In today’s world, the ability to connect in the simplest, most efficient way possible is key. In pursuit of this goal, courier franchises have come a long way, and growth in the industry has soared in the past few years. If you’re interested in investing in a courier franchise, here are five reasons to pull the trigger.
As a franchisee within a courier company, you’ll be at the centre of a thriving and exciting industry. Create a win-win situation for yourself by combining a profitable sector, a flexible leadership role, and an established, successful model of business.
What are the five advantages?
1. A reputable brand name is valuable in the sector.
When customers are sending a parcel or mailing away important documents, they prefer to use a brand they can trust. Joining an established franchise, rather than setting up an independent business, means that you can operate under a well-recognised brand name and umbrella. You’ll enjoy an existing customer base without having to build one from scratch, and as a result, you’ll be able to quickly kickstart your business success.
2. Character is prized over experience in many courier franchises.
Many courier and delivery franchises operating across the UK value character traits over experience levels when it comes to franchisees. Companies are looking for motivated, dedicated and passionate investors. They’re seeking to hire trust-worthy, hard-working and business-minded people who can communicate confidently with customers.
To be considered for a role with a courier franchise, you won’t need prior experience in the sector, and the training you’re offered after you make your investment will be more than able to bridge any of your knowledge gaps. The key is that you have a good head for business, and can really dedicate yourself to the work.
Most franchisors will want to choose franchisees that have studied business or know business concepts. Personality may also play a significant role in the success of your interview. As a franchisee, you will be working with a fairly large team, and franchisors often look for a personality type that the team will get on with.
3. In this evergreen industry, there’s always room for growth.
No matter the trends in other sectors, and no matter the businesses that come and go, courier and delivery companies remain steadily in demand. Recent research on the industry revealed that sales and growth rates have soared in the past five years [Mintel], and this doesn’t look set to change any time soon. The courier industry’s growth trajectory makes it the perfect area in which to build and develop a profitable business that stands the test of time.
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4. Low-cost initial investment opportunities are available in the sector.
The estimated average start-up cost for a UK franchise is £42,200 [British Franchise Association]. This figure depends on the size of the franchise you’re investing in, the type of franchise you’re investing in, the kind of products your franchise will sell, and the location of your franchise.
Courier franchises don’t tend to cost too much to invest in initially. Some opportunities are available for as low as £6,000. Of course, if you’re looking to make a larger investment, you might consider putting between £20,000 to £60,000 into a depot franchise. Whatever your financial situation, there’s space in the delivery industry for you. Remember, as you figure out the finances that there’s more to take into account than the initial start-up costs. Think, too, about:
- The cost of paying employees
- Outlay for different types of insurance
- Vehicle costs
- Maintenance costs
- Renewal fees
- Monthly operational costs, including rent on any commercial space
- Equipment costs and fees
- Marketing costs and fees
If you’re interested in making an investment in a courier franchise but you don’t have the money upfront to make that happen, don’t be immediately put off. There are all kinds of traditional and non-traditional funding options available to you. The most common route for securing a loan is turning to a bank, and most banks in the UK will offer new franchisees a loan which covers between 50-70% of start-up costs.
5. High quality support is on offer.
It’s the legal duty of a franchisor to adequately supply their franchisee in terms of training and business guidance. Franchisors take this seriously and most provide a high-quality level of service and support. You should be able to check in regularly with your franchisor, and come to them with concerns.
Most franchisors will offer ongoing support such as administrative (e.g., human resources and accounting) and/or technical support. [...] Franchisors can advise on employee issues, insurance requirements and other matters relating to the operation of the business.
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The current state of the courier industry
Despite many different sectors being negatively impacted by the global pandemic, the situation has been quite the opposite in the courier and delivery sector, and the market was forecasted to reach a value of £13.5 billion by the end of 2020 [Insight DIY]. For those looking to start running a delivery franchise, this is great news, as the growth is set to continue. In fact, the sector’s market value is expected to increase by 92% between 2019 and 2024, reaching a total value of £21 billion [Mintel].
In the long-term, the steady rise in e-commerce sales, increasing sophistication of delivery services, and the growth of delivery subscription services should outweigh the damage done to the sector by a slowing economy. - Francesco Salau, Mintel
Start your journey with a courier franchise
Having discovered the many different advantages to running a courier and delivery franchise, you might well have made your decision. If you’re interested in the world of franchising, but you’re not sure that a courier business is the right one for you, please take some time to explore Point Franchise’s UK franchise directory, and discover the wide range of investment options on offer.
Lily Sweeney, Point Franchise ©