The delivery services business industry is BOOMING! New delivery service businesses are popping every day around the world. Whether you’re starting a business dealing in same-day delivery, or if your customer base is in another area of the delivery industry, you need a plan!
A business plan for delivery service companies is essential for success. This article will look to get you situated, started, and get you on your way to create a delivery business or courier business that will create repeat customers and hopefully provide you with everything to get started.
Table of Contents
Why have a Business Plan?
The team here at Upper Route Planner is working hard at creating excellent route planning software. However, we know very well that to be successful, you can’t just rely on one piece of software; you always need good overall planning!
There are many reasons to have a business plan. First and foremost, it’s a tool to help you make important decisions, helping you with the navigation of difficult decisions. Good planning allows you to reduce expenses, create a better experience for customers, and ultimately have a higher chance of success.
Also, business plans can access startup capital, funding, partners, and even recruit employees. This is true whether you are starting a goods delivery business or any other type of small business.
What are the Parts of a Business Plan?
Business owners have argued how to prepare a business plan for ages. The delivery service business is no different because there are a variety of ways a delivery service business plan can be written. The important part is always to have the following components :
- A summary or overview: Typically, this is called the “Executive summary” it will summarize the key points of your enterprise.
- Market analysis: This is the foundation for the whole delivery service business plan. Information on the industry in your area will lead you to a higher likelihood of success.
- Company Profile: Most sample business plan templates will have this section as well. It’s all about your courier service business. What type of customers are they going to have? What is your business name? Are you a good delivery business? Give the overview!
- Marketing and Sales: This section is all about promoting and selling! Who are your customers in your area? What is the way you’ll reach that target market? How will your sales engine keep generating you the money you need to ensure you have ongoing customers and a successful small business or courier service.
- Operations: Who is part of your team? Who are the business owners? How are you going to reach those target customers? What demands are you meeting? Are you going to their homes? Or doing deliveries only to businesses?
- Financials: All businesses need to worry about the money. The most important part (arguably) of the service delivery plan is the financials. Whether you’re a goods delivery business or a courier business, you want to ensure that you get the financials done right.
Step by Step: How do I Write a Business Plan?
This section is really a summary of the rest of the other sections. So just put the most salient parts here! This page should be a maximum of one page long!
Section 1 – Market Analysis / Industry Analysis
As mentioned, this section is all about an overview of the delivery businesses in your city. And understand how the industry works. Here are the sub-à sections you’ll want to have in this section:
- Industry Analysis: This is a bigger picture view. For instance, if you are a courier business dealing with parcels, you want to know the world’s big picture view and in the USA. This helps to get a perspective. If you are a goods delivery business, shipping goods from clothing to subscription boxes, you’ll also want a bigger picture view.
- Local competitive analysis: For this, you’ll also want to look at local businesses and service providers. You’ll first want to know who is in your area competing for the same market. If your customers are looking for deliveries for specific goods (like brewery kegs or dairy products), is there a competitor? If you are planning a courier service, are other companies dealing in this area? If so, what are they charging? How are they executing? This data is gold!
- The Opportunity: After a great analysis, this allows us to identify the opportunity for that type of company in your region. Get as specific as you can (dollars and cents)
For more information, check out:
How to Start a Delivery Service – How to Do a Competitive Analysis?
Section 2 – Company Profile
This section flows well from section 1 as it says how you will “deliver the goods,” so to speak (whether or not you’re literally going to deliver goods)! This is also your personal account of your business. The sections to include are the following:
- Company Name: What is your company name?
- Business Overview: More or less a one-liner explaining the whole of your business.
- Type of business: In this section, you’ll specify what type of company you are. Are you a single car driving to serve small businesses, or are you planning a large scale courier business?
- Products or Services Offered: What services are offering? Are you a goods delivery business? Or are you delivering documents? Or are you doing deliveries for products?
- Unique Value Proposition: How are you doing to differentiate yourself from others? (hint: it’s easy quality, speed, price, experience, delivery options or ideally all of them!)
Section 3 – Marketing Strategy and Business Development
The engine that keeps the business running is money. To get the money, you need clients. To get clients, you need to attract them with marketing. Here are the sections you’ll need for section 3.
- Target Customer and niche: This is taken from the market analysis, ideally. At this point, you’ll have done sufficient research, and you’ll have a great idea of who you are targeting and why!
- Marketing Assets: To do marketing, you’ll need a whole variety of what they call “marketing assets” this includes branding, logo, business cards, websites, brochures, etc.
- Marketing Strategies: How are you going to get the word out? What channels are you going to use? Online or digital marketing(Social Media platforms) ? Or are you doing to go “old school” like radio ads?
- Customer Service: How are you going to deliver excellent customer service?
- Sales and Business Development: And of course, how are you going to carry out your sales? Do you have a sales process? Are you going to get clients to fill out an online form? This is where you write this all out.
Want to learn more? Check out,
Building Successful Delivery Businesses – How to Choose Your Customer Niche?
Section 4 – Team and Operations
This section is about business structure, operations, and really how your company works overall!
- Business Structure: This includes specific legal elements like the legal structure and the type of business license you will get.
- Employees: Will you need employees? Are they full time? Or Part-time? Will you start with contract drivers? Who are the co-owners?
- Equipment: In here talk, about that you need to carry out your duties. This includes equipment, the vehicle you will use, the computers, and so on.
- Operations: Where will you operate? Out of an office? How will the whole company communicate internally etc.?
Section 5 – Financials
This section is all about the money! Honestly, every business is about money. It’s also about the funding, cash flow. Here are some elements to think about
- Startup costs: How much will it cost to get started?
- Revenues/Sales projection: How much do you plan on making in year 1? Year 2? Generally, projections are for 2 or 3 years for an initial plan and 5 years for a more established company.
- Expenses: What are the expenses you will occur? These are generally divided into two types. The first is called Cost of Goods Sold, or Cost of services sold. The second type is called operating expenses, which are also known as “overhead” this would include vehicle costs, office costs, marketing expenses, business insurance, and so on.
The key is not to get stuck in your head: get it out! Please put it on paper. And make sure you get ideas from talking to as many people in your target market. Many courier services get stuck and spend too much time ruminating on the business ideas; the best thing to do is quickly get the first version, validate it, and update it as you need it.
The number one thing to do to start a business, any business, is to start by researching and planning. The problem is that you don’t want to do too much of that. The key to business success is the balance between taking action and making informed decisions. Keep experimenting, and you’ll find it. ; )
This is part of an ongoing series to help users like you get started and get going in your delivery career. We hope this has been useful, and as always, we are there to serve you, our users and get you successfully delivering and making a profit. We hope that this article finds you in good health. Stay safe and safe travels.