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How to start Independent Delivery Contractor Business to make money for individuals want to quit their jobs and start their careers as an entrepreneur are as follows:
Description of Job
• Deliver packages, supplies, small appliances, and other items on demand
for local retailers.
• Pick up and deliver packages and boxes as an independent representative of
a national or regional carrier.
• Rent, lease, or purchase an appropriate vehicle.
The Need
It does not always make economic sense for retail outlets to buy or lease trucks
and pay drivers for occasional deliveries.
Major national shipping companies, including FedEx, often hire independent
delivery contractors for their on-demand pickup and ground delivery
services.
When a company makes a deal with an independent contractor, it typically
does not have to pay federal payroll taxes, Social Security taxes, federal unemployment
insurance tax, state unemployment insurance premiums, and workers’
compensation insurance premiums. It also is excused from most employee benefits,
such as health insurance, vacation time, sick leave, retirement benefits, and
life or disability insurance. In addition, the contractor has to provide the truck,
the office, and a telephone.
Furthermore, the company can hire a contractor for a short period of time or
for a special project without worrying about capital expenditures.
Challenges
You will bear the expense of purchasing or leasing a van or truck, plus the cost of
licensing and insurance. This business will succeed only if you can bring in a
steady stream of jobs at prices that cover your expenses and time.
Work may be seasonal, with spikes of business around holiday periods. In
tourist or vacation areas, companies may need extra help in the summer or winter
seasons.
By signing up as a contractor for a national shipping company, your job flow
may be more regular, but such companies are very strict about driving records,
court records, and insurance requirements.
Consult an attorney before setting up a trucking company with scheduled
deliveries that cross state lines. Although the Interstate Commerce Commission
no longer has a stranglehold on trucking, there are still many state and federal
agencies, including the U.S. Department of Transportation, that will take an
interest in your operations.
Know the Territory
Spend time with an accountant or consultant to go over your business plan to
ensure that you can be economically successful as an independent contractor.
The margin for error is slim.
Study the contracts offered by major carriers and make sure they will work
for your situation. For example, FedEx’s published rules for independent contractors
dictate that drivers can have no more than three moving violations within
the previous three years and no more than one in the previous 12 months. Drivers
must have a commercial driver’s license with a hazardous materials endorsement
and must pass a U.S. Department of Transportation–defined physical exam
and drug test.
How to Get Started
Contact area office supply stores, appliance stores, and other merchants and offer
your services for on-demand deliveries.
Check with major national carriers about availability of independent contractor
deals in your area.
Up-front Expenses
You’ll need a van or truck large enough to meet the needs of your clients, but not
so large that its purchase or lease and the cost of operation would eat up all of
your profits.
You will also be required to have a commercial driver’s license and tags, plus
adequate collision and liability insurance coverage.
How Much to Charge
Contracts with major carriers usually pay by the mile, plus a stipend to cover
some of the costs of the vehicle itself.
Deals with smaller local retailers may be priced by the hour or the mile, with
extra payments for overweight items, night or weekend deliveries, and inside
deliveries (versus those left outside the door).
Legal and Insurance Issues
Special notes: An insurance agent can offer counsel about commercial vehicle
insurance and liability coverage.

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