My business plan

1- buy a SWB or LWB/Luton van for £5000.

2- buy an insurance. I’m 35, I live in East London (bad area to insure anything), 13 years of driving experience BUT only 6 years in UK, which means that insurance companies will accept only the 6 years of “Full UK license”, 5 years No Claim Bonus. With all these, the cheapest insurance quote was £450 per month. The thing is, what is the correct insurance I need? I heard about van/courier insurance, Goods in Transit insurance, Public liability insurance, Hire and reward insurance. Which one is compulsory? I am a bit confused.

3- get work. -Join some courier websites like mtvan, courier exchange, anyvan ……. and wait to get jobs. -Phone some local courier companies asking for jobs. -Advertise in any possible way (internet, newspapers….).

This is my plan, please correct/guide me if I am wrong. Thank you.

Hi To be honest not much of a plan. I would suggest you start with the following.

Make a list of all expenses you are likely to incurr each year. You will need hire & reward insurance, gooods in transit & public liability are advisable. You will have road tax, fuel, vehicle maintenance, phone internet, national insurance, breakdown recovery, advertising. You will need to calculate how much per mile you van costs to run, how many mile per day you can safely drive taking into account where you are driving london being a lot slower than motorways. You will also need to work out how much proifit a day you need to live. When you have this info I would contact local couriers and ask what their rates are for subcontractors and the volume of work around and bear in mind you will get paid from collection to delivery there will be dead miles. When you have all theses figures you can then do a cash flow forcast which will give you an idea of income and expenditure for the first 6 mths and an idea of how much you need up front or overdraft facility.

Tip 1 - Don't be over optomistic and assume you will work everyday Tip 2 - Do be pesimistic on expenses as the vehicle will need a new clutch & alternator at some time Tip 3 - Don't give up a good job to start this business venture

If I haven't put you off, when you have all the info and the figures add up, good luck!

£450 per month insurance!! I'd shelve it until these cost get more realistic! You could be working one week every month (less fuel) just to pay your insurance!

With that sort of insurance quote i would seriously look at doing something else. It puts too much pressure on you before you even start. You may be a grafter, and be very keen, but that quote is just silly

Just goes to show how much of an easy target this industry is to insurers.

Thanks for being so cheerier AM-PM, but your so right. If all you quote are not considered you'll will not last the three months. Never mind its Friday let's not worry, hey-hoh

alex rem said:

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1- buy a SWB or LWB/Luton van for £5000.

2- buy an insurance. I’m 35, I live in East London (bad area to insure anything), 13 years of driving experience BUT only 6 years in UK, which means that insurance companies will accept only the 6 years of “Full UK license”, 5 years No Claim Bonus. With all these, the cheapest insurance quote was £450 per month. The thing is, what is the correct insurance I need? I heard about van/courier insurance, Goods in Transit insurance, Public liability insurance, Hire and reward insurance. Which one is compulsory? I am a bit confused.

3- get work. -Join some courier websites like mtvan, courier exchange, anyvan ……. and wait to get jobs. -Phone some local courier companies asking for jobs. -Advertise in any possible way (internet, newspapers….).

This is my plan, please correct/guide me if I am wrong. Thank you.

1... Nope

Sorry dude but you really want to find the work before the van, speak to no end of potential sources of work before taking the plunge, simply put if you come across shed loads of distance LWB 3.5 ton work you dont want to be stood at the dealers loosing thousands in a P/X on your recent purchase of a combo , you also dont want to be paid small van rates in your sprinter , find what the companys desire and get it sorted straight away , take notes , have a couple of vans lined up already , expect to need at least £3000 to start you off in expenses and fuel until getting paid for the first time

2... Buy an insurance? Ummmm gweat engrish, work on that fella, im writing phonically but can rest assured any paperwork gets spell checked and passed via the mrs moaning eye before being sent, just sayinInsur-ants, speak to cornish insurance for a real courier quote, do not place yourself in a `` but c@ntsable it says business on the policy so i must be insured `` as vosa flick the Vs and disappear into the distance to rearrange the panels on your new van , GET PROPER INSURANCE , GIT and public liability arnt needed but if you dont have them you dont deserve work ,,,, yes its that simple , £250 for employers piece of mind plus the boastful ability to offer yourself as a professional, dont have them and simply put your just another cowboy

3... Get yourself a job as a subby working for a company, expect poor wages and long hours but masses of experience Then over time get joined to one of these sites to enable backload runs to increase your turnover Whilst this is going on be as polite and reliable as is humanly possible and then one of those regular runs you keep getting may be poached and become yours , once you have this you then work life around this and your now doing ok to the point you can invest and know theres a future , network until you find yet more work making yourself the go to guy every time and with a bit of luck you will find yourself in the best place possible . This means 4am starts if asked for with a smile on your face , late evenings someone has broken down get out of bed and go help , paperwork and everything about you being immaculate and on time. Its not easy but required

Good luck