Buying a couriers franchise for sale is one of the smartest investments that you could make to start a business of your own today and start building wealth. According to a report by Beroe, Australia’s courier, express, and parcels (CEP) market is expected to hit the 1 billion parcels mark this 2021, with a forecast compound annual growth rate (CAGR) of 5.46% from 2019 – 2024.
Aside from a good market overview, a courier business will also allow you to build on an existing customer base, requiring less marketing effort on your part. Unlike starting a business from scratch, you just have to adhere to a few requirements and start running the business right away.
Choosing the Right Courier Franchise Business Opportunities
While franchising Australia has to offer is good business from the get-go, it is still important to remember that not all courier franchises are the same. Of course, some will be more lucrative than others.
Now, like any other form of investment, you need ample research to figure out which business to engage with. Here are the most important things to keep in mind.
1. Potential Profit
Of course, the first concern that you would have when starting a business is profitability. So, when buying a couriers franchise for sale, speak with the franchiser about the financial projections that you should expect.
For example, you can ask questions, like “how much would you earn in a certain period of time?” or “how long does it take to break even?”
Apart from this, you should also check if you will receive some form of financial support for fixed costs, such as driver uniforms, vehicle fleet, fuel, and communication devices.
Good franchise businesses should have an exclusive territory. Needless to say, one with a high level of exclusivity would provide more value and profitability for the owner. Here are the different exclusivity levels that you should know:
- Operational and marketing – No other franchisees are allowed to operate and advertise within your area.
- Marketing – Franchisees are allowed to operate in the same area but are restricted to advertise in the same area.
- Individual (no guarantee against deliveries) – The franchisee has the exclusivity to operate in a particular area but is not guaranteed not to see other franchisees delivering to the same area.
- No exclusivity – There are no restrictions on where franchisees operate.
Exclusivity will have a significant impact on your profitability, so choose one that will fit your business plans and goals.
As a standard, the franchiser has the responsibility to provide franchisees with the support that they need to run their business. For example, they should offer staff training, business mentoring, and marketing support.
Aside from this, you could also ask about other forms of help to lift your business off the ground, such as customer acquisition.
To know how good a franchise is, you can gather feedback from existing franchisees of the business you are considering. Of course, a good franchisor should have a good reputation and strong relationships with its franchisees.
5. Potential for Growth
Courier franchise business opportunities are highly scalable, given that you have attained enough success. Now, a good franchisor should be able to provide ample support should you try to expand. For example, they could help you with getting additional employees for your franchise and expanding your territory.
6. Franchising Agreement
When buying a franchise, you should remember that you are purchasing the rights to run a business under a brand name, and these rights are often subject to conditions.
Also, franchise agreements would often favour the franchiser in a way that you will have more obligations than them. While this is a common business model in franchising, it could also mean a bad deal.
Now, to know these conditions and affirm that you are engaging in good business, read the contract carefully before signing on the dotted line.
Cost of Buying a Courier Franchise in Australia
Generally speaking, the initial cost of becoming a franchisee in Australia would depend on the brand you are investing in and your location. Regardless, established courier businesses across the country usually offer packages with a price range of $20,000 to $50,000. However, some franchise companies would be more flexible on their prices. But if you are looking to break even quicker and enjoy greater rewards, you should opt for a larger initial cost.
Moreover, franchises operating within exclusive territories, as well as those servicing a wider area, would also require a larger initial investment.
Financing Your Franchise Business
Of course, if you have enough savings, you can finance your courier franchise investment out of your pocket. But if not, you can always take out a franchise loan from a bank, credit union, or lender in your location.
Typically, these financial institutions are more likely to grant start-up funding solutions to franchisees than sole proprietors. After all, you will be at less financial risk by operating under an established brand name.
By being well-informed, you will be able to reach a wise decision in choosing the best couriers franchise for sale in Australia. And, the right business will pave the road to financial freedom and an enjoyable lifestyle. So, do your research and keep the above-mentioned tips in mind.
For more useful pieces of advice on running and growing your business, feel free to browse our site!