- Your customers will judge the quality of your firm by your delivery service, as well as the intrinsic value of your products or services.
- If you are supplying goods over a wide area, perhaps nationally, contractor services will probably offer the most efficient delivery.
- Incorporate in your standard terms and conditions those of your contractor relating to acceptance and delivery that limit their liability.
Off to see my lawyer can help you draft your Terms & Conditions in accordance with your requirements, within the confines of the law. For such advice, please contact Joanna Tall at email@example.com.
- Monitor your contractor’s service by regular inspection of its delivery records, and carry out periodic customer surveys.
- Run your own vehicle(s) where your distribution pattern is concentrated or the success of your business relies on installation and repair services.
- Review the alternative merits of contract hire, finance leasing and contract purchase, in terms of taxation, depreciation charges and capital allowances, against the advantages and disadvantages or outright purchase.
Off to see my lawyer can advise you on basic taxation issues, and where necessary refer you to a specialist tax lawyer whose services we recommend.
- For more than a handful of vehicles, consider outsourcing fleet management services to a specialist firm.
- The successful outcome of fleet purchase or a financial lease depends on maximising residual values on disposal. If residual value estimates prove optimistic, you may need to dispose of a vehicle before its due date to avoid later loss, or to retain it until it is more fully depreciated or maintenance costs become excessive.
- Both the trade-in and auction routes involve selling the vehicles ‘as seen’ and avoid potential liability towards a subsequent owner.
- Factory extras increase initial vehicle cost and monthly payments to hire companies; they also depreciate quickly and may not add to residual value. Hire and financing contractors may insist that accessories remain in place on return and restrict respraying or fitting of advertising decals.
Checklist Source: Start Up & Run Your Own Business: The Essential Guide to Planning, Funding & Growing your New Enterprise by Jonathan Reuvid (Kogan Page; 8th edition 2011)