how to write a business plan for a delivery service

Delivery Service Business Plan Template

Written by Dave Lavinsky

Delivery Service Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their delivery service companies. 

If you’re unfamiliar with creating a delivery service business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a delivery service business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your delivery service business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan

If you’re looking to start a delivery service business or grow your existing delivery service company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your delivery service business to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Delivery Businesses

With regards to funding, the main sources of funding for a delivery service business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for delivery service companies.

How to Write a Business Plan for a Delivery Service Business

If you want to start a delivery service business or expand your current one, you need a business plan. The sample below details the necessary information for how to write each essential component of your delivery service business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of delivery service business you are running and the status. For example, are you a startup, do you have a delivery service business that you would like to grow, or are you operating a chain of delivery service businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the delivery service industry. 
• Discuss the type of delivery service business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of delivery service business you are operating.

For example, you might specialize in one of the following types of delivery service businesses:

• Courier Delivery Services : This type of business provides air, ground, or combined courier delivery services.
• Express Messenger Services : This type of business provides express messenger and delivery services.
• Package Delivery Services : This type of business delivers parcels, documents. and packages.
• Packing and Sorting Services : This type of business prepares items to be delivered.
• Transporting and Trucking Services : This type of delivery business transports items via truck. 

In addition to explaining the type of delivery service business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of delivery drivers you employ, the number of items delivered, reaching X number of clients served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the delivery service industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the delivery service industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the delivery service industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your delivery service business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your delivery service business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of delivery service business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other delivery businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other third-party delivery services, ship-to-store services, and other types of delivery services. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of delivery service business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

• Will you provide options for local and long distance delivery?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a delivery service, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f delivery service company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide express delivery, air transit courier services, or long distance delivery services? 

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your delivery service company. Document where your company is situated and mention how the site will impact your success. For example, is your delivery service business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your delivery service marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your delivery service business, including answering calls, scheduling pick up and delivery of items, managing drivers, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your X number of deliveries made, or when you hope to reach $X in revenue. It could also be when you expect to expand your delivery service business to a new city.  

Management Team

To demonstrate your delivery service business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing delivery businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a delivery service business.   

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.  

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you schedule 5-10 deliveries per driver per day and have 6 drivers ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your delivery service business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a delivery service business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of geographic locations you serve.   

Writing a business plan for your delivery company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert delivery service business plan; download it to PDF to show banks and investors. You will understand the delivery service industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful delivery service business.  

Delivery Service Business Plan FAQs

What is the easiest way to complete my delivery service business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your delivery service business plan.

How Do You Start a Delivery Service Business?

Starting a delivery service business is easy with these 14 steps:

• Choose the Name for Your Delivery Service Business
• Create Your Delivery Service Business Plan
• Choose the Legal Structure for Your Delivery Service Business
• Secure Startup Funding for Your Delivery Service Business (If Needed)
• Secure a Location for Your Business
• Register Your Delivery Service Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Delivery Service Business
• Buy or Lease the Right Delivery Service Business Equipment
• Develop Your Delivery Service Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Delivery Service Business
• Open for Business

Learn more about how to start your own delivery service business . 

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business planning advisors can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

Delivery Service Business Plan: Guide and FREE Template

Did you know that the delivery service industry is expected to reach $658.3 billion by 2031 ? If you’ve been thinking about starting a small business like food delivery or grocery delivery, there has never been a better time. Customer demand is at an all-time high and startup costs are under $10,000 on average. 

The first step to creating a successful delivery service business is — no surprises here — writing a business plan. In this guide, we’ll outline everything you need to know to turn your business idea into reality, and provide a free template for you to get started.

💡If you’re already done your homework and just want to get started, go ahead and start filling out our free delivery service business plan template .

Six reasons to create a business plan for your delivery service 

Did you know that 71% of fast-growing companies have a detailed business plan? And entrepreneurs who have a written plan are 260% more likely to actually start their business and see success. 

That’s because your business plan is your blueprint for getting started, and then guiding you to success in your new business. It will help you:

• Decide if your business idea is viable.
• Conduct a market analysis to understand your competition, customers, and growth ability.
• Set your goals, and create strategies for achieving them.
• Make important decisions about products, marketing, staffing and funding. 
• Raise funding from banks or other investors. 
• Track your progress, growth and profitability.

The main components of a delivery service plan

A business plan is a summary of all your business’s potential operations, so it includes multiple components. Here they are:

1. Executive summary

This section is an introduction to your business, so you want to make it appealing. Answer the following questions: 

• What’s going on in the delivery service industry? 
• What type of delivery service business are you opening? 
• What sets your business apart from well-known delivery options, like FedEx and USPS? 
• Who are the key members of your team? If you are just starting out, your only team member might be you. In this case, list your experience and commitment to success. 
• What are your financial projections showing? What are your operating margins and tentative profitability? 

You don’t want to bore the reader in this section. Make it engaging, and outline key points and advantages of starting your business. Don’t include any negative information.  For example, you shouldn’t say that the delivery service market is oversaturated. If it was, opening a new business wouldn’t be very successful, would it? 

Another common mistake to avoid is understating the qualifications of your team. Don’t say you lack the capital to hire team members, or that you don’t have the necessary experience to run the business. Instead, stay positive with words like “the (company) plans on hiring additional help once we enter a growth phase.”

2. Company overview

The company overview is a deeper dive into the fundamentals of your delivery service. Here, you will pinpoint the type of business you will operate. For example, will you be a pure delivery company, like a courier or express messenger? Or will you be delivering your own products, like food, beverages or flowers? Or maybe you’ll deliver on behalf of other producers, like many grocery delivery services that work with different farmers. Will you offer same-day delivery?

A courier service business plan will be different in some ways from a plan for a grocery delivery service company, but you’ll need to answer all the same questions.

It’s not uncommon for delivery service businesses to engage in more than one service. List all services that you plan on operating. 

In the company overview, you will also outline your “why” for starting the business, important milestones you have already achieved, and information on the legal structure of your business. You may also want to include a mission statement here. 

3. Industry analysis

Now, it’s time to get down to the facts. Include industry growth facts, such as that the compound annual growth rate in the United States is 5.7% or that there are currently over 250,000 courier and local delivery companies . 

Properly completing this section will require some industry and market research. Great research starting points include IBISWorld , the Small Business Administration (SBA), and your state’s website, if you are offering local courier services.  This is not only beneficial to show the opportunities in the market, but you will also develop insights into how to set yourself apart from competitors. 

Be sure you include information on market conditions, main competitors, key suppliers, current trends, and where the industry is headed. 

4. Customer and market analysis

Who is your primary customer? Are you looking to work with individuals or businesses? What types of businesses or individuals are your ideal potential customers? Identifying your target market, and how will you win new customers, is critical to developing accurate marketing strategies. 

Try to be as detailed as possible. Pinpoint the age, gender, geographic location, income levels, and needs of your target market. 

5. Competitive analysis

The competitive analysis section will highlight your competition and how you plan on setting your business apart. You should uncover data to back up your claims. For example, recent studies show that 73% of customers have had bad delivery experiences , and 16% have advised friends or family to avoid the retailer. 

Statistics like these can help to show that prioritizing customer service is how your business will shine. You might choose to include a chart or graph on common traits that your business and competitors have. Identify weaknesses, strengths, pricing differences, and the target market of competitors as well. 

Could you offer local delivery to companies in your area to boost their revenue? How about delivering outside of normal hours, such as overnight? Do you have the capabilities to specialize in fragile package delivery? These are all ways that you can differentiate yourself from competitors. 

6. Marketing strategy

Using all of the information and data you have accumulated, you will piece together a marketing strategy. Going through the four Ps can give you a comprehensive marketing plan:

• Product: Discuss the type of services you are providing again, including the specifics, like late night delivery or fragile package options. 
• Price:   Reinforce your pricing structure and make a comparison with competitors. 
• Place: Identify where you will be delivering. This could be local, regional, or national. 
• Promotions: Put together a general strategy for how you will attract customers. Will you advertise in local papers, or go for a pure e-commerce model? How about social media or email marketing? Talk about how your delivery service website will use SEO, how you’ll build relationships with local businesses, or how you’ll search for jobs on courier listing sites. 

Your marketing strategy is very important for displaying how you will attract customers using your competitive edge. 

6. Operating strategy

This section of your delivery service business plan will outline both the day-to-day operations and the long-term goals of your business. In the executive summary, you touched on a few of your main goals. In this section, you will elaborate on those items. 

Common day-to-day operations might include listing the tasks of your team, like answering calls, scheduling, and dispatching routes to delivery drivers. How will you plan your deliveries? Will you hire your own drivers, or use contractors? What about a vehicle fleet? What software will you use to track deliveries, customer requests, and costs? 

Long-term goals might be increasing revenue by a certain percentage each year, or adding a specific number of trucks every few months. Maybe you want to grow revenue by 3% each year. What can you do to get your business there? Will you increase prices to match inflation, win new customers or hire additional staff? 

Both your short-term and long-term goals need to be reasonable. Don’t say you’ll grow revenue by 50% in your first year, or have 20 delivery team members right from the start. Reasonable goals are easier to work toward and can keep you and your team motivated. 

7. Management team

Your team is essential to the success of your delivery business. If you have a partner with years of industry experience or a manager with a stellar record, incorporate that expertise and experience into this section. 

You should have a clear management structure and chain of command. Keep in mind that job roles can overlap, especially if you only have a few team members. Identify who will handle hiring, day-to-day operations, high-level decisions, and customer service. 

Also, be sure that you include any mentors that are guiding you along the way. This could be an advisor in the industry, a family member, or a friend. 

8. Financial projections

A key component of your delivery business plan is projected financial statements. If you are just starting out, you might not have years of historical financial information. This is why you need to project your expected revenue, operating expenses, assets, and profit based on industry research and your specific business characteristics. 

Your financial plan should include at least five years of financial projections. This helps you determine your business’s chance of being successful and profitable. Prospective lenders and investors will also want to see this information. Here are the main financial statements you will develop: 

• Income statement : This outlines your revenue, expenses, and bottom-line number, known as net income. A positive net income indicates a profitable business, while a negative number suggests you are losing money. 
• Balance sheet : The balance sheet tracks your overall financial health by outlining assets (what you own), liabilities (what you owe), and equity (what you’ve earned, contributed, and taken out of the company). 
• Cash flow statement : This tracks the movement of money in your business. The three main categories found in this document are cash earned or spent from operations, financing activities, and investments. 

It can be hard to plan out all of these expenses, which is why many delivery service businesses use an accountant to help. 

Don’t just hire the first accountant you come across. Interview a few to confirm that you feel comfortable with them and can develop a good working relationship. Also check that they have experience helping startups, especially in the delivery service industry. This is because the business model that delivery service businesses follow isn’t the same as other industries. 

Accountants will usually list the clientele they work with directly on their websites. Otherwise, don’t be afraid to reach out and set up a consultation. 

9. Appendix

The appendix will contain additional schedules, financials, graphs, maps, and supporting information for your delivery service business plan. 

Top things to know before writing your delivery service business plan

Before you create your delivery service business plan, you will need to think about the big picture. This includes evaluating the following components: 

1. What delivery service model will you choose?

In your delivery business plan, you will need to decide exactly what kind of courier or delivery service you want to offer.

First, consider how you will run your daily delivery operations . Will you do it all in-house , including hiring and managing your own drivers? This is how Walden Local in New England does it, using their own branded vehicle fleet and drivers to deliver local meat and fish directly from farms to customers. This gives you total control over delivery operations, but you will need your own delivery vehicles. This can increase the costs, especially when you factor in vehicle maintenance.

Alternatively, you could outsource your actual deliveries via a gig economy app like DoorDash or Uber Eats. Many restaurants and ghost kitchens choose this operating model, preferring to focus their effort on the actual product they’re delivering. 

Second, what delivery time frames will you offer? The three main options here are:

• On-demand delivery: This literally means you will deliver (or pick up and deliver, in the case of a courier service) as soon as the customer places their order. Depending on the exact product, this could be the same day (groceries) or the same hour (restaurants). This is highly convenient for customers, but expensive to operate.
• Batched delivery: If you expect very high volumes, or if you choose to offer next-day delivery or later, you have the option of creating delivery batches so you can create more efficient delivery routes and schedules. This makes it easier to deliver profitably, but isn’t suitable for a business like a restaurant.
• Scheduled delivery : This is a favorite delivery model for subscription services like meal prep companies, and it can make delivery operations much easier. It means pre-planning deliveries to specific areas on specific days — for example, I subscribe to a flower delivery service that means I get fresh blooms on my doorstep every second Wednesday. You will need to be very clear upfront with your customers about how their deliveries will work, but if you manage expectations clearly this can be an excellent option.

You can read more insider tips for starting your own delivery business here . 

2. How will you set up and staff your business? 

During the  business planning process, you should form a legal business structure. This entails registering your business name with your state and applying for an Employer Identification Number. You will need to pick out a business structure, such as a single-member LLC, a partnership, or a corporation. Talking with an accountant can help you find the most favorable structure. 

Keep in mind that staffing can take some time, especially with talent shortages. Before you can accept your first delivery order, you need to go through the hiring and training process with staff members. Knowing how to hire and retain delivery drivers , in particular, can help you save a lot of time and money. 

Do your research on a competitive wage, determine how you will process payroll, pinpoint the benefits you will offer, and create job listings. The right team members working alongside you can help your business thrive. 

3. What delivery management software will you use?

If you want an efficient, profitable delivery service business , sooner or later you’ll need proper delivery management software . Plenty of delivery businesses have started out using nothing but Excel spreadsheets, but that can quickly become a brake on your growth. Considering your delivery software while you’re making your business plan can give you an edge. Look for software that will make it easy to:

• Upload orders
• Use route optimization to plan efficient delivery routes
• Dispatch to a mobile driver app
• Track delivery progress in real time
• Send customer notifications
• Manage driver timesheets and payroll

The right delivery management software can help you achieve profitability, offer a great customer experience, and ensure on-time deliveries.

How to use the template

Now that you know what to include in your delivery service business plan, it’s time to get started. You can open a copy of the template right now and start writing. Here are some tips we’ve learned along the way: 

• Don’t jump around: Work on your delivery business plan section by section, starting at the top. Jumping around results in missed information and confusion. 
• Re-read Sections – It’s helpful to read through each section a few times before you create your own. 
• Be Thorough – The more thorough you are, the more beneficial your plan will be. After all, the goal of a delivery business plan is to provide you with guidance for starting your business. 
• Be Honest – Oftentimes, delivery service business owners adjust their plans to make their business look more attractive. You want to be honest throughout the plan to give you an accurate roadmap of what you need to do to become successful. 

If you are still struggling to piece together your business plan after reading this guide, don’t hesitate to reach out to an expert for help. 

Final Thoughts and Access to Your Free Template

A delivery service business plan is a resource that can bolster the success of your new delivery business. Take the time to conduct research and put thought into your plan. You don’t want to start your business and scramble to figure out who your target market is or how to display your competitive advantage. Here is our free template . 

If you’re in the market for delivery management software, Routific has you covered. We infuse accuracy and efficiency into our platform, giving you the tools to increase profit, meet customer demands, and ensure your team maximizes productivity. Reach out to schedule your free consultation.

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How to Start a Delivery Service

Back to All Business Ideas

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 16, 2022 Updated on March 13, 2024

Investment range

$4,250 - $9,600

Revenue potential

$80,000 - $470,000 p.a.

Time to build

1 – 3 months

Profit potential

$55,000 - $140,000 p.a.

Industry trend

With people spending more time at home these days, more things need to be delivered. As a result, US delivery services are booming, and already worth more than $130 billion. Starting a delivery service can help you tap into that market, whether you deliver food, flowers, or purchases from local retail stores. All you need is a vehicle, and you can run your business from home.

You need to know how to drive, obviously, but you also need some business know-how. Luckily, this step-by-step guide has all the tips and insight you need to start building your own successful delivery service.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a delivery service has pros and cons to consider before deciding if it’s right for you.

• Huge Market – Everybody wants stuff delivered to their door
• Good Money – Make up to $200 per carload
• Flexibility – Run the business from home, work when you want
• Vehicle Needed – Truck or van may be necessary
• Long Hours – After-hours deliveries can be difficult

Delivery service industry trends

Industry size and growth.

• Industry size – The US courier and local delivery market is worth $133.8 billion.(( https://www.ibisworld.com/industry-statistics/market-size/couriers-local-delivery-services-united-states/ ))
• Industry growth – The industry has seen strong 5.5% annual growth for the last five years, and expects further growth in the years ahead.
• Number of businesses – The US is home to 256,633 courier and local delivery service companies, a number that has increased 5% each of the last five years.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/couriers-local-delivery-services-united-states/ ))
• Number of people employed – 1,089,898 people are employed in the courier and local delivery service industry in 2022, and that number has grown 5.5% annually for the last five years.(( https://www.ibisworld.com/industry-statistics/employment/couriers-local-delivery-services-united-states/ ))

Trends and challenges

Trends in the delivery service industry include:

• The increase in the number of deliveries has made large delivery companies like FedEx and DHL focus on partnerships with large companies rather than small local companies with local delivery needs. This is a huge opportunity for small local delivery services to prosper.
• Interestingly, an increased number of returned items also presents an opportunity for local delivery services to also deliver returned items to local stores.

Challenges in the delivery service industry include:

• Rising fuel prices are cutting into the profit margins of delivery services.
• Customer demand for tracking of packages is creating a need for delivery services to upgrade their technology.

Demand hotspots

• Most popular places – The most popular states for delivery services are Illinois, Minnesota, and Vermont.(( https://www.zippia.com/delivery-driver-jobs/best-states/ ))
• Least popular places – The least popular states for delivery services are Florida, Idaho, and Montana.

What kind of people work in Delivery?

• Gender – 80% of delivery drivers are male, while 17% are female . (( https://www.zippia.com/delivery-driver-jobs/demographics/ ))
• Average level of education – The average delivery driver is high school educated.
• Average age – The average age of a delivery driver in the US is 48.

How much does it cost to start a delivery service business?

The startup costs for a delivery service range from about $4,200 to $9,500. The main cost is for a down payment on a van or truck. If you already have a vehicle, your startup cost could be as little as $1,700.

You’ll need a handful of items to successfully launch your delivery service, including: 

• Van or truck

How much can you earn from a delivery service business?

Your prices will vary based on the size of the load as well as the distance and could range from $100 to $200 for an average of $150. Your profit margin should be about 70% after fuel costs.

In your first year or two, you could work from home and deliver 10 loads per week, bringing in nearly $80,000 in annual revenue. This would mean almost $55,000 in profit, assuming that 70% margin. As your business gains traction, deliveries could climb to 60 per week. At this stage, you’d hire delivery drivers, reducing your margin to around 30%. With annual revenue of nearly $470,000, you’d make a tidy profit of $140,000.

What barriers to entry are there?

There are a few barriers to entry for a delivery service. Your biggest challenges will be:

• The cost of a truck or van
• Finding clients, which will take many calls to local businesses

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How to Start a Grocery Delivery Business

Step 2: hone your idea.

Now that you know what’s involved in starting a delivery service, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research delivery services in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a cannabis delivery service, if it’s legal in your area.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as grocery delivery.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your products or services

There are a host of different types of delivery services you could start including:

• Restaurant delivery, although you’d be competing with companies like DoorDash. 
• Grocery delivery
• Flower delivery
• Cannabis delivery
• Local retail delivery
• Courier service for businesses

Another option is to be an Amazon delivery service partner. Whatever you choose, you should offer contactless delivery options to customers.

How much should you charge for delivery services?

Your prices will vary greatly based on the size of the load, and the distance. You should estimate your time for each delivery route and charge about $40 to $45 per hour. Your costs will be for fuel, so you should aim for a profit margin of about 70%.

Note that you should use delivery route optimization, meaning making your delivery route as efficient as possible, to maximize deliveries and minimize fuel costs.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the type of deliveries you choose to do. In any case, it will be small business owners of some kind, who you can find on LinkedIn, Google Maps and Yelp!

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low, and you may want to continue to operate that way, even after you add other delivery drivers. Even your delivery dispatcher could work remotely. If you decide at some point that you need an office, you can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Delivery Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “deliveries” or “delivery service”, boosts SEO
• Name should allow for expansion, for ex: “The Delivery Squad” over “Alcohol Delivery Services”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Delivery Service Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A concise overview of the delivery service business, highlighting its mission, key objectives, and value proposition.
• Business Overview: Detailed information about the delivery service, including its mission, vision, and the problem it aims to solve in the market.
• Product and Services: Clear description of the range of delivery services offered, specifying types of deliveries, coverage areas, and any unique features.
• Market Analysis: In-depth examination of the target market, including demographics, trends, and potential for growth in the delivery service industry.
• Competitive Analysis: Evaluation of key competitors in the delivery service sector, outlining strengths, weaknesses, opportunities, and threats.
• Sales and Marketing: Strategic approach to promoting the delivery service, encompassing advertising, pricing, and sales channels to attract and retain customers.
• Management Team: Profiles of the key individuals responsible for managing and steering the delivery service business, emphasizing their relevant experience and skills.
• Operations Plan: Detailed plan outlining the day-to-day operations of the delivery service, including logistics, technology, and any partnerships required for smooth functioning.
• Financial Plan: Comprehensive financial projections, including startup costs, revenue forecasts, and break-even analysis, providing a roadmap for the financial success of the business.
• Appendix: Supplementary materials, such as additional data, charts, or supporting documents, providing extra context for the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to delivery services.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your delivery service will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors : Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a delivery business. If you have a unique concept that could grow into something large you may be able, at some point, to attract venture capital or angel investors.

Step 8: Apply for Delivery Business Licenses and Permits

Starting a delivery business requires obtaining a number of licenses and permits from local, state, and federal governments.

Depending on the size of your truck, you may need a commercial driver’s license (CDL). Check with your local department of motor vehicles for requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your delivery business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as Work Wave , NetworkON , or GOTRACK , to manage your deliveries, routes, dispatching, and invoicing.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your delivery service, the marketing strategy should focus on highlighting your efficiency, reliability, and the range of delivery options you provide. Emphasize your ability to handle deliveries of various sizes and types, your commitment to timely service, and your use of technology to streamline the delivery process.

The goal is to establish your business as a go-to solution for both individuals and companies needing trustworthy and efficient delivery services. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should communicate speed, efficiency, and trustworthiness, essential qualities for a delivery service. This includes your logo, vehicle branding, uniforms, and digital presence.
• Direct Outreach : Network with local businesses, e-commerce platforms, and restaurants that might benefit from your services. Building partnerships can be a key strategy in expanding your client base.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop an easy-to-navigate website that details your services, delivery options, and tracking capabilities. Optimize your site for search engines with relevant keywords related to delivery services, logistics, and local courier options.
• Social Media Engagement : Utilize platforms like LinkedIn for B2B networking and Facebook or Instagram for reaching out to local businesses and individual customers. Regular posts about your services, customer testimonials, and real-time updates can boost engagement.

Content Marketing and Engagement

• Logistics Blog : Share posts about the logistics industry, tips for efficient shipping, and company updates. This content can position your company as a thought leader in the delivery space.
• Customer Success Stories : Highlight stories where your service made a significant difference, such as helping a local business manage deliveries or urgent document shipments.
• Email Newsletters : Regular newsletters can keep your customers informed about service updates, new offerings, and business growth.

Experiential and In-Person Engagements

• Local Business Events and Trade Shows : Participate in local trade shows and business expos to showcase your services and network with potential clients.
• Community Engagement : Sponsor or participate in local community events to increase brand visibility and connect with potential customers in a non-sales context.

Collaborations and Community

• Partnerships with Local Businesses : Establish partnerships with local businesses for their regular delivery needs. For example, partnering with local restaurants for food delivery can be mutually beneficial.
• Collaborations with E-commerce Platforms : Collaborate with e-commerce platforms to be their preferred delivery service for local deliveries.

Customer Relationship and Loyalty Programs

• Loyalty Programs for Regular Clients : Implement a loyalty program offering discounts or benefits for regular customers, like small businesses that frequently require delivery services.
• Referral Incentives : Implement a referral program that rewards current clients for referring new customers to your delivery service.

Promotions and Advertising

• Targeted Local Advertising : Utilize local online platforms, community boards, and local business networks for advertising your services.
• Vehicle Advertising : Ensure your delivery vehicles are well-branded as they can serve as moving billboards, promoting your service throughout the area.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your delivery service meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your delivery business could be:

• Same day deliveries for your retail business, guaranteed
• Cannabis delivery – smoke up in no time!
• Reliable deliveries to keep your customers happy

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a delivery business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been in delivery for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in delivery services. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a delivery service business include:

• Delivery Drivers – deliver goods
• Dispatcher – take calls, dispatch drivers
• General Manager – staff management, scheduling, accounting
• Marketing Lead — SEO strategies, social media 

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Delivery Service – Start Making Money!

As people continue to stay at home, delivery services are in high demand. In a $130 billion industry, there is money to be made with even a tiny share of that number. A delivery service is a fairly easy business to start and operate, and you can run it from home to keep costs low, even after you hire other delivery drivers. Now that you’ve loaded up on business information, you’re ready to get started and launch your new delivery service!

• Delivery Service Business FAQs

A delivery service can be very profitable. You’ll price your services based on your estimated time, charting $40-$45 an hour. If you run your service from home, your costs will be mainly for fuel, so you’ll have a good profit margin.

You’ll likely be targeting small business owners, and you can connect with them on LinkedIn. You should also call on them directly to offer your services. You can find local businesses on Google or Yelp. 

You can advertise your open positions on job boards like Indeed. You could also try LinkedIn or social media ads.

It would be best to have secure containers in your car or truck. You also need to make sure that your vehicle is always securely locked.

You can run a delivery business from home easily and don’t even need an office! It’s that simple. However, if you do get to a point where you require a fleet of trucks, you’ll need to find a suitable place to park them.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Delivery Company Name
• Create a Delivery Service Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Delivery Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Delivery Service - Start Making Money!

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How To Write a Business Plan for Delivery Service in 9 Steps: Checklist

By alex ryzhkov, resources on delivery service.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you looking to start a delivery service? You're in luck! The demand for delivery services has been skyrocketing in recent years, and with the current global situation, it's only expected to grow even more. In fact, according to recent statistics, the online food delivery market alone is projected to reach a staggering $200 billion by 2025. So, if you're thinking about starting a delivery service for restaurants, grocery stores, and other businesses that don't offer their own delivery, now is the perfect time to dive in. In this blog post, we'll provide you with a step-by-step guide on how to write a business plan for your delivery service.

It all starts with identifying your target market. Who will be your main customers? Will you be focusing on delivering meals from restaurants, groceries, or a combination of both? Understanding your target market is crucial for the success of your delivery service. Conducting market research is the next step, which will help you gather valuable data about your potential customers' preferences and behavior. It's also essential to analyze the competition and identify opportunities to differentiate your delivery service. What makes your service unique? What will be your unique selling proposition?

Once you have a clear understanding of your target market and competition, it's time to define your business goals and objectives. What do you want to achieve with your delivery service? Setting specific and measurable goals will help you stay focused and track your progress. Creating a detailed financial plan is another crucial step. You need to determine your startup costs, operating expenses, and projected revenue. This will give you a clear picture of your financial health and help you make informed decisions.

Of course, no business can succeed without an effective marketing and sales strategy. You need to spread the word about your delivery service and attract customers. Will you be using social media, traditional advertising, or a combination of both? It's important to identify the most effective channels to reach your target audience. Additionally, it's essential to identify potential risks and challenges that your delivery service may face. Understanding these risks will allow you to develop contingency plans and mitigate any potential issues.

Lastly, you need to determine the legal and regulatory requirements for your delivery service. This includes obtaining the necessary permits, licenses, and insurance required to operate legally. Compliance with regulations ensures that your business is protected and avoids any legal issues down the road. By following these nine essential steps, you'll be well-prepared to write a comprehensive business plan for your delivery service. Are you ready to take the first step in creating an exceptional delivery service that will meet the increasing demand? Let's get started!

• Identify your target market
• Conduct market research
• Analyze the competition
• Determine your delivery service's unique selling proposition
• Define your business goals and objectives
• Create a detailed financial plan
• Develop a marketing and sales strategy
• Identify potential risks and challenges
• Determine the legal and regulatory requirements

Identify Your Target Market

Identifying your target market is crucial when starting a delivery service for restaurants, grocery stores, and other businesses. This step will help you understand who your potential customers are and how to effectively cater to their needs. Here are some important points to consider:

• Demographics: Start by analyzing the demographics of your potential customers. Consider factors such as age, gender, income level, and location. This information will give you insights into their preferences and purchasing power.
• Needs and Preferences: Determine the needs and preferences of your target market. Find out if there is a demand for delivery services in their area and if they are currently satisfied with the options available to them.
• Behavior and Habits: Study the behavior and habits of your target market. Are they tech-savvy and likely to use online ordering? Do they prefer same-day or next-day delivery? Understanding these details will allow you to tailor your delivery service to their specific requirements.
• Location: Take into account the geographic location of your target market. Are they concentrated in a specific area or spread out across multiple locations? This information will help you determine the most efficient routes and delivery methods.
• Use online surveys, focus groups, or interviews to gather feedback directly from your potential customers.
• Monitor social media platforms and online reviews to understand what people are saying about existing delivery services in your area.
• Consider partnering with local businesses or restaurants that already have a loyal customer base in your target market.

By identifying your target market, you can tailor your delivery service to meet their specific needs and preferences. This will increase your chances of success and help you build a solid customer base.

Conduct Market Research

Market research is a crucial step in developing a successful delivery service business plan. It provides valuable insights into your target market, customer preferences, and industry trends. By conducting thorough market research, you can make informed decisions and tailor your delivery service to meet the needs of your customers.

To effectively conduct market research, consider the following steps:

• Identify your target market: Clearly define the specific audience you want to target with your delivery service. This could include busy professionals, families, or elderly individuals who may have limited mobility.
• Analyze customer preferences: Understand the preferences and behaviors of potential customers in relation to delivery services. Determine factors such as delivery time, convenience, pricing, and quality of service that are important to them.
• Assess demand: Evaluate the existing demand for delivery services in your area. Research local restaurants, grocery stores, and businesses to determine if they are in need of a reliable delivery service.
• Study industry trends: Stay updated on the latest trends and innovations in the delivery service industry. This includes advancements in technology, new delivery methods, and changing consumer expectations.

Market Research Tips:

• Utilize online surveys and questionnaires to gather data from potential customers.
• Conduct focus groups or interviews to gain deeper insights into customer preferences and needs.
• Engage with local business owners and stakeholders to understand the market dynamics and potential partnerships.
• Utilize industry reports and data from reputable sources to ensure accuracy and reliability of your research.

By conducting thorough market research, you can identify market gaps and opportunities, refine your business strategy, and position your delivery service for success.

Analyze The Competition

When starting a delivery service, it is crucial to analyze the competition in your target market. Understanding what other delivery services are offering and how they operate can help you identify opportunities to differentiate your business and stand out from the competition.

Here are some key steps to effectively analyze the competition:

• Identify and research other delivery services operating in your area or within your target market. Look for both direct competitors, namely delivery services specifically catering to restaurants, grocery stores, and businesses, as well as indirect competitors such as courier services or rideshare platforms.
• Examine their pricing models, delivery options, and service areas. This will give you insight into how they are positioning themselves in the market and what customers can expect when using their services.
• Take a closer look at their customer reviews and ratings. This will help you understand the strengths and weaknesses of your competitors and identify areas where you can differentiate and provide a better customer experience.
• Analyze their marketing and branding strategies. Look at their online presence, social media channels, and advertising efforts to see how they are attracting and engaging customers. This can provide valuable insights for refining your own marketing and sales strategy.
• Identify any gaps or areas of improvement in the current offerings of your competitors. This could be related to delivery speed, customer support, technology integration, or additional services they do not provide. Capitalize on these opportunities to position your business as a superior option.

Tips for analyzing the competition:

• Look for patterns or common themes in customer feedback to understand what customers value the most in a delivery service.
• Consider conducting mystery shopping to experience firsthand how your competitors handle deliveries and interact with customers.
• Subscribe to newsletters or follow your competitors on social media to stay updated on any new services or promotions they launch.
• Stay open to learning from your competitors' best practices and adapting them to suit your own business.

Determine Your Delivery Service's Unique Selling Proposition

Your delivery service's unique selling proposition (USP) is what sets your business apart from competitors and provides a distinct reason for customers to choose your service over others. It is a key factor in attracting and retaining customers.

Here are some tips to help you determine your delivery service's unique selling proposition:

Identify a gap in the market:

Offer a unique service or feature:, focus on a specific market segment:, highlight convenience and efficiency:, provide exceptional customer service:.

By determining and effectively communicating your delivery service's unique selling proposition, you can attract and retain customers in a competitive market, establish a strong brand identity, and differentiate yourself from the competition.

Define Your Business Goals and Objectives

Defining your business goals and objectives is a crucial step in creating a solid business plan for your delivery service. These goals and objectives will serve as guiding principles for your business and help determine your future strategies and decisions.

When setting your goals and objectives, it is important to be specific and measurable . This will allow you to track your progress and determine whether you are achieving your desired outcomes. Here are some key considerations:

• Revenue Targets: Set clear and achievable revenue targets for your delivery service. This could be an annual revenue goal or a monthly sales target. Ensure that your targets align with your financial plan to ensure sustainable growth.
• Customer Acquisition and Retention: Determine how you plan to attract and retain customers. Set objectives for increasing your customer base and establishing customer loyalty. Consider strategies such as targeted marketing campaigns and customer rewards programs.
• Delivery Efficiency: Define objectives for improving your delivery service's efficiency and reliability. This may include reducing delivery times, optimizing routes, and implementing tracking systems to provide real-time updates to customers.
• Expansion Plans: If you have plans to expand your delivery service to new locations or target different market segments, outline your objectives for expansion. Consider factors such as timing, resources required, and projected growth.
• Brand Reputation: Set goals for establishing a strong brand reputation in the market. This could include objectives for customer satisfaction, online reviews, and developing a positive brand image.
• Ensure your goals and objectives are realistic and attainable. Setting overly ambitious goals may lead to disappointment and frustration.
• Regularly review and revise your goals and objectives as your business evolves. Flexibility is key to staying competitive in a dynamic market.
• Consider involving key stakeholders, such as employees and partners, in the goal-setting process to foster a sense of ownership and commitment to achieving the objectives.

Defining your business goals and objectives provides a clear direction for your delivery service. By setting measurable targets and regularly assessing your progress, you can make informed decisions and adapt your strategies to drive success.

Create A Detailed Financial Plan

One of the most important aspects of starting a delivery service is creating a detailed financial plan. This plan will outline your projected income and expenses, as well as your profit margins and funding needs.

To create a detailed financial plan, start by estimating your startup costs. Consider expenses such as vehicle purchases or leases, insurance, equipment, marketing, and personnel. This will give you an idea of how much funding you will need to get your delivery service up and running.

Tip 1: It's important to be realistic when estimating your expenses. Don't forget to account for unexpected costs or emergencies.

• Tip 2: Consider seeking advice from a financial professional or accountant. They can help you create a more accurate and thorough financial plan.
• Tip 3: Create a revenue forecast by estimating how many deliveries you expect to make each month and how much revenue you will generate per delivery. This will give you an idea of your potential income.
• Tip 4: Don't forget to include costs such as fuel, maintenance, and driver wages in your expense projections. These costs can significantly impact your profitability.

Once you have estimated your expenses and revenue, create a projected income statement. This statement will show your estimated monthly revenue, expenses, and profit or loss. It will give you a clear picture of your business's financial health and help you make informed decisions.

Tip 5: Be conservative when projecting your revenue and income. It's better to underestimate and be pleasantly surprised by higher profits than to overestimate and fall short.

• Tip 6: Consider creating financial projections for at least the first year of your business. This will help you gauge your financial performance and make any necessary adjustments.
• Tip 7: Keep track of your actual financial performance and compare it to your projections. This will help you identify any discrepancies and make adjustments as needed.

Finally, consider your funding needs. If you don't have enough capital to start your delivery service, you may need to seek external financing options. This could include loans, grants, or investment from private individuals or venture capitalists.

Tip 8: Create a detailed funding plan that outlines how much capital you need, when you need it, and how you plan to repay any loans or secure investor returns.

• Tip 9: Make sure to research and explore all available funding options. Look for small business grants, loans with favorable terms, or investment opportunities that align with your business goals.

By creating a detailed financial plan, you will have a clear roadmap for the financial success of your delivery service. It will help you make informed decisions, secure funding if needed, and ultimately achieve your business goals.

Develop a Marketing and Sales Strategy

A successful delivery service relies heavily on effective marketing and sales strategies to attract customers and generate revenue. Here are some essential steps to consider when developing your marketing and sales strategy:

• Identify your target customers: Clearly define your target market based on demographics, location, and preferences. Understand their needs and preferences to tailor your marketing efforts accordingly.
• Create a compelling value proposition: Clearly communicate the unique benefits and value your delivery service offers compared to competitors. Highlight factors like speed, reliability, affordability, or convenience to differentiate yourself in the market.
• Build a strong online presence: Establish a professional website and optimize it for search engines to improve your online visibility. Leverage social media platforms to engage with your target audience and provide regular updates on promotions, new services, or customer testimonials.
• Launch targeted advertising campaigns: Utilize online platforms such as Google Ads, social media advertising, or local directories to reach your target audience more effectively. Craft compelling ad copy and visuals that highlight your unique selling points and encourage potential customers to take action.
• Partner with local businesses: Collaborate with local restaurants, grocery stores, or other businesses that align with your brand to cross-promote your services. Offer exclusive discounts or referral programs to encourage partnerships and increase your customer base.
• Offer exceptional customer service: Prioritize customer satisfaction by providing timely and reliable service. Train your staff to handle customer inquiries and concerns professionally and efficiently, ensuring a positive customer experience that encourages repeat business and positive word-of-mouth.

Tips for Success:

• Develop a strong branding strategy that communicates your delivery service's unique attributes.
• Offer incentives such as loyalty programs or discounts for frequent customers to encourage customer loyalty.
• Gather customer feedback and use it to improve your services and refine your marketing strategies.
• Monitor and analyze the performance of your marketing efforts regularly to identify what works best and make necessary adjustments.

Identify Potential Risks and Challenges

Identifying potential risks and challenges is a crucial step when writing a business plan for a delivery service. By anticipating and addressing these potential roadblocks ahead of time, you can develop effective strategies to overcome them and ensure the success of your delivery service. Here are some important considerations:

• Market Saturation: One of the main challenges you may face is the presence of established delivery services in the market. It's important to assess the level of competition and determine how you can differentiate your service from existing providers. Consider offering unique features, competitive pricing, or specialized delivery options to attract customers.
• Operational Efficiency: Running a successful delivery service requires smooth and efficient operations. Ensure that you have a reliable fleet of delivery vehicles or partnerships with reliable logistics providers. Additionally, carefully plan your delivery routes and schedules to optimize efficiency and minimize costs.
• Customer Satisfaction: Customer satisfaction is key to the success and growth of your delivery service. However, various factors such as late deliveries, damaged goods, or poor customer service can impact customer satisfaction. Implement strategies to address these challenges, such as providing accurate delivery estimates, offering timely customer support, and regularly collecting feedback from customers to improve your services.
• Regulatory Compliance: Compliance with legal and regulatory requirements is essential for any business, including a delivery service. Familiarize yourself with laws and regulations related to transportation, food safety, privacy, and employment. Ensure all necessary permits and licenses are obtained, and establish procedures and protocols to maintain compliance.
• Technological Challenges: In today's digital age, having a robust and user-friendly online ordering system is essential. However, technological challenges can arise, such as system outages, cybersecurity threats, or poor website performance. Stay updated with the latest technological advancements, invest in reliable and secure platforms, and have contingency plans in place to address any technological disruptions.
• Regularly review and update your risk assessment to adapt to changing market conditions and emerging risks.
• Establish relationships with backup suppliers and delivery partners to mitigate the impact of potential disruptions.
• Invest in proper training for your delivery personnel to ensure they understand and adhere to safety protocols and customer service standards.

By identifying potential risks and challenges, you can proactively prepare your delivery service for success. Take the time to assess and address these factors in your business plan to demonstrate to investors and stakeholders that you have a comprehensive understanding of the industry and are equipped to overcome obstacles.

Determine The Legal And Regulatory Requirements

Before launching your delivery service, it is crucial to ensure that you are compliant with all the legal and regulatory requirements in your area. Failure to do so can result in fines, penalties, and potential closure of your business. Here are some important steps to follow:

• Research Local Laws and Regulations: Familiarize yourself with the specific laws and regulations related to delivery services in your area. This includes understanding requirements for licenses, permits, insurance, and any special regulations that may apply to food delivery.
• Register Your Business: Determine the legal structure for your delivery service, such as a sole proprietorship, partnership, or limited liability company (LLC). Register your business with the appropriate government agencies and obtain any necessary licenses or permits.
• Obtain Insurance Coverage: Protect your business and customers by obtaining the necessary insurance coverage. This may include liability insurance, commercial auto insurance, and workers' compensation insurance if you plan to hire employees.
• Ensure Compliance with Food Safety Regulations: If your delivery service involves transporting food, it is essential to meet the food safety regulations set by local health departments. This may require obtaining a food handler's permit, implementing proper food storage and transportation practices, and regularly training your staff on food safety protocols.
• Understand Employment Laws: If you plan to hire employees or independent contractors, familiarize yourself with employment laws and regulations, including minimum wage requirements, worker classification, and payroll obligations.
• Consult with a lawyer or legal professional to ensure you have a comprehensive understanding of the legal and regulatory requirements.
• Stay updated on any changes or updates to local laws and regulations that may affect your delivery service.
• Keep organized records of licenses, permits, insurance policies, and other legal documents to facilitate compliance and respond to any regulatory inquiries.

Writing a business plan is a crucial step in establishing a successful delivery service. By following the nine steps outlined above, you can ensure that your business is well-prepared and positioned for growth in a competitive market.

Identifying your target market, conducting thorough market research, and analyzing the competition are essential in formulating a solid business strategy. Determining your delivery service's unique selling proposition and setting clear goals and objectives will help differentiate your business from competitors and guide your operations.

Creating a detailed financial plan and developing a comprehensive marketing and sales strategy are crucial for driving growth and profitability. It is also important to identify potential risks and challenges and address them proactively to minimize disruptions to your operations.

Furthermore, understanding the legal and regulatory requirements specific to your delivery service will ensure compliance and avoid any legal issues. By following these nine steps and compiling a well-rounded business plan, you can lay a strong foundation for your delivery service and set yourself up for success.

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How to Start a Delivery Service Business: An Expert’s Guide

• Last Updated: January 2, 2023

• A well-planned business strategy, including market analysis and financial estimates, is necessary to launch a delivery service.
• A high focus should be given to safety and compliance, including recruiting licensed and qualified drivers and securing enough insurance coverage.
• Your delivery business should put a strong emphasis on client satisfaction and offer top-notch client support, which should include real-time tracking and notifications.
• Use data and client feedback to continuously assess and improve your delivery service to boost productivity and profitability.

The delivery services market is booming with high order volume as more and more customers are in need of instant doorstep delivery. Digitalization has made the lives of consumers a simplified network of convenience by bringing technology to their fingertips. 

Both global and local businesses have started making changes to their business structure for betterment. The annual growth in the couriers and local delivery services market has been around 6.9% between 2017 to 2022 in the US. 

The market will continue seeing an upward graph in the upcoming times. If you wish to have a successful delivery service, whether online or offline, you need pro strategies that work. So, if you are wondering “ how to start a delivery service business?”, this blog will surely guide you.

Table of Contents

• What is Delivery Business
• 13 Steps to Start a Delivery Business

What is Delivery Business?

Simply put, a delivery business transports orders containing essential items, meals, clothes, medical supplies, alcohol & beverages to a customer’s address. The goods are normally shipped from the warehouse, moved through distribution centers, and then delivered by last-mile logistics.

Depending on the type of order and delivery charges, customers can opt for same-day delivery, next-day delivery, or regular delivery. While the holiday shopping season is upon us; retailers will be busy providing faster deliveries to win their customers’ hearts.

13 Steps to Start a Delivery Business 

When you start your own delivery business, you must know all the factors that help you build from scratch. You’ll need to find your niche, form a loyal customer base, create a competitive pricing structure, and market your business first. 

Here are the strategy plans and steps that will help you start your own delivery service:

Step 1: Define your niche

Step 2: Build a delivery business plan 

Step 3: Develop a delivery process

Step 4: Develop your delivery service business as a legal entity

Step 5: Register for taxes, permits, and licenses

Step 6: Open a business bank account and business credit card

Step 7: Set up business accounting

Step 8: Get business insurance policies 

Step 9: Acquire delivery service insurance

Step 10: Equip yourself with the necessary tools and software

Step 11: Hire and train drivers

Step 12: Market your business with successful branding

Step 13: Use route planning software to optimize last-mile delivery

1. Define your niche

The first step to starting a delivery business is coming up with an industry type of your choice. 

The niche you choose will greatly impact your startup and other related costs. The methods and processes involved in delivering packages are common for almost all businesses. Firstly, let’s look at the 2 standard delivery types:

Local delivery service

Local delivery service caters to delivering goods or merchandise for nearby businesses. If your goal is to make deliveries within a specific delivery route with a few zip codes, you can have a cargo van business . You can also tie up with contract drivers who can use their own vehicles.

Global delivery service

This type of courier service works internationally and can deliver packages from across continents. You can work with organizations such as FedEx, DHL, or others to deliver products ordered or sent through these companies. 

If you independently wish to use long-haul trucks, you’ll need a storage space for trucks, drivers with a CDL driver’s license, and truck routing software .

Unique delivery business examples

Here are 3 examples of unique delivery businesses that you can consider to serve your customer and address their pain points:

• Food delivery: You can tie up with local restaurants and chefs to deliver meals for their customers. Focusing on your local area is a beneficial way to enhance customer experience rather than preferring large platforms like DoorDash. 
• Late night delivery: When you specialize in providing after-hours orders, you only need to deliver items between 6 pm and 8 pm , or afterward. This will give you proper time to focus on the extra care and attention on every order. 
• Pharmacy delivery: You can surpass the last-mile delivery challenges of local pharmacists by offering them your delivery services. This will lower a lot of their stress and boost your customer base.

2. Build a delivery business plan 

Every company that has a business plan that defines its purpose deems to be successful. When you come up with a plan for your business, you can track progress and make improvements to increase revenue. Here are a few things you must consider in your business planning structure:

• Keep a tab on your budgets
• Identify your market and competitors
• Apply marketing strategies and define your business goals
• Set a pricing structure as per your delivery service business
• Plan for challenges and daily operations in advance
• Hire employees and delivery drivers
• Provide the necessary training to your employees

3. Develop a delivery process

A delivery process is a complex process, which involves creating a route plan, loading the driver’s vehicle with packages, and delivering them to the customer’s doorstep. Here’s the standard delivery process breakdown to ensure successful deliveries and customer satisfaction:

Optimizing routes 

New businesses have a tendency to plan routes manually and be burdened with this time-consuming approach. It also takes a toll on delivery drivers even if it contains only 20 stops. 

Using advanced technology for the route optimization process helps you right from the start. As you slowly increase your delivery orders, an efficient route can lower the stress of drivers and help them reach their destinations on time.

Monitoring routes

If you don’t have proper monitoring, it can lead to issues. For example:

• If you need to reroute due to a canceled or an additional customer order, you’ll need to call your drivers and manually guess which driver would be available. 
• If a customer wants to know about the estimated time of arrival (ETA) , either you or they will need to call the driver, which will again lengthen the process. 

With route monitoring , you and your customers can be sure about the delivery status as you can see your drivers within their delivery route. 

Accomplishing last-mile delivery

The final step of the delivery process is your driver completing their job by securely delivering the parcel. When you take customer orders, they expect proper delivery of products that aren’t damaged. 

Plan your last-mile deliveries with a route optimization solution and ensure that your drivers complete their targets on time. This way, you can make more parcel deliveries in a day. Additionally, start using electronic delivery proofs to record every order.

Fast Track Your Route Planning Process with Upper

Leave the outdated methods of manual route planning and join Upper Route Planner – an intelligent route optimization software.

4. Develop your delivery service business as a legal entity

Registering as a legal business entity is another important step you need to take. Before you register, decide on your business name and create the logo. 

Then, you can register your delivery business as a Limited Liability Company ( LLC ) , corporation , or partnership as per your requirements. Contacting a legal consultant will help you set up your business entity with a proper understanding of the terms and conditions. 

5. Register for taxes, permits, and licenses

You may also need specific state licenses and permits before starting your delivery services. Acquiring these can help avoid fines or bigger consequences on your business. 

You may also need to collect sales tax on the services you provide. Ensure that you comply with certain regulatory requirements or local licensing laws. To know more about it, you can:

• Communicate with your county clerk’s office
• Get support from a local association listed in the US Small Business Associations (SBA) directory of local business resources.

6. Open a business bank account and business credit card

Opening a business bank account for your delivery service is the next step. It enables keeping your business finances separate and protects your personal assets. It also smoothens the process of accounting and tax filing.

• Once you get your LLC or Corporation files, you can open a business account. 
• Contact your local bank and understand more about banking.
• Get the right credit card solution that meets your delivery business requirements.

Additionally, a business credit card would be beneficial as:

• It keeps personal and business expenses separate by tracking your business expenses individually.
• It helps enhance your delivery company’s credit history in case you need business loans in the future.

7. Set up business accounting 

Keeping track of all your expenses and sources of income is essential for legal purposes. Detailed and accurate accounts also make it easy for your annual tax filing. 

So, investing in an accounting software will greatly benefit you in managing business expenses and other accounting processes. While you may choose from a lot of software solutions, Quickbooks Online is an affordable, simple, and effective accounting software. 

8. Get business insurance policies 

Similar to permits and licenses, you will require insurance for your delivery business to comply with the laws and remain safe. In the event of losses, business insurance protects your company’s finances.

• Although there are many insurance policies for various business types, you can start with General Liability Insurance . It is a common coverage for small businesses.
• Workers’ Compensation Insurance is another one. It will help you cover a part of your employees’ wages.

9. Acquire delivery service insurance

As a delivery services business, you may need commercial auto insurance. This will provide you protection in case of accidents and other liabilities related to your delivery vehicles. 

It is a good idea to get the necessary insurance for delivery packages. If you fail to do so, you may be accountable for reimbursing a customer if their package is damaged during delivery.

Additionally, you may want to check out with a professional consultant and know more about other types of coverages you may need. Ensure that your delivery business is insured with the right policies so you can run it smoothly. 

10. Equip yourself with the necessary tools and software

You need the right equipment to run your business operations smoothly and make faster deliveries. Here are a few of them you can buy based on your requirements:

• Delivery vehicles: Usually, businesses buy vans or trucks to complete their delivery operations.
• Ratchet straps : These are for your staff member, so they can tie down heavy packages during cargo transport.
• GPS systems : GPS systems help make location tracking functions better and ease up the drop-off service process. 
• Fleet management software : You can track your company’s automobiles using fleet management software . It gives insights into geolocation, vehicle diagnostics, and more.
• CRM software : CRM helps you store customer contact details, understand sales opportunities, manage marketing campaigns, and note down service issues. 

11. Hire and train drivers

Being the pillars of your business, it is crucial to hire and train delivery drivers to perform efficient deliveries. So, ensure that you choose the ones who are capable enough of meeting customer expectations. Here are some points you can focus on:

• Plan the driver’s tasks, roles, and key responsibilities
• Set their shift schedules
• Offer full-time or part-time jobs based on your policies
• Know details such as a valid driver’s license, clean driving records, and the related ones
• Ask about their driving experience for the type of vehicles you’re going to assign 
• Know their familiarity with the delivery regions
• Explain the payroll structures, incentives, and additional details

You may also need to train the existing ones about your company policies and how they can perform their jobs productively. Handling orders, following the maps properly, delivering parcels with the help of optimized routes, and taking delivery proofs are a few areas you can train them on.

12. Market your business with successful branding

Start with coming up with a solid business name, trendy color schemes, fonts, and design an eye-popping logo. You need to be creative to stand out against your competitors and make a memorable impression on your business.

Tip: Advertise your brand through a powerful website, delivery vehicles , social media posts, and anywhere that grabs people’s attention.

Marketing your delivery service is another step to spreading awareness about your business. After all, you need people to buy your services, right?

• Through search engine optimization (SEO) on your website, you can run social media campaigns to generate leads. 
• You can collect information about customers (like their email addresses, phone numbers, etc.), and send marketing emails or message alerts about your offers or services.
• Seeking help from a marketing agency will make things easy for your business to stand out from the crowd and generate more traffic on your website.

13. Use route planning software to optimize last-mile delivery 

A route planning software can plan and schedule your delivery routes as per the required timings and driver preferences. It helps you find efficient routes based on delivery constraints like traffic flows and weather in the last-mile delivery process . 

So, if you’re ready to make the first parcel delivery, but stuck in route planning, we have the right solution for your routing needs. 

Upper Route Planner is right here waiting to reduce your manual work and provide a hassle free route optimization solution. Whether you need the most cost-efficient delivery routes or assign stops to multiple drivers, we have got you covered. 

Here are some of the salient features of Upper:

• Import excel file: Import multiple addresses through an excel or CSV file, so you don’t have to add them manually. 
• Route scheduling: Create a schedule for deliveries in advance.
• One-click dispatch: Enables sharing delivery routes to drivers in a single click.
• Proof of delivery: It helps drivers collect e-signatures and photos.
• Reports and analytics: Helps you review/coach your drivers if needed.

Parkwood Products Ltd. accomplished 200% more deliveries with Upper Route Planner

While there are many clients using Upper as their route optimization buddy, Jacob Steele, the Supply Manager from Parkwood Products Ltd. , is one of them. 

Their New Zealand based company designs beautiful doors for their clientele, which needs careful handling and delivery planning . 

Before using Upper 

They had to manually plan routes and be stressed about delivery proofs. 

• The drivers had to manually enter addresses in Bing Maps .
• They didn’t have a time estimate for their delivery schedule.
• They faced difficulties in delivering parcels to unknown territories.

After using Upper

All they needed was to import addresses from Upper’s “Import addresses” feature and let Upper optimize the best routes for their multi-stop deliveries. 

• By saving a lot of planning time on delivery routes, Upper Route Planner boosted their productivity. 
• On top of that, being able to take proof of delivery with a photo helped reduce client complaints. 
• They are now handling more orders in less time and with reduced manual work. 

Other industries that have benefitted from Upper Route Planner

• Meal delivery  
• Food delivery
• Furniture delivery
• Waste Management

Give Your Route Planning Burden to Upper Route Planner

Start making 3x faster deliveries and build your delivery service business’s reputation from the first day! Join Upper to find and assign the most efficient delivery routes to your drivers.

Start by analyzing which particular business has chances of growth in your region. It helps you target certain types of customers, whether you are opening a global or local delivery service.

Here are the points that will help you understand this:

• Jott down the issues or pain points of consumers in your area.
• Identify customers’ needs in the particular business idea.
• Make sure that the field you choose offers long-term growth.

Courier services can help you generate a sizable amount of profit, if you follow the guidelines and trends of providing excellent customer service. A report shows that the US couriers and messengers industry generated an operating revenue of $137.9 billion in 2020 .

Cost of fuel and reaching customers on time are some of the major challenges faced by businesses who provide delivery services. Lack of route planning process and focus on enhancing their business model can also lead to a lower graph. Finding a route optimization software can help reduce the fuel usage and bring you back into the market.

The major startup costs in opening a delivery business include:

• Vehicle purchase
• Vehicle maintenance
• Insurance premiums
• Equipment costs
• Delivery driver payments
• Fees for business licenses
• Marketing costs

The standard delivery charges may combine mileage charges as per the delivery miles, and fuel surcharges. You can also charge based on delivery hours if they take longer than normal to complete. Rush hours, waiting, after-hours, and size-based charges may additionally apply.

If you open a sole proprietorship, you may want to choose a business name different from your own name. When thinking of name ideas for your delivery business , you can search one by checking:

• Business records of your state
• State and federal trademark records
• Social media channels
• Availability of web domain name

Starting a new business can be risky, yet generate great revenue when you have a structured process of making your customers happy. So, you don’t want to miss out on using your time and resources in the best way.

Businesses may rely on big delivery companies to meet their customers’ demands. But they could cost you much more than creating your own in-house delivery team and management system. 

Lucky you! Upper lets you plan routes and assign them to your drivers in a single click. You can relax while your drivers will be making lightning fast and more deliveries than you could imagine. Upper Route Planner is your one-stop solution to create optimized routes and make cost-efficient deliveries. Take the 7 days free trial today!

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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How to Create a Business Plan for Your Delivery Business?

• February 1, 2022
• 7 minute read

Setting up a company is a thrilling endeavor. It is critical to get all the details right from the beginning if you want it to be a complete success. This is when having a business plan comes in handy.

According to a recent QuickBooks survey, nearly 70% of entrepreneurs recommend developing a business plan before starting a firm.

Trying to figure out how to prepare a business plan in the midst of to-do checklists and meetings can be time-consuming. But when done well, these business plans can provide huge profits. Here, let’s examine the phases included in creating a business plan for your delivery business.

Creating a Successful Delivery Business Plan in 7 Simple Phases

The first thing you will need to establish a delivery service company is its business plan. Such a plan fills the loopholes between your ideas, aspirations, and assumptions and the existing market, customer expectations, and competitors.

Let’s look at the delivery business plan phases that make assessing financial demands, recording them with a marketing strategy, and developing your revenue structure much easier.

Phase 1: Formulate an Executive Summary

The executive summary condenses all of the important details about your delivery company. It is an elevated overview of everything and outlines the rest of your courier strategy. This brief concentrates on the value proposition, also known as the unique selling proposition , which is an extended objective directed at investors, employees, and customers.

It summarizes the delivery business’ goals in a brief manner. It outlines business description, growth potential, services provided, funding requirements, a proper plan for repaying loans, if applicable, and so on.

You may be required to present your delivery company strategy to financiers and investors at times. As a result, you should make sure that your summary is brief and to the point.

Phase 2. Elucidate Description of Your Business

This is where you provide your service users with an overview of your delivery company. Describe the services that your company intends to offer – same-day and fast delivery within a particular area or a specific sort of delivery, such as delivering grocery, or delivering all types of packages.

To get the most out of your delivery business opportunity , you must understand your customers.  Your delivery business description has three aspects in a business plan – Objectives, Mission Statement, and History.

These parts provide context for the larger picture in your strategic plan, allowing investors to understand the reason for your delivery company’s existence so that the objectives make sense.

Business Objectives:

Business objectives must provide you with a clear target to aim for. These objectives must be Specific, Measurable, Attainable, Realistic, and Time-bound (SMART goals). They must also be linked to important results. If not mentioned precisely, your target audience and investors will be skeptical and they will have a negative impact on your firm.

Mission Statement:

A mission statement explains why your delivery business exists. It’s not just about what you offer; it is also about why you do it. The following are examples. A good mission statement must be

Inspirational

Making your people believe in your visions

Focusing on customers’ needs and fulfilling them with exceptional delivery services

Business’ History:

Narrate your delivery business history by including flagship services, value-based leadership notions, number of employees, location(s), major milestones, and inception date.

Phase 3: Make a Thorough Market Research

A detailed market analysis is critical for your delivery business success. This assessment should look into clients’ purchase behaviors, purchasing cycles, and openness to embracing specific services. In other words, you will need to figure out if there is a feasible market for delivery services your company will provide.

A potential market analysis is an estimation of people who might be interested in purchasing your services. Because this can be a difficult task, here are some tips to get you started:

• Examine the industry’s current and future tendencies
• Recognize your ideal consumer profile, particularly in terms of demographics
• For market data, consider consulting official statistics departments, academic research, reputable news sites covering your delivery business, and industry associations

SWOT Analysis

The SWOT (Strength, Weaknesses, Opportunities, and Threats) analysis is essential for establishing a stable delivery business. This type of analysis is extremely beneficial as it aids in the comprehension of your goals, ambitions, and objectives.

Simultaneously, you receive a clear picture of the strength and drawbacks of your delivery company. With this graph, you can take crucial steps needed to take for the overall growth of your delivery company. For a better understanding, here’s an example of SWOT analysis:

Phase 4: Conduct Competitive Evaluation

Being an entrepreneur, it’s critical to include a competitive assessment in your business strategy. There are three broad aspects that you can exercise to set your company apart from the competition:

Segmentation

You concentrate on a highly particular or ‘niche’ market and gain momentum with a smaller number of clients before expanding to a larger market.

Unique Selling Point (USP)

 Your service offers something different than the present leaders in your sector, and it relies on its distinctiveness to stand out. For example, real-time tracking of goods and drivers, same-day delivery, and proof of delivery.

Competitive Pricing Structure

You have the potential to increase revenues by offering cheaper prices than the bulk of your rival delivery businesses.

Phase 5: Define Managerial Duties and Business Operations

This phase is all about how you intend to run your delivery business. This could include requirements for delivery drivers, warehouses, business development, and staffing.

The tasks are given to each department, as well as the managerial and administrative team’s obligations, are all included. Operating equipment, automobiles, Wi-Fi requirements, and infrastructure are some other factors to consider.

Keep in mind that as the delivery company expands, the operations will alter. As a result, these adjustments should be accounted for in your company’s strategy.

Phase 6: Create a Marketing Strategy

This part should feature an outline of a marketing plan for your delivery business. One of the main goals of this area is to figure out how to get your target clients to know about your delivery services.

Promoting and advertising your services while keeping good public relations is what marketing entails. Your strategy should include methodologies for increasing conversion, retaining customers, and generating leads. These should be fact-based and actionable.

The majority of marketing plans involve data on four main topics – product, price, place, and promotion. The amount of information you describe on each will be determined by your delivery business and the target audience for your plan.

Phase 7: Compose Financial Statements

Profits determine whether a business succeeds or fails, and this part will assist you in determining how to maintain them. The following are the most important financial aspects to consider in any delivery business:

Cash Flow Statement

The cash flow statement shows how you intend to meet your financial commitments.

Income Statement

An income statement that lists the sources of the delivery business’ financial flow.

Balance Sheet

The balance sheet shows the amount of equity you have in your delivery firm. Here, you can bifurcate all the assets and liabilities. This gives you a quick look at your firm’s shareholder equity, which is computed as Equity = Assets – Liabilities.

A business strategy should also include appropriate financial choices for expansion and growth.               

Final Thoughts

The old adage, ‘A failure to plan is a plan to fail’  is true to date. From offering direction, incentive, and meaning to personnel and clients to providing thorough assurance and risk reduction to funders, your business plan is essential for the inception and expansion of your delivery firm.

While this is the typical framework of a delivery business plan, you can customize it based on the kind of deliveries you make. The advantages of such a business strategy are limitless. Hence, a well-crafted and thoughtful plan is critical to the growth of your delivery service.

____________________________________________________

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Courier Business Plan

Free Business Plan Template

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How to Write a Courier Business Plan?

Writing a courier business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your courier business, its location, when it was founded, etc.

Market opportunity:

Product and services:.

• For instance, your services may include domestic & international delivery, door-to-door delivery, same-day delivery, etc.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

Business name and type:.

Describe what kind of courier company you run and the name of it. You may specialize in one of the following types:

• Local courier services
• National courier services
• International courier services
• Specialty courier services
• On-demand courier services
• Freight courier services
• Pallet courier services
• Describe the legal structure of your courier business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, small businesses, e-commerce websites, legal firms, etc can be your target market.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, real-time tracking is increasing; explain how you plan on dealing with this potential growth opportunity.

Regulatory environment:

Here are a few tips for writing the market analysis section of your courier business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the courier services your business will offer. This list may include services like,

• Same-day delivery services
• Next-day delivery services
• International delivery services
• Specialized personalized delivery services.

In short, this section of your courier business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, package tracking, signature confirmation, or secure delivery options.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your courier business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your courier business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, technology:.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your courier business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include, key executives, senior management, and other managers including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your courier services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your courier business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample courier business plan will provide an idea for writing a successful courier business plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our courier business plan pdf .

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Frequently asked questions, why do you need a courier business plan.

A business plan is an essential tool for anyone looking to start or run a successful courier business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your courier company.

How to get funding for your courier business?

There are several ways to get funding for your courier business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your courier business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your courier business plan and outline your vision as you have in your mind.

What is the easiest way to write your courier business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any courier business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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4 Key Things to Include in Your Delivery Service Business Plan

We look at the 4 most important sections you need to include in your delivery service business plan. From finances to operations, and everything in between.

When you're doing research on what to include in your delivery service plan, you're likely to come across websites offering free business plan templates; how-to guides for executive summaries, marketing analysis, and startup costs; and lists for what to add to your plan (often including things as simple as figuring out your business name!)

All of that info is helpful in its own way, but it isn’t very specific for understanding how you can create a business model that sets your delivery service up for success .

That’s what we’re going to do in today’s post; help you write a compelling and successful delivery service business plan . We look at the 4 most important sections you need to include in your business plan that are specific to delivery companies, such as:

• What sets your delivery service apart? The world of courier services is fast-paced and competitive. How is your service different from more common delivery options like FedEx, DHL, and USPS or same-day delivery apps like UberEats and Postmates? These popular names control a lot of the market share, but as we’ll see below there is ample room for competition if you can give an excellent delivery experience and fill niche demands.
• How will you structure your operation? Even the smallest delivery company has several moving parts, including hiring and training delivery drivers , managing vehicles, managing inventory, getting new clients, handling payroll and manifests, and more. What’s the business structure for your company?
• How will you turn a profit? Depending on the type of delivery service you’re running, you may have little-to-no overhead, or you may be in charge of company vehicles, warehouses, and special delivery equipment. While running a delivery business can be very profitable, this isn’t guaranteed . In your business plan, you’ll want to show you how you’re going to lower costs to help maximize profits.
• How will you maximize profits, and prepare your business for growth? One of the biggest expenses of running a delivery business is the time it takes to complete last-mile deliveries. To alleviate this cost, experienced businesses tend to use a route management software. Circuit for Teams is one excellent solution for multi-driver businesses; and Circuit Route Planner is the best option for single-driver operations.

1. What sets your delivery service apart?

It should go without saying that competition in this space is fierce, and that means you need to stand out. But if you need some convincing, we have the data to back it up.

For example, our own survey data shows over 70% of customers agree they’re much less likely to recommend a retailer after a bad delivery experience.

But what separates a good delivery experience from a bad one?

40% of customers say the most important thing to them is getting their delivery on time. The second most important thing, with 38% of the vote, is that their package is delivered safely in a secure location.

Yet, 26% of respondents say they’ve received their package late, and 13% said they’ve received their parcel damaged . That shows there is room for improvement; that you can find companies who aren’t happy with the experience their courier service is offering their customers, and that you can build a business that subcontracts for larger courier companies.

Another effective way of setting your company out from the competition is by filling a niche that’s overlooked by the major couriers.

For example, you can:

• Offer local delivery services to local companies who are shipping products out of their store . Your local mom-and-pop’s place may not have enough quantity to get affordable rates from shipping services like FedEx. But by servicing several different businesses, you can offer competitive rates while still keeping your margins wide.
• Deliver outside of normal time windows, such as late in the evening or early morning . Delivery services group their stops as close together as possible to save time when making deliveries, which is why it can cost an extra charge to get a delivery at a certain time. But if you made your delivery service focused on only handling outside-normal-hours deliveries, you could still optimize routes while filling a need.
• Delivery packages that need special care . Most delivery companies drop the item off at the front porch. But what if you’re delivering medical equipment or floral arrangements? There are still gaps in the market for this kind of service.
• Start a grocery delivery service . More and more grocery stores are embracing on-demand curbside ordering, where customers pick up their groceries from the parking lot. You can help large chains fill the demand by offering to deliver orders directly to their customer’s front door. You can also cater to smaller grocery stores or high-end food markets that may be overlooked by other couriers.

One of our customers was able to carve out a nice niche for themselves by delivering prescription medication from local pharmacies in a major metropolitan city.

They’re a bicycle courier company, which lets them navigate the otherwise crowded streets, giving them a nice competitive edge. By providing a valuable, in-demand service — and using Circuit to make quick and efficient delivery schedules — they were able to grow their delivery business by 400% within just 12 months.

If you’re interested in learning about the different types of delivery companies you can start, check out some of the other posts we’ve written, including:

• Starting a pharmacy delivery service
• Starting a medical courier company
• Starting a marijuana delivery service

2. How will you structure your delivery business?

While the exact structure of your business will depend on its size and the niche you’re filling, there are some basic roles every delivery service needs to fill.

You want to have a clear management structure for who handles your company’s delivery drivers — who will inevitably make up the biggest percentage of your payroll.

You may have multiple staff members involved. For example, someone who does the hiring and training , and someone else who plans and manages daily delivery routes . And perhaps another person who manages the inventory and manifests.

Or, depending on the size of your business, you may be able to have one person manage various roles. Having someone wearing multiple hats is very useful when you’re just starting out, and don’t yet have the demand for several different full-time positions.

And you can consolidate multiple roles within your business by giving your team the tools they need to be successful in those roles.

One of our customers — Sagar Dhaliwal, the owner of Sanjhi Rasoi — was able to do just that. “[With Circuit] I can easily do the job of 3 people — from overseeing the day-to-day operations to managing and optimizing our delivery routes while being a customer service manager — without taking on much more of a workload. All in all, Circuit has saved us at least $3500 a month in additional salaries. ”

3. How will you promote your delivery service?

Previously, we’ve written a post on how to get delivery service contracts . In this guide, we’ve included three effective ways of promoting your delivery service.

• Optimizing your business website If you don’t have a website for your business, then you’ll want to make one. If you already have one up, great. Now it’s time to optimize it for your ideal client. This means making sure your landing pages follow basic SEO best practices to attract customers. In our post on getting delivery contracts , we explain how to do this, and we point you towards some helpful guides.
• Contacting local businesses Once you have your niche, you should create a list of businesses that fit within your niche. Then you can reach out to them and pitch your delivery services.
• Scouring jobs on courier listing sites There are third-party courier listing sites (like FindFRP for North America and Courier Exchange for the U.K.) where you can find new delivery contracts.

No matter how you plan to attract customers — whether it’s one of the above, all three, or a totally different strategy — you’ll want to outline this in your delivery service business plan.

4. How will you maximize profits and prepare your business for growth?

One of the biggest expenses — if not the biggest expense — for delivery services is the time it takes to complete last-mile delivery. Put simply, that’s getting the parcel to the customer’s front door . This involves fuel costs, labor costs, and possibly also vehicle maintenance costs.

A good rule of thumb is the more time your driver takes making a delivery, the more that delivery costs your business. And that cuts into your margins.

So to maximize profits, you can drastically decrease the time it takes to make your deliveries. And you can do that by using route management software like Circuit .

We have two different services: One for one-man operations or solo couriers , and one for delivery teams with multiple drivers , which is called Circuit for Teams . Both of these services use our advanced route planning software to create the fastest routes possible for you.

You can either manually enter the routes directly into your account, or upload entire Excel spreadsheets. After that, you can make several different customizations.

• You can add time constraints, so deliveries are made within a specific time window.
• Set priority stops, so specific deliveries can happen first in the day.
• Set the average time per stop, which lets our software create the most accurate and fastest route possible for you based on your traffic patterns and other variables.

When delivery teams use our route planning tool, on average, they save one hour per day in payroll.

Next steps: Starting your delivery business

You may be writing a delivery service plan to get all your ideas down on paper, or you may be writing one to show a potential financial backer to help get your startup off the ground.

Either way, after the service plan, what comes is creating (and growing) the actual business.

We have a lot of resources that can help you do this.

Depending on what type of courier service business you’re starting, we’d recommend you read these posts below:

• How to Grow a Courier Business
• The Best Delivery Software for Small Businesses (perfect for brick-and-mortar stores or eCommerce companies adding a delivery service to their existing business).
• How to Get Delivery Contracts
• How to Start a Delivery Business with Contract Drivers

And when it comes to optimizing your last-mile delivery operations, there’s Circuit .

You can use our route planner if you don’t need advanced features like proof of delivery or order tracking. If those features are important to your new business, then you can sign up for Circuit for Teams .

About the author

David is a content writer based out of Phoenix, Arizona. He has written for SaaS and e-commerce companies, as well as several mattress blogs. His work on sleep health has been featured on Today.com and Yahoo! Lifestyle.

More tips for growing your business

Ready to grow your delivery business?

Circuit for Teams makes it easy to optimize routes with multiple drivers – so you can focus on expanding your delivery operation.

Reduce your delivery costs by 20% with Circuit for Teams

• Customized onboarding
• Instant account setup
• Unlimited dispatchers and drivers
• Driver analytics
• Customer notifications
• Live track of delivery drivers
• Optimized routes
• Edit live routes

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Home » Sample Business Plans » Wholesale & Retail

How to Write a Grocery Delivery Business Plan [Sample Template]

Are you about starting a grocery home delivery service? If YES, here is a complete sample grocery delivery business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a grocery delivery business.

We also took it further by analyzing and drafting a sample grocery delivery service marketing plan template backed up by actionable guerrilla marketing ideas for grocery home delivery businesses. So let’s proceed to the business planning section.

Why Start a Grocery Delivery Service?

For sure it is challenging starting any business, but one business that you can start with minimal challenges is a grocery home delivery business. A grocery home delivery business is a business that involves helping your clients shop groceries and get it deliver to them in their homes.

With this type of business, you can choose to own a store if you have the financial capacity to or you can choose to operate without a store. The bottom line is that you should know how to source for groceries and how to get delivered to your customers.

The truth is that, starting a grocery home delivery business is a profitable business, it is very easy business to start and it is not so capital intensive. Getting the right products that people want to buy and good stock keeping records are the secrets of running a grocery home delivery business. A grocery home delivery business can be run offline from a conventional retail store or online on an online e-commerce retail site.

So, if you have decided to start a grocery home delivery business, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business in a location with the right demography and then hit the ground running.

Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business. Below is a sample grocery home delivery business plan template that can help you to successfully write your own with little or no hassle.

A Sample Grocery Delivery Service Business Plan Template

1. industry overview.

The Grocery stores industry, including grocery home delivery, and supermarkets, account for the largest share of food sales in the US. In 2013, grocery stores and grocery home delivery services accounted for 90 percent of the country’s food and beverage sales, while supermarkets accounted for 95 percent of the total grocery sales.

The food retail industry is a high-volume, low-margin business, with cutthroat competition from all quarters. It includes grocery stores, grocery home deliver services and supermarkets, as well as convenience stores.

The staples offered at these stores make the industry non-cyclical. In addition, grocery stores, grocery home delivery services and supermarkets offer an alternative to restaurants during tough economic times, as buying groceries for home cooking is one alternative.

Buying prepared foods, which are new higher-margin offerings at grocery stores cum grocery home delivery services, is an additional alternative to restaurants. However, offering new higher-margin items such as gourmet foods, prepared foods, and general merchandise is making this industry more cyclical than in the past, creating pressures on revenue during the recent economic downturn.

Small chains and independent grocers still dominate this industry, but national chains, such as Kroger, are increasingly growing in dominance. Mass merchants, such as Wal-Mart, are competing with grocery stores cum grocery home delivery services at their “supercenters” by offering lower prices through lower cost structures. Wal-Mart is now the world’s No. 1 seller of groceries.

Warehouse clubs, such as Costco and SAM’S CLUB ( owned by Wal-Mart ), can also compete on price by selling in large bulk. Supermarkets have responded to these threats by building larger “superstores” and also engaging in home delivery services.

The truth is that, conventional supermarkets are grocery stores with over $2 million in revenue, with average square feet of 15,000. Grocery stores that have less than $2 million in annual revenue sell almost entirely packaged and perishable goods, and are mostly independently owned.

Superstores are supermarkets with about 30,000 square feet, averaging $12 million in revenue. They often have an extended selection of food and nonfood items, with specialty departments such as florists, delis, bakeries, banking, pharmacy, and video rentals. Combination stores are hybrids of superstores and drugstores under one roof, with an average of 55,000 square feet.

The grocery stores cum grocery home delivery services industry ( supermarkets inclusive ) is a major sector of the economy of the united states which generates a whooping sum of well over 2 billion annually from more than 42,539 outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 2,624,650 people. Experts project the Supermarket and grocery industry to grow at a 1.4 percent annual rate. The establishment in this industry that has a dominant market share in the United States are; Albertson, Kroger and Publix Super Markets Inc.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption of which the supermarket and grocery stores industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / grocery stores industry negatively which may result in the closure of some supermarket / grocery stores.

In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located. Hence the increase of grocery home delivery businesses.

Over and above, grocery home delivery services business is indeed a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale without a store or you can chose to start on a large scale with standard Grocery Store and strong online presence.

2. Executive Summary

Gina Grocery Home Delivery Services®, LLC is a standard and registered grocery store business that will also be involved in home delivery services. Our grocery store will be located in one of the busiest streets in Trenton – New Jersey. We have been able to lease a facility that is big enough to fit into the design of the kind of grocery store that we intend launching and the facility is centrally located in the heart of town with easy delivery network.

Gina Grocery Home Delivery Services®, LLC will retail (home delivery services inclusive) a wide range of durable goods and non – durable goods at affordable prices from different brands. We will engage in retailing general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products et al. to our customers and also offer home delivery services.

We are aware that there are several large and small chains of supermarket / grocery store outlets all around Trenton that are also into home delivery services, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, strong online presence and our outlet is well secured with the various payments of options.

Beyond selling the goods and products of top brands in the manufacturing and food industry and also offering home delivery services, our customer care is going to be second to none in the whole of Trenton – New Jersey and our home deliveries will be timely and highly reliable.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products and also to become our loyal customers and ambassadors.

Gina Grocery Home Delivery Services®, LLC will ensure that all our customers are given first class treatment whenever they visit our grocery store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.

Gina Grocery Home Delivery Services®, LLC will at all times demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Gina Grocery Home Delivery Services®, LLC is a family business that is owned by Gina Jefferson and her immediate family members. Gina Jefferson has a B.Sc. in Business Administration, with well over 15 years of experience in the retailing / supermarket and grocery store industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Trenton – New Jersey, but there is a plan to expand our distribution network all across the state of New – Jersey.

3. Our Products and Services

Gina Grocery Home Delivery Services®, LLC is in the supermarket and grocery store industry to ensure that we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. Our products and services offerings are listed below;

• Home delivery of fruit and vegetables
• Home delivery of fresh and frozen meat
• Home delivery of dairy products
• Home delivery of beverages (including alcohol)
• Home delivery of frozen foods
• Home delivery of other food items
• Home delivery of other non-food items
• Home delivery of drugs and health products

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the grocery home delivery services line of business in the whole of Trenton – New Jersey.
• Our mission is to establish a grocery home delivery services business that will make available a wide range of goods and products from top manufacturing / production brands at affordable prices to the residence of Trenton and other cities in New Jersey where we intend marketing our services and products.

Our Business Structure

Gina Grocery Home Delivery Services®, LLC do not intend to start a grocery home delivery services business like the usual mom and pop business around the street corner; our intention of starting a grocery home delivery services business is to build a standard and one stop grocery store cum home delivery business in Trenton – New Jersey.

Although our grocery home delivery services business might not be as big as Albertson, Kroger or Publix Super Markets Inc., but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Gina Grocery Home Delivery Services®, LLC;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive
• Drivers / Distributors

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store/ Warehouse Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
• Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Control goods distribution and supply inventory
• Supervise the workforce in the grocery sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of groceries on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Distribution Truck Drivers

• Assists in loading and unloading groceries
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assist the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

Our intention of starting just one outlet of our grocery store on concentrate our home delivery services only within Trenton – New Jersey is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then start our home delivery services all around the state of New Jersey.

We are quite aware that there are several supermarket and grocery stores all over Trenton and even in the same location where we intend locating ours who also into home delivery services, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Gina Grocery Home Delivery Services®, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Gina Grocery Home Delivery Services®, LLC;

Our location, the business model we will be operating on (physical store and online store with robust home delivery network), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for Gina Grocery Home Delivery Services®, LLC.

A major weakness that may count against us is the fact that we are a new grocery home delivery services business and we don’t have the financial capacity to compete with multi – billion dollars supermarket and grocery store outlets like Albertson, Kroger, Publix Super Markets Inc. and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our grocery home delivery services business in one of the busiest streets with the right demography in Trenton – New Jersey provides us with unlimited opportunities to sell our groceries to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new supermarket, grocery store or retail outlet that are also into home delivery services as we do in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Supermarket and grocery store business has been in existence for as long as human started trading goods, but one thing is certain, the supermarket and grocery store industry is still evolving. The introduction of technology and subsequently homed delivery options, online grocery cum retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for supermarkets and grocery outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help supermarkets and grocery stores serve them better.

Another common trend in the supermarket and grocery store industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for supermarket and grocery stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable in elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99.99 and $199.99 et al as against $4, $100 and $200. Supermarkets and grocery stores also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Perhaps the supermarket and grocery store industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a supermarket or grocery store. It is difficult to find people around who don’t patronize supermarket and grocery stores.

In view of that, we have positioned our grocery home delivery services to service the residence of Trenton – New Jersey and every other location our grocery stores will be located all over the state of New Jersey. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to retail ( home delivery services inclusive ) a wide range of groceries to the following groups of people;

• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our competitive advantage

A close study of the supermarket and grocery store industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading supermarkets and grocery stores in Trenton – New Jersey.

Gina Grocery Home Delivery Services®, LLC is launching a standard grocery store cum grocery home delivery services business that will indeed become the preferred choice of residence of Trenton – New Jersey. Our grocery store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Trenton – New Jersey. We have enough parking spaces that can accommodate well over 30 cars per time.

One thing is certain; we will ensure that we have a wide range of products available in our grocery store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goals is to make Gina Grocery Home Delivery Services®, LLC a one stop shop.

Our excellent customer service culture, timely and reliable home delivery services, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups supermarkets and grocery stores / grocery home delivery services businesses) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Gina Grocery Home Delivery Services®, LLC is in business to retail (home delivery services inclusive) a wide range of groceries to the residence of Trenton – New Jersey. We are in the supermarket and grocery industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing (home delivery services inclusive) of a wide range of durable goods and non – durable goods at affordable prices. We will retail groceries such as;

• Fruit and vegetables
• Fresh and frozen meat
• Dairy products
• Beverages (including alcohol)
• Frozen foods
• Other food items
• Other non-food items
• Drugs and health products

10. Sales Forecast

One thing is certain when it comes to supermarkets and grocery stores, if your store is well stocked and centrally positioned coupled with effective and reliable home delivery services, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the supermarket and grocery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Trenton – New Jersey.

Below are the sales projections for Gina Grocery Home Delivery Services®, LLC, it is based on the location of our business and other factors as it relates to supermarkets and grocery stores start – ups in the United States;

• First Fiscal Year-: $120,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $650,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, home delivery services and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Gina Grocery Home Delivery Services®, LLC, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Trenton – New Jersey. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the supermarket and grocery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Trenton.

In other to continue to be in business and grow, we must continue to sell the groceries that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Gina Grocery Home Delivery Services®, LLC will adopt the following sales and marketing approach to win customers over;

• Open our grocery store cum grocery home delivery services business in a grand style with a party for all.
• Introduce our grocery home delivery services business by sending introductory letters alongside our brochure to organizations, households and key stake holders in Trenton – New Jersey
• Ensure that we have a wide range of groceries from different brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our grocery store
• Position our signage / flexi banners at strategic places around Trenton – New Jersey
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our grocery home delivery services business.

11. Publicity and Advertising Strategy

Despite the fact that our grocery store cum grocery home delivery services business is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our grocery home delivery services business.

Gina Grocery Home Delivery Services®, LLC has a long term plan of opening expanding our home delivery services all around New Jersey which is why we will deliberately build our brand to be well accepted in Trenton before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand.

Here are the platforms we intend leveraging on to promote and advertise Gina Grocery Home Delivery Services®, LLC;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Trenton – New Jersey
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Gina Grocery Home Delivery Services®, LLC and the products we sell
• Advertise our grocery home delivery services business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and distribution vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to supermarkets and grocery stores, it is normal for consumers to go to places (retail outlets) where they can groceries at cheaper price which is why big player in the supermarket and grocery industry like Albertson, Kroger and Publix Super Markets Inc. will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Albertson, Kroger and Publix Super Markets Inc., but we will ensure that the prices of all the groceries that are available in our store are competitive with what is obtainable amongst supermarkets and grocery stores within our level.

We also have plans in place to discount our groceries and home delivery services once in a while and also to reward our loyal customers from time to time.

• Payment Options

The payment policy adopted by Gina Grocery Home Delivery Services®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Gina Grocery Home Delivery Services®, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via POS machines
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a grocery store cum grocery home delivery services business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Gina Grocery Home Delivery Services®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of groceries) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost for the purchase of delivery vans – $25,000
• The cost of Launching a Website –   $600
• The cost for our opening party –   $7,000
• Miscellaneous –   $10,000

We would need an estimate of $500,000 to successfully set up our grocery store cum grocery home deliver services business in Trenton – New Jersey. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Gina Grocery Home Delivery Services®, LLC

Gina Grocery Home Delivery Services®, LLC is a private business that is solely owned and financed by Gina Jefferson and her immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Gina Grocery Home Delivery Services®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our groceries a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Gina Grocery Home Delivery Services®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Purchase of distribution vans: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our grocery store: Completed
• Establishing business relationship with vendors – suppliers of groceries: In Progress

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How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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Courier Company Business Plan Template

SEPT.08, 2021

Courier Company business plan for starting your own business

As long as the earth is populated by humans, they will send and receive things and that means the courier business has a very low probability of going into loss. If you are going to start your own business, the first thing that you need is a bunch of business plan delivery service s that can give you an idea of how the business works and what is needed to start it. This article will tell you in sheer detail how to write a courier business plan but first you need to know what is a courier service business. Once you know that, creating a franchise business plan will be child’s play for you.

Executive Summary

2.1 the business.

Damian Courier Services (DCS) will be a registered courier services provider in Dallas, Texas. The business will cater to the needs of anyone who wants to send something on any point on the planet earth and if humanity expands to Mars, an express delivery service will be started for the red planet as well.

2.2 Management of Courier Company

Management is the cornerstone of any courier services business plan as no business on earth (or Mars) can be successful without proper management. If you want to know how to start courier service, you need to have a proper management structure for the business in your mind even before you start it.

In this courier service business plan, the management will be headed by the owner of the business. They will hire to manage various aspects of the business plan delivery service . Management structure is also important for creating a business plan for a bank loan . This management structure will be closely related to the one we saw in business plan for a Mexican restaurant .

2.3 Customers of Courier Company

The next thing that we need to discuss are the customers that the business plan delivery service will be serving. It is important to know the customers as only then we can see how the business will be run. The main customers of the business will be the following:

• Privat customers who want to send letters.
• Businesses that want the service for their business plan delivery service .
• Ecommerce companies.
• Online stores.

2.4 Business Target

DCS is being started with the target of making life easier for the people of Dallas. It has been noted that the city lacks good courier service that are direly needed. The business plan delivery service aims to bridge the gap as best possible. The target will be broken down into the following:

• Establishing a credible and dependable brand.
• Providing best services in the sector.
• Maintaining 100% customer satisfaction.
• Charging better rates than any of the competitors.

Company Summary

3.1 company owner.

The owner of this courier company business plan will be Damian Johansson. Damian has worked as a delivery boy for Pizza Hut for a long time and knows the method and importance of taking things from one place to the other.

3.2 Why the Courier Company is being started?

When Damian was asked why you are starting your own business plan delivery service , he said that he always wanted to employ someone as his delivery boy and treat them better than the way his employers treated him when he was in that place. Now, that there is a lot of potential in the business and he has the resources to pull this off, Damian is starting a courier business of his own, just because he can.

3.3 How the Courier Company will be started?

It might seem like starting courier service business is simple but it is not. You need to complete the courier franchise business plan before you can start the business plan delivery service and run it the right way. Here’s how this business will be started.

Step1: Market Need Analysis  

The most important thing to do in order to start this business is to run a market need analysis to determine the magnitude of business that we will be handling. This is the most important step as all the next steps depend on this. Once the market need is analyzed the right way, you can move on to the next arrangements to make the business a reality.

Step2: Signing Contract with Bulk Carriers  

As the courier services company is being started from a lower level, it will not have the infrastructure or resources to deliver the couriers to the world. For that, contracts will be signed with larger courier service providers to carry our mail.

Step3: Establishing the Outlet    

Once the company signs the contract with bulk carriers, the next step will be to establish an office or outlet from where the business will be run. We will open an office in downtown where many of the ecommerce companies and businesses are located.

Step4: Online Presence

Most of the customers search for courier services online and that makes having a website and online presence immensely important for the business plan delivery service . We will make a website and will optimize it for search engines so that we can reach the most customers.

Step5: Marketing

After completing all that, we will run a comprehensive marketing campaign to reach the customers and to make DCS known to the public of the area.

The next important thing in the courier company business plan pdf is the decision of the services that the company is going to provide. As there can be a lot of different services that a courier services company can offer, we need to narrow down the ones we will be focusing on before starting a business plan delivery service from home. This part of this courier company business plan gives you an idea of the services that you can provide. You can expand on this to add more services to your portfolio.

Nationwide Courier

This service will be aimed at sending parcels and letters to any location in the USA.

International Courier

All kinds of couriers will be sent to destinations across the globe under this service.

One-Day Global Delivery

This will be the flagship service of DCS, ensuring the delivery of any package up to 5kg anywhere in the world within 24 hours.

Cash on Delivery Service

For ecommerce service providers and online businesses, we will provide this service where they can send their products to customers, and we will collect the price.

Marketing Analysis of Courier Company

Great service.

Great service. Good turnaround time and quality work. Thanks!

If you are starting a courier service company, you need to run a complete marketing analysis of the business to make it successful. This is not a grocery store business plan and the factors at play here are far greater, often of global magnitude. If you want that your courier startup business plan delivery service is successful, it is important that you keep an eye on all the variables of the market.

5.1 Market Trends

Before opening a courier service, it is important to have a look at the market trends of the business you are about to enter. Just like the case with an airline business plan any person or company starting a business plan delivery service without having a look at the market trends of the industry fails miserably. The trend of courier business has gone down because of the widespread use of internet to send documents rather than mail.

5.2 Marketing Segmentation

Having an idea of the expected marketing segmentation is also one of the most important parts pf any sample business plan for a courier service. Here is the market segmentation that will be facing DCS:

UK Start-Up Visa Business Plan

5.2.1 private customers.

People who want to send letters and parcels will make a significant market segment for us.

5.2.2 Ecommerce Platforms

Ecommerce websites operating from Dallas will be a market segment. We will offer them national, global, and same-day services.

5.2.3 Business Customers

Businesses in the area that require to send/receive mail will also be a part of our market segments.

5.2.4 Online Stores

These will also be one of the largest market segments for the business.

5.3 Business Target

• To establish a credible name in the courier industry.
• To improve the state of courier services in the area.
• To make as much money as possible.
• To expand to other cities.

5.4 Product Pricing

The services of DCS will be priced at the average of what other service providers charge in the area. We will charge the same but will offer better services to make as much profits as possible.

Marketing Strategy

, , courier service proposal sample, examples of courier service

If you want to start an independent business plan delivery service , the first thing that you need to do is to make a marketing strategy for the business. No business on earth can be successful without one. If you want to know how to start your own courier service for food delivery, you need a food delivery service business plan . Once you have that, you can very easily start your own business plan delivery service and turn massive profits.

You need to run competitive analysis and make a strategy to make your subscription box business plan a success.

6.1 Competitive Analysis

• People are not happy at all with the courier services being provided in the area.
• The courier service providers in the area charge too much money and do not offer the services that are good enough for the cost they quote.
• Most people have to go to other cities to post their letters and parcels.

6.2 Sales Strategy

• DCS will provide excellent courier services to all customers to make sure that everyone gets what they want.
• DCS will provide service to all areas of the world so that no one needs to go to any other service provider.
• DCS will offer discounts to bulk and repeat customers.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

Second to last thing that is important in making any courier business ideas a reality is the plan of the staff needed to make it happen. If you take a closer look a the courier service business model, you can notice that this is more of a services business plan delivery service than a products one. Such businesses, naturally, tend to be more labor intensive and cannot be run with efficiency without adequate staff.

7.1 Company Staff

The following people will be needed to run DCS:

• Damian Johansson will be the owner and CEO of the business.
• 3 managers for procurement, operations and marketing.
• 2 courier bookers.
• 3 Delivery drivers.
• 2 Office workers.
• 1 reception clerk.
• 1 Accountant.

7.2 Average Salary of Employees

Financial plan.

The best approach is to look for a courier business for sale. However, if you cannot find that or just want to start one from scratch, you need to have an idea of the finances that will be involved in starting the business plan delivery service . Just like an organic restaurant business plan , the business is not a very finance intensive one and you can start it with a little capital. Here is an idea of the finances that will be involved in starting the business:

• Money needed to make the office.
• The cost of computers and other equipment needed.
• The salary of employees.
• The cost of buying delivery vehicles.
• Bonds, securities, insurance, and registration costs.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Courier Company Business Plan Template in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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8 Business Plan Templates You Can Get for Free

8 min. read

Updated April 10, 2024

A business plan template can be an excellent tool to simplify the creation of your business plan. 

The pre-set structure helps you organize ideas, covers all critical business information, and saves you time and effort on formatting.

The only issue? There are SO many free business plan templates out there. 

So, which ones are actually worth using? 

To help remove the guesswork, I’ve rounded up some of the best business plan templates you can access right now. 

These are listed in no particular order, and each has its benefits and drawbacks.

What to look for in a business plan template

Not all business plan templates are created equal. As you weigh your options and decide which template(s) you’ll use, be sure to review them with the following criteria in mind:

• Easy to edit: A template should save you time. That won’t be the case if you have to fuss around figuring out how to edit the document, or even worse, it doesn’t allow you to edit at all.
• Contains the right sections: A good template should cover all essential sections of a business plan , including the executive summary, product/service description, market/competitive analysis, marketing and sales plan, operations, milestones, and financial projections. 
• Provides guidance: You should be able to trust that the information in a template is accurate. That means the organization or person who created the template is highly credible, known for producing useful resources, and ideally has some entrepreneurial experience.
• Software compatibility: Lastly, you want any template to be compatible with the software platforms you use. More than likely, this means it’s available in Microsoft Word, Google Docs, or PDF format at a minimum. 

1. Bplans — A plan with expert guidance

Since you’re already on Bplans, I have to first mention the templates that we have available. 

Our traditional and one-page templates were created by entrepreneurs and business owners with over 80 years of collective planning experience. We revisit and update them annually to ensure they are approachable, thorough, and aligned with our team’s evolving best practices.  

The templates, available in Word, PDF, or Google Doc formats, include in-depth guidance on what to include in each section, expert tips, and links to additional resources. 

Plus, we have over 550 real-world sample business plans you can use for guidance when filling out your template.

Download: Traditional lender-ready business plan template or a simple one-page plan template .

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2. SBA — Introduction to business plans

The U.S. Small Business Administration (SBA) offers two different business plan templates along with a short planning guide. 

While not incredibly in-depth, it’s enough to help you understand how traditional and lean plans are structured and what information needs to be covered. The templates themselves are more like examples, providing you with a finished product to reference as you write your plan.

The key benefit of using these templates is that they were created by the SBA. While they may provide less guidance, you can be assured that the information and structure meet their expectations.

Explore: The SBA’s planning guide and free templates

3. SCORE — Planning workbook

SCORE’s template is more like a workbook. It includes exercises after each section to help you get your ideas down and turn them into a structured plan.

The market research worksheets are especially useful. They provide a clear framework for identifying your target market and analyzing competitors from multiple angles. Plus, they give you an easy way to document all the information you’re collecting.

You will likely have to remove the exercises in this template to make it investor-ready. But it can be worth it if you’re struggling to get past a blank page and want a more interactive planning method.

Download: SCORE’s business plan template

4. PandaDoc — A template with fillable forms

PandaDoc’s library offers a variety of industry-specific business plan templates that feature a modern design flair and concise instructions. 

These templates are designed for sharing. They include fillable fields and sections for non-disclosure agreements, which may be necessary when sending a plan to investors.  

But the real benefit is their compatibility with PandaDoc’s platform. Yes, they are free, but if you’re a PandaDoc subscriber, you’ll have far more customization options. 

Out of all their templates, the standard business plan template is the most in-depth. The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry.

Explore: PandaDoc’s business plan template library  

5. Canva — Pitch with your plan

Canva is a great option for building a visually stunning business plan that can be used as a pitch tool. It offers a diverse array of templates built by their in-house team and the larger creative community, meaning the number of options constantly grows.

You will need to verify that the information in the template you choose matches the standard structure of a traditional business plan. 

You should do this with any template, but it’s especially important with any tool that accepts community submissions. While they are likely reviewed and approved, there may still be errors.

Remember, you can only edit these templates within Canva. Luckily, you only need a free subscription, and you may just miss out on some of the visual assets being used. 

To get the most value, it may be best to create a more traditional planning document and transfer that information into Canva. 

Explore: Canva’s business plan gallery

6. ClickUp — The collaborative template

Out of all the project management tools that offer free business plan templates, ClickUp’s is the most approachable.

Rather than throwing you into all the features and expecting you to figure it out—ClickUp provides a thorough startup guide with resource links, images, and videos explaining how to write a plan using the tool. 

There’s also a completed sample plan (structured like an expanded one-page plan) for you to reference and see how the more traditional document can connect to the product management features. You can set goals, target dates, leave comments, and even assign tasks to someone else on your team. 

These features are limited to the ClickUp platform and will not be useful for everyone. They will likely get in the way of writing a plan you can easily share with lenders or investors. 

But this is a great option if you’re looking for a template that makes internal collaboration more fluid and keeps all your information in one place.

Sign Up: Get a free trial of ClickUp and explore their template library

7. Smartsheet — A wide variety of templates

I’m including Smartsheet’s library of templates on this list because of the sheer number of options they provide. 

They have a simple business plan template, a one-page plan, a fill-in-the-blank template, a plan outline, a plan grading rubric, and even an Excel-built project plan. All are perfectly usable and vary in visual style, depth of instructions, and the available format.

Honestly, the only drawback (which is also the core benefit) is that the amount of templates can be overwhelming. If you’re already uncertain which plan option is right for you, the lengthy list they provide may not provide much clarity.

At the same time, it can be a great resource if you want a one-stop shop to view multiple plan types.

Explore: Smartsheet’s business plan template library  

8. ReferralRock affiliate marketing business plan

I’m adding ReferralRock’s template to this list due to its specificity. 

It’s not your standard business plan template. The plan is tailored with specific sections and guidance around launching an affiliate marketing business. 

Most of the template is dedicated to defining how to choose affiliates, set commissions, create legal agreements, and track performance.

So, if you plan on starting an affiliate marketing business or program, this template will provide more specific guidance. Just know that you will likely need to reference additional resources when writing the non-industry sections of your plan.

Download: ReferralRock affiliate marketing business plan template

Does it matter what business plan template you use?

The short answer is no. As long as the structure is correct, it saves you time, and it helps you write your business plan , then any template will work. 

What it ultimately comes down to, is what sort of value you hope to get from the template. 

• Do you need more guidance? 
• A simple way to structure your plan? 
• An option that works with a specific tool?
• A way to make your plan more visually interesting?

Hopefully, this list has helped you hone in on an option that meets one (or several) of these needs. Still, it may be worth downloading a few of these templates to determine the right fit. 

And really, what matters most is that you spend time writing a business plan . It will help you avoid early mistakes, determine if you have a viable business, and fully consider what it will take to get up and running. 

If you need additional guidance, check out our library of planning resources . We cover everything from plan formats , to how to write a business plan, and even how to use it as a management tool . 

If you don’t want to waste time researching other templates, you can download our one-page or traditional business plan template and jump right into the planning process.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• Qualities of a good template
• ReferralRock
• Does the template matter?

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23+ SAMPLE Service Delivery Plans in PDF | MS Word

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• be used by the Department of Health to help decide whether to establish an MPS
• help you manage your service
• generally, cover a 3-year period
• Clear explainers of the IT services you as a company will be providing for the client.
• Blueprints for the roles and responsibilities of clients (those who pay for the services), users (those who use the services), and service providers.
• Guides that address in great detail the expectations of service quality, availability, and timeliness.
• Every single part of the process should be custom-tailored to the client’s specific business needs and budget.
• On-Demand Delivery
• Scheduled On-Demand Delivery
• The Ice-Cream Truck Model
• Self Pick-Up
• Full Transparency
• Define your Best and Worst Performing Service, and Optimize for Quality
• Detailed Onboarding
• Explain the service in great detail
• Define levels of service needed to support the agreed-upon processes
• Make the client acknowledge level of service and agree on all of its steps
• Outline the costs for the service
• Good computer skills and the ability to use business support software .
• Expert knowledge of ITIL disciplines
• Managing company budget and finances
• Ability to manage conflict and offer suitable resolutions
• Strong customer service, project management, and quality control skills.
• Resource planning skills
• Experience of managing 3rd parties and 3rd party delivered services
• Conflict management and resolution
• Keen sense of time management
• Excellent leadership and customer service skills.
• Strong teamwork skills and attention to detail.
• Excellent written and verbal communication skills
• Willingness to support and mentor junior staff
• Able to manage sensitive and sometimes confidential information
• Self-motivation and able to take responsibility
• Service delivery
• Meeting support
• Technical service
• Performance and quality
• In order to improve on your company service delivery, the following steps should be taken:
• Improve the system of communication.
• Set rules of service management.
• Use new forms of technology.
• Increase opportunity of employment in the field.
• Improve system of management in the service department.

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10 Simple Tips to Write a Successful Business Plan

"The absolute biggest business plan mistake you can make is to not plan at all." So writes Noah Parsons in his helpful blog post 17 Key Business Plan Mistakes to Avoid in 2023 . But how does one pull together all of the necessary components of a cohesive plan? It can feel overwhelming.

Eric Butow, CEO of online marketing ROI improvement firm Butow Communications Group, has teamed up with Entrepreneur Media to update the second edition of our best-selling book Write Your Business Plan to provide you with a simple, step-by-step process for creating a successful business plan. In the following excerpt, he gives ten tips to gather all of the critical information you will need to succeed.

1. Know your competition.

You need to name them and point out what makes you different from (and better than) each of them. But do not disparage your competition.

2. Know your audience.

You may need several versions of your business plan. For example, you may need one for bankers or venture capitalists, one for individual investors, and one for companies that may want to do a joint venture with you rather than fund you.

3. Have proof to back up every claim you make.

If you expect to be the leader in your field in six months, you have to say why you think that is. If you say your product will take the market by storm, you have to support this statement with facts. If you say your management team is fully qualified to make the business a success, be sure staff resumes demonstrate their experience.

Order Write Your Own Business Plan Now and Get 1 Month of Free Access to Business Planning Software Liveplan Premium

• Easy step-by-step business plan generator
• Built-in financial calculators
• 500+ sample plans and templates

4. Be conservative in all financial estimates and projections.

If you feel certain you'll capture 50 percent of the market in the first year, you can say why you think so and hint at what those numbers may be. But make your financial projections more conservative. For example, a 10 percent market share is much more credible.

5. Be realistic with time and resources available.

If you're working with a big company before you buy a business, you may think things will happen faster than they will once you have to buy the supplies, write the checks, and answer the phones yourself. Being overly optimistic with time and resources is a common error entrepreneurs make. Being realistic is important because it lends credibility to your presentation. Always assume things will take 20 percent longer than you anticipated. Therefore, twenty weeks is now twenty-four weeks.

6. Be logical.

Think like a banker and write what they would want to see.

7. Have a strong management team.

Make sure it has good credentials and expertise. Your team members don't have to have worked in the field. However, you need to draw parallels between what they've done and the skills needed to make your venture succeed. Don't have all the skills you need? Consider adding an advisory board of people skilled in your field and include their resumes.

Write Your Own Business Plan is available now at Entrepreneur Bookstore | Barnes & Noble | Amazon

8. Document why your idea will work.

Have others done something similar that was successful? Have you made a prototype? Include all the variables that can have an impact on the result or outcome of your idea. Show why some of the variables don't apply to your situation or explain how you intend to overcome them or make them better.

9. Describe your facilities and location for performing the work.

That includes equipment you use to create your products and/or services. If you'll need to expand, discuss when, where, and why.

10. Discuss payout options for the investors.

Some investors want a hands-on role. Some want to put associates on your board of directors. Some don't want to be involved in day-to-day activities at all. All investors want to know when they can get their money back and at what rate of return. Most want out within three to five years. Provide a brief description of options for investors, or at least mention that you're ready to discuss options with any serious prospect.

To dig deeper, buy Write Your Own Business Plan and get 1 month of free access to business planning software Liveplan Premium.

Money latest: American Express announces two big changes to credit card

Two changes to British Airways credit cards - which help customers collect Avios points towards flights - are coming. Read about this and the rest of today's consumer and personal finance news in the Money blog, and tell us your thoughts on any of the stories we cover in the form below.

Friday 12 April 2024 20:00, UK

• UK economy grows slightly for second month in a row
• American Express announces two big changes to British Airways credit cards
• How your neighbour's garden could wipe up to £57,000 from your house price
• At what age do you reach peak earnings?
• Prescription costs are rising - here's how to beat the hike
• Authentic or Greek-style? Your guide to getting healthier yoghurt for less
• 'WTF is going on with the price of olive oil?'
• Could I build a home gym for less than my gym membership?
• Basically...  Tax codes
• Cheap Eats : Great British Menu legend shares ultimate toastie recipe

Ask a question or make a comment

By  Sarah Taaffe-Maguire , business reporter

Poor software and bias toward making only small, sequential changes is one of the reasons economic forecasters at the Bank of England failed to predict and prepare for the cost of living crisis, brought about by high inflation, according to a "once in a generation" review.

The review announced last year was undertaken by the former head of the US central bank, known as the Fed, and said the quality of the Bank's economic expectations "deteriorated significantly in the past few years" due to out of date software and "excessive incrementalism".

Though the "unusually large forecasting errors" were said to be "probably inevitable", according to the review, conducted by Dr Ben Bernanke.

The problem was not unique to the Bank, rather something all central banks and private forecasters suffered from, it said.

Read the full story here...

After the UK airports with the worst delays were revealed earlier today (see post at 1.15pm), we've been looking at your rights.

If you're unlucky enough to get stuck at an airport due to a flight delay, you may wonder if you're entitled to any compensation.

The good news is you may be - in certain circumstances.

First, it's important to know what flights are covered by consumer law. These are: 

• Any flight leaving a UK airport
• Flights operated by a UK/EU airline arriving at a UK airport
• Flights operated by a UK airline only arriving at an EU airport

When will I be entitled to help? 

You'll qualify for support if a short-haul flight under 932 miles (1,500km) is pushed back by two hours. 

This rises to three hours for journeys up to 2,175 miles (3,500km).

For long-haul flights going any further than this, four hours or longer counts as a significant delay.

What support will I get?

Under UK law, airlines must give passengers who are affected by a delay of at least two hours:

• A reasonable amount of food and drink (usually provided in the form of vouchers)
• Refunds for the cost of two free phone calls, faxes or emails
• Accommodation for passengers stranded overnight (usually in a nearby hotel)
• Transport to a hotel - or their home

Will I get compensation?

Usually, airlines have to provide compensation if a person's flight arrives more than three hours late.

The exception to this is when there are air traffic control problems or extreme weather, as these issues aren't their fault.

If you agree to travel on a later flight, the airline is no longer obliged to offer food, drink or accommodation while you wait.

Thankfully, you are entitled to a full refund if you decide to abandon your journey after five hours of delays.

The length of your flight affects how much you are entitled to:

• Short-haul flight - £220
• Medium-haul flight - £350
• Long-haul flight - £520 if the flight arrived more than four hours late, £260 for a delay of between three to four hours

What if I'm about to travel?

Transfer passengers who end up missing a connecting flight because their first plane was delayed are entitled to a service back to their original departure point.

But things get a little more complicated for passengers on package holidays - especially if they decide not to travel on a delayed outbound flight.

The CAA's guidance says: "You may lose your holiday too, so we recommend you contact your package organiser or the airline for further information.

"If you still want to travel then your airline must get you to your destination. You might have to be patient while they rearrange transport and rebook passengers, but the law says they must get you there."

What if my flight is cancelled? 

You're entitled to a refund or replacement flight if yours is cancelled. Your rights to assistance are the same as if your flight is delayed.

If the reason for the cancellation was within the airline's control, and it was made with no more than 14 days' notice, then depending on the timings of the new flight offered you could also be entitled to compensation.

You'll be able to claim £110 and £520 depending on the length of the route and timings of the new flight.

Drivers are still feeling the strain of rising insurance premiums - but there are signs of a slowdown, according to one index.

New figures from insights firm Consumer Intelligence suggest the average quoted price of car insurance rose by 56.4% in the year to February.

This was the third-highest annual increase since its records began in 2012 - but in slightly better news for motorists, it marked a lower annual rise than the 67.2% recorded in November.

And there was only a slight rise of 0.5% when looking at the three months to February - the lowest quarterly increased since November 2021.

Drivers most commonly received a quote between £500 and £749 in February, Consumer Intelligence said. It analysed the average of the five cheapest offers from price comparison websites.

Max Thompson, the firm's insurance insight manager, said big insurance brands made "competitive movements" to reduce premiums at the start of the year.

"However, some of this was unwound in February indicating it may have been more of a tactical move than a long-term trend," he added.

Jonathan Fong, manager of general insurance policy at the Association of British Insurers, said insurers were "aware of the financial challenges customers are facing" and were working to keep prices affordable.

"Our motor premium tracker is the only collection based on the price customers pay for their policy, rather than quotes, and shows that the average motor premium increased by 25% last year to £543.

"This was largely driven by above inflation increases in the cost of repairs, thefts and replacement cars."

The Abu Dhabi-backed vehicle that had been on the brink of buying The Daily Telegraph is in detailed talks with Whitehall officials about the structure of an onward sale of the newspaper. 

Sky News has learnt that RedBird IMI is negotiating with the Department for Culture, Media and Sport about whether it can convert a call option which constitutes the right to take ownership of the Telegraph and Spectator into shares in the assets prior to their purchase by a new owner.

Read the exclusive story by our City editor Mark Kleinman ...

The telecoms entrepreneur who turned Daisy Group into one of the industry's most successful private companies is closing in on the latest in a string of significant takeover deals.

Matthew Riley, Daisy's chairman, has orchestrated a £215m deal to acquire 4Com , a provider of cloud communications services to more than 17,000 corporate customers, Sky News understands.

City sources said the deal was expected to be signed within days and was likely to hand 4Com founder Daron Hutt a windfall worth more than £100m.

Read the full story here ...

The Financial Conduct Authority has told motor finance firms they need to put funds aside as it continues a probe into the sector.

The City regulator also said many firms are "struggling to promptly provide the data we need" for the investigation.

A review was launched by the FCA earlier this year into whether people could be owed compensation for being charged too much for car loans, following a high number of complaints on historic agreements.

American Express has announced two major changes to its British Airways credit cards which help customers collect Avios points towards flights.

From November, the amount that BA Amex and BA Amex Premium Plus card holders will need to spend every year to get "two-for-one" companion vouchers will rise to £15,000.

That's a £3,000 rise in the minimum annual spend for Amex customers and £5,000 for Amex Premium Plus.

The companion vouchers mean customers can grab a second seat for someone travelling on the same flight, or a 50% discount on the Avios price of a solo flight.

That's not the only change, however, as American Express is also hiking the annual fee for its Amex Premium Plus card from £250 to £300 - an inflation-busting 20% increase.

The fee increase applies from today for new applicants. Existing cardholders will be hit with the rise for renewals from 1 August onwards.

Meanwhile, the US bank said the qualifying spend for companion vouchers will start from 1 November regardless of when membership is renewed.

That means some current customers may need to race to hit the lower minimum spend by 31 October.

American Express told consumer champion Which? that it occasionally makes changes to cardholders' account terms. A spokesperson said the companion voucher "remains an industry-leading credit card benefit", while both cards "continue to provide great value for customers".

Greece has announced a scheme to give "free" holidays to tourists affected by the wildfires that ravaged Rhodes last summer.

More than 20,000 tourists and locals were forced to flee homes and seaside hotels after blazes fanned by strong winds broke out on the island and burned for days in July 2023.

Greek Prime Minister Kyriakos Mitsotakis vowed  last year to offer a one-week free holiday in Rhodes to those whose holidays were cut short.

The country's government has now officially launched the "Rodos Week" scheme, which offers an e-voucher of between €300 and €500 compensation for a week's stay.

The general secretary of Greece's tourism ministry  told  The Guardian that it has been a "very complicated process not least, I think, because we’re the first country in the world to do this".

The amount holidaymakers can claim depends on the rank of the hotel they were originally staying in.

E-vouchers can be claimed during two phases: between now and May 31, and from 10 October to 11 November.

Only those who stayed in hotels are eligible for the scheme, the government said, with Airbnb accommodation excluded.

Yannis Papavasiliou, head of the island's union of hoteliers, said there has been good take up already with over 5,000 holidaymakers enrolling, according to The Guardian.

The airport where you're likely to face the longest delays has been revealed as one of the UK's biggest.

London Gatwick replaced Birmingham to top the list for 2023, with its departures nearly 27 minutes behind schedule, according to Civil Aviation Authority (CAA) data.

The West Sussex airport, the second-busiest in the UK behind Heathrow, was hit by air traffic control shortages across Europe last year and also had similar problems in its control tower.

In a statement, Gatwick said it was "working closely with our airline partners to improve on-time performance".

"The majority of cancellations are caused by poor weather, airspace constraints across Europe and inefficient third party ground operations," it said.

Luton airport followed with an average delay of almost 23 minutes, while Manchester took third place at nearly 22 minutes.

In contrast, holidaymakers flying from Belfast City (George Best) had the best experience, with the typical delay there just 12-and-a-half minutes in 2023.

Across all airports, the average delay was almost 20 minutes and 42 seconds - though this fell from 23 minutes and 12 seconds the previous year amid a boom in travel after the pandemic.

CAA director Tim Johnson said the aviation sector needed to "focus on resilience" before summer comes to "keep passenger disruption to a minimum".

All scheduled and chartered departures from UK airports with at least 1,000 outbound flights were included in the analysis, with cancellations excluded.

Naomi Leach, deputy editor of Which? Travel, said the latest figures point to "millions of passengers" experiencing "unacceptably long hold-ups last year".

"This cannot be allowed to become the new normal."

But the Airport Operators Association argued that data doesn't show "any of the context around operating in a global environment".

"Airports work extremely hard to minimise delays while providing a positive, safe and secure experience for passengers," it said.

We've all heard consumer advice that's repeated so often it almost becomes cliché. So, every Friday the Money team will get to the bottom of a different "fact" and decide whether it's a myth or must.

This week it is...

'You can't get a mortgage with a bad credit rating'

Just how important is keeping on top of your credit score when it comes to buying a home?

For this one, we've got the help of  Emma Steeley , chief executive at borrowing platform Aro. 

"The honest answer is that a bad credit rating can stop you from getting a mortgage, and a poor rating can throw some serious hurdles in your path," Emma says. 

"Despite this, it's not the end of the road if your credit rating isn't as rosy as you'd like it to be."

What counts as a bad credit score?

"In the worst-case scenario, this will likely mean you've defaulted on or missed payments, and debt has been escalated to the stage where legal action has been initiated," Emma says. 

An applicant left with a credit score below 325 is considered "poor" or even "very poor" by Equifax. 

A game of risk for lenders

Before we talk about what your credit score will do to an offer rate, it's important to understand the impact that the loan-to-value (LTV) ratio can have on this too, as it heavily influences the interest rate offered by lenders.

Your LTV ratio is used by lenders to decide how risky it is to lend you the money to buy your home. It compares how much of the property you will own - ie, how much deposit you can put down in relation to the property’s value - to how much they will need to lend to you to make up the difference.

"The lower your LTV ratio, the better the mortgage rate you're likely to be offered - the higher the LTV, the higher the risk for the lender," Emma says. 

"A higher credit score can help mitigate the impact of a high LTV, potentially resulting in a more favourable interest rate."

What to do if you have a poor credit score

The obvious answer here is to try to improve your credit score, by building your file with credit builder loans and/or secured cards.

"While the options may be limited and less favourable for those with 'poor' credit scores, they do exist," Emma says. 

Those are usually longer or more expensive deals, however. 

The good news is most lenders don't solely use credit scores as a measure of creditworthiness. 

"Best practice will see lenders using a blended scorecard, that overlays behavioural data and back book financial performance with credit data to get a much more accurate assessment of an individual's payback ability," Emma says. 

However, for people with a "very poor" rating (below 226, according to Equifax), the number of offers you are likely to receive shrinks to almost zero.

Myth or must?

It's undeniable that a good credit score gives you more flexibility when it comes to getting a mortgage. 

"Importantly, credit scores can be improved," Emma says. 

"Those who take a proactive approach to managing their finances and understand how to rebuild their credit score will find themselves presented with a wider array of loan options."

A good credit score is a money must. 

Messy neighbours can slash tens of thousands of pounds off the value of your home, according to new research.

A survey of estate agents by Churchill Home Insurance found that more than four in five (82%) believe it's important for homeowners to chat to their neighbours about their poorly maintained property before putting the house on the market.

Some 22% said an overgrown garden is likely to have the biggest impact, while 20% said rubbish or junk in the driveway or front garden could affect the cost.

Overflowing gutters (20%), several cars parked on or around the property (19%) and garden ornaments and statues (18%) also cut the value of neighbouring homes, estate agents said.

The research also revealed that some sellers deliberately time viewings to make their houses seem more attractive, avoiding issues next door such as loud music or pets - or even avoiding the neighbours altogether.

Sarah Khan, head of Churchill home insurance, said: "First impressions count when it comes to selling homes, with the sale price often negatively impacted when the neighbouring property looks scruffy.

"Investing a few hundred pounds in a gardener to tidy up next door's front garden could pay huge dividends when it comes to selling your home, a win-win for both you and your neighbour." 

What do estate agents say? 

We spoke to people in the industry about the risk of having messy neighbours when it comes to moving - and what their advice is for those seeking to avoid any effect on their sale.

James Stevenson, south and south west area director at Foxtons,  agrees it can make the process more difficult.

"Gardens that are unkept or full of clutter, pavements and frontages that have fallen into disrepair or where your neighbours are showing little care for their property are all a negative flag for buyers," he said.

"Additionally, any disruption that has become a neighbourly dispute must be declared to prospective buyers, so it's always better to have a great relationship with your neighbours and try to resolve any existing issues amicably."

Messy neighbours are "frustrating" at any time, but become a "more pressing issue" when it comes to putting a home up for sale, says  Sarah Cull, senior associate director Strutt & Parker Salisbury.

"Before you get your own gardening shears out, the first step should always be to try to have a frank conversation with your neighbour - you can even explain that you're looking to sell and you want to give prospective buyers the best first impression possible."

If a friendly chat doesn't do the job, Sarah suggests heading to a local garden centre to pick up some screening.

"Where the neighbour's garden is considered a nuisance - for example there's lots of rubbish which could attract pests, or weeds are damaging groundwork - then you can report it to your local council," she added.

The continued return to growth with GDP - a measure of everything produced in the economy - up 0.1% has been welcomed by markets.

The FTSE 100 - the index of most valuable companies on the London Stock Exchange - is up 0.86% and near its all-time high.

Pushing up the index is Fresnillo, the precious metals mining company with its share price up 6.91%.

Potentially putting a dampener on the global economy is the fact oil prices have remained elevated, with a barrel of the benchmark Brent crude oil costing $90.57.

Currency wise, one pound buys $1.256 and €1.17.

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