day to day operations. Industries such as retail, courier services and other transport-led businesses consider vans an essential part of their functions.
Consequently, there are others who are of the notion that vans come with a lot of risks such as operating costs, fuel expenses, insurance premiums, maintenance and more.
Are these risks worth the investment? In my opinion yes, but strongly dependent on the type of business in question.
For example, if you own a startup that provides mortgage advice to clients, a business van should be the least of your priorities. Particularly since most of your services can be transacted over the phone or through email. In any case, you can always visit customers using a smaller vehicle.
However, there are some businesses that can’t do without a van. In such cases, it is better to get proper van insurance coverage and proceed with services because it is a legal necessity.
These businesses include;
- Online retail companies
We are currently in the digital age and more businesses are transacted over the internet. The business-to-consumer (B2C) E-commerce sales worldwide is $1,741 billion, with the average annual revenue per E-commerce retail buyer worth $1,630. People who purchase retail items online expect them to be delivered at their doorstep, hence the need for a business van.
With the figures mentioned above, it suggests that online retail is a highly lucrative sector of the industry. It therefore justifies the need for a means of delivery, despite the risks involved.
- Courier service
Another good example is a courier startup. Many businesses would prefer to focus on the core of their services, whether it is fashion design or food production, and would rather outsource outside deliveries to a reliable third-party. If you are in the business of courier services, then a van is a necessary procurement.
However, ensure you have adequate cover for the content of your vehicle, or you could be liable for damaged goods. With consideration of increased vehicle tax rates and other maintenance, it is smart to work with an accountant and factor these costs into your pricing.
- Removals business
Every day someone or a company changes their location. Because of the unique nature of certain furniture or property, most people will rather hire a professional moving company. Additionally, not everybody owns a van. Hence, Startup companies in the moving business must purchase a fleet to perform their operations.
However, just like the courier company, removals companies must be insured to protect themselves for incurring losses on a client’s valuables in case an accident occurs. When it comes to running a removals business, you’re ability to take care of your customers possessions is essential to maintaining a good reputation.
Other startups that need vans include mobile food trucks, specialty or medical materials transportation and more. As long as they have a robust customer-base and a comprehensive insurance plan in place, it is sure worth the investment risk.