Delivery Service Business Plan: Guide and FREE Template

business plan on delivery service

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 woman sitting at a table with an open laptop computer, a binder and documents spread out. She is holding a pencil and looking down at a document marked with sticky notes. 

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

A man wearing an apron and sterile gloves loads packaged salads into a bag for delivery. 

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

Two people sit side by side at a table with their computers. There are printed financial projections on a clipboard.

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.

business plan on delivery service

Frequently Asked Questions

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  • How to Start a Delivery Service

While there are national delivery services, such as USPS, FedEx and UPS, people often need packages delivered to nearby locations in a shorter timeframe than these services are able to provide. A delivery service provides fast, often same-day delivery, within a particular area. A service may specialize in a specific type of delivery, such as delivering food, or it might deliver all kinds of packages.

Learn how to start your own Delivery Service and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Delivery Service Image

Start a delivery service by following these 10 steps:

  • Plan your Delivery Service
  • Form your Delivery Service into a Legal Entity
  • Register your Delivery Service for Taxes
  • Open a Business Bank Account & Credit Card
  • Set up Accounting for your Delivery Service
  • Get the Necessary Permits & Licenses for your Delivery Service
  • Get Delivery Service Insurance
  • Define your Delivery Service Brand
  • Create your Delivery Service Website
  • Set up your Business Phone System

We have put together this simple guide to starting your delivery service. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

  • What are the startup and ongoing costs?
  • Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Delivery Service Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your delivery service?

Business name generator, what are the costs involved in opening a delivery service.

A delivery business’ largest startup cost is the acquisition of a suitable vehicle. A vehicle doesn’t need to be fancy, but it must be reliable. Such a vehicle usually costs several thousand dollars, at least.

The second-largest startup cost is often insurance. Delivery businesses might need commercial auto insurance, and they may want insurance for the packages being delivered. Without the proper insurance coverage, the business may be responsible for reimbursing any customers whose packages are damaged en route.

The other startup costs are minimal, often totaling only a few hundred dollars. These include any fuel, equipment costs (e.g. for a hand truck and ratcheting straps), licensure fees and marketing expenses. A cell phone is also needed to make calls, and most business owners rely on a computer as well.

Business owners who want to keep their upfront costs as small as possible can use a personal vehicle until the business’ profits support purchasing a different one. They also can use free marketing strategies, such as door-to-door marketing and social media marketing. Fuel can’t be avoided, but only a little is needed to get a business started. Revenue from the first delivery can be used to purchase more fuel for subsequent deliveries, which will generate more revenue.

What are the ongoing expenses for a delivery service?

The main ongoing expenses for a delivery service business include vehicles’ maintenance and depreciation, fuel costs and insurance premiums. All of these should be considered when determining what to charge.

Who is the target market?

A delivery service business’ ideal customer is a business that needs to make lots of quick, local deliveries. Partnering with local flower shops, cake shops and pizza places can provide steady business.

How does a delivery service make money?

A delivery service makes money by charging customers for deliveries made.

A few different factors go into how much delivery service businesses charge. A typical delivery charges may include a mileage charge of $0.50 to $2.50 per mile, with longer deliveries tending toward the higher end of the range, and a fuel surcharge of 15 percent. Deliveries that take longer than normal may be charged on an hourly rate rather than a distance-based rate.

There may be additional fees assessed for waiting, rush orders, after-hours deliveries, and heavy or oversized packages.

How much profit can a delivery service make?

A national survey of couriers found that the average deliverer makes $34 per hour. According to the survey, most work part-time by choice. Working 40 hours a week at this rate would provide a weekly paycheck of $1,360.

How can you make your business more profitable?

A delivery service business can generate more revenue by investing in more fuel-efficient vehicles. Although this won’t increase revenue, it will greatly reduce operating expenses because fuel is one of the biggest ongoing expenses. The net result will be an increase in profitability.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your delivery service is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a delivery service. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Vehicle Registration

Businesses are required to register vehicles which will travel across state lines for commercial purposes. Check here for a list of state requirements.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Delivery Service needs and how much it will cost you by reading our guide Business Insurance for Delivery Service.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a delivery service

Two of the most effective ways of marketing a delivery service business include putting signs on the vehicle used for deliveries and going to highly desirable locations for potential customers (such as florists and pizzerias) and requesting to advertise at, and even partner with, these businesses. Many other free and inexpensive advertising methods, like creating a website, posting on social media and putting up flyers, can also be useful.

How to keep customers coming back

A delivery service can attract customers by promising fast delivery times. After all, this is one of the main reasons why people use local courier services rather than national companies.

Moreover, creating an incentive for customers to refer friends and family, like offering a reduced or free delivery, will ensure you build a larger customer base.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

Is this Business Right For You?

A delivery service business may be a good choice for someone who is physically fit and has reliable transportation. Physical fitness is necessary because couriers sometimes have to deliver heavy or oversized packages. A larger vehicle, such as a van or SUV, is less fuel-efficient, but it ensures that a courier service can accept all kinds products.

Because deliveries may be scheduled for almost any time of day, it’s difficult to start this business while working a full-time job.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a delivery service?

A delivery service business owner spends much of their day taking delivery orders, picking up packages and dropping them off. As a business grows, more drivers may be hired. Once there are multiple drivers, a business owner may transition to overseeing the fleet of couriers. This may involve accepting orders, passing them onto drivers and ensuring deliveries are made in the most efficient manner possible.

What are some skills and experiences that will help you build a successful delivery service?

In large metropolitan areas, such as New York City, some delivery services may deliver packages via bicycle. Most delivery services, however, rely on cars to take packages from their pickup location to their drop-off point. Therefore, most delivery service business owners need to have a driver’s license. Interested business owners who don’t have a driver’s license should contact their state’s department of motor vehicles to learn about the permitting and licensure process.

Customer service skills are also important in the delivery industry, as customers regularly change their orders. They may have more packages to deliver than they originally mentioned, need a package taken to a different address or want a package delivered sooner than initially agreed upon. Being able to gracefully respond to requests will help ensure customers are satisfied with the service provided.

What is the growth potential for a delivery service?

A delivery service may be a local operation that has just a few drivers, or it might be a national company. GrubHub and Zipments are two examples of larger delivery services.

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For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

While a small delivery service business might be able to be run by one person, having multiple drivers lets a courier service deliver more packages and extend its delivery hours. Some companies directly employ couriers, but most hire them as independent contractors (the same way Uber hires drivers). Deliverers sign up to drive for a company, and they’re given a percentage of the delivery charge on all deliveries they make.

The independent contractor model is easier to scale, and it ensures businesses only have to pay deliverers if they make deliveries.

Useful Links

Industry opportunities.

  • Franchise Opportunity With Mr. Delivery
  • Customized Logistics and Delivery Association
  • Express Carriers Association

Real World Examples

  • Large Delivery Service
  • Chicago Zipments
  • Sample Courier Service Business Plan

Further Reading

  • How to Start a Grocery Delivery And Errand Service From Home by Ray Hockersmith
  • How to Start a Successful Courier and Small Package Delivery Service Video Guide

Entrepreneur Interviews

Dave Myers, Dependable Delivery

Read Interview

Have a Question? Leave a Comment!

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.

business plan on delivery service

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.

Circuit for Teams is a simple software for optimizing routes with multiple drivers. Click here to start your free 14-day trial.

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.

4 Key Things to Include in Your Delivery Service Business Plan. What sets your delivery service apart?

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.

Courier Delivery Issues: Twitter Agrees Timely Delivery is the Key to Customer Success

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.

4 Key Things to Include in Your Delivery Service Business Plan. How will you structure your delivery business?

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.

4 Key Things to Include in Your Delivery Service Business Plan. How will you promote your business?

  • 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.

4 Key Things to Include in Your Delivery Service Business Plan. How will you turn a profit?

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.

What’s the Best Commercial Vehicle Route Planner for Your Business?

  • 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

business plan on delivery service

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

business plan on delivery service

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

Logistics map interface showing the New York afternoon delivery run with route lines and list of addresses

8+ SAMPLE Delivery Service Business Plan in PDF

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Delivery Service Business Plan

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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 February 14, 2024

How to Start a Delivery Service

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/ ))

delivery service industry size and growth

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.

delivery service Trends and Challenges

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.

delivery service demand hotspots

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.

delivery service industry demographics

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.

delivery service earnings forecast

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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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.

business plan on delivery service

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

delivery service idea rating

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.

what to include in a 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.

types of business structures

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

business plan on delivery service

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.

business plan on delivery service

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.

business plan on delivery service

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.

types of business insurance

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

unique selling proposition

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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Delivery Service Business Plan

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The demand for delivery services is increasing today along with the surge in online shopping. If you are planning to launch a delivery service business or to grow one, you will need a plan.

Need help writing a business plan for your delivery service business? You’re at the right place. Our delivery service plan template will help you get started.

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Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
  • Financial Tables

How to Write a Delivery Service Business Plan?

Writing a delivery service 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 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:

Business Overview:

  • This section may include the name of your delivery service business, its location, and when it was founded. In short, a brief introduction to your business.

Market Opportunity:

Product and services:.

  • For instance, you may provide international delivery services too, then mention that in this section.

Marketing and Sales Strategies:

Financial highlights:, call to action:.

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

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business plan on delivery service

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:

  • Food delivery services
  • On-demand delivery services
  • Courier delivery services
  • International delivery services
  • Package delivery services
  • Express messenger services
  • Company structure: Describe the legal structure of your delivery services, whether it is a sole proprietorship, LLC, partnership, or others.
  • Location: 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 goals:

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 delivery service industry with the target market, competitors, and growth opportunities. You should include the following components in this section:

Target market:

Market size and growth potential:, competitive analysis:, market trends:.

  • For instance, a subscription-based delivery model is also in demand, so are you planning to start it?

Regulatory environment:

Here are a few tips for writing the market analysis section of your delivery service 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:

Mention your services:

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

  • Grocery delivery services
  • Medical delivery services
  • Packing and storing delivery services etc

Describe each service:

Describe each service in detail along with the procedure it will follow. For example:

  • Information on how orders will be processed,
  • How packages will be picked up and delivered,
  • What technology or delivery management tools do you employ, etc..

Delivery Logistics:

Additional services:.

In short, this section of your delivery service 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):

Pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your delivery service 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 delivery service 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:, equipment & 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 delivery service 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.

Founders/CEO:

Key managers:.

  • It should include senior management, and other department managers (e.g. operations manager, customer services manager).

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 delivery 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 delivery 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 delivery service business should only include relevant and important information supporting your plan’s main content.

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This delivery service business plan sample will provide an idea for writing a successful delivery service 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 delivery service business plan pdf .

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

A business plan is an essential tool for anyone looking to start or run a successful delivery service 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 delivery service company.

How to get funding for your delivery service business?

There are several ways to get funding for your delivery service 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 delivery service 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 delivery service business plan and outline your vision as you have in your mind.

What is the easiest way to write your delivery service 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 delivery service 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

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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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Download Delivery Service Business Plan

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Food Delivery Business Plan Template

Written by Dave Lavinsky

Food Delivery Business Plan

You’ve come to the right place to create your Food Delivery business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Food Delivery companies.

Below is a template to help you create each section of your Food Delivery business plan.

Executive Summary

Business overview.

Dig In is a newly established food delivery business located in San Diego, California. The company will have an online platform that will also be able to be downloaded to users’ phones as an app. Users will be able to create a login profile and have instant access to all the local restaurants, bakeries, grocery stores, and fast food establishments.

The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In will reward users that frequently use their app. Users will be able to earn rewards and discounts for every order they place through the website or app. This will enable users to keep ordering their food delivery through Dig In.

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

Product Offering

Dig In will provide food delivery services for the residents of San Diego. Residents who want the convenience of food delivered to their doorstep can download our app, find the establishment of their choice, and order whatever they’re craving for. Most of our sales will come from orders to local restaurants but we will also offer delivery from grocery stores and drug stores. Customers will be charged a small delivery fee or have the option to join our membership for reduced fees and special deals.

Customer Focus

Dig In will target all residents living in and around San Diego. It will appeal to students, families, retirees, white collar, blue collar, and government employees. Because our fees are moderately priced compared to other delivery apps, all income levels will be able to enjoy our delivery services.

Management Team

With his entrepreneurial and tech knowledge, John will be able to quickly fix any issues with the platform. He has also formed relationships with the most sought after restaurants, bakeries, grocery stores in the area to sign them up to be part of the food delivery platform. He has also hired a team of independent food delivery drivers to earn extra money by completing the food delivery orders.

Success Factors

The following success factors will set Dig In apart from the competition:

  • Comprehensive List of Restaurants and Food Stores: Dig In will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
  • Membership Rewards: Dig In will allow users who create a profile to earn rewards for every order they place through its online platform. The rewards can be redeemed for delivery fee and order discounts.
  • Faster Delivery Times: Dig In promises to have faster delivery times than its competitors.
  • Pricing: Dig In’s price point for delivery fees is on par with its customers, if not cheaper.

Financial Highlights

Dig In is seeking a total funding of $500,000 of debt capital to launch. The funding will be dedicated for the design and development of the app, marketing expenses, working capital, and three months worth of payroll expenses. The breakout of the funding is below:

  • Platform Development: $150,000
  • Marketing and Brand Development: $100,000
  • Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
  • Working Capital: $100,000

The following graph outlines the pro forma financial projections for Dig In:

Dig In Financial Projections

Company Overview

Who is dig in.

  The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In’s History

John Hutchinson has spent the last 2.5 years creating the food delivery online platform. As a tech entrepreneur, he knows how to map, develop, and implement an online platform. He has been instrumental in creating other apps and platforms for ecommerce companies and has created attractive and efficient apps for numerous Fortune 500 companies.

During the COVID-19 pandemic, John was on lockdown and working from his home. He used other food delivery services, but they were all slow, got his order wrong, or didn’t have a good selection of restaurants and establishments. It was then that he started developing his food delivery business and would implement and perfect all of the things that the competition suffered at.

Since incorporation, the company has achieved the following milestones:

  • Mapped out the online platform for the food delivery business
  • Developed the company’s name, logo, and website
  • Approached multiple local restaurants, grocery stores, and bakeries to be a part of Dig In’s platform
  • Determined necessary insurance and legal requirements
  • Began recruiting key employees
  • Written and developed the Delivery Driver processes and procedures.

Dig In’s Services

Industry analysis.

The Food Delivery industry has grown substantially in the past five years. The convenience of ordering food from home has appealed to large demographics and now nearly everyone orders through a food delivery app at some point. Food delivery apps became a necessity during the COVID pandemic and now they are a mainstay in modern society.

According to Grand View Research, the Food Delivery industry is set to grow at a CAGR of 18.7% from now until 2030. What helps this growth is the increasing popularity of smartphones and the expansion of these services overseas. Food delivery apps are becoming an essential tool in modern society, which makes this a great time to create a new food delivery service.

Customer Analysis

Demographic profile of target market.

Dig In will target millennials, young professionals, and college age students as this demographic is more comfortable with online delivery services and regularly use other similar apps such as Uber and Tasty.

However, we expect Dig In will appeal to other demographics as well as it will be a convenient and moderately priced option to get food delivered quickly. For example, we expect working parents will enjoy our app as well as elderly residents who have trouble leaving their home to go grocery shopping or go to a restaurant.

The precise demographics of the San Diego area are as follows:

Customer Segmentation

Dig In will primarily target the following customer profiles:

  • Young professionals
  • College students
  • Working parents

Competitive Analysis

Direct and indirect competitors.

Dig In will be competing with other popular food delivery apps. A profile of each competitor is below.

Food at Your Door

Food at Your Door is an online and mobile platform for restaurant pick-up and delivery orders. The company is known for connecting over 30 million customers and processes on average about 500,000 daily orders in most cities around the United States. Customers are able to search for restaurants, order directly through the website or app, and then await their delivery from independent contractor drivers.

The company generates revenue from delivery fees paid by consumers as well as commissions paid by participating restaurants. Food at Your Door’s other offerings include a program for corporate food ordering, website design and hosting for participating restaurants, and point-of-sale integration services. The company is continuously updating its platform with innovative technological advancements to stay on top of the competition.

Fast Foodie

Fast Foodie is a technology company that connects people with the most popular food establishments in their neighborhoods. They enable local businesses to meet consumers’ needs of ease and convenience while enabling their independent contractors to generate an additional source of income. The company is passionate about transforming local businesses and dedicated to enabling new ways of working, earning, and living. They empower their local economies by ensuring that people have equal access to opportunities to reach their full potential.

Fast Foodie has expanded their database to include not only restaurants, but convenience stores, pet stores, grocery stores, and drug stores.

Ding Dong is an operator of an on-demand goods delivery platform that is intended to facilitate smooth delivery of essential goods. The company’s platform offers full-service and in-store shopper services through a network of independent shoppers with same-day delivery and pickup service of fresh groceries and everyday essentials. This enables users to select items from their favorite grocery stores and get them delivered almost instantly.

Ding Dong was the first online platform to expand their services and products by including anything that can be purchased at a local grocery store, convenience store, or drug store. The drivers/shoppers are required to ensure delivery during the selected timeframe that the user selects.

Competitive Advantage

Dig In offers several advantages over its competition. Those advantages are:

Marketing Plan

Brand & value proposition.

Dig In will offer the unique value proposition to its clientele:

  • Comprehensive list of restaurants and grocery stores
  • Membership rewards and specials
  • Faster delivery times
  • Moderately priced fee structure

Promotions Strategy

The promotions strategy for Dig In are as follows:

Social Media

Dig In will utilize the most popular social media platforms for ads since the majority of the clientele will be active on social media. The company will also have business accounts on each major platform to post regularly of food options that are available for delivery.

Collateral Material

Dig In will develop numerous collateral materials to have on hand to give out to potential customers at the local farmers markets, events, or restaurant or store events.

Website/SEO

Dig In will invest heavily in developing a professional website and app that displays all of the restaurant and store options the company will be able to deliver for. The company will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Billboards/Signage

Dig In will invest in attractive signage and billboards to increase the brand awareness of the local food delivery business.

Dig In’s fee structure will be moderate so clients feel they receive great value when placing their food delivery orders.

Operations Plan

Operation Functions: The following will be the operations plan for Dig In.

  • John Hutchinson will operate as the CEO of Dig In. In addition to running the general operations, he will oversee the app development and provide app support.
  • John will hire 2-3 additional web engineers to run the website and app.
  • John will hire 20-30 delivery drivers to work on an independent contractor basis.
  • John will also hire an administrative team for accounting/bookkeeping, sales and marketing, and customer service support.

Milestones:

Dig In will have the following milestones complete in the next six months.

  • 8/202X – Finalize app development
  • 9/202X – Hire and train initial staff
  • 10/202X – Kickoff of promotional campaign
  • 11/202X – Launch Dig In
  • 12/202X – Reach break-even

Financial Plan

Key revenue & costs.

Dig In’s revenues will come primarily from the fees it receives from the food delivery orders.

The delivery driver commissions, website platform fees, supplies, marketing, and labor expenses will be the key cost drivers of Dig In.

Funding Requirements and Use of Funds

Key assumptions.

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

  • Initial Number of Orders Per Day: 100
  • Average Order per Customer: $25.00

Financial Projections

Income statement, balance sheet, cash flow statement, food delivery business plan faqs, what is a food delivery business plan.

A food delivery business plan is a plan to start and/or grow your food delivery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Food Delivery business plan using our Food Delivery Business Plan Template here .

What are the Main Types of Food Delivery Businesses?

There are a number of different kinds of food delivery businesses , some examples include: Restaurant Delivery, Meal Kit Delivery, Grocery Delivery, and Veggie Box Delivery.

How Do You Get Funding for Your Food Delivery Business Plan?

Food Delivery businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Food Delivery Business?

Starting a food delivery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Delivery Business Plan - The first step in starting a business is to create a detailed food delivery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food delivery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food delivery business is in compliance with local laws.

3. Register Your Food Delivery Business - Once you have chosen a legal structure, the next step is to register your food delivery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food delivery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Food Delivery Equipment & Supplies - In order to start your food delivery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food delivery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food delivery business:

  • How to Start a Food Delivery Business

ProfitableVenture

Goods Delivery Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Transportation Industry » Courier Company

Goods Delivery Business

Are you about starting a delivery service company? If YES, here is a complete sample goods delivery service business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a goods delivery service business. We also took it further by analyzing and drafting a sample goods delivery service marketing plan template backed up by actionable guerrilla marketing ideas for delivery service businesses. So let’s proceed to the business planning section.

The goods delivery business has existed for a long while but was mostly under the federal government till private individuals decided to revolutionize delivery. The goods delivery business actually came gained more prominence during the internet boom which saw more businesses going online in order to try and reach more of their target market.

Small and medium scale businesses also joined the internet fray and therefore the need for delivery businesses that would ensure that customers of small, medium and even large scale businesses got what they ordered for, regardless of where they lived.

Even though this business might not be capital intensive especially if you intend to exclude several kinds of deliveries or even start on a lower scale, there are still certain factors you would need to consider before starting this business.

For instance, hiring a business consultant who has the required industry knowledge to help point out obstacles you might likely face and how you can overcome them is very important. Below is a sample goods delivery business plan;

A Sample Goods Delivery Service Business Plan Template

1. industry overview.

As at 1999, homes with an internet connection were less than 50 percent, and the use of smart phones weren’t even in the picture, which made the delivery business a near impossible one to run as delivery fees most times surpassed ordering fees for customers.

However, the rise of new technology that allowed for connectivity has seen a boost in the delivery business industry. Technology helped reduce costs for end user customer by employing algorithms to ensure that not only were cists reduced but that customers could also get their goods delivered same day as when they ordered it.

During the third quarter of 2013, a lot of same day delivery businesses started up and spread like wildfire. Today, a lot of goods delivery businesses also offer same day deliveries to customers raking in more money from this niche.

The goods delivery business is an industry that has been projected to grow more than 9 percent annually and is targeted to reach $343 billion by 2022, this is as traditional postal delivery companies are facing challenges in meeting target revenue.

According to statistics, delivery companies worldwide are scrambling to meet up with consumer demands and are also striving to remain proactive so as to meet future demands that are expected to expand the present capacity of delivery businesses as more delivery companies will be forced to focus on Business to Consumer (B2C).

Business to Consumer (B2C) is expected to grow revenue for goods delivery business annually at 6 percent. The growth is due to the fact that most retailers (about 80 percent) have seen a positive impact on customer satisfaction especially when there are multiple delivery options available. This fact has seen 77 percent of retailers increase their investment in delivery services.

Consumers now have the upper hand as regards what delivery options they prefer, this is why most goods delivery businesses are now focusing more on their recipient customers than those they make deliveries for. Consumers now have the option of tracking their goods and determining when it will get to them.

In the united states of America, there has been an emergence of regional carriers who have provided customers with cheaper and faster delivery options than the national carriers. The advantage with regional carriers is that they are likely to get delivery contracts from major customers.

The industry that has really helped the delivery industry is the e-commerce industry. The e-commerce market has generated huge volumes and is expected to generate about $2.4 trillion by 2018.

There are new delivery options that have been launched by several entrants such as using different means – taxi, bicycle, motorcycle, foot messengers and even the use of an app that allows ordinary people do the delivery – to bring innovation to the delivery marketplace.

2. Executive Summary

Quick-time goods delivery Inc is a business that has been established in Louisville – Kentucky and is reputed to be amongst the top three leading delivery brands in the United States of America by the year 2030. We intend to cater to both corporate and domestic clients, and will strive to meet all the demands of our customers.

Our goods delivery business has been established not only to generate revenue and make profit but also to compete favorably with other goods delivery businesses in Louisville – Kentucky and in the United States of America. In order to compete with our competitors, we have several competitive advantage strategies at hand to ensure that we remain proactive and achieve our intended goals and objectives.

We are willing to go the extra mile in ensuring that we invest in the best and experienced hands to help bring our business to the status that is in line with our goals and objectives. We have laid down business structures that will enable us source for and get the best professionals.

Our delivery drivers and dispatchers have been trained on how to attend to customers and what to do if a client is proving difficult. We have several strategies laid down so that we are not thrown back when there is an obstacle but are prepared for it.

Our customer care executives have been trained to be highly perceptive to the wants and needs of our customers, and also remain updated as regards the delivery industry so as to make informed comments to our customers on behalf of the company.

The delivery business industry is a huge one and not one where demand is likely to die anytime soon, and so this is a business that would continue to boom for a long time, and we are well positioned to tap into this huge market.

We intend to make sure our employees work in a conducive environment and that they earn the best pay as can be gotten in similar start-ups here in Louisville – Kentucky. Also, we intend to ensure that our employees get the best welfare packages that can be obtained in the industry this is so they could remain motivated.

Quick-time Goods Delivery Inc is owned and operated by Mike pence and his immediate family members. Mike Pence is a college graduate but has several years of experience in the delivery industry, as he has worked in all kinds of position in several delivery businesses and is best suited to bring the business to the required standard.

3. Our Products and Services

Quick-time Goods Delivery Inc intends to deliver all kinds of goods to our various customers with the exception of certain goods that are not legally permissible under the laws of Kentucky and that of the United States of America.

The goods delivery business is not a capital intensive business and can be started on any budget that the entrepreneur wishes for. However, to ensure that the business grows and sustains itself, we intend to offer other services in addition to our core service – goods delivery.

These other services will boost the bottom line of the business and cause us to achieve our intended sales projections on time. Some of the services we intend to offer at Quick-time Goods Delivery Inc. are:

  • Delivery of different types of goods to our various customers
  • Consultancy services

4. Our Mission and Vision Statement

  • Our vision at Quick-time is to be the best and only preferred goods delivery business in the Kentucky and in the amongst the top three goods delivery business in the United States of America by 2030.
  • In order to achieve being the best and preferred goods delivery business, we intend to perfect our business structure and also put several modalities in place to ensure that we achieve our goals and objectives.

Our Business Structure

At Quick-time Goods Delivery Inc, we know how important starting off on the right foot is as we believe, laying the right foundation at the beginning would enable us easily achieve our set goals and target. This is why we ensured that we got the right hands that will enable us achieve our set goals.

Our employees are professionals who understand the business thoroughly and know what it takes to take us to the height we intend to achieve.

All our employees are all assigned to the right available positions and are allowed the freedom to be able to draft strategies and implements plans that would see the company achieve its vision. Our employees are well paid and have one of the best salary structures in the goods delivery business industry.

Because this is a business that deals constantly with customers, our employees are highly trained in customer care and are able to provide excellent customer care to all our customers.

Knowing our important it is for our employees to remain satisfied and productive at work, we have ensured that they work in a conducive environment and that they have good welfare packages. Below is the business structure that we intend to build at Quick-time Goods Delivery Inc;

Chief Executive Officer

Marketing Executives

Logistics Manager

Human Resources and Admin Manager

Customer Service Executives

Delivery Drivers

Storage Manager

Security Guard

5. Job Roles and Responsibilities

  • Drafts the overall corporate strategy for the company
  • Makes strategic decision on behalf of the company
  • Drafts a workable budget for the company
  • Responsible for drafting and implementing marketing strategies that would allow the industry penetrate the large market
  • In charge of placing adverts in relevant places to promote the business and help attract customers
  • Carries out constant reviews on policies and modifies or remove ineffective marketing strategies
  • In charge of planning the best routes for which goods can be delivered to customers on time
  • Drafts and implements policies that would see the delivery department improve
  • In charge or recruiting and conducting orientation for new employees
  • In charge of employees welfare, and constantly carries out performance appraisals on customers
  • Ensures that all the administrative functions in the business are running smoothly and undergo constant review
  • Responsible for attending to clients and taking orders on behalf of the company
  • Responsible for answering inquiries and ensuring that all complaints are promptly resolved
  • Must remain be knowledgeable and remain updated about the delivery business industry
  • Responsible for preparing all the financial records and statements of the companies
  • In charge of preparing tax on behalf of the company and submitting tax documents to the relevant authorities
  • Ensures that balances between the bank and company are reconciled at the end of the month.
  • Oversees the loading and offloading of goods and parcels and ensures they tally with what is documented
  • Ensures that all goods reach its accurate destination safely and on time
  • Responsible for carrying out light maintenance on the delivery van
  • Responsible and accountable for all goods under care
  • Ensures that store is kept clean and secured at all times
  • Carries a routine check for all packages and documents all goods under care
  • Responsible for ensuring that the area in and around work is kept secure at all times
  • Ensures that cargoes brought into the business premises are properly screened
  • Scrutinizes incoming and outgoing items and people
  • Responsible for keeping the premises clean especially after work hours
  • Cleans up the rest room for employees and visitors
  • Stock up on cleaning supplies, and report out of stock supplies to the manager

6. SWOT Analysis

In order to know if our business would thrive, we hired a reputable business consultant here in Louisville to look through our business concept and help conduct a SWOT ( Strength, Weakness, Opportunities, and Threats ) analysis that would determine if we were in position to compete favorably against our competitors and if our business would survive the threats that are likely to crop up during the time of starting or running the goods delivery business.

The SWOT analysis was not only conducted for our location here in Louisville but also as regards the whole of the United States of America. Asides the location, the industry as a whole and several other factors were put into consideration. The of the SWOT analysis that was conducted on behalf of Quick-time Goods Delivery Inc is as follows;

Our strengths lies on the fact that we would be offering our customers a unique goods delivery service unlike that they have ever seen, as we intend to become the preferred brand in Louisville – Kentucky. We have a well designed business structure that will ensure that our vision is achieved as we have recruited the best employees in the field to help achieve this vision.

Our employees are not only competent but also have the required experience necessary to ensure that we achieve our goals and objectives.

Also, the fact that we are located in Louisville – Kentucky is another added strength as our position is convenient for many of the customers in our target market. Also, our Chief Executive Officer, Mike Pence has a vast and also the necessary expertise to see that the corporate vision and objectives of the company is achieved.

Our weakness is in the fact that we are not the only goods delivery business as there are several others in Louisville – Kentucky offering the same services that we are offering and to the same target market. However, we are positive that our strategies will afford us the ability to compete favorably with other established goods delivery businesses in Louisville – Kentucky.

  • Opportunities

The opportunities this business affords us are boundless as the numbers of people that shop online or buy products via phones are increasing by the day. This therefore means that the demand for goods delivery service will continually increase.

Facing threats is not a new thing to any business, and so we know that during the course of running or starting the business, we are likely to face several threats such as having a new competitor in the same location where we intend to start our business or a downturn of the economy which will see less people demanding for our services. However, we have several laid down strategies that will ensure that we overcome any threats.

7. MARKET ANALYSIS

  • Market Trends

The goods delivery business is a huge business that has seen a positive growth in the service industry, this is because more people now prefer to shop online or buy products through their phones.

Also, the goods delivery business has allowed more businesses to penetrate their target market as goods can now be delivered to these customers regardless of where they stay via the businesses such as the delivery business. Customers are willing to pay for this extra charge because it is more convenient to have the goods delivered to whatever place of their convenience.

Another trend for goods delivery business is the trend of timed delivery. Customers no longer have to wait a long time to receive their goods as they can receive it within 24 hours. Delivery businesses that offer express delivery have also cropped up therefore raising the bars in the delivery industry.

However, regardless of what mode the customer chooses, all they want is that their goods are delivered at the right time and place and in the right conditions. The reason for the spike in delivery businesses in the service industry is the internet.

The internet is now being used towards ensuring that innovative entrepreneurs reach out to customers – private and commercial has eased most of the stress of conventional publicity for these entrepreneurs. Websites and social media platforms are being used to lure customers and also create awareness about the business.

8. Our Target Market

The target market for the goods delivery business is very huge as there are a number of people that require the services of a delivery company.

This therefore means that the target market is huge and cannot be limited to a certain location or set of people. Also, our location in Louisville – Kentucky is very strategic and affords us the opportunity of being able to cater to a large number of customers.

Asides from being in a strategic location, our website has been Search Engine Optimized (SEO) to be able to pop out during searches for goods delivery businesses.

In conducting a thorough market research, we were able to find out what our target market would be expecting from us in terms of offering the best delivery services. The target market that Quick-time Goods Delivery Inc. would be offering goods delivery services for and to are;

  • Manufacturing Companies
  • Restaurants
  • Printing press
  • Publishing houses
  • Clubs and bars
  • Salons and beauty shops
  • Private individuals
  • Corporate Executives
  • Celebrities
  • Everyone in our target market who would require our services

Our Competitive Advantage

Our aim in starting Quick-time Goods Delivery Inc is to ensure that we are the preferred goods delivery in Louisville – Kentucky, and also amongst the top three brands in the United States of America. To achieve this vision, we have laid out strategies that will ensure that we have competitive advantage over those we intend to compete with in the delivery business industry.

First off, we intend to get two delivery vans that will ensure that customers get tier goods on time. Our delivery drivers will have a Point of Sale (POS) Machine for customers who do not have cash and didn’t pay in advance but intends to pay once the goods have been delivered. This service is the first of its kind here in Louisville – Kentucky.

Another competitive advantage we intend to have over our competitors is in ensuring that we hire only competent employees who not only have the experience but are also attuned to the vision of the company in becoming the best brand here in Louisville – Kentucky and amongst the top 3 in the United States of America.

We intend to train our employees in customer care service so that they effectively communicate our brand whenever they represent us to customers. We will ensure that we not only meet the expectations of our customers but also exceed it as well as we will continually review our customer service strategies to ensure that we remain on top of our game.

Finally, our employees will have the best welfare packages that can be gotten amongst similar start-ups here in Louisville – Kentucky. We intend to ensure that their skills are constantly honed through various training that will improve their careers and also their productivity for our company.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Due to the fact that the goods delivery business is a service based business, and might not seem like it has several sources of income, we have laid down strategies that would see us not only earning from delivery of goods but from other sources as well.

However at Quick-time Goods Delivery Inc business, we intend to ensure that all our sources of income are under the legal and permissible laws of the United States of America. Quick-time Goods Delivery Inc. intends to generate income from these several sources;

10. Sales Forecast

The goods delivery business is not likely to fade into oblivion anytime in the future and instead will see a likely surge in demand as more businesses spring up and more people shop online through their PCs, tablets or smart phones.

Our target is to ensure that we generate our target income within the first year of operation as our strategic location in Louisville – Kentucky is pivotal to this projection. Also, regardless of the fact that we might offer reduced fares during the first three months of running the business, we are confident of meeting our target especially as we have laid down plans that will see to this.

We have in collaboration with a reputable business consultant here in Louisville – Kentucky critically examined the goods delivery business and having analyzed our chances of survival and growth in this competitive industry has been able to come up with the following sales forecast.

The sales projection that was conducted on behalf of Quick-time Goods Delivery Inc were based on several assumptions that are peculiar to similar businesses in same location; Louisville – Kentucky. Below is the sales projection that was conducted on our behalf;

  • First Fiscal Year-: $300,000
  • Second Fiscal Year-: $600,000
  • Third Fiscal Year-: $1,200,000

N.B: The above sales projection was done based on certain factors that are obtainable in the industry and on several assumptions such as the rate of people willing to shop online, the state of the economy, government policies, and the arrival of a similar competitor to same location.

This therefore means that the sales projection might be lower or higher if any of the above assumptions change either positively or negatively.

  • Marketing Strategy and Sales Strategy

Before starting off our goods delivery business, we intend to ensure that our marketing and sales strategies have been thoroughly reviewed. During the course of running the business, we also intend to ensure that we carry out a continuous review of our strategies, this is because we know how important marketing is to any organization – either profit or non-profit.

Carrying out a sales forecast helped us determine who our likely target market were and therefore helped in determining the best marketing strategies to use in penetrating the market and also attracting customers to our goods delivery business in Louisville – Kentucky as well as the whole of the United States of America.

Our marketing executives have been empowered to continuously carry out research on the target market as well as tweak or remove marketing strategies that are not regarded as effective during the course of running the business.

The strategies that would be developed by our marketing executives will be one that will help us catch the attention and eventually win a larger percentage of the market not only in Louisville – Kentucky, but in the whole of the United States of America as well.

In order to ensure that customers outside Louisville – Kentucky know about Quick-time Goods Delivery Inc business, we intend to deploy several strategies on the internet to enable us achieve this.

Our website will not only be interactive and user friendly, it will also be well designed to appear on top searches for customers looking for the best delivery business. Asides, our website, we intend to use social media platforms such as Facebook and Twitter to engage and attract more customers to our business.

Finally, we at Quick-time Goods delivery Inc business intends to use the following marketing strategy in getting more customers for our goods delivery business;

  • Advertise our goods delivery business in popular online forums, blogs and websites
  • Place adverts in local newspapers, and on radio and television stations
  • Encourage our loyal customers to refer us to others
  • Engage in direct marketing
  • List our business in offline directories as well as online directories
  • Use the internet – website – to market our services, as well as social media platforms such as Facebook, Twitter, Google Hangout and LinkedIn.

11. Publicity and Advertising Strategy

Every business either new or old knows how wise it is to court publicity. Publicity is a two edged sword as you get to create awareness for your business while also generating revenue.

Even though we have laid down strategies that intends to make us stand out from the other goods delivery businesses we would be competing with, we know how important publicity is if we intend to achieve our goals and objectives and succeed as a business.

Louisville – Kentucky is a perfect location for our goods delivery business and the perfect launching pad for our publicity strategies, before we eventually venture out to other cities and spread throughout the United States of America.

Quick-time Goods Delivery Inc. intends to create a unique logo and also have a unique color that stands us out of the crowd. Some of the publicity and advertising strategies we at Quick-time Goods Delivery Inc intend to deploy are;

  • Ensure that we create customized tee-shirts for all our workers especially our drivers
  • Emblazon our delivery trucks with our unique logo and color
  • Place adverts in local newspapers, magazines and on radio and television stations
  • Distribute our handbills and pin our fliers in target locations
  • Put up flexi banners in strategic locations so that our target customers can see and patronize our services
  • Use our social media platforms – Facebook and Twitter – to promote our brand
  • Send out cold e-mails to prospective customers
  • Send out newsletters to customers – both potential and existing

12. Our Pricing Strategy

The success of a business can be determined by the kind of prices it sets. While a business will need to set the prices that are deemed fair by its customers, it shouldn’t set a price that will cause a price war with its competitors or one that will enable the business run at a loss.

Determining the fair price for a service oriented business can be tricky but any serious entrepreneur knows that regardless of the business being run, any set price or rate should cover overhead and operating expenses and ensures that the business makes profit as it should.

Since we are relatively new in the market, we also know that it is necessary that we set a price that will allow our customers patronize our services and for this purpose, we would offer our services at a reduced rate for the first 6 months of operation. We however would not lower the prices too much so as not to have our business crumble.

  • Payment Options

Due to the fact that this is a service oriented business, we are aware that our customers would prefer several means of being able to pay for our services and it is due to this fact that we have come up with different payment options intended to suit whatever style our customers would want. Below are the payment options that we intend to make available to all our various customers;

  • Cash payment
  • Payment via check
  • Payment via Point of Sale (POS) Machine
  • Payment via credit card
  • Payment via online bank transfer

The options chosen above were done with the help of a trusted and reputable bank, and will be available to all our customers without hitches.

13. Startup Expenditure (Budget)

The goods delivery business can only be capital intensive depending on the area the entrepreneur wants to focus on. However, in starting a standard goods delivery business, there are certain expenses that the entrepreneur is supposed to spend the bulk of the capital on.

The expenses include all overhead expenses and several operating expenses such as bill payments and employee salaries. Therefore the key areas where we intend to spend the bulk of our start-up capital on are;

  • Business incorporation fees – $750
  • Business licenses and special permits as well as certain accounting software – $1,550
  • Cost of hiring a business consultant – $1,000
  • Marketing expenses (promotion expenses for grand opening and regular marketing) – $5,000
  • Insurance (general liability and workers’ compensation) – $2,000
  • Operational expenses for the first 6 months which includes employees salaries and bill payments – $75,000
  • Cost of storage facilities and hardware (racks, shelves, bin, surveillance cameras) – $4,000
  • Administrative expenses (stationeries, furniture, computer, phone, printer) – $5,200
  • Cost of purchasing two goods delivery van – $90,000
  • Cost of launching a website – $500
  • Cost of grand opening party – $3,000
  • Miscellaneous – $2,000

From the above estimation, we would need a total of $200,000 in order to successfully start-up our goods delivery business in Louisville – Kentucky. The amount covers the payment of our employees’ salaries as well as other bills for a period of 6 months.

Generating Funding / Startup Capital for Quick-time Goods Delivery Business

Quick-time Goods Delivery Inc is a business owned and run by college graduate, Mike Pence and his family. This is a business that the family has decided to start and run and so we would not be generating funds from external investors such as venture capitalists, as we would not want outside interference for now.

Therefore the areas where we intend to source for start-up capitals are;

  • Using our savings and sale of stocks to generate capital
  • Seeking for soft loans from extended family members
  • Applying for loan from the bank

N.B: We were able to generate about $50,000 from our joint savings and sale of personal stocks. We got a soft loan of $50,000 from both of our parents, and the bank which we applied for a $100,000 loan has credited our account with the sum, which means that we are ready for business.

14. Sustainability and Expansion Strategy

Every business is established to make profit and it is from this profit that a business is sustained and then expanded. However to make profit and remain sustained, there are several factors that must be put into consideration, such as the business structure , the number of loyal customers and the investment strategy.

The major reason of starting Quick-time Goods Delivery Inc is so as to build a business that can offer a unique delivery service whilst making profit and sustaining itself from the revenue generated. We do not plan on seeking for external private investors as we have laid down plans to ensure that we generate revenue and eventually make profit within a year of operation.

Having the right employees and business structure is very important to us and so our employees are not only experienced but competent as well. Our employees know what is needed to take our business to the very top.

Asides from making sure that our employees are paid right, we also intend to ensure that they are constantly trained so as to keep them updated skill-wise. Also, employees who perform their duties diligently and constantly promote the brand of the business will be motivated via incentives and fringe benefits.

Ensuring that our customers are treated right is very important to us because we know that without our customers our business would crumble. We intend to give our customers an excellent customer service and offer incentives on certain days or to loyal customers to ensure that they stick with our brand.

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
  • 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
  • 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
  • Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
  • Purchase of trucks: Completed

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Courier Business Plan Template

Written by Dave Lavinsky

courier business plan template

Courier Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their own courier service companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a courier business plan template step-by-step so you can create your business plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

If you’re looking to start your own courier company or grow your existing courier company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your courier company in order 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 Courier Companies

With regards to funding, the main sources of funding for a courier company are personal savings, credit cards, bank loans and angel investors. With regards 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 confirm that your financials are reasonable, but they will also want to see a professional business 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 courier businesses.

Finish Your Business Plan Today!

How to write a business plan for a courier company.

If you want to start a courier company or expand your current one, you need a business plan. Below we detail what you should include in each section of your 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 type of courier company you are operating and the status. For example, are you a startup, do you have a courier company that you would like to grow, or are you operating a chain of courier businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the industry. Discuss the type of courier service business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of courier company you are operating.

For example, you might operate one of the following types of courier businesses:

  • Bicycle Courier: this type of courier company provides delivery services via bicycle.
  • Van Courier: this type of courier company provides delivery services via van.
  • Drone Courier: this type of courier offers delivery services via drone.
  • Same-Day Delivery Courier: this type of courier offers same-day delivery services.
  • International Courier: this type of courier provides international courier services.

In addition to explaining the type of courier business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of deliveries made, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the courier service industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

The third reason for market research 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 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 market for your courier company? 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 must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: small businesses, e-commerce businesses, manufacturing companies, law firms, printing companies, and healthcare providers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of courier company you operate. Clearly, e-commerce businesses would respond to different marketing promotions than healthcare providers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most courier businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand 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 courier companies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes standard delivery providers such as USPS and UPS. You need to mention such competition as well.

With regards to direct competition, you want to describe the other courier services with which you compete. Most likely, your direct competitors will be couriers located very close to your location.

For each such competitor, provide an overview of their businesses 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 types of courier services do they offer?
  • 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.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide better packaging and delivery services?
  • Will you provide services that your competitors don’t offer?
  • 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 courier company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of courier company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to courier services, will you provide custom packaging services, fax and print services or any other services?

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

Place : Place refers to the location of your courier company. Document your location and mention how the location will impact your success. For example, is your courier company located in a busy retail district, professional district, industrial area, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your courier marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local websites
  • Social media marketing
  • Local radio advertising

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 courier company including speaking with customers, receiving deliveries, performing delivery logistics, and packaging and delivering items.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to make your 100th delivery, or when you hope to reach $X in revenue. It could also be when you expect to expand your courier service into a new city or establish services in a new market.  

Management Team

To demonstrate your courier company’s ability 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 courier 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 like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing courier services or successfully running small businesses.  

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 sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues 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 gain 10 new customers per week or per month? 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 courier company, 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 bank 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 make sure 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.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a courier company:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

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 demonstration of how you will perform delivery logistics and recordkeeping.  

Putting together a business plan for your courier service is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert courier service business plan (or a medical courier service business plan); download it to PDF to show banks and investors. You will really understand the courier industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful courier company.  

Courier Business Plan FAQs

What is the easiest way to complete my courier business plan.

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

Where Can I Download a Courier Business Plan PDF?

You can download our courier business plan PDF here. This is a business plan template you can use in PDF format.

How Do You Start a Courier Service Business?

Starting a courier service company is easy with these 14 steps:

  • Choose the Name for Your Courier Company
  • Create Your Courier Service Business Plan
  • Choose the Legal Structure for Your Courier Company
  • Secure Startup Funding for Courier Company (If Needed)
  • Secure a Location for Your Business
  • Register Your Courier Company 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 Courier Services
  • Buy or Lease the Right Courier Equipment
  • Develop Your Courier Services Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Courier Company
  • Open for Business

Learn more about how to start a courier business .

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Business Plan Template & Guide For Small Businesses

How to Start a Small Business Delivery Service?

Rakesh Patel

  • Last Updated: June 8, 2023

Small business delivery service

Business delivery service is growing rapidly growing industry that is expected to grow at a rate of 8.2% in 2022 and reach a market size, measured by revenue, of $149.6 billion in 2022. 

It is an industry that has shown fast growth, and the market size of this industry has increased faster than the transportation and warehousing sector.

All online businesses rely heavily on delivery services, and due to the rise in online businesses, delivery business is also seeing exponential growth year on year. More and more delivery businesses are required daily to fulfill the demand of this aggressively growing industry.

If you’ve been considering starting your own delivery business, now might be a good time to do it. You might have a number of questions about it, though.

In this article, we will shed light on how you can start a small business delivery service.

Table of Content

  • What are the Types of Small Business Delivery Services?
  • What are Some Delivery Challenges that Small Businesses Face?

Delivery Options for a Small Business

  • Steps to Start your Small Business Delivery Service
  • Deliver Parcels with Finesse Through Upper’s Route Optimization Planner

What Are the Types of Small Business Delivery Services?

When it comes to business delivery services, the options are unlimited. There are multiple types of profitable delivery businesses that you can start and embark on your business journey. Here are some of the most well-known delivery services.

1. Courier services

Courier services are necessary for most businesses. Whether it be B2B or B2C, all businesses need courier services. The E-commerce market is growing rapidly, and with it, the demand for more delivery services. It is one of the most successful forms of delivery service. Not just businesses but individuals also require to send and receive parcels.

If you are looking to start a courier service, start small. Start with deliveries within a county or a state and grow from there. Doing so will require less capital, and expansion can be planned out as the business grows. 

2. Food delivery business

Food delivery services are a market growing daily, and it is one of the types of delivery businesses that will require fewer resources. Since food delivery is a business confined to a city, the resources required will be minimal, and if you utilize the best available tools, the profits will be higher.

The only major obstacle here would be to plan our deliveries to decrease your operational cost and increase the profits. This can be done using intelligent route planning software, which will do all the hard work for you.

3. Medicine delivery

Medicine delivery for small business delivery services

The medical courier business is estimated to be $7.1 billion and is forecasted to grow at a rate of 5.5% over the next 5 years. This service includes not just delivering medicines but also lab specimens, laboratory equipment, surgical equipment, and many others. You can begin catering to local customers and expand as the revenue increases.

4. Groceries delivery

Grocery delivery is one of the most profitable business delivery services with the most recurring customers. The customer base will keep expanding if the products are of high quality and the customer experience is outstanding.

What Are Some Delivery Challenges that Small Businesses Face?

There are multiple challenges that delivery companies may face in the delivery business. These can be related to day-to-day operations, resource management, delivery fee, or delivery drivers. Here are some of the obstacles delivery companies may face.

1. Route planning

If not done correctly, route planning can be the most troubling part of a delivery business. Moreover, it is a process that takes hours to complete. This task can get more complex if you don’t have any experience, especially if you offer same-day delivery.

However, the right tool can help you reduce the time and optimize multiple routes to fulfill more deliveries and increase profitability.

2. Dependency on human resources

Delivery business depends highly on human resources. Hiring a large team to fulfill the delivery demands can become a challenge. A large team means a higher operational cost. Without proper management, a delivery business may lose more money than it will make.

3. Delayed deliveries

Delayed deliveries

A delay in delivery can lead to a bad customer experience and even loss of clientele. Delays can happen due to an error in planning, the delivery person, or any technical issues in the delivery vehicle.

4. Without damage delivery

Any delivery business needs to make sure the product is not damaged. Any damage to the product can lead to a bad customer experience, and the business may be liable to pay the price at times.

If you are deciding on an option for your business, make sure you understand each method’s pros and cons before you choose the one for you. Put your mind at ease and go through the options below to find your answers.

1. Outsourcing to a third-party delivery service

In this method, the delivery service is outsourced to a third party. This may seem like a viable option to small business owners, but third-party service comes with its issues. For instance, the business will have no control over the shipping accuracy and shipping experience attached to it.

The situation may get even more complex if there are some additional parameters attached to the shipping. For example, if you run a grocery business, it is very clear that shipping should be instant since everybody wants fresh groceries. But if you have no control over delivery, it will be tough for you to ensure fast delivery. As a result, the business may lose customers.

2. Maintain control by optimizing your own delivery

If you are a small business, optimizing delivery by yourself may be the best bet using an in-house delivery service. It will help you to have full control over the delivery and will help you to create a better experience for your customer base. Many businesses are now choosing this option and are fulfilling delivery orders faster without paying additional fees to third-party delivery services.

Steps to Start Your Small Business Delivery Service

Starting your own delivery business from scratch may seem strenuous, but with the right information and tools, you can start a new business and guide it toward profit. To make it easier, we have laid down the plan in the easy steps mentioned below .

1. Business plan

Business plan for small business delivery service

One of the essential parts of starting a business is creating a business plan by understanding the various aspects of a business. Any business plan should be designed through extensive research on the various business models and market research. Going the extra mile and studying the competitors will only help create a better and more solid business plan.

2. Take care of the legal aspect

A business needs to be registered with the local governing authorities. Ensure you understand all the legal implications of starting a business and registering your company. You will need to register for taxes, open a business account in the bank, and get the necessary licenses and permits. One important aspect is to get your business insured.

3. Designing a delivery process

The next important step is designing a delivery process. This extensive job will require expertise and knowledge of the delivery business. If someone new to the delivery business is trying to design a process, it may become a tedious job, and the chances of error will increase multiple-fold.

All the profit in a delivery business will depend on how well the delivery routes are planned. You wouldn’t want to spend more on resources than you make by completing deliveries. A delivery business needs to run keeping in mind that the operational cost is as less as possible. The best possible results in a delivery business will only come if the delivery routes are planned efficiently and resources are utilized to the best of their capabilities.

If you are starting your delivery business, achieving such an optimal efficiency level may seem like a dream, but that’s not true. We at upper have sworn an oath (literally) to help new business run in the most efficient manner possible.

Upper software comes equipped with a highly intelligent algorithm that will help you by reducing the time required to create an optimized route and create effective routes with multiple stops so you can fulfill more deliveries in less time. The properly optimized routes will not only help you in reducing fuel costs but will allow you to make more deliveries in a single trip. 

4. Hiring drivers

The next crucial part is hiring drivers to do the delivery . Depending on your needs, you can start with a single driver or even hire multiple drivers. Many small businesses start with one or two drivers and increase their teams as revenue and demand grow. Many business owners resort to driving the vehicle by themselves to complete deliveries to keep operating cost low. Also, it helps them to get a better understanding of their business.   

Deliver Parcels with Finesse through Upper’s Route Optimization Planner

All delivery businesses thrive on efficiency. The more efficiency, the better the results. Efficiency comes by designing routes that will help you reduce delivery time and costs.

Even for people who have done this for years, it is a very time taking process and is prone to errors. So, starting your new business may need more expertise, time, or resources to pull this off. Don’t worry if you are a new delivery business owner facing the same issues, don’t worry. We have got it covered.

We at Upper have successfully been able to help businesses solve the problem of efficiency. Our software is a one-stop destination for all your business-related needs. Upper would be your perfect companion for starting a delivery business .

Upper software comes equipped with a powerful route-optimizing algorithm that helps create efficient routes for all your deliveries. It factors in the required multiple stops and designs the route so that the least time is required to complete the deliveries. This will help you to reduce the time required, and you will be able to complete more deliveries in less time.

The advantages are not restricted to that; an efficient route will also help you to utilize your resources to the fullest and will help to reduce costs as well.

2. One-click dispatch

Upper comes equipped with a one-click dispatch option by which you can send the routes with multiple stops to your drivers with just one click. In case of any issue with the driver, you can reassign the route to another driver so deliveries are completed without hassle.

3. Proof of delivery

This feature will help you collect signatures digitally and allow the drivers to click pictures as proof of delivery. It reduces the manual work, and the signature and the images are stored in the software for future use. Even in the case of unsuccessful deliveries, the driver can mention the reason for the same.

4. Upload with excel

Upper comes with a feature to add multiple through excel with one click. The software also identifies duplicate stops. If you want to keep the duplicate stop, you can, and if you want to erase the same, it can be done in a jiffy.

Upper Route Planner

A simple-to-use route planner that every one is talking about

There are multiple delivery businesses that can be operated on a local level. A few of them are mentioned below

  • Medicine delivery
  • Grocery delivery
  • Food delivery
  • Alcohol delivery
  • Laundry delivery

To increase revenue, you need to reduce the shipping costs and plan the deliveries to allow you to fulfill more deliveries in less time. Make sure the resources are utilized.

Marketing plays an important aspect in any business. To acquire potential customers, you will need to offer multiple features like one-day delivery, on-demand delivery, first delivery free, and offer delivery at less price.

Starting any business is a grueling task. You need to have a proper plan and execute the same to perfection with the help of the right tools. The delivery business is one of the most rapidly growing sectors, which has tremendous potential, and you, too, can tap into it with the right mentality. As a business owner, you need to make sure to focus on the present and plan. 

The profitability of a delivery business will depend on how efficiently planning and optimizing are done. Upper takes away the stressful hours you may have to put in for planning. Upper can help you plan and optimize to focus more on running and expanding your business.

Rakesh Patel

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 Write a Food and Beverage Business Plan + Sample Business Plan PDF

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Elon Glucklich

7 min. read

Updated February 17, 2024

Free Download: Sample Food and Beverage Business Plan Templates

The food and beverage sector is booming. Restaurant openings rose 10% in 2023 compared to 2022 — even higher than in pre-pandemic years.

From fine dining to food trucks, farmers to brewers, and wholesalers to coffee makers, there are opportunities across the food and beverage industry. 

But starting a business without covering the basics — your operations plan, marketing tactics, financial strategy, and more — carries huge risks. 

That’s why we recommend you write a business plan.

  • Why write a food and beverage business plan?

Writing a business plan is an easy first step that you can start for free. Plus, businesses that take time to plan are significantly more successful than those that don’t.

Many food and beverage establishments fail because of one of the following:

  • Poor inventory management
  • Underestimated expenses
  • High employee turnover
  • Misjudged the size of their market

Writing a business plan can help you:

  • Develop processes for managing inventory and logistics
  • Understand your cash flows and create a realistic expense budget
  • Budget for competitive employee pay that increases worker retention
  • Analyze your competition and determine how big your market is  

If you’re looking for funding from investors for your business, you’ll definitely need a business plan.

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  • How to write a food and beverage business plan

Many business plans follow a standard format and you can use it as a starting point when writing your own plan. Here’s what that includes:

Executive summary

  • Company summary and funding needs
  • Products and services
  • Marketing plan
  • Management team

Financial plan

For food and beverage companies, you must give extra attention to your market analysis, operations plan, and financial forecasts.

If you’re ready to start, download a free business plan template and fill it out as you read this article.

A sample business plan outline for a food and beverage business.

Every business plan should include an executive summary . It’s a brief outline summarizing the plan, no more than one or two pages.

We recommend that you write the executive summary last after fleshing out the details of your plan. 

Just summarize the vision for your business, describe your offerings and target market , and touch on your management team and financials. Don’t go into tons of detail — just provide a high-level sense of what you want your business to accomplish.

Opportunity: problem and solution

This section of your food and beverage business plan describes the opportunity you hope to capture.

Maybe you’re a farmer looking to diversify your revenue streams by distributing to grocery stores. Or a bar owner with high-end liquor that competitors in the market aren’t serving. 

Whatever your business is, describe the gap in the market and how you aim to fill it.

If you’re operating a more common type of business, like a restaurant , you can probably keep this section short. But it’s useful to document what makes your business unique and it will help focus your sales and marketing efforts later on.

Market analysis

In a field as crowded with competitors as the food and beverage space, a detailed market analysis is essential. 

Your focus should be on identifying the specific customer segments you aim to serve. 

Maybe you’re a butcher with connections to fresh livestock. Will you be more successful selling directly to consumers, or should you focus on selling to grocery stores and markets in your area?

Or, you’re opening  a diner. Should your menu focus on healthy meals or easy-to-make child-friendly options?

These are the types of questions that market research helps you answer. This section should detail the defining characteristics of your target market, including the demographics and preferences of your ideal customer and the size of the market you’re targeting. Market research questions specific to a food and beverage business could include:

  • Business location and characteristics
  • Area income
  • Local food and beverage preferences
  • Existing food and beverage options 

Elaborate on how your food and beverage offerings align with that target market ’s needs. Remember, you can’t please everyone, so focus on a specific group of people or type of person and build out from there.

Marketing and sales

For food and beverage businesses promotions are how you stand out and seize a share of your market.

The marketing and advertising chapter of your business plan is where you’ll detail your strategies for capturing the attention — and loyalty — of the customers you identified as your target market in the previous section.

With so many options for consumers in the food and beverage space, you’ll likely have to rely on multiple marketing channels , including::

  • Advertising on websites, television, and in relevant publications.
  • Content marketing — developing an engaging website and writing blog content that’s search engine optimized to drive traffic to your site.
  • Engaging with your customers on social media.
  • Offering discounts and customer loyalty programs.
  • Appearing at food and beverage industry trade shows and community events.

It doesn’t matter how delicious your recipes are, how fresh your crops are, or how innovative your cocktails are — if you don’t operate efficiently, your business probably won’t last long.

The operations strategy may be the most detailed section of your business plan, especially if you’re writing it for a bank loan or investment. This section describes how you will run your business day to day.

When writing the operations section, describe the following:

Physical space

Whether it’s a restaurant, a farm, or a food transportation business, describe the space you’re operating in, and all of the physical assets and equipment you’ll need to be successful. 

If it’s a sit-down restaurant, consider including a floorplan mockup in your appendix.

Supply chain 

List the suppliers and partners that get your product to customers. Think about the businesses you purchase ingredients from, the warehouses that goods are stored in, and the trucking companies that deliver your products to grocery stores. 

These are your supply chain partners. It’s crucial that you maintain good relationships with them.

Production processes

How long it takes to make your product, and what materials and equipment are required. Documenting how you produce your goods or services demonstrates that you understand the costs of making them. 

You may also uncover ways to produce them more quickly, or at a lesser cost.

Detail how you’ll handle matters of efficiency like order fulfillment, storage, shipping, and returns, as well as customer satisfaction. If you provide delivery services, document how you will handle the process of getting your product to customers’ homes or businesses.

List your staffing needs, training, and experience requirements for key staff. Also, document the management structure of your business. 

This helps ensure that important tasks you don’t have time to monitor are being done and that workers are being supervised.

Describe investments in payment processing systems, inventory management software, and other tools that support sales or operations in your business. Cataloging your technology systems will help you determine where it might make sense to invest in upgrades for efficiency.

Take some time to write a financial plan . Create detailed financial projections, including sales , expenses , and profitability .

If that sounds intimidating, take a deep breath, and remember that financial forecasts are really just best guesses. If you’re running an existing business, you can start with your previous year’s numbers. If you’re starting, make an educated guess about where you hope to be financially a year from now.

Investors will want to see a: 

  • Sales forecast
  • Income statement (also called a profit and loss statement )
  • Cash flow statement
  • Balance sheet 

If you use a tool like LivePlan , you’ll be able to build out your financial forecasts relatively quickly, even if you don’t have experience with business numbers.

Even if you aren’t seeking investment, the financial plan is crucial for understanding the viability of your business. It allows you to adjust your business model based on projected performance, and make informed decisions about where to spend your money.

  • Food and beverage business plan templates and examples

If you want to see how other food and beverage businesses have created their plans, check out our free library of food and beverage business plans . 

You can download all of them in Word format and jump-start your own business plan.

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

Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

Moscow

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

moscow-initiatives

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

  • Weighted scoring
  • Value vs. complexity
  • Buy-a-feature
  • Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

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Date night strike: Thousands of US, UK delivery, ride-hailing drivers stop work on Valentine's Day

Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine's Day in an effort to win better pay

Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine's Day, calling for higher pay and other changes to their working conditions.

In the U.S., Uber and Lyft drivers planned daylong strikes in Chicago; Philadelphia; Pittsburgh; Miami; Orlando and Tampa, Florida; Hartford, Connecticut; Newark, New Jersey; Austin, Texas; and Providence, Rhode Island. Drivers were also holding midday demonstrations at airports in those cities, according to Justice for App Workers, the group organizing the effort.

Meanwhile, U.K. delivery drivers for Uber Eats, Deliveroo, Just Eat and Stuart said they would turn off their apps and refuse deliveries between 5 p.m. and 10 p.m. The group Delivery Job U.K., which called for the walkout, said on Instagram that the strike was “a crucial opportunity to be seen and heard by society.”

Of eight delivery drivers who spoke with The Associated Press on the streets of London Wednesday, all but one said they planned to halt work at 5 p.m. Several, however, questioned whether the strike was long enough to make enough of a financial dent in the businesses.

“One day is not effective,” said Evadur Rahman. “If we strike more than one day — two, three, four days — they’re gonna be affected.”

Rahman, a Deliveroo driver who planned to participate in the strike, said his daily pay dropped in recent months from about 140 pounds ($175) for eight hours of work to around 100 pounds ($126). He said he wanted the company to raise the minimum rate it pays per order from 2.90 pounds ($3.64) to closer to 5 pounds ($6.28).

“They must improve the minimum pay,” Rahman said. “It’s not enough for survival in this country.”

Justice for App Workers estimated that thousands of drivers stopped working Wednesday, and said that workers in 12 or more cities beyond the original 10 had held impromptu demonstrations. Delivery Job U.K. had expected 3,000 people to strike.

Jocilyn Floyd, who has been driving for Uber for nearly a decade, joined the picket line Wednesday at O'Hare International Airport in Chicago.

“Uber has proven time and time again that they’re putting profits over people. In shareholder meetings they discuss profits; there’s no question about safety, protection from deactivation or compensation," Floyd said.

Uber said Wednesday that the strike wasn't hurting driver availability or customer demand.

“Despite the headlines, we’ve seen no impact to our operations or reliability for riders. In fact, in most markets there are more drivers on the road today than there were during the same period last week," an Uber spokesperson said.

Uber and other companies that rely on self-employed gig workers say those workers appreciate the flexibility of the job. But many gig workers are pushing to unionize, saying that would give them the ability to bargain over compensation, safety measures and other benefits.

In November, that unionization effort saw a setback in the U.K., when Britain’s top court ruled that Deliveroo couriers don't have collective bargaining rights because they aren't considered employees.

Deliveroo said Wednesday that it has a voluntary partnership with a union that includes annual discussions on pay and it also provides couriers with free insurance and sick pay.

“Rider retention rates are high and the overwhelming majority of riders tell us that they are satisfied working with us,” the company said in a statement.

Rachel Gumpert, the spokesperson for Justice for App Workers, described ride-hailing as a “mobile sweatshop,” with some workers routinely putting in 60 to 80 hours per week. Justice for App Workers, which says it represents 130,000 ride-hailing and delivery workers, is seeking higher wages, access to health care and an appeals process so companies can’t deactivate drivers without warning.

But ride-hailing companies say they already pay a fair wage and have an appeals process in place for deactivations.

Earlier this month, Lyft said it began guaranteeing that drivers will make at least 70% of their fares each week, and it lays out its fees more clearly for drivers in a new earnings statement. Lyft also unveiled a new in-app button that lets drivers appeal deactivation decisions.

“We are constantly working to improve the driver experience,” Lyft said in a statement. Its U.S. drivers make an average of $30.68 per hour, or $23.46 per hour after expenses, Lyft said.

Uber said its U.S. drivers make an average of $33 per hour. The company also said it allows drivers to dispute deactivations.

Associated Press writers Jill Lawless and Brian Melley reported from London. Associated Press Video Journalist Melissa Perez Winder reported from Chicago.

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Date night strike: Thousands of US, UK delivery, ride-hailing drivers stop work on Valentine’s Day

Dozens of ride-hailing workers participated in a strike on Valentine’s Day at O’Hare Airport, calling for higher pay and better working conditions. (Feb. 14)

People protest ride-hailing companies like Uber, Lyft and others in the Transportation Network Provider parking lot at O'Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

People protest ride-hailing companies like Uber, Lyft and others in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

  • Copy Link copied

Ride-share drivers protest near Orlando International Airport at Airport Lakes Park, Wednesday, Feb. 14, 2024, in Orlando, Fla. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (Joe Burbank/Orlando Sentinel via AP)

People wait in the ride-hailing pickup area at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Ride-hailing workers were protesting companies like Uber and Lyft across the country Wednesday, demanding better wages and safer working conditions. (AP Photo/Erin Hooley)

People wait in the ride-hailing pickup area at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. ride-hailing and delivery workers were protesting companies like Uber and Lyft across the country Wednesday, demanding better wages and safer working conditions. (AP Photo/Erin Hooley)

Carmen Peralta joins other ride-hailing and delivery workers in protest of Uber, Lyft and other companies in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

An authorization sticker is displayed on a vehicle in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Ride-hailing and delivery workers were protesting companies like Uber and Lyft across the country Wednesday, demanding better wages and safer working conditions. (AP Photo/Erin Hooley)

Rideshare vehicles are parked in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (AP Photo/Erin Hooley)

People wait in the rideshare pickup area at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (AP Photo/Erin Hooley)

Blossom Boston joins other ride-hailing and delivery workers in protest of Uber, Lyft and other companies in the Transportation Network Provider parking lot at O’Hare International Airport, Wednesday, Feb. 14, 2024, in Chicago. (AP Photo/Erin Hooley)

Uber and Lyft driver Marcus Cruz, center, joins other rideshare drivers at a rally for batter pay and working conditions at Austin-Bergstrom International Airport in Austin, Texas, Wednesday Feb. 14, 2024. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. (Jay Janner/Austin American-Statesman via AP)

FILE - In this Feb. 9, 2021 file photo, a passer-by walks past a sign offering directions to an Uber and Lyft ride pickup location at Logan International Airport, in Boston. Thousands of U.S. ride-hailing workers plan to park their cars and picket at major U.S. airports Wednesday, Feb. 14, 2024, in what organizers say is their largest strike yet in a drive for better pay and benefits. (AP Photo/Steven Senne, File)

FILE - In this Jan. 12, 2016, file photo, a ride share car displays Lyft and Uber stickers on its front windshield in downtown Los Angeles. Thousands of U.S. ride-hailing workers plan to park their cars and picket at major U.S. airports Wednesday, Feb. 14, 2024, in what organizers say is their largest strike yet in a drive for better pay and benefits. (AP Photo/Richard Vogel, File)

Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions.

In the U.S., Uber and Lyft drivers planned daylong strikes in Chicago; Philadelphia; Pittsburgh; Miami; Orlando and Tampa, Florida; Hartford, Connecticut; Newark, New Jersey; Austin, Texas; and Providence, Rhode Island. Drivers were also holding midday demonstrations at airports in those cities, according to Justice for App Workers, the group organizing the effort.

Meanwhile, U.K. delivery drivers for Uber Eats, Deliveroo, Just Eat and Stuart said they would turn off their apps and refuse deliveries between 5 p.m. and 10 p.m. The group Delivery Job U.K., which called for the walkout, said on Instagram that the strike was “a crucial opportunity to be seen and heard by society.”

Of eight delivery drivers who spoke with The Associated Press on the streets of London Wednesday, all but one said they planned to halt work at 5 p.m. Several, however, questioned whether the strike was long enough to make enough of a financial dent in the businesses.

FILE - An Uber sign is displayed inside a car, May 15, 2020, in Chicago. The Biden administration will enact a new labor rule Tuesday, Jan. 9, 2024, that aims to prevent the misclassification of workers as “independent contractors,” a step that could bolster both legal protections and compensation for many in the U.S. workforce. (AP Photo/Nam Y. Huh, File)

“One day is not effective,” said Evadur Rahman. “If we strike more than one day — two, three, four days — they’re gonna be affected.”

Rahman, a Deliveroo driver who planned to participate in the strike, said his daily pay dropped in recent months from about 140 pounds ($175) for eight hours of work to around 100 pounds ($126). He said he wanted the company to raise the minimum rate it pays per order from 2.90 pounds ($3.64) to closer to 5 pounds ($6.28).

“They must improve the minimum pay,” Rahman said. “It’s not enough for survival in this country.”

Justice for App Workers estimated that thousands of drivers stopped working Wednesday, and said that workers in 12 or more cities beyond the original 10 had held impromptu demonstrations. Delivery Job U.K. had expected 3,000 people to strike.

Jocilyn Floyd, who has been driving for Uber for nearly a decade, joined the picket line Wednesday at O’Hare International Airport in Chicago.

“Uber has proven time and time again that they’re putting profits over people. In shareholder meetings they discuss profits; there’s no question about safety, protection from deactivation or compensation,” Floyd said.

Uber said Wednesday that the strike wasn’t hurting driver availability or customer demand.

“Despite the headlines, we’ve seen no impact to our operations or reliability for riders. In fact, in most markets there are more drivers on the road today than there were during the same period last week,” an Uber spokesperson said.

Uber and other companies that rely on self-employed gig workers say those workers appreciate the flexibility of the job. But many gig workers are pushing to unionize, saying that would give them the ability to bargain over compensation, safety measures and other benefits.

In November, that unionization effort saw a setback in the U.K. , when Britain’s top court ruled that Deliveroo couriers don’t have collective bargaining rights because they aren’t considered employees.

Deliveroo said Wednesday that it has a voluntary partnership with a union that includes annual discussions on pay and it also provides couriers with free insurance and sick pay.

“Rider retention rates are high and the overwhelming majority of riders tell us that they are satisfied working with us,” the company said in a statement.

Rachel Gumpert, the spokesperson for Justice for App Workers, described ride-hailing as a “mobile sweatshop,” with some workers routinely putting in 60 to 80 hours per week. Justice for App Workers, which says it represents 130,000 ride-hailing and delivery workers, is seeking higher wages, access to health care and an appeals process so companies can’t deactivate drivers without warning.

But ride-hailing companies say they already pay a fair wage and have an appeals process in place for deactivations.

Earlier this month, Lyft said it began guaranteeing that drivers will make at least 70% of their fares each week, and it lays out its fees more clearly for drivers in a new earnings statement. Lyft also unveiled a new in-app button that lets drivers appeal deactivation decisions.

“We are constantly working to improve the driver experience,” Lyft said in a statement. Its U.S. drivers make an average of $30.68 per hour, or $23.46 per hour after expenses, Lyft said.

Uber said its U.S. drivers make an average of $33 per hour. The company also said it allows drivers to dispute deactivations.

Associated Press writers Jill Lawless and Brian Melley reported from London. Associated Press Video Journalist Melissa Perez Winder reported from Chicago.

business plan on delivery service

comscore

Dún Laoghaire pedestrianisation plan could have ‘catastrophic’ impact on service delivery, says HSE

Record number of participants in council’s public consultation on living streets plan, with 54% backing initiative.

business plan on delivery service

George’s Street in Dún Laoghaire. Photograph: Nick Bradshaw

The Health Service Executive has said plans to reroute traffic and pedestrianise parts of Dún Laoghaire could be “catastrophic” for the delivery of its services to clients.

A period of public consultation on the controversial Living Streets plan for the south Co Dublin town has closed, with 54 per cent of respondents saying they support the scheme. Some 35 per cent were opposed and a further 10 per cent said they would back it if certain changes were made.

The public consultation garnered some 7,057 submissions, the highest number ever received by Dún Laoghaire Rathdown County Council in such a process. The submissions were not individually published by the local authority. Local councillors were due to be presented the findings on Thursday evening.

The proposed scheme would involve the pedestrianisation of parts of George’s Street Lower, Sussex Street and Convent Road and improvements for walkers, cyclists and “strollers”. It would also make sections of Tivoli Road one way, change traffic flows on the seafront, reroute buses and restrict delivery hours for town centre shops.

The Debate: Will the traffic plan for Dublin improve life in the city?

The Debate: Will the traffic plan for Dublin improve life in the city?

Impact of cycle lanes and other active travel ‘more positive’ than people expect, study finds

Impact of cycle lanes and other active travel ‘more positive’ than people expect, study finds

Dublin city centre traffic plan supported by most parties but communications criticised

Dublin city centre traffic plan supported by most parties but communications criticised

The council has said the plan “aims to make our local streets safer and greener, our communities more connected, and to keep our economy vibrant”.

In a submission to the council, released under the Freedom of Information Act, the HSE said it “cannot understate how catastrophic” the changes would be for the delivery of its services such as primary care, immunisation, physiotherapy and occupational therapy from its premises on Tivoli Road.

[  David McWilliams: People before bonnet: A battle for the heart and soul of Dun Laoghaire is ongoing  ]

It said many clients who access its services there “are sick, disabled, elderly, vulnerable children and adults”. The HSE said it was “not aware of any prior consultation” by the council with it on the plan which was surprising given it was “a major stakeholder” in the Dún Laoghaire area.

Joe Kennedy, an architect with a practice in the town, said access to doctors’ surgeries and pharmacies at the eastern end of George’s Street would be severely impeded by restricted parking at Clarinda Park.

He said Upper George’s Street and Clarinda Park North are largely made up of businesses, healthcare and retail operations and that people working in these often have to drive to work and can need “quick access to a car during the day”. He said displacing traffic from Tivoli Road to the outer routes would “inevitably lead to congestion”.

The Dún Laoghaire Business Association told The Irish Times that “most businesses back the Living Streets Project” and “the town needs imaginative investment and [a] huge effort by the people who care”.

Its secretary, Niall Lawlor, said traffic congestion was negatively affecting Dún Laoghaire and “the status quo strategy is not working and has not worked for the past 20 years”. The way to get rid of vacancy and dereliction “is more people, not more cars”, it said.

Fine Gael Cllr Lorraine Hall said it was time to stop viewing the plan as “an attack on car travel and start planning for better, less congested communities while adopting policies to address the climate crisis”.

Her party colleague Cllr Maurice Dockrell said he was supportive of the majority of the plans but it has some serious flaws that need to be addressed, particularly its impact on older people.

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Money latest: 'More lenders will follow' after Santander raises mortgage rates

Santander is increasing all fixed-rate mortgages for new customers tomorrow and experts say other lenders will follow. Read this and more in the Money blog, your place for consumer news and the latest on the economy. Listen to the latest Ian King Business Podcast as you scroll.

Tuesday 20 February 2024 23:22, UK

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  • Tesco changing way it displays Clubcard prices after warning from Which?
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  • How retirement ages differ around the world
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  • Savings Guide : 'What are my options for investing in my child's future?'

Electric vehicle owners are able to charge their car for free under a new tariff launched by Octopus Energy - but it only applies to three car models. 

The Power Pack deal could save drivers £876 a year compared with a standard variable tariff, the company said. 

For a customer driving 10,000 miles annually (at an average rate of 0.306 kWh/mile) with typical home energy usage (4100 kWh/year with 13.98% off-peak), the combined cost of Flexible Octopus and Octopus Power Pack would amount to £1,360 a year, it added. 

However, there are a number of criteria that need to be met in order to get the deal. 

Firstly, it only works with three specific car models: 

  • Nissan Leaf
  • Mitsubishi Outlander PHEV
  • Nissan e-NV200

Secondly, you need to have an existing Octopus Energy deal as the Power Pack comes as a bolt-on. 

You also need to have: 

  • A compatible charger - a Wallbox Quasar 1 V2G charger
  • A connectable smart electricity meter
  • Permission to export energy to your local distribution network
  • A schedule that fits: You'll need to be able to plug in for roughly 12 hours a day every couple of days, and charge less than 333kWh per month (equivalent to 1,084 miles of driving) 

Labour will commit to keeping the state pension triple lock if it is elected, according to the i. 

The party, which is yet to release its general election manifesto, is expected to confirm it will continue increasing state pensions each year by whichever is higher out of inflation, average earnings growth or 2.5%. 

Some economists have argued the policy is becoming unaffordable, while others have criticised it for being the easiest political option. 

Tom Selby, director of public policy at AJ Bell, said: "Any politician that advocates maintaining the triple lock is effectively admitting the state pension is too low.

"But rather than putting in place a plan to increase the value of the state pension to a level deemed 'fair', the triple lock randomly ratchets up the state pension in real terms depending on earnings growth and inflation at a specific point in time each year." 

Tesco is launching what it claims is the UK's first tubeless kitchen foil . 

The supermarket will remove the cardboard tube from inside its own brand foil, saving 330 tonnes of cardboard each year.  

The price of baby formula is coming under fresh regulatory scrutiny - amid concern it remains "historically high".

The Competition and Markets Authority (CMA) had previously identified a 25% price increase over two years - with just two companies, Nestle and Danone, accounting for 85% of sales.

The watchdog's decision to begin a market study, which should conclude by September, gives it the power to force suppliers to provide information on pricing and other issues.

You can read more on this story here ... 

We reported this morning on Barclays stocks rising on its announcement of £10bn in shareholder rewards over the next three years.

We've now noticed another line in the bank's report, on branch numbers - which, as we've discussed in this blog previously, have been falling.

The report says Barclays had 306 UK branches at the end of 2023 - down from 481 the previous year. Reports suggest there were 666 the year before.

We know more Barclays are due to close more branches this year as part of a wider trend among some of the big banks.

The Body Shop has announced it is closing half of its stores in the UK - including seven today.

It comes after the embattled retailer entered administration last week, putting more than 2,000 jobs at risk.

The Body Shop has roughly 200 outlets across the UK.

Administrators said that the brand's current portfolio is no longer viable after "years of unprofitability".

The seven stores closing immediately are:

  • Surrey Quays (London)
  • Oxford Street Bond Street (London)
  • Canary Wharf (London)
  • Cheapside (London)
  • Nuneaton (Warwickshire)
  • Ashford Town Centre (Kent)
  • Bristol Queens Road (Bristol)

You can read more on this story here ...

Estee Lauder, Greggs and easyJet are among household name employers named by the government for failing to pay workers the national living wage.

The companies feature in a list of 542 firms forced to repay more than £16m to 172,000 workers in underpayments since 2015.

The national minimum wage is currently £10.42 per hour for over-21s, due to rise to £11.44 in April, and £7.49 and £8.60 respectively for 18-20 year olds.

HMRC investigations conducted and closed between 2015 and 2023 found numerous breaches of the national minimum wage, including making employees pay for their uniforms out of wages, and deductions illegally made to cover PPE, food, childcare and training costs.

Workers were also underpaid for their time, with hours rounded down, or travel time, mandatory training and trial shifts excluded from payment. 

The worst offender was recruitment company Staffline, which failed to pay more than £5m to nearly 34,000 workers. Casino and bingo owner the Rank Group were second, underpaying 5,629 workers by £960,000, and Estee Lauder third, with 5,933 employees of the cosmetics giant receiving almost £900,000 less than they were due.

EasyJet was the eight worst offender with almost 4,000 workers underpaid by nearly £340,000, and high street baker Greggs 11th, short by nearly £220,000 to around 4,800 employees.

The Department of Business, Trade and Industrial Strategy did not disclose how much companies had been fined for breaching NMW law.

Sky Subscribers Services Limited, a division of Sky, which owns Sky News, was found to have underpaid 757 employees by a total of £55,067.

Estee Lauder said it had "never intentionally" breached the legislation, blaming the underpayments on a misinterpretation of HMRC guidance regarding deductions for staff clothing.

The other companies named have been approached for comment.

By Lara Keay , news reporter

Basically, VAT (valued added tax) is a consumption tax levied on most goods and services.

It was originally invented by the European Union and was introduced in the UK in 1973.

Technically it's charged at three rates – standard (20%), reduced (5%), and zero, with zero-rated goods effectively exempt.

The rules are slightly different in Northern Ireland to those in England, Wales and Scotland, as a result of Brexit.

How does it affect consumers?

As consumers, VAT is automatically included in the price of the goods and services we buy. 

This is because the law requires all businesses to include VAT in their advertised prices to avoid misleading customers. You can see it broken down by rate and related cost on your receipt.

Among the goods completely exempt from VAT are period products, cold food and non-alcoholic drinks, children's clothes and shoes, books, newspapers and motorcycle helmets.

Reduced-rate goods  and services include things like home energy costs and children's car seats.

Hot takeaway food, alcoholic drinks and food high in sugar and salt such as confectionary, crisps, ice cream and sports drinks are subject to standard rate VAT . 

All food and drink in restaurants, cafes, pubs and bars is also subject to VAT at 20%, though the hospitality industry is currently lobbying for a cut as it struggles to bounce back from COVID and the new high-interest rate environment.

How does it work for businesses?

Businesses must be VAT-registered if their annual taxable turnover is £85,000 or more.

This means they must charge VAT on the goods and services they supply - and pay this to HM Revenue & Customs. But, they can claim back any VAT they have paid on their business expenses.

What about tax-free shopping?

At the start of 2021, the UK ended its scheme that allowed international tourists to claim back VAT on items purchased during their visit.

VAT is one of many ways the government funds itself - through taxing the goods and services that pass through the economy.

Although it was originally an EU scheme, the UK has chosen to keep the VAT system after Brexit, but can now dictate its own VAT rules, instead of the ones shared by EU member states.

Many refer to it as a regressive tax - as it is charged at the same rate for everyone, placing a disproportionately high burden on lower earners and smaller businesses.

But those who support VAT say it provides a stronger incentive to earn more money.

Read other entries in our Basically... series:

Santander has announced it will increase all residential and buy to let fixed rate mortgages for new customers from tomorrow. 

Rates will increase by as much as 0.34%. 

It is also raising selected residential and buy to let fixed rates in its product transfer range.

Mortgage expert Lewis Shaw has warned the high street banking giant "won't be the last lender that is likely to increase their rates this week in response to volatile swap rates".

He advised those buying or remortgaging to get their documents over to their broker as soon as they ask them. 

"This way, you'll hopefully not miss out on lower rates because once they're gone, they're gone," the owner of Shaw Financial Services told Newspage. 

The economy is already showing clear signs of an upturn, the governor of the Bank of England has said. 

Andrew Bailey has been talking to MPs about the UK's "very weak recession". 

"We think the economy is already actually showing distinct signs of an upturn," he told the Treasury Committee.

"If you look at recession going back to 1970s this is the weakest by a long way... -0.5% is a very weak recession." 

He also commented on interest rates, saying they could be cut before inflation falls to the Bank's 2% target. 

"We don't need inflation to come back to target before we cut interest rates, I must be very clear on that, that's not necessary," he said. 

Tesco is changing the way it displays its Clubcard deals after a warning it could be illegal.

Over the coming weeks, the supermarket giant will roll out unit pricing on all its Clubcard price labels. 

While unit pricing has already featured on Tesco's shelves, this is the first time it will be shown on the Clubcard labels. It will allow customers to compare different sized items and pick the best deal. 

Which? had warned the lack of unit pricing could be breaking the law. The consumer champion has welcomed the change, saying it is good to see the nation's largest supermarket "stepping up to do the right thing". 

Tesco's chief executive Jason Tarry said: "This is something that we have been planning to do for some time, and I am really pleased that we are ready to make the change. 

"Over the coming weeks, these changes will appear in all our stores, as our colleagues update millions of price labels on the shelf edge. We will also be adding these unit prices to our Clubcard Prices deals online."

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