A courier business plan can aid starting a new business venture, expanding your current business, or purchasing an existing courier business.
Estimated to be worth over R20 billion per annum, the courier industry delivers items from all sectors of the South African economy. Industry players range from multinational companies offering global services to single individuals with a bakkie or a scooter. 74 companies are registered as unreserved postal services (UPS) operators.
The major changes driving the courier industry include the shift from a Business-to-Business (B2B) market to a Business-to-Consumer (B2C) market where customers are exercising more control over how, when and where their parcels are delivered. This is due to the growth in e-commerce, and the introduction of automation and alternative high-tech delivery models. In order to be competitive, courier services need to be supported by a nationwide, if not a global, network. Mergers and acquisitions are increasing as companies seek to attract volumes and extend networks. Smaller players are being taken over by the larger role players as they do not have the network to provide a cost-effective service to both high-volume metropolitan centres and low-volume rural areas.
Although the courier sector faces weak economic conditions, the growth in e-commerce sales, increasing demand for just-in-time deliveries, and the poor service provided by the post office are beneficial. Increasing customer demand for speedy and flexible, and the growth of disruptive startups and innovative delivery options are forcing traditional operators to review their distribution strategies, and in some cases, partner with or invest in new disruptive on-demand delivery companies to provide innovative and alternative delivery options.
While the poor economy and low business and consumer confidence are affecting the volume of goods requiring express delivery, the development of the on-demand economy is providing growth drivers for the industry. These include the need for speedy deliveries created by the rise of online shopping, inefficient service delivery levels from the post office, the need for just-in-time delivery of parts and components to minimise stock levels and save costs and delivery demands for medical products. The continuous development of drones, robots, and autonomous vehicles are driving ongoing change in the industry.
A coherent Courier Business Plan includes the following elements:
Executive summary: Is positioned in the beginning of the business plan and is 1 to 2 pages in length. The business’s amount for funding or grant and purpose thereof must be stipulated, along with the mission and vision statements.
Industry overview: The overall analysis of the courier industry’s economic, legal and market status. Such an analysis allows companies to present their business records in an organised manner, and helps you get clients for trade or investment.
Market analysis: Information on the industry, market trends and outlook, and your target market.
Sales and marketing strategy: Lists your competitive advantage, sources of income, sales forecast, and marketing and sales strategy. A publicity and advertising strategy is key.
Company and management summary: Includes information on the management and staffing team (including future additions to it), with their positions and roles.
Financial plan: Your business plan requires a financial forecast as it gives a measurable goal to work towards. It aids business’s in controlling income, expenses and investments, such that you can manage your money well and achieve your goals.
Financial projections: Eight documents comprising of the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule, and fixed asset schedule with charts, ratios, and calculations.
Annexures: Includes additional documents that provide information needed by funders in an application (DTC provides the complete list).
At Dream Team Capital…
We understand the complexities of the criteria and requirements the development of an accurate business plan. If using the document to raise funding and/or non-repayable business grants, we guide you through the process and provide access to our expansive funding network.
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