Becoming a self-employed courier driver is a great way to be your own boss, but, of course, it will mean hard work and ensuring you have the right kit. You’ll find yourself doing everything from making deliveries to marketing and generating new business, so you will want to be prepared.
If you’re thinking of taking the plunge into self-employment as a courier driver, here are some useful tips and tricks to help you get started.
1. Get the right vehicle
First of all, you’ll need a good reliable car or van, and you might also want to consider vans that are cheap to insure to reduce costs.
The size of your vehicle will largely depend on how many deliveries you intend to make and the size of the packages you envisage transporting. For example, you probably won’t need a long-wheelbase Transit van if you intend to specialise in delivering small packages such as jewellery, letters or off-the-shelf medication.
Your vehicle should be fully serviced and, if required, have a valid MOT, road tax and insurance (which we will come to in more detail later in this blog).
2. Find your niche
This may seem a given, but if you’re in the early stages of creating your business, you might not have fully fleshed out what you’ll be specialising in delivering. Finding a niche is important, and if you find a gap in the market, it can be very lucrative.
Consider what your local area may require or what you’re specifically passionate about. Is there a demand? Will your van be suitable for it?
There are multiple courier niches to choose from, including:
- Medical courier – typically transporting pharmaceuticals
- Food & drink courier – this can be for groceries, meals or even just alcohol
- Florist courier – you may be able to collaborate with local businesses for this one
- Retail courier – clothing is the most common here, but you can transport other goods
- Office supplies courier – this tends to be for important documents and other items
3. Work out your earning potential
As with most self-employed jobs, the level of your income will largely depend on the amount of work you’re able to bring in. Broadly speaking, the more work you have, the longer you work, the further you travel and the more packages you deliver, the greater the rewards.
Be realistic with your business goals and consider all the factors before you begin. It’s unlikely to be an overnight roaring success so, it’s best to also be patient and keep referring back to the targets you have set for yourself.
4. Register your courier business with the HMRC
You will need to register with the HMRC to get a Universal Tax Reference (UTR) number. You will also need to record earnings and work-related expenditures, submitting a self-assessment tax form at the end of the financial year.
You may consider hiring a bookkeeper or accountant to check over your financial dealings because you can be fined if you don’t submit your self-assessment in time or if you don’t pay enough tax on your earnings.
5. Develop a customer base
You might start with simple adverts in corner shop windows but you can also advertise in newspapers. We recommend utilising social media platforms like Facebook, Instagram and LinkedIn too, as this is integral to modern marketing.
You will need to set up a business email address and website on which to promote the business and engage with existing and potential customers. These will also give you the chance to publish favourable customer reviews to promote your business further.
You should also register with Google Business which is a free tool that allows you to customise the way your business appears on Google Search and on Google Maps. It enables you to connect with customers, post updates, list your products and services and accept online orders.
One of your best revenue streams might be repeat business, so ensure you do a good job, every time. Customers will not only seek out your services again, but they may well recommend you to others.
As well as the work you bring in yourself, many self-employed courier drivers also rely on contracts with other courier companies, which can help ensure regular cash flow.
6. It’s not just about making deliveries
Being a self-employed courier driver means you will have to swiftly master the art of multitasking. As well as driving, delivering and logistics, you will have to be able to invoice, manage accounts, market yourself, generate new business, manage daily admin and, possibly when your business is established, recruit and train new staff.
If you are determined to go it alone there are many free online tools to help you get the job done, including:
- Google Drive – This is a user-friendly cloud storage system on which you can upload and instantaneously share documents (such as work instructions, orders and invoices) with colleagues and customers
- Brightbook – This provides free and simple-to-use accounting and bookkeeping software
- Hootsuite – This allows you to take control of your social media marketing strategy and line posts up for the weeks ahead, with all of your accounts being managed in one place, which can save a lot of time
Is it worth becoming a self-employed courier?
Becoming self-employed in any capacity is a big step, but there are many benefits to taking the plunge, that will outweigh the concerns you may initially have.
Working for yourself means flexibility and creating your own work-life balance. This may be hard to do at first, but when you’ve cracked it, it can feel quite liberating. Yes, you’ll still have to put in the hours, but you can set them according to your personal preference.
It is a lot of responsibility, but shaping your business to your own vision and seeing it begin to thrive is a wonderful feeling too.
Getting the right insurance as a self-employed courier driver
Another way to help with your new business venture is to make sure your van is insured properly. Standard car or van insurance is insufficient if you are a courier driver. You will need to find specialist courier van insurance cover, specifically the right type of insurance at the right cost.
Adrian Flux can help go through all your options, finding the right courier van insurance for you and your business.
For the best deals we can provide, call us on 0800 369 8590 for a quote, or book a callback at a time that suits you.