capital investment. Therefore, it’s important for any start-ups to take these factors into the account before venturing into one of the above listed forms.

Step by Step Guide to set up a legally viable and sustainable courier business in India

The steps below will let you commence a legally viable and sustainable courier business in India.

sustainable courier business in India

Identify the Viable Business Area 

What’s the point of starting a business without knowing the target market and consumer? Despite what business you are up to, your first step should be finding the potential business area. To sort out this hurdle, you need to think from a marketing standpoint. Try answering the following questions to make things easier?

  • Where your rivals are currently operating?
  • How many counterparts available in areas that you intend to serve?
  • How many mainstream players are available in your identified area? (It will highlight the degree of competition)

This way, you can sort out the key areas where you can start your business proceeding. This approach can strike the right balance between the degree of competition and sustainability.

Find a business-friendly location to operate.

To find an optimal place of business, it’s rather important for you to know what to avoid in the first place. Failing to this could undermine your whole purpose of founding the business.

Avoid setting up a business place where;

  • The cost of executing business functions is considerably higher.
  • Overhead costs are predictably higher.
  • The chance of profit maximization is lower.
  • It’s impossible to keep delivery charges on the lower side.
  • There is an absence of basic security protocols. It’s important because, ultimately, this will be the place where you will store and manage the deliverables. 

Get the basic licenses

Courier business fits the legal definition of “commercial establishment”, and therefore it seeks basic registration like Shop Act license/Trade license.  The process and fees of obtaining such registrations differ state-wise. It should be noted that Shop Act license/Trade license is granted by the labour department of the respective states.

Avail GST registration

GST registration is a mandate the for every start-up which leverages a web-based portal to serve their customers or conduct interstate business. One can head to the GST portal and fill the relevant form to apply for this registration.

Go for Trademark Registration

If you proceed aptly and address every obligation sincerely, the chances are your business may reap unexpected growth in the future. And that is the situation where your brand becomes more vulnerable to brand violation. Your business may lose significant profit or consumers if it continues to stay unprotected for long. Protecting your IP asset should be your priority, and thus you must register your brand trademark protection.

Connect with CorpBiz for more clarification or if you need services on the same.

Read our article:Penalty for Violating the Trade license in India

Approach your Prospects Strategically

Once you are done with the above requisites, now it’s time to cater to the most challenging aspect- finding potential clients.  To serve this purpose, you can leverage the following points:

  • Jot down the list of all the clients that deal with consumer goods and leverage the doorstep delivery systems.
  • Based on your logistical ability, endeavor to connect with a prospect that works in the B2B domain and prominently uses courier services to deliver their products.
  • Send a business proposal to each client in a legit way. Your proposal must be concise and should highlight your key strengths and abilities to address risks.

Hire suitable candidates for delivery purpose

The quality of your services will entirely depend on how swiftly and securely you can deliver the packages to the customer’s doorstep. Time is the biggest constraint in this business model and the only thing that matters for its existence. Accrual of late deliveries can sabotage the future of any courier services. Therefore, you need to have a league of employees that can ensure speedy deliveries, no matter what the condition is.

The new entrants in the logistic sphere always have trouble hiring the right candidates. This is due to their inexperience and inability to fetch the right obligations for the right person. Try leveraging the following point while hiring an individual for delivery purposes.

  • Age does play a major role in the individual’s performance, particularly when it comes to jobs where physical activities are more prominent. Thus, prefer hiring a young candidate or millennial.
  • Qualification may not play a bigger role here, but still, it is necessary in case your policy embraces promotion and employees’ empowerment.
  • Look out for individuals that are proactive and energetic. 

Hiring the right candidates could help you keep the inefficiencies out of the equation and instill quality within your operation.

Arrange Delivery Vehicles

Once you are done with the above steps, now it’s time to strengthen your logistical structure by arranging the right kind of vehicles. Every successful courier business counts on its key functions, including transportation. So you can’t get wrong here.

Consider the facts before making the mass procurement of the vehicle.

  • The quality of your delivery vehicle should be on par in case you are planning to accumulate pre-used vehicles. 
  • Since these vehicles will be used for commercial purposes, make sure the paperwork is on point. The important documents for the commercial vehicle include a PUC certificate, Insurance certificate, Registration certificate, and commercial driving license.

Create your online presence

In a digital landscape, it’s hard to find a single business that doesn’t possess an online identity, and courier service is no different here. If you are eyeing to reap prompt growth, then your online presence is more than imperative.

Key benefits of establishing an online presence

  • Online marketing seeks less investment to reach a large audience.
  • It is more impactful and efficient than traditional marketing tactics.
  • It mitigates the hassle of reaching an untapped market segment
  • Strengthen the brand reputation more swiftly.

Try reaching a firm that has expertise in this area and helps you built a solid website and app to connect with your prospects.

Conclusion

It is now certain that courier services are a kind of business model that adheres to a lot of growth potential. It also seems a lucrative proposition for new and aspiring entrepreneurs who are keen to enter into a business world without making a significant investment[1]. Of course, to avert legal uncertainties, one has to comply with underlying regulations and obtain mandatory licenses.  To foster growth and ensure further expansion, it better for you to stay ahead of your legal obligations.

Read our article:Documents and Licenses Required for Food Delivery Business in India

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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