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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017

Courier Service SWOT Analysis

 

Strengths

 

Courier services an integral part of getting important documents to and from people and businesses. The barriers to entry for a new courier service are very low. If an individual owns their vehicle, they can begin working right away after a small client base is developed. This is especially true in major metropolitan areas where customers need same day delivery of times. For larger scale courier services, the startup costs range from $10,000 to $50,000. One of the strengths of a courier service, financial speaking, is that the operating costs are low while the gross margins are extremely high. It is not uncommon to achieve gross margins of 90% or more on each delivery provided for a customer. Courier services are generally able to remain profitable and cash flow positive in any economic climate.


Weaknesses

 

The primary weakness faced by these businesses is that many other people act as couriers. This is especially true in large cities. In more suburban areas, courier services face substantially less competition but the courier service needs to be able to operate within a much greater market radius in order to provide services to a larger number of customers.


Opportunities

 

One of the quickest ways to expand operations is to develop ongoing relationships with companies that have frequent courier needs. Foremost, many of these services focus on providing couriering for law firms, accounting firms, and other professional companies that have ongoing needs to have packages delivered on a same day basis. This is one of the primary ways that a courier service maintains regular revenues while boosting the valuation of the business. The other way of expanding operations is to continually hiring additional couriers that can service a greater number of company accounts. This requires a moderate capital investment in order to acquire vehicles.

 

Threats

 

As most files are now electronic, the demand for courier services has declined over the past twenty years. However, many legal documents still require the actual signature of a person on paper. As such, by virtue of law, there will always be a need for companies to send actual documents to and from recipients. There are not expected to be major changes in this industry for at least 10 to  15 years.


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