5 Reasons Why SMEs Use Courier Services

Published on: 17 May 2018 Last Updated on: 25 July 2024

Rather than handling their own delivery processes, many small businesses turn to logistics companies to fulfill their shipping needs. This includes companies from every industry, including small local businesses and nationwide e-commerce retailers. It is one of the easiest ways to make your business operations easier.

But why is this? What are the benefits of using a courier service? And should your business consider outsourcing delivery? Here are 5 reasons why SMEs use couriers and the benefits they can have.

Efficient Booking :

If handled in-house, arranging delivery can be a long process. This includes selecting the right route, arranging for parcels to be loaded and ensuring the vehicle leaves on time. Outsourcing to a courier only requires a short booking process using a streamlined, online system. Parcels can simply be collected at a time that suits you, then the rest is done for you. It’s one of the most efficient ways of making sure that your luggage is delivered in good time.

More Affordable :

Running your own delivery fleet can be expensive. From recruitment and wages to fuel and repairs, and training and software, costs can be sporadic and soon mount up. A courier, on the other hand, can be paid by invoice. This provides one single payment per month, which could help to boost cash flow and plan for growth – to save further, you could consider using a courier comparison service, like Parcel2Go.com. It is the most cost-effective way of shipping your products from one place to another.

Professional Image :

As a small business, it can be hard to attract customers. One reason for this is trust, as, without a reputation, customers may be unfamiliar with your brand. However, using a courier service can inspire trust by making your SME appear larger, more established and more professional. A courier service could also help your business to stand out from competitors. Courier services will definitely take the image of your brand to the next level.

Reduces Risk :

For SMEs completing their own delivery, should a parcel be lost or damaged, the onus is on them. When using a courier, on the other hand, items are insured. This provides the opportunity to claim, covering the cost of the order and reducing loss. However, it is important to remember that your company is responsible for resolving the issue and boosting customer satisfaction. You will significantly reduce your risk levels when you use courier services to ship your goods. They have safe transportation cargos and an insurance cover to mitigate the risk.

Provides Updates :

For SMEs, providing customers with regular delivery updates requires investment in software and staff training, both of which can be costly and time-consuming. However, a courier already has these systems in place. This provides your customers with tracking and notifications at every step, saving your business money and keeping customers happy.

As you can see, using a courier can benefit both SMEs and their customers, by reducing costs and saving time, as well as projecting a more professional image and providing delivery notifications.

For more tips, see our business section.

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How To Choose The Best Legal Structure For Your Business

Starting a business can be exciting, scary, and - let’s be honest - confusing! You don’t need an MBA or any other business degree to start a successful business. But, there are other important things that you need to make right from the beginning. While there are many things that need to be done correctly from the start of the business, there is one thing where you cannot make a mistake Choosing The right business structure. Your business structure is important in many ways. It decides how your business will showcase in front of others, what power you will have over your business, and most importantly, what type of taxation it will fall under. Seeing how the current entrepreneurs are so hung up on sole proprietorship that they do not see the benefits of other business structures. Today, we have come to take you on a journey and make you see the different business structures and what each offers to a business. What Is A Legal Structure Of A Business? Every new business requires the formation of a business entity that can be considered its identity in the market. This is where the concept of a legal structure comes in. A legal structure, also known as a business ownership structure, determines the flow of power within the business, the type of income tax you need to file, and highlights the risk to which your business is exposed. The most common legal business structures are as follows: Sole Proprietorships. Partnership. Corporation. Cooperative. Limited Liability Company (LLC). Related Resource: 5 Financial Risks of Starting a Small Business and How to Avoid Them Types Of Business Structure While there are many legal business structures, we have picked the most used currency in the world. This Legal Structure covers almost every aspect of legal business structure. 1. Sole Proprietorships This is the simplest form of legal business structure. In this type of business structure, one individual is solely responsible for the business profits, debts, and liabilities. This business structure works great for small to medium-scale businesses. This entity does not offer separation or protection of any personal and professional assets. While this is great for small businesses, it might be difficult to scale up. 2. Partnership As the name suggests, this type of business structure is owned by two or more individuals. The legal partnership structure can be further divided into two entities: General Partnership and Limited Partnership. A general partnership is where all the shares are equally divided among all the partners. In a limited partnership, one individual has control over all the business operations. While others are just contributors and shareholders for the profit. 3. Corporation When a business is considered a corporation, it becomes a separate entity from its owner by law. It is considered a separate entity that enjoys legal rights just like any other person. For instance: It can sue others. It can be used. Buy and sell a property. It even has the right to sell the right of its ownership. 4. Limited Liability Company (LLC) A Limited Liability is a hybrid structure that allows owners, partners, and shareholders to limit their liability while enjoying the tax and flexibility of a partnership business model. Under the umbrella of the LLC, members of the business are shielded from any personal liability related to the business as long as they have a written LLC Operating agreement contract. However, to do that, the business needs to have the best business bank accounts with all the necessary features. 5. Cooperative A cooperative business legal structure follows the concept of serving the same people who are working for the business. All the members are responsible for making business decisions, and whatever the profit business samples, it is shared among the members. A cooperative business structure offers the following advantages. Low taxes. Increased funding. Better discounts and services. Factors To Weigh Before Choosing A legal Business Structure While an individual can choose any business structure they like, there are a few considerations you need to look into. 1. Complex Procedure Businesses with fewer people don’t need complex procedures to rule their business operations. Instead, they can just follow a simple business format. However, if your business has many employees and offers different types of services, you must select a business structure that can support all your business requirements. The best way to understand what kind of legal business structure you need is essential that you understand the goals and a business structure that help you achieve the least complexity. 2. Continuity Of Existence You are not starting a business with a lifespan of only a decade. That means, while you are planning for your business, you must plan for its continuity. Hence, it is important that you see how a business is concluding. If you are thinking of securing your business for future financial security, you must also look into the right business structure to support your needs. 3. Control Business is all about control. If you cannot control how your business is operated, you will never be able to calculate the ROI at the end of the day. Hence, it is essential to decide how much control each individual requires to operate the business. For instance, if someone wants to have more control over their business, sole proprietorship might be a more suitable business structure. 4. Liability When running a business, you need to ensure that your personal liabilities are not tied down with your business. In that case, what will happen is that your personal liabilities will be used to cope with business losses. Hence, to separate your business from your personal liabilities, choose a legal business structure that protects your personal assets. Conclusion Choosing a business structure is dependent on what you want to achieve from your business. Depending on what you want from your business, you can go with any legal business structure. While you are free to decide for yourself which business structure you want to go with, it is a good idea that you take help from a business lawyer. A business lawyer can help you understand the differences and benefits more detailedly. They will even help you with all the paperwork needed to establish your business as a legal entity. Read Also: 6 Steps to Starting a Business in Michigan Why Do Businesses Need Lawyer’s Advice? 7 Ways to Plan a Smooth Business Succession Having Business in Foreigner Country, Advantages and Disadvantages

Lease Vs Buy: What’s Better For The USA Based Business

Small business owners face numerous considerations when deciding whether to purchase or lease a business facility. Once a business owner identifies their specific facility requirements and successfully locates the ideal property, they encounter another crucial choice: Should they buy or rent the property? This decision arises in two distinct scenarios: First, when the owner of the desired property is open to either selling or leasing it, and second when you have multiple options, some available for purchase and others for lease. To make this decision confidently, it's essential to evaluate the financial aspects and the determining factors that influence the suitability of leasing versus buying a business facility. Comparing The Economics Of Leasing Vs. Buying What should you go for when it comes down to lease vs buy for business? In business decisions, few choices are as pivotal as determining whether to lease or buy assets. This holds for many assets, from real estate to equipment, vehicles, and more. This decision can have significant financial implications for business owners, and understanding the pros and cons of leasing versus buying is crucial for informed decision-making. Let’s explore the economics of these two options, exploring the advantages and disadvantages of each to help business owners make the right choice for their specific circumstances. The Economics Of Leasing Leasing, as a financial arrangement, is a concept that extends beyond the realm of property and includes various assets such as vehicles, equipment, and even software. At its core, leasing is a method of obtaining the use of an asset for a specified period while making regular payments to the asset's owner, whether it's a lessor or a financial institution. The economics of leasing involve several key factors that affect the decision to lease rather than purchase outright. One of the primary economic benefits of leasing is the conservation of capital. When you lease an asset, you avoid the substantial upfront cost of purchasing it. This is particularly advantageous for businesses, allowing them to allocate their capital to other essential operations or investments. For individuals, it means not having to deplete their savings to acquire a costly asset, whether it's a car, a piece of machinery, or even a home. Leasing often offers more predictable and manageable cash flows compared to outright ownership. Lease agreements typically involve fixed monthly payments over the lease term, making it easier to budget and plan for expenses. Tax benefits can also make leasing an economically attractive option. In some cases, lease payments are tax-deductible as a business expense. This can lead to significant tax savings for companies. However, tax benefits can vary depending on the asset being leased and the specific tax regulations in place. However, There Are Economic Drawbacks To Leasing As Well: Long-Term Costs: Over an extended period, leasing can be more expensive than buying, primarily due to the cumulative cost of lease payments. No Equity Buildup: When you lease, you do not build equity in the asset. It remains the property of the lessor. Limited Control: The lessee must adhere to the lessor's terms and conditions, which can be restrictive. The Economics Of Buying The decision to buy an asset, whether a property, a vehicle, or any significant investment, is a fundamental economic choice with both immediate and long-term financial implications. Understanding the economics of buying involves considering various factors that impact the purchase decision and how ownership affects one's financial situation. One of the central economic aspects of buying is the upfront cost. When you decide to buy an asset, you typically need to pay the full purchase price, which can be a substantial one-time expense. This upfront payment represents a significant commitment of financial resources and can affect your liquidity, especially for big-ticket items like real estate or high-end machinery. Buying an asset often means having complete control and decision-making authority over it. You can customize, modify, or use the asset as you see fit. This sense of ownership can be economically empowering, allowing you to tailor the asset to your specific needs or preferences. Mortgages and loans are common financial instruments for buying high-value assets like real estate or vehicles. These arrangements enable individuals to spread the cost of the asset over time. While loans may involve interest payments, they make the purchase more accessible and can be financially strategic. However, Buying Also Has Its Economic Downsides: Higher Initial Costs: Purchasing assets often requires a substantial initial investment, burdening businesses with limited capital. Risk of Depreciation: Some assets, like vehicles and certain equipment, can depreciate over time, impacting their resale value. Maintenance Costs: Owners are responsible for maintenance and repairs, which can be costly. Reduced Flexibility: Selling owned assets can be time-consuming and might not be feasible in rapidly changing business environments. Factors To Consider When Making The Lease Or Buy Decision The lease vs. buy decision is critical and can significantly impact a business's financial health and long-term prospects. To make an informed decision, business owners must weigh several important factors. Here are key considerations to keep in mind: Financial Considerations The financial aspect is often the cornerstone of the lease or buy decision. One of the initial considerations is the upfront costs. Buying a property typically involves a substantial financial commitment, including a down payment, closing costs, and potential expenses for renovations or furnishing. On the other hand, leasing usually requires a security deposit and the first month's rent, which are notably lower than the upfront costs of buying. Another critical financial factor is the monthly expenses associated with each option. While leasing tends to result in lower monthly costs than buying, owning a property often entails higher mortgage payments. However, these payments contribute to building equity in the property. Additionally, the potential for property appreciation is a financial consideration, as owning a property allows you to benefit from the property's value increase over time. Conversely, leasing may increase annual rent, impacting your financial planning. Lastly, the tax implications are significant. Property ownership can provide tax benefits, such as deductions for mortgage interest. In contrast, leasing does not offer these tax advantages but may simplify financial management. Long-Term Goals Your long-term objectives play a pivotal role in the lease or buy decision. Buying might be the more suitable choice if you are interested in benefiting from property appreciation and potentially selling the property for a profit. On the other hand, if flexibility is a priority, such as the ability to relocate or change your living situation without the responsibilities of property ownership, leasing provides greater adaptability. Understanding your long-term goals is crucial in deciding to align with your aspirations. Responsibilities and Maintenance The responsibilities and maintenance associated with each option are essential factors to consider. Property maintenance costs, such as repairs and upkeep, are the responsibility of property owners. Leasing, however, often shifts these responsibilities to the landlord responsible for maintaining the property. Moreover, property ownership allows for customization and renovation, allowing you to modify the property to your preferences. In contrast, leasing may come with limitations on modifying the property, as any alterations typically require landlord approval. These factors highlight the practical aspects of the lease or buy decision and the degree of responsibility you are willing to undertake. Market Conditions The state of the real estate market at the time of your decision is a critical external factor. It can significantly influence the cost-effectiveness of leasing or buying. Buying may be more advantageous in a buyer's market, characterized by lower property prices and favorable interest rates. In contrast, leasing might be the more prudent choice in a seller's market with rising property prices, as property prices may be inflated, making buying less cost-effective. Duration of Stay Your anticipated duration of stay in the property is a key factor. For a short-term stay, leasing is often a more practical option. Buying may not provide enough time to build equity and recover the upfront costs of property ownership. Conversely, plan to stay in the property for an extended period. Buying can be financially advantageous in the long run, allowing you to benefit from property appreciation and build equity over time. Making The Decision The decision to lease or buy should be based on your business's unique needs, financial situation, and long-term goals. Conducting a thorough cost-benefit analysis, factoring in your specific circumstances, and considering how the economics of leasing or buying align with your business strategy is advisable. Read Also: How Business Owners Can Better Utilize Freelance Work 5 Office Organization Tips Every New Business Owners Must Know Alternative Business Financing – What Is It And How Do You Do It?

Online Ordering Systems Setting the Trend for Restaurants

The online ordering systems of restaurants have become very popular as restaurants have taken up the task of setting up the systems that help in serving their clients. This has increased their sales and also helped in creating traffic as they are able to reach clients who cannot make their way into the food courts. There are also applications that have been designed to make it easy for one to access the online ordering systems on their phones and laptops. The Restaurant Online Ordering System helps the restaurant in reducing the cost of marketing. There are so many ordering options that you could choose from. When beginning restaurant online ordering services, you should create a website that could make certain that your customers can learn about the restaurant. there should be a legitimate online receipt that has been set up for clients, this shows proof of payment and also the online systems should have an automated message sender that keeps the client informed. What is a Restaurant Online Ordering Systems? The Restaurant Online Ordering System should have a reliable delivery app that, effectively reports on the correct time of the availability of deliveries. They enable the customers to keep track of the delivery personnel. They should also have a server app that makes sure that they do not experience any delays and that the services provided are reliable and of high quality. The servers also ensure that all the foods on the menu are correctly represented to the customer. To know if a certain dish will do well, the restaurant can put it on the online ordering system so as to get reviews about the dish. It is very crucial for every restaurant to be able to serve its clients no matter their geographical location. Individuals do not have to make their way into the restaurant to get their orders met. The online ordering system is suitable for both small restaurants that are starting up and fully established businesses. The menu that is present at the restaurant. They should make sure that it can be edited depending on the point of sale. You can also include meals that can only be delivered and exclude the meals that cannot be delivered and that you only offer in the restaurant. This entices the clients to make a stop at the restaurant. What needs to be done from a Customer Perspective? Customers can have a profile that can be edited and show their addresses. This makes the deliveries to be done easily and effectively as they eliminate any room for error. There should be push notifications that keep the public updated on any information that regards their restaurant. The online system is able to reduce the traffic of the people in the restaurant. The order taking is faster and the table turnover time is effectively reduced. This helps improve the services that are provided. All the customer detail is represented to the restaurant. They are able to keep track of their loyal clients and also to offer discounts to their loyal clients. Read Also: The Business Advantages Of Mobile CRM Apps 6 Tips To Maximize Refrigerator Use In Your Restaurant

5 Reasons Why SMEs Use Courier Services

Efficient Booking :

More Affordable :

Professional Image :

Reduces Risk :

Provides Updates :

Advantages and Disadvantages of Coupon Codes in Your Business

Wise Words from a Good Businessman to Help You Be One

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Related

How To Choose The Best Legal Structure For Your Business

Lease Vs Buy: What’s Better For The USA Based Business

Online Ordering Systems Setting the Trend for Restaurants

5 Reasons Why SMEs Use Courier Services

Efficient Booking :

More Affordable :

Professional Image :

Reduces Risk :

Provides Updates :

Share this Article

Advantages and Disadvantages of Coupon Codes in Your Business

Wise Words from a Good Businessman to Help You Be One

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related