Taking the plunge - advice please
Discussion
Mods, please feel free to move if you feel this is in the wrong forum
Long story short, the wife works for a large courier company who use self employed drivers and they are currently short. I am thinking of taking the plunge and going into it
I was looking for advice on van leasing and insurance, including goods in transit and public liability. I would be looking at a Berlingo sized van.
So, in short, I was hoping that the wisdom of PH might be able to point me to some good contacts and advise me of any pitfalls that may await me
Thanks in advance
Long story short, the wife works for a large courier company who use self employed drivers and they are currently short. I am thinking of taking the plunge and going into it
I was looking for advice on van leasing and insurance, including goods in transit and public liability. I would be looking at a Berlingo sized van.
So, in short, I was hoping that the wisdom of PH might be able to point me to some good contacts and advise me of any pitfalls that may await me
Thanks in advance
Can be a bit of cyclical business - ie, this time of year manic; Feb can be quiet.
Depends on how much business they are guaranteeing you.
Long term, given the royal mail seem to be on mission self destruct, and the continual growth of internet sales needing cost effective delivery, I can think of worse business choices.
Fairly low start up costs, providing you can get the volume predictable, could be good.
Cash flow in first few months likely to be the biggest challenge as you balance fuel/expenditure with income but once a contract is in place most banks would probably give you some flexibility.
Downtime is probably the biggest risk and buying a reliable enough van that reduces the risk without making you unaffordable as you start up.
Finding someone local with a deal on hire vehicles just in case might be a plan.
Good luck.
Depends on how much business they are guaranteeing you.
Long term, given the royal mail seem to be on mission self destruct, and the continual growth of internet sales needing cost effective delivery, I can think of worse business choices.
Fairly low start up costs, providing you can get the volume predictable, could be good.
Cash flow in first few months likely to be the biggest challenge as you balance fuel/expenditure with income but once a contract is in place most banks would probably give you some flexibility.
Downtime is probably the biggest risk and buying a reliable enough van that reduces the risk without making you unaffordable as you start up.
Finding someone local with a deal on hire vehicles just in case might be a plan.
Good luck.
Topic here...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I bought rather than lease as the lease companies didn't seem to like 80k per year on the vans
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I bought rather than lease as the lease companies didn't seem to like 80k per year on the vans
I used to be a bike courier but knew the van couriers too. It's hard work and long hours to make any decent money. Also, you won't make much until you've been there for a while as the best runs tend to go to the office "favourites". Might be alright if the OH is on the inside.
I'm glad I got out tbh.
I'm glad I got out tbh.
OP I sell leasing for a living.
In this case I'd recommend you NOT to take out a lease on a new van until you've got a feel for how your business is going to pan out...
As has been said before it's a cyclical business and cashflow might be difficult at the start. If you commit to a lease contract you'll need to come up with the money every month and at the kind of mileage you'll be doing it'll not be cheap.
If I were in your position I'd try and either buy a cheap, late van or look at doing a short-term contract rental deal with a local company that'll let you come out of the deal if you need to.
Good luck with it and shouldn't this be in the Business section?
Edited to add: Note to self, that's why you're skint!
In this case I'd recommend you NOT to take out a lease on a new van until you've got a feel for how your business is going to pan out...
As has been said before it's a cyclical business and cashflow might be difficult at the start. If you commit to a lease contract you'll need to come up with the money every month and at the kind of mileage you'll be doing it'll not be cheap.
If I were in your position I'd try and either buy a cheap, late van or look at doing a short-term contract rental deal with a local company that'll let you come out of the deal if you need to.
Good luck with it and shouldn't this be in the Business section?
Edited to add: Note to self, that's why you're skint!
Edited by mattviatura on Wednesday 10th November 14:57
Well, just to bump the topic. Today turned out to be my last day as an employee. I collect my van tomorrow and am self employed as of Monday. Managed to get a van on a rolling 28 day contract, fully maintained and serviced with unlimited mileage and insurance included. All I need is my goods in transit and public liability and I am good to go.
Outgoings are about £310 a week including fuel. Looks like lots of work ahead volunteering for on call evenings etc.
On the whole though I am really excited. Once it is paying I will lok at buying my own van but for now am happy as I am
Is it a bit sad that I am excited to give up 15 years of experience in order to go and drive a van, even be it as my own boss!!
Outgoings are about £310 a week including fuel. Looks like lots of work ahead volunteering for on call evenings etc.
On the whole though I am really excited. Once it is paying I will lok at buying my own van but for now am happy as I am
Is it a bit sad that I am excited to give up 15 years of experience in order to go and drive a van, even be it as my own boss!!
I suppose a key question here is what are people referring to as good money? I'm a northerner so 30K a year is good-ish money, down sarth that is monthly pocket money for Rupert.
I earn what I consider to be "good money" for where I live and what I do but wouldn't want to be earning the same for working 70 hours a week at the wheel.
I earn what I consider to be "good money" for where I live and what I do but wouldn't want to be earning the same for working 70 hours a week at the wheel.
Welcome to the madness OP 
As a new starter GIT and PL are pretty cheap:
www.staveleyhead.co.uk/courier/
www.xyzinsurance.co.uk/courier_insurance.html
People who claim big money often confuse the weekly take home after fuel with the real amount after all the other business costs. From your figures to pocket £500 (before tax & NI) you will have to invoice around £850-950+VAT every week.
Some weeks that can be 5 days with plenty of doubles and returns, others you will only get that by being on-call, working 6 days and picking some overnight jobs (then kip in the van to save money, stay with friends/family). One friend is moving to Glasgow soon - can't wait
I trust you're VAT registered...
And could you be a total legend and PM me details of the rolling lease?
As a new starter GIT and PL are pretty cheap:
www.staveleyhead.co.uk/courier/
www.xyzinsurance.co.uk/courier_insurance.html
People who claim big money often confuse the weekly take home after fuel with the real amount after all the other business costs. From your figures to pocket £500 (before tax & NI) you will have to invoice around £850-950+VAT every week.
Some weeks that can be 5 days with plenty of doubles and returns, others you will only get that by being on-call, working 6 days and picking some overnight jobs (then kip in the van to save money, stay with friends/family). One friend is moving to Glasgow soon - can't wait
I trust you're VAT registered...
And could you be a total legend and PM me details of the rolling lease?
Edited by Six Fiend on Tuesday 23 November 20:39
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