Outlining critical steps for anyone looking to start a delivery business, emphasizing the importance of planning, understanding the market & legal structures, and leveraging route planning software for operational efficiency.
These days, it seems that nearly everyone is starting some type of delivery business. Uber is one of the most popular examples of a successful delivery business, but there are plenty of other businesses that have cracked the code on delivering goods and food. However, there’s a common misconception out there that delivering things is easy. The truth is that it takes time to build a successful delivery business, and you might have to get creative to get your foot in the door.
When starting your small business startup, it can feel as if there are a million things you need to take care of. There’s a lot of organization and planning to do before you’re really ready to start taking orders from customers. If you’re preparing to start a delivery business of some kind, here are some helpful tips for on some of the important tasks you will need to do.
Let’s get one thing clear: delivering things and providing excellent customer experience is not easy. Sure, the actual act of delivering the items may be straightforward — but take it from the best delivery companies — it’s all about the relationship. With a powerful delivery company, you will be receiving packages when you need them and not have to wring your hands over missing deliveries.
Before you start your delivery business, create a detailed business plan. This will help you determine how much money you need to launch your business and what kind of resources you’ll need later on. Make sure to include all the costs associated with starting your delivery business — including licenses and permits, equipment purchases, taxes and more. You should also take time to think about how the customers will find out about your service and how much competition there may be in your city or town.
It’s no secret that eCommerce is booming. This only means that there’s a greater need for delivery companies—and with that, there’s an increased demand for people to deliver packages from stores like Amazon and Target to your front door in a timely manner.
As an entrepreneur you need to have a clear understanding of your business niche. Knowing your niche is everything and can really send your company in the right direction.
It could mean the difference between the success and failure of your delivery business. As an entrepreneur, you need to have a clear understanding of your business niche so that you can serve it well. If you don’t, you’ll have competition entering your space from all angles.
If you’re looking to start a delivery business, you probably have your eye on something that’s already being done. You may not be the first person to come up with the idea of delivering food or other items, but that doesn’t mean there isn’t room for someone like you in this space.
Once you’ve created your business plan, figure out what makes your product special and unique from other local businesses in the area. Is there something that sets yours apart from theirs? If so, great! If not, try brainstorming ways that could make yours stand out from theirs — such as offering free delivery or services that others don’t provide (like food trucks that offer curb service).
To get started with delivery service, you need to determine if your delivery business idea is viable. Here are some tips to help get you started:
Do research on your competitors. If there are already a number of businesses offering similar services in your area, it might not be worth trying to compete with them. However, if there aren’t many businesses in this space, then it could be a good opportunity for someone like you who has a unique perspective on how things should be done. Determine if the market for your area is saturated by looking at how much competition there is and how much money they make per month.
See how you can differentiate yourself from other businesses offering similar services. This will help set yourself apart from other businesses and make people want to work with you instead of someone else (even if it means charging more).
Make a budget for the cost of getting started, and the cost of equipment required. You will need a vehicle, preferably one with four doors, so that you can transport more than one item at a time. If you’re going to deliver pizza, for example, then this will be essential as well as having enough space for pizzas in the back of your car. Other items like food could require two people delivering them at once as they might be too heavy or awkward to carry on their own. Make sure that you have enough money saved up so that you don’t have to take out loans or use credit cards just yet!
Make sure that you have adequate insurance cover in case anything goes wrong during deliveries. This could include accidents involving other vehicles or pedestrians, or even items being damaged due to bad weather conditions! You might want to consider taking out a public liability policy too as well as car insurance.
When things are slow, it’s tempting to slack off. But remember, the best way to get new customers is through word-of-mouth. So make sure you’re always giving your customers a great experience and providing friendly customer service.
Have a plan for what to do if something goes wrong with an order or if you have damaged merchandise that needs to be replaced. If you don’t have a plan in place, you might lose customers over something small that could have been easily fixed with a little extra effort.
Form a legal structure for your delivery business. If you don’t already have an LLC or corporation in place, set one up before launching the business so that all profits and losses can be tracked properly. You may also want to hire an accountant or attorney who specializes in small delivery businesses so they can help with tax questions throughout the year—and especially come tax season!
Get insurance coverage for yourself and your employees. As with any other small business, you’ll want to keep yourself covered through personal liability insurance or workers’ compensation insurance if needed—and get coverage for any employees as soon as possible so they can start working without worrying about accidents happening on job sites or during deliveries (even though accidents do happen).
There are a number of different types of licenses that you may need for your delivery business, depending on what type of business you decide to start. For example, if you plan on making deliveries in an area with parking restrictions, such as a residential neighborhood, you’ll likely need a commercial driver’s license (CDL). If your business involves food preparation or food handling (such as catering), you may also need additional permits and licenses from local health departments.
It’s important to understand what kind of licenses and permits apply to your business so that you don’t violate any regulations while operating your company. For example, if the government requires that all vehicles used for deliveries have specific safety features such as flashing lights on top or reflective tape on the sides, it’s up to you to make sure those features are included in your vehicle design.
Develop a marketing strategy. Before setting up shop, it’s important to develop a marketing plan that outlines the goals of your business and the strategies you’ll use to reach those goals. This includes deciding on advertising methods and identifying target markets. Determine whether you want to target local customers or serve a wider audience. If you’re serving a local area, you’ll have fewer options for advertising but can establish yourself as the go-to store for that community. If you’re planning on having a national presence, consider using social media platforms like Facebook and Twitter as well as Google AdWords to reach potential customers nationwide.
One of the most important things to consider is how you’ll get your products from point A to point B — specifically, how you’re going to map out your delivery route.
It can be tough to figure out all of the steps involved in this process, especially if you don’t have experience with it before. But there are plenty of tools available that can help you set up a successful delivery route in no time.
You can save a lot of time and money using a local delivery route planner like Roundtrip’s EasyRoutes on the Shopify App Store. Planning routes manually takes hours. And if you don’t do it right, all those hours will be wasted time. Our software does all the work for you — so you can focus on what matters most: growing your business!
Hopefully these tips will help you launch your small business startup, and achieve success. Once you’ve gotten your business up and running, there is a lot of work to be done, such as networking and marketing your business to new customers. However, by following the steps above, at least you’re sure to get your delivery service started in the right direction. Remember that every small step towards success is still a step closer towards being able to enjoy the fruits of your labor.
Roundtrip's mission is to equip every business with the software tools they need to deliver products to their customers in a delightful way. Thousands of worldwide choose EasyRoutes to power their local deliveries across dozens of product categories, from meal kits and groceries to coffee, cupcakes, kibble, and so much more. Our easy-to-use route planning and delivery optimization app is certified Built for Shopify, a two-time Shopify staff pick, and the top rated local delivery app on the Shopify App Store.
