If you are a sole trader setting up your own courier service business you will have a number of business expenses but which is likely to be the biggest one assuming you do not employ anyone?

Well, if you need to invest in a van rather than use your existing car, it is quite possible that your largest expense is going to be to do with the vehicle. If you have the savings available to buy a van outright then that is likely to be a significant financial capital outlay. Obviously, if you are buying a new van then that will almost certainly cost you more than a used van.

Of course, if you have been able to purchase a van outright then you will not have the expense of having to meet monthly finance payments. You may need to consider whether to fund the purchase of a van using a combination of some of your savings along with borrowing the remainder of the purchase price.

There will be some courier drivers who do not have much in savings and need to resort to buying a van almost entirely on finance. If this is the case then you will need to be confident that your courier service business can afford the monthly finance repayments.

Another significant business expense is the cost of putting fuel in your van such as diesel or petrol. A large number of courier drivers travel a huge number of miles in their vehicles delivering parcels every day. In fact, if you have bought a van outright from savings then it is quite possible that fuel costs are going to be your courier service business’s largest regular expense. Courier drivers may find it financially beneficial to fill up with fuel at a service station that, as a result of doing some due diligence, they have found to be cheaper than other service stations.

There will be many other business expenses that you have so it is important that you keep them under review and periodically check if you can make any savings. For instance, when your courier insurance is coming up for renewal consider shopping around to see if you can get the same cover elsewhere for a lower premium.