Courier work can be a gruelling business, especially when you are trying to make the most of your profits. If you want your business to thrive and not just to survive, then you may want to keep an eye on these less-noticed sources of operating expenses.
1. Taxes – seriously. Too many would-be couriers fail to properly account for their taxes, especially when they think they are too ‘small’ to be noticed by revenue and customs. Better to start learning how to calculate your own taxes right now to eliminate bookkeeping fees and prevent an unwelcome visit from your local tax collectors.
2. Interest on Debt – taking out a loan can be a great way to get started in the courier industry or expand your existing business. You should, however, settle outstanding debt as quickly as possible, otherwise the interest rates will slowly but steadily erode profits from handling courier work.
3. Micro-Luxuries – those sweets, crisps and occasional takeaway meals often go unaccounted for. These ‘micro-luxuries’ can eventually add up to the point where they can start dragging down profits, so make sure that you keep tabs on all the little things you buy.
4. Inflation – if you handle courier work often enough, you will eventually come to the point where you will need to raise prices. Keep a sharp eye on inflation rates as well as the fees charged by your competitors, and you will be able to better time your decision to charge more for your services.
5. Vehicular Condition – okay, so this one is somewhat obvious, but it is still worth mentioning. Tyres, engines, spark plugs, brake pads, serpentine belts – all the components of your delivery vehicle need to be kept in tip-top shape. You really don’t want to lose good business because your van suddenly seized up while on the road.
6. Advertising – it is always a good thing to get more exposure, but only pay for the kind of exposure that brings business your way. If you can get metrics to see how many people found you by ads, like surveys or traffic counters, then go for it. If not, then you need to slowly add advertising venues a few at a time to see which ones impact your business.
7. Traffic – it is definitely worth your time and effort to learn more about local traffic conditions. Road repairs and automobile accidents can significantly hamper driving conditions, especially when you are on a deadline, so you will want to use online resources like social networks and traffic bulletins to stay one step ahead of traffic.
8. Health – your clients expect you to get the job done on time, no matter what. If you want to keep building a base of loyal clients, then you will need to take good care of yourself. Constantly getting sick will frustrate the said clients, so it will pay to maintain a balanced diet, find time to work out and get a check-up to nip any potential illnesses or conditions in the bud.
Keep these tips in mind and you will be able to cut down the operating expenses that come with handling courier work.