Starting a business requires huge amount of dedication and commitment. Extensive planning needs to be done before one embarks on the business venture. If you don’t plan properly from the start, you will have much higher chance of failing. Those who fail to plan, plan to fail. Let’s look at starting a courier business in Singapore.
Is it wise to start a courier business in Singapore?
Firstly, let’s look at the competition. There are many courier companies in Singapore presently in 2016. Some of them are rather big like PCA Masters http://www.pcamasters.com/ and Speedpost, while we have many small courier businesses in Singapore. Competition is definitely stiff due to the abundance of courier companies in Singapore. Basically, it is a cut throat industry where businesses compete mainly on price. It is hard to differentiate one from another.
Secondly, let’s look at profit margins. Due to the intense competition, profit margin is very small for the businesses. In this aspect, it is not really attractive for new entrants.
Thirdly, the cost of entrant is rather high. In order to start a courier business, you have to purchase several vehicles upfront – vans, bikes, lorries, and any other vehicles you deem necessary to aid your staffs travel around the country to complete the courier deliveries. Speaking of staffs, you will have to get some staffs from the beginning too, unless you want to deliver the items yourself. Vehicle cost and staff salaries are big fixed expenses that your business need to support from the beginning.
Looking at these three points alone are enough to say that the courier business in Singapore is a very competitive and difficult industry. If you have the capital to burn and have a few years of your time to spare, then you can consider getting into the courier industry in Singapore. Otherwise, perhaps there are better industries and business opportunities for you out there somewhere else.