As an independent contractor in the courier industry, you may dream of securing direct contracts that offer stability, better pay, and control over your work. But here’s the hard truth: many aspiring business owners fall short because they still operate with a 1099 contractor mindset.
If you’re struggling to land those lucrative direct contracts, it’s time to look honestly at your business approach. Let’s explore why this might happen and, more importantly, how to fix it.
Are You Presenting Yourself as a Business or a Driver?
One of the most significant reasons you’re not landing direct contracts is how you present yourself. Companies offering direct contracts are looking for professional partners, not saying you’re not professional, not just someone with a vehicle and a willingness to work.
Think about it: if you show up looking like a driver, you’ll get paid like one. Now, on the other hand, if you present yourself as a confident business owner, complete with branding, structure, and professionalism, you’ll stand out as a reliable and valuable partner. A good handshake goes a long way when you meet someone new.
Here’s what separates a business owner from a driver:
- A DOT# (Department of Transportation registration): Having a DOT# signals that you comply with industry regulations, giving potential clients confidence in your capabilities.
- A business license: This basic requirement shows that you’re operating legitimately and are serious about your business.
- A professional website: Your website acts as your digital storefront. Without it, clients may question your credibility.
- A dedicated business phone number: Using a personal phone number can make you look unprofessional. A business number creates a boundary and reinforces your business identity.
- A business bank account: Mixing personal and business finances is a common mistake. A dedicated account not only simplifies taxes but also shows clients you’re running a legitimate operation.
- Uniforms and branded apparel: First impressions matter. Branded uniforms show professionalism and instill trust in clients.
- Vehicle branding (car decals): A branded vehicle boosts visibility and acts as a mobile advertisement for your services.
- Business cards: Play an essential factor if companies take you seriously by your business card.
Without these essentials, you’re likely blending in with other 1099 contractors, missing out on opportunities to secure higher-paying, stable contracts.
A Personal Story: My Early Mistakes
When I first started in the courier business, having a reliable car and a willingness to work hard would be enough. I took every job I could find, relying heavily on word of mouth and marketing, even if it didn’t make sense. I did have a professional setup, uniforms, shirts that I’m ashamed of now🙈, and a dedicated business phone number from Verizon business.
One day, I was referred by a current client to an opportunity for a direct contract with the Naval Hospital. They asked if I had my business listed on Sam.gov, and I froze. I was not there and missed an opportunity by not having all my bases covered. I said I wanted a contract client, and this was with the Federal Government, and I missed that opportunity because I was not in Sam.gov. If I had my account set up at that time, I would still be working with the Naval Hospital to this day. I didn’t get the contract.
That moment was a wake-up call. I realized that if I wanted to be taken seriously, I needed to start taking myself seriously as a business owner. By the end of that day, I had the ball rolling on setting up the business on Sam.gov. It only cost me time…… Soon after, I landed my first government contract in another state, and the difference it made in my income and confidence was life-changing.
I share this story because I know many of you might be in the same place I was. The good news? You can change your approach and achieve your goals like I did. Don’t get caught off guard like I did. Every day is a new day to start over.
The Perception Gap: Why Companies Choose Others
The companies you’re trying to work with are looking for dependable partners. They don’t just need a delivery completed; they want assurance that their goods will be handled by someone who prioritizes reliability, professionalism, and efficiency.
When you lack the necessary infrastructure—whether it’s proper licensing, branding, or professional communication tools—it creates doubt in the minds of potential clients. They may choose a competitor already established as a professional courier business, even if their prices are higher.
Think about the perception gap:
- A well-branded courier with a professional website and uniforms signals they’re serious about their work.
- A contractor without these essentials might appear temporary or unprepared, even if they’re equally capable.
How to Transition from 1099 Contractor to Business Owner
If you’re ready to break free from the 1099 contractor mindset and secure direct contracts, it’s time to make some changes. The first step is to legalize your business. Ensure you have the necessary paperwork in place, including a business license, an LLC or other appropriate legal entity, and a DOT# if you’re in the logistics industry. These steps create a solid foundation for your business and show clients you’re legitimate.
Next, invest in branding. Branding isn’t just for large companies; your brand is your identity. This is how you stick out in the market. This includes a professional logo, a functional and attractive website, business cards, flyers, and other marketing materials. Don’t forget uniforms and vehicle decals, which help build trust and make your business memorable.
Establishing professional operations is also essential. To compete for direct contracts, you need systems like a dedicated business phone number, an email address, a business bank account to manage finances effectively, and an invoicing and payment system to streamline transactions. These systems make it easier for clients to work with you and demonstrate your commitment to professionalism.
Showing up as a professional is equally important. Dress in branded uniforms, communicate clearly and promptly, and always meet deadlines while exceeding expectations. These small actions can make a big difference in how clients perceive you.
Finally, market your services. Stop relying solely on gig apps and third-party platforms to find work. Instead, create a pitch for potential clients, network within your industry, and leverage your website and social media to attract new business. Marketing yourself directly can lead to more opportunities for direct contracts.
The Cost of Staying Stuck
Operating with a 1099 mindset might seem easier in the short term, but it comes with hidden costs:
- Lower pay: Without direct contracts, you’re often at the mercy of third-party platforms that take a significant cut of your earnings.
- Limited growth: Staying in the driver’s seat prevents you from scaling into a business owner with multiple streams of income.
- Missed opportunities: Companies with direct contracts won’t consider you unless you’ve established yourself as a business.
The longer you wait to make these changes, the more money and opportunities you leave on the table.
Take the Leap
If you’re ready to stop operating like a 1099 contractor and start building a thriving courier business, I’m here to help. My program, THE COURIER PRO, is designed to guide you through every step of this transformation, from legalizing your business to securing direct contracts.
It’s time to position yourself as the go-to courier partner—not just another driver.
Click here to learn more and get started today.
Let’s build your future, one contract at a time.
