Top 4 Expenses When Starting Your Own Delivery Business

What is a delivery business? Well, it encompasses a few different business ideas. There’s the traditional route of delivering products to customers for other companies. Or, in this day and age, you have companies like Deliveroo and UberEats that deliver food to people as they order it. So, there are many ways you can take this business idea if you’re keen to start. 

It can be a smart career path, though there are some key expenses to be wary of. Don’t assume that it’s as easy as hopping in your car and making deliveries! Here are some of the main things you’ll spend money on:

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Vehicles

If you’re running this business on your own, you need only pay for your vehicle. You can lower the costs by opting for something cheap – like a bike – but this limits what you can deliver. Mostly, it’s recommended that you have a van if you’re a courier, allowing you to deliver multiple packages at once. Thus, you can have contracts with various businesses, bringing in more money. As you expand, you may hire new staff, further increasing the vehicle costs. 

Fuel

You will use up loads of fuel when serving as a delivery driver. Thankfully, along with the vehicles themselves, you can claim this back as a business expense on your tax return. Or, reduce the costs by opting for electric vehicles. 

Insurance/Legal Fees

It’s illegal to drive a car or van without the correct insurance. You’ll need to look into commercial car insurance to be certain you can use your vehicle for business purposes. Also, you may have various legal fees to deal with in your time. Driving around means the likelihood of auto accidents is higher than usual. Particularly if you do a lot of long-distance deliveries, meaning you encounter big trucks all the time. There’s every chance you’ll have to work with a skilled truck accident lawyer at least once in your lifetime. Trucks cause many road accidents, and you’ll be around them on the highway as you both look to make deliveries. Or, flip things around, what if you cause an accident? Again, you’d need a lawyer; hence legal fees are a significant expense. 

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Admin Work

Regardless of whether you employ someone to handle the admin or do it yourself, it will cost money. Obviously, hiring someone means you pay for their salary and benefits. Doing it yourself will still require various software to ensure things go smoothly. For example, you may need Quickbooks for accounting, some type of inventory management software, an email client, etc. If you want to run a successful business, you must be prepared to pay for the admin work. 

Delivery businesses are popular, as anyone can start them. As long as you can drive a car, you can deliver a package. Plus, in modern times, people rely on deliveries more than ever before. Think about the year we’re having – everyone is stuck indoors, increasing the demand for home deliveries. By starting this business, you enter a career that has the potential for longevity.