As more and more retailers are offering consumers an online shopping platform, working for yourself as a delivery driver is a terrific way to become your own boss.
To get started on the right foot, consider the cost-effective yet popular van lease as an alternative to buying a brand-new van. There is, however, more that goes into owning a delivery service. This guide is filled with practical tips to help you on your way.
Find a Suitable Van
The most important aspect of being a delivery driver is to have the right vehicle to complete the deliveries. While a practical hatchback only allows you to do smaller delivery runs, you must also ensure that your car is roadworthy and has its MOT certification.
Consider leasing a van that allows you to transport larger packages and is far more cost-effective than buying a van. MOT is covered when you take out a maintenance package with a leasing broker.
Standard maintenance packages also include the following:
- Any electrical and mechanical replacements or repairs.
- Tire replacements, some leasing companies will also cover damaged or punctured tires.
- Mobile tire fittings
- Replacement of the battery, wiper blades, cambelts, alternators, and bulbs.
Before leasing your delivery van, use a comparison site to help you find the best deals at an affordable price. Additionally, ask the leasing broker what their maintenance packages include to ensure your van is covered when leased.
Register Your Deliver Business with HMRC
Whether you work as a sole trader, partnership, limited liability partnership, or a Limited company, you must register with the HMRC to receive a Universal Tax Reference.
As an entrepreneur, you will need to keep track of your business records and record of expenses and submit them at the end of every financial year. You will also need to register for VAT if your delivery business turnover is over £85,000.
If this sounds daunting, consider hiring a tax practitioner or bookkeeper who can track your tax and your business’s finances. Your company can be fined if a self-assessment is not submitted.
Make Sure You Have The Right Insurance
For you to start operating as a delivery driver, you will need to have the correct insurance. Courier insurance, for example, covers you for when you are in an accident that could result in property damage and injuries.
You need to be aware of the three levels of Courier insurance available:
- Third-party only: This is the most fundamental level of cover that protects you against injury or damage to a third party and does not include insuring your delivery vehicle.
- Third-party, fire and theft: You are only covered if your vehicle is stolen and if there are any fire damages to your van.
- Comprehensive Insurance: You will be covered for theft, fire, third-party claims, and vehicle damage.
It is a good idea to shop around for the type of insurance you need as a delivery driver to ensure that you are covered if anything goes wrong. The types of insurance you should consider are as follows:
- Goods in transit insurance: Provides protection against loss, damage, or theft of the goods you transport.
- Public liability insurance: Protects from accidents involving members of the public. A successful claim against you might result in your insurer paying compensation, and you can claim back your legal defense costs.
Build Your Customer Base
To build up your customer base, you must have an established website, email address, and social media channels to market your business and engage with potential new customers.
To market your business, you can start advertising your services with flyers, pay-per-click advertising, or social media advertising. As your business grows, make sure that your business can accept delivery requests online.
If you are starting as a sole trader, apply as a subcontractor with various retailers and larger delivery companies. As your business grows, you can hire employees, lease a fleet of vans, and watch your revenue increase as you establish a good relationship with existing customers.
Understand Your Business
Owning a delivery service is not only about making deliveries but also understanding every aspect of owning one. Besides deliveries and the logistic element, you also need to understand forging new customers, invoicing, and managing the day-to-day aspects of running your business.
Final Thoughts
It can be frightening to begin a career as a self-employed person, so having steady work coming in is crucial to your success. You should have no problem running a successful delivery business using these tips.
