a delivery service business plan

Delivery Service Business Plan Template

Written by Dave Lavinsky

Delivery Service Business Plan

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

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

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

Download our Ultimate Business Plan Template here >

What is a Delivery Service Business Plan?

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

Why You Need a Business Plan for a Delivery Service

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

Sources of Funding for Delivery Businesses

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

How to Write a Business Plan for a Delivery Service Business

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

Executive Summary

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

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

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

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

Company Overview

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

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

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

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

Include answers to questions such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are other delivery businesses.

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

Balance Sheets

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

Cash Flow Statement

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

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

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

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

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

OR, Let Us Develop Your Plan For You

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

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

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Starting Your Own Delivery Business In 2024: Insider Tips

Getting your shopping delivered to your doorstep is nothing new. But since the pandemic kicked demand for delivery services into overdrive, people around the world are more comfortable with online shopping than ever before. There will be more than 2.77 billion e-commerce buyers by 2025 . So, it should come as no surprise that more and more people are interested in starting their own delivery businesses.  

If that’s you, you’re in the right place. In this guide, we'll cover everything a small business owner needs to know about starting a delivery business. Let's jump in!

Why start a delivery business?

Running a delivery company can be a fantastic way to enjoy the flexibility of being your own boss, while also earning a decent income. Delivery businesses typically have low start-up costs and minimal infrastructure requirements. A delivery service business can also allow you to control your own schedule and workload, which makes it a popular choice for young parents, retirees and others who want a good work-life balance.

Whether you're delivering locally or nationally, there are plenty of opportunities to grow your business (if that’s what you want) and positively impact your community. 

For example, on Vancouver Island in British Columbia, Canada, local delivery business BCause started helping out during the pandemic by delivering groceries directly to people’s homes. Now they’re on a mission to support local producers and make their products more accessible to consumers — a win for everybody.

So if you're wondering whether there’s a way to turn your passion into a profitable venture, starting a delivery business might just be the perfect fit for you!

Are delivery businesses profitable?

Yes! As the demand for local delivery services rises, so does the potential profit. This is reflected in wages and salaries. In the United States, the average salary for people working in delivery services is $96,039 per yea r. Home delivery drivers earn over $95,000 on average, and senior delivery managers earn over $110,000.

Of course there are no guarantees. As with any new business, the key to profitability is to identify the needs of your target market, then develop a viable business plan to meet those needs. Keeping your cost per delivery as low as possible will be crucial. But with the right combination of services, technology, and marketing strategies, your delivery business can capitalize on current market trends and maximize profitability.

Can a small delivery company really compete with Amazon?

Amazon’s vast product catalog and fast shipping make it a default online shopping option for a lot of people. But just because a small business can’t match Amazon’s power, that doesn’t mean you can’t find your own profitable e-commerce niche. Maybe you’ll attract customers who want to support a local retailer with sustainable practices and good working conditions. Or maybe they’re looking for unique, hand-made items, or just want to know they’re dealing with real people rather than a huge multinational corporation. You could eve

Don’t get distracted by thinking you need to offer next-day or same-day delivery, either. You could differentiate yourself by offering slower, less expensive deliveries; by using more sustainable packaging options , like returnable containers; or by offering more flexible delivery times. For example, in one study 73% of consumers said a convenient delivery time slot is more important than fast delivery — you could win by enabling your customers to choose their own delivery time window .

What types of delivery services are there?

So, what type of delivery service do you want to offer? That depends on where your expertise can meet the needs of your target market. To give you some business ideas, here are examples of popular delivery services:

• Grocery and food deliveries
• Flower deliveries
• Pharmacy deliveries
• Furniture and appliance deliveries
• Parcel deliveries and courier services
• Laundry and dry cleaning deliveries
• Alcohol and cannabis deliveries
• Party and event supply deliveries

Whether you choose to be a courier-style business (i.e. delivering someone else’s products) or expand into deliveries with your own product (florists, bakeries, etc.), there are tons of opportunities to make money in the delivery business.

How much does it cost to start a delivery business?

The cost of starting a delivery business depends on several factors, such as the size and scope of your services, the type of equipment you plan to use, and any fees associated with obtaining the necessary permits or licenses. In general, getting started costs anywhere from $100-$20,000 .

What do you need to start a delivery service?

While some businesses need big up-front capital investments and complex infrastructure, it’s possible to start a delivery business with far fewer resources. A basic starter kit might include:

• A reliable delivery vehicle (car, cargo van, truck or bicycle)
• A handtruck or dolly for moving heavy items
• Delivery drivers
• A valid driver's license
• Commercial auto insurance coverage for your vehicle 
• GPS or navigation software
• A smartphone (cellphone) or tablet
• Packing materials (boxes, bubble wrap, etc.)
• A domain name, a basic website, an email address and business cards and/or flyers
• Business permits/licenses for your area

Of course, this list is not exhaustive. Depending on the scope of your small business, you may need additional equipment and materials to ensure a smooth start.

How to set up a delivery service: A step-by-step guide

Once you've gathered the resources necessary to start a delivery business, it's time to get your venture up and running. Here are the steps you'll need to take:

Step 1. Choose your niche

The first step is to decide which type of delivery services you want to offer. Your niche will be the foundation of your business, so it's important to choose one that meets the needs of your target market.

As you can see from the list above, there are plenty of delivery services to choose from, ranging from grocery and food deliveries to courier services. Think about the type of business you want to run, how much you have available to invest in equipment, and whether you want to employ other people. Your market research should help you understand which niches are most underserved in your local area. This will help you find the best idea for your own delivery business.

Step 2. Create a business plan

Any successful business starts with a great business plan. There are plenty of online and offline resources to help you with this. In the U.S., the Small Business Administration has a great website at sba.gov . Your local library or chamber of commerce are also both great places to find detailed, relevant local advice. 

Very broadly, though, you’ll want to choose a business name, conduct a market analysis of your target audience, and figure out how much you’ll need to spend on startup costs to make your business a reality. Additionally, you’ll want to include a timeline for when you plan to launch, and a marketing plan.

Having a well-thought-out business plan will help you stay organized and focused on the tasks that need to be completed before opening day. If you're not sure what that looks like, you can always search for templates of business plans online or hire a professional to help you create one.

Step 3. Choose a business structure

There are three primary business entities to choose from when launching a delivery business: sole proprietorship, partnership, and corporation. Each structure has its own advantages and disadvantages, so be sure to do your research and decide which business model is best for you.

• Sole Proprietorship: Easy to set up and great for entrepreneurs, but you're personally liable for all business debts and obligations. 
• Partnership: More capital is available, but you share control with other partners.
• Corporation: Limited liability and legal protection, but there are more expenses associated with forming this type of business.
• Limited Liability Company (LLC): Blends elements of partnerships and corporations, providing owners with limited personal liability while allowing profits and losses to be passed through to their personal income.

These business structures are common across many countries, although the exact regulations vary. n general, sole proprietorships and partnerships are simpler to manage, with less onerous regulatory and compliance requirements. On the other hand, corporations and LLCs will offer more protection for your personal assets.

Step 4. Get an EIN (Employer Identification Number)

In the U.S., you'll need to obtain a federal tax ID number, also known as an Employer Identification Number (EIN). This is a unique 9-digit number that identifies your business and allows you to open bank accounts, pay taxes, and hire employees. You can apply for an EIN online through the IRS website or by mail.

Other countries will have slightly different systems, but all of them need you to be scrupulous about your tax filings! Again, your local library or chamber of commerce is a good place to ask for advice about how to register for tax. 

Step 5. Open a business bank account

Once your business is registered, you must open a business bank account. This helps keep your personal and business finances separate, and makes it easier to manage your taxes. You can choose from a local or online bank, but be sure to compare fees and services before you decide. Some options may be more cost-effective than others, or offer special features like free checking or electronic transfers.

Step 6. Get insured

It's vital to get the right business insurance policyfor your delivery business. This will help protect you from any unexpected costs associated with an accident or theft of goods in transit. Types of insurance you may need include general liability insurance, commercial auto insurance, cargo insurance and worker's compensation. Check with your state or local government to see what specific types of insurance you need.

Step 7. Get the necessary licenses or permits

You may need specific permits or business licenses, depending on where you plan to operate. For example, some states require food delivery businesses to get a special license, while others only require liability insurance. Research what is needed in your area and make sure you have all the necessary paperwork before launching your business.

Step 8. Buy your equipment

As we mentioned above, you'll need some basic equipment to get started. Invest in quality items that will last, and make sure they are properly maintained — vehicle maintenance is particularly crucial for a delivery business. If you don’t want to invest in a new vehicle, consider leasing or buying used vehicles.

Step 9. Find clients

View this post on Instagram A post shared by Flourist (@flourist)

Now it's time to grow your customer base! Here are five tips to get your first bookings and orders:

• Use online platforms: Social media is a great way to get the word out about your delivery business. Set up a professional profile and start connecting with potential customers in your area. For example, in the picture above you can see how Flourist in Vancouver uses Instagram to connect with their customers and advertise their delivery services. 
• Set up a website: Squarespace, Wix and GoDaddy are all popular and highly-rated options. For an extra fee, you’ll be able to use your own domain name. Do some basic research on search engine optimization (SEO), especially local SEO, to help get you started quickly. Hubspot has an excellent beginner’s guide to SEO .
• Create a referral program: Encourage satisfied customers to refer other potential clients to your delivery service by offering discounts or rewards for each referral.
• Network with local businesses: Partner with other local businesses and offer them your delivery services at a discounted price. For example, if you have a grocery delivery business, consider partnering with local supermarkets or small farmers. This can also help you gain visibility and recognition in the community.
• Focus on customer service: Deliver on time, respond promptly to customer inquiries, and maintain a friendly and professional attitude to build trust with your clients.
• Offer competitive pricing: Research the prices of similar delivery services in your area and offer competitive rates to attract new clients. Be transparent about your pricing and offer package deals or discounts for larger orders.

Step 10. Get a delivery management system

We said at the beginning of this article that keeping your cost per delivery as low as possible is crucial to the profitability of any delivery business. One of the best ways to do this is to use a delivery management system with route optimization. Apps like Routific, designed specifically for small to mid-sized businesses, can help by:

• Enabling you to offer custom delivery time windows
• Automatically creating optimized delivery routes with accurate ETAs
• Dispatching routes directly to driver’s mobile phones
• Tracking the day’s delivery progress in real time
• Enabling drivers to easily capture photo and signature proof of delivery
• Automatically sending notifications to your customers so they know when to expect their deliveries

The right delivery management system can help you maximize your deliveries per hour, without compromising driver safety or customer satisfaction. More deliveries per hour means less distance driven, lower fuel consumption and lower cost per delivery overall.

Step 11. Hire a team and start working

Once all your preparations are finished, it's time to hire a team and start delivering. Use job boards or local recruitment agencies to find qualified candidates that have the skills and experience you need for your business. Once you've hired your team, provide them with proper training and set expectations upfront so everyone is on the same page.

Now you're ready to launch your delivery business and start serving customers. Good luck — you’ve got this!

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Delivery Service Business Plan Template [Updated 2024]

Delivery Service Business Plan Template

If you want to start a successful delivery business or expand your current delivery service company, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of delivery service business plans.

The following delivery service business plan template and example gives you the key elements you must include in your plan. It can be used to create a business plan for a food delivery service, same day delivery, restaurant delivery service, grocery delivery or any other type of delivery services businesses. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our business plan template (including a full, customizable financial model) to your computer here.  

Example Business Plan For Delivery Service Businesses

I. executive summary, business overview.

[Company Name] is a new delivery service that operates in [location]. Our mission is to deliver parcels, documents, and packages for a variety of businesses and individuals located in [location] and the surrounding area. We offer delivery for all local industries and businesses, including the medical industry, retail establishments, corporate offices, and more. We ensure great customer service, special services, and speedy delivery for a moderate price. We aim to be as good as larger chains (such as FedEx and UPS) but offer more unique services for a more affordable price.

Services Provided

[Company Name] will deliver parcels, packages, and documents from local companies and residents to their local destinations. Packages can be of any size and weight, as long as they fit into one of our vehicles.

Furthermore, we offer a variety of shipping methods, from economy to same day delivery. We are flexible with the goods we deliver, as we want to fulfill all our customer’s delivery needs. Below are a few of the services that our customers will enjoy with us:

• Same day delivery
• On-call services
• Monthly rates and volume discounts
• Route delivery
• Special handling services and requests

Customers can order their services either by calling us, scheduling a delivery on our website, or setting up a service in our app.

Customer Focus

[Company Name] will primarily serve businesses and industries in or near [location]. As the company grows, we will look to serve nearby communities as well. We are open to serving any business or industry that fits our needs. These can include, but are not limited to:

• Medical industries and health professionals
• Corporate offices
• Retail establishments
• Food and beverage
• Attorneys and law firms
• Real estate agents
• Insurance companies
• Construction companies
• Accountants and personal finance consultants

Though we expect to primarily work with local businesses, solopreneurs and local residents are also welcomed to utilize our services.

Management Team

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer for much of that time. He has found the work highly rewarding, but noticed that national chains are often too expensive for customers and lack the personal detail a local company can provide.

Though he has never run a delivery service himself, he has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• The company will provide valuable delivery services to local businesses who don’t want to work with impersonal national chains.
• The management team has a track record of success and experience in the delivery service market.
• [Company Name] will provide high quality customer service and a variety of services catered to every business that partners with us.

Financial Highlights

[Company Name] is currently seeking $575,000 to launch. Specifically, these funds will be used as follows:

• Office design/build: $200,000
• Vehicle purchases and maintenance: $200,000
• Technology development and maintenance: $50,000
• Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new delivery service that operates in [location]. We will provide local businesses with fast, efficient, and smooth delivery services to ensure all their packages and parcels get to their destination quickly and in perfect condition. We offer delivery services for all local industries and businesses, including the medical industry, retail establishments, corporate offices, and more. We ensure quality, good customer service, and speedy delivery for a moderate price. We aim to be the dominant local delivery service that [location] can count on for all their delivery needs.

[Company Name] is run by its founder, [Founder’s Name], who has worked for the delivery service market for [X] years. He worked for national delivery chains during that time but wanted a company that offered more moderate pricing and focused on local relationships. He surveyed many local businesses and residents to see if they would be interested in a more localized delivery service. The survey had overwhelmingly positive responses, so [Founder’s Name] immediately began to research all the necessary elements to build his own delivery service.

[Company Name]’s History

[Founder’s Name] incorporated [Company Name] on [date of incorporation]. He has been primarily running the business from his home and personal vehicle but has found a potential commercial office space to lease. Once the lease is approved, all operations will be run from there. He will also purchase delivery vans that will be specifically used for delivery services and other business-related reasons.

Since incorporation, the company has achieved the following milestones:

• Located a commercial office space and wrote a Letter of Intent to lease it
• Developed the company’s name, logo and website
• Developed the app and began testing it
• Began recruiting key employees and drivers
• Began partnering with local businesses and stores
• Surveyed other possible locations for expansion

[Company Name]’s Products/Services

[Company Name] will deliver parcels, packages, and documents from local companies to their local destinations. We can deliver almost any product, including medical products, perishables, and legal documents. Packages can be of any size and weight, as long as they fit into one of our vehicles.

Furthermore, we offer a variety of shipping methods from economy to express and priority. We are flexible with what we deliver, as we want to fulfill all of our customer’s delivery news. Below are a few of the services that our customers will enjoy with us:

Customers can order their services either by calling us or setting up an order in our app.

III. Industry Analysis

Thanks to the digital age, there is great demand for delivery services. From food and groceries to medical products, every industry needs to transport goods and packages to its partners and customers. Almost every business and customer buys their products online these days, meaning that every business of every sector has some need for a delivery service.

Moreover, industries are demanding more from their couriers, such as same day delivery and special handling requests. Many national chains do not offer flexible pricing and services to meet their needs. Luckily, local couriers and delivery services can meet this demand.

The global courier service market was valued at $381 billion last year and is projected to reach $658.3 billion over the next 10 years. Furthermore, the industry is expected to grow at a compound annual growth rate of 5.7%. This shows that the courier industry is booming and has no plans to change anytime soon. There has never been a better time to start a delivery service.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will primarily serve local businesses located in [location]. We are open to serving most industries, including medical, legal, and real estate. However, we are also open to helping local residents with their delivery needs as well.

Customer Segmentation

We will primarily target the following customer segments:

• Local businesses : Our primary customer segment will be local businesses across a variety of industries. We aim to develop long-term relationships with these businesses while providing specialized delivery services that exceed expectations. We expect to make a majority of our revenue from these businesses so much of our marketing efforts will target them.
• Solopreneurs : Solopreneurs (such as solo attorneys and personal financial advisors) have unique businesses and require exceptional delivery services. Their needs are often not accommodated well by large chain delivery models. We offer flexible and special services to help solopreneurs with all of their requests.
• Individuals : Local residents have their own unique delivery needs as well. Though we expect most of our sales to come through businesses, we will offer special delivery services to individuals who want a more personalized delivery experience.

V. Competitive Analysis

Direct & indirect competitors.

The following delivery service companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Downtown Courier Services Downtown Courier Services has been a successful courier and delivery service in downtown [location] for years. They provide delivery services to a variety of businesses located downtown and offer great services such as same day delivery, special handling requests, and on call services.

Though Downtown Courier Services is likely to remain successful, they operate in an extremely limited market. They only cater to businesses located in downtown [location] and only deliver packages for a handful of industries. [Company Name] will have a much larger market and geographic range of operation.

National Parcel Service Established in 1977, National Parcel Service has been a dominant delivery company nationwide. Offering a variety of print, ship, and delivery services, it has become a convenient delivery service for both businesses and individuals.

While we expect National Parcel Service to continue to thrive, the business’ reputation has drastically decreased over recent years. Price hikes, restrictions on services, and labor strikes have given the company a negative public outlook. Individuals and local businesses expect high-quality services when prices increase, and National Parcel Service has not delivered on that. Furthermore, National Parcel Service does not have a history of maintaining long-term relationships with its customers nor treating its employees well. Local residents and companies are looking for a more ethical and friendly service to use instead.

Medical Delivery Inc. Medical Delivery Inc. has provided an essential service for medical offices and health professionals since 1995. They deliver all sorts of medical products, including equipment, lab specimens, and test results. They also offer on-call services, same day delivery, and fixed route deliveries.

While Medical Delivery Inc. will continue to thrive, they only deliver medical products and are not open to delivering for other industries. Therefore, we will only see competition from them in this one sector.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Client-oriented service : [Company Name] will put a focus on customer service and maintaining long-term relationships. We aim to be the best delivery service in the area by catering to our customer’s needs and developing a strong connection with them.
• Management : [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the best delivery and customer service experiences. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
• Relationships : [Founder’s Name] knows many of the local leaders, business managers and other influencers within [location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
• Technology : The delivery service market is one industry that struggles to keep up with technology. Unlike our competitors we will develop an app that will make scheduling delivery services quick and painless. However, we still have a phone number and website for those who prefer to schedule their services through those mediums.

VI. Marketing Plan

The [company name] brand.

[Company Name] seeks to position itself as a strong competitor in the delivery service market. Customers can expect great customer service, speedy delivery, and an overall wonderful experience by ordering through our delivery service.

Promotions Strategy

The [Company Name] brand will focus on the Company’s unique value proposition:

• Safe and secured local deliveries of any package type, size, or weight
• Service built on long-term relationships and personal attention
• Premium services at affordable prices

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its company offerings in popular local magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content and post customer reviews to increase audience awareness and loyalty.

Website [Company Name] will develop a professional website where people can learn about our service and the industries covered. The website will utilize SEO to increase traffic, and to ensure that the company’s website will appear at the top of search engine results.

Billboards [Company Name] will secure a billboard in the area that captures the attention of residents and local businesses. The billboard will draw attention to the new business and its service offerings.

Referrals [Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced.

Special Offers Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat deliveries, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value for their customized and professional delivery services. The customer can expect to receive quality services at a more affordable price than what they pay at pricey national courier services.

VII. Operations Plan

Functional roles.

To execute [Company Name]’s business model, the company needs to perform several functions, including the following:

Service Functions

• Driving to customers and picking up packages
• Delivering packages in a timely manner
• Getting signatures when required
• Providing excellent customer service throughout the process

Technology Functions

• Curating the app and website for the best customer experience
• Troubleshooting problems and errors
• Creating frequent updates to keep up with latest technology changes

Administrative Functions

• Bookkeeping
• Scheduling deliveries
• General customer service
• Hiring and training staff

VIII. Management Team

Management team members.

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer for much of that time. He has found the work highly rewarding, but discovered that national chains are often too expensive for customers and lack the personal detail a local company can provide.

Hiring Plan

[Founder’s Name] will serve as the Manager and CEO of [Company Name]. The following personnel are what the company needs to hire:

• Drivers (3 to start)
• Administrative staff (1 to start)
• Software and app developers (1 to start)
• Customer service associates (2 to start)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenue will primarily come from delivery fees and providing extra services (such as on-call services).

The major costs drivers for the company will consist of salaries, marketing costs, vehicle purchases and maintenance, and lease expenses.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $575,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

Key Assumptions

  5 Year Annual Income Statement

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A Guide on How to Start a Successful 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

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

Here are the key factors to keep in mind when launching your delivery service:

• Transportation — Depending on your delivery service type, invest in reliable transportation. This could range from bicycles for urban delivery services to vans or trucks for larger parcel deliveries. 
• Services — Decide whether you’ll focus on same-day deliveries, specialized deliveries (such as food or medical supplies), or general courier services.
• Tracking and scheduling — Invest in reliable technology to manage orders, track deliveries in real-time, and maintain communication between dispatchers, drivers, and customers. Examples include Onfleet , Route4Me , and Tookan .
• Insurance — You’ll need various types of insurance, such as vehicle insurance, goods in transit insurance, public liability insurance, and possibly employer’s liability insurance if you’re hiring employees.
• Licenses and permits — If your service involves the delivery of specialized items like alcohol, pharmaceuticals, or food, additional permits such as a liquor license , pharmacy delivery license , or health department permits for food delivery will be necessary. Additionally, if you’re using large vehicles or a fleet, you might need commercial vehicle registrations and possibly special driving permits
• 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 on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Partnerships — Build relationships with people and businesses that might need your services.

Interactive Checklist at your fingertips—begin your delivery service today!

You May Also Wonder:

Can a delivery service be profitable?

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.

How can I get clients for my delivery service?

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. 

How do I find drivers for delivery?

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

How do I ensure the security of the items I’m delivering?

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.

Can I run a delivery business from home?

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.

Step 1: Decide if the Business Is Right for You

Pros and cons.

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

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

Delivery service industry trends

Industry size and growth.

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

Trends and challenges

Trends in the delivery service industry include:

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

Challenges in the delivery service industry include:

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

Demand hotspots

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

What kind of people work in Delivery?

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

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

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

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

• Van or truck

How much can you earn from a delivery service business?

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

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

What barriers to entry are there?

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

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

Related Business Ideas

Building a Reliable Courier Service from the Ground Up

How to Start a Food Delivery Business in 13 Steps

Cart to Cash: Starting a Grocery Delivery Business

Step 2: hone your idea.

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

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

Why? Identify an opportunity

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

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

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

What? Determine your delivery services

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

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

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

How much should you charge for delivery services?

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

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

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

Who? Identify your target market

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

Where? Choose your business premises

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

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

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

Step 3: Brainstorm a Delivery Company Name

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”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 290 unique delivery service name ideas here. If you want your business name to include specific keywords, you can also use our delivery service 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

Powered by GoDaddy.com

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

Here are the key components of a business plan:

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

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

Step 5: Register Your Business

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

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

Choose where to register your company

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

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

Choose your business structure

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

Here are the main options:

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

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

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

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

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

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

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

Step 7: Fund your Business

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

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

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

Step 8: Apply for Delivery Business Licenses and Permits

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

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

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

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

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

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

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

Step 9: Open a Business Bank Account

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

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

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

Step 10: Get Business Insurance

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

Here are some types of insurance to consider:

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

Step 11: Prepare to Launch

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

Essential software and tools

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

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

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

Develop your website

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

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

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

Here are some powerful marketing strategies for your future business:

• Professional Branding — Establish a brand that communicates speed, efficiency, and trustworthiness, incorporating this theme into your logo, uniforms, vehicle branding, and digital presence.
• Website & SEO — Develop an easy-to-navigate website that details your delivery services, options, and tracking capabilities. Use SEO to optimize for keywords related to delivery services and local courier options.
• Social Media Engagement — Utilize LinkedIn for B2B networking and platforms like Facebook and Instagram to connect with local businesses and customers. Share updates, testimonials, and real-time service information.
• Content Marketing — Maintain a logistics blog to share industry tips, efficiency strategies, and company news, establishing your brand as a thought leader in the delivery sector.
• Customer Success Stories — Highlight how your service has positively impacted local businesses or urgent deliveries, enhancing your reputation and trust.
• Email Marketing — Send regular newsletters updating customers on new services, company growth, and industry insights.
• Community Engagement — Sponsor and participate in community events to increase brand visibility and strengthen local connections.
• Strategic Partnerships — Form partnerships with local businesses and e-commerce platforms to become their preferred delivery provider, offering tailored solutions for their needs.
• Loyalty and Referral Programs — Develop a loyalty program for frequent customers and a referral incentive that rewards clients for introducing new customers.
• Vehicle Branding — Ensure your delivery vehicles are prominently branded to act as mobile billboards, increasing visibility everywhere they go.

Focus on USPs

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

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

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

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

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

Step 12: Build Your Team

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

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

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

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

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

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

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

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How to Start a Delivery Business in 14 Steps (In-Depth Guide)

Updated:   February 22, 2024

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The global delivery market hit $188.14 billion in 2021 . With an estimated compound annual growth rate (CAGR) of 9.59% from 2021 to 2028, it could reach a whopping $258.42 billion by 2028. For those interested in learning how to start a delivery business, now is the perfect time.

This comprehensive guide will help you learn how to start a delivery business. We’ll walk through the entire process of starting a delivery business, from assessing the market opportunity to obtaining licenses and insurance, recruiting drivers, setting rates, and getting your first customers. Here’s everything to know about starting your own delivery business.

1. Conduct Delivery Market Research

Market research offers valuable insight into starting a delivery service business. From your target market and local market saturation to niche delivery services and products to offer, research is the key to a strong delivery service business plan.

Here are some details you might learn during your research on starting a successful delivery service.

• Competitors: Competition is fierce with apps like DoorDash and Uber Eats , but there’s still room for new players with the right niche or localization.
• Niche products: Focusing on underserved cuisine types or optimizing operations for small delivery zones can be a recipe for success.
• Special services: Partnering with local retailers to provide same-day delivery of in-store purchases is one avenue worth exploring.
• Other delivery fields: The medical delivery sector is also ripe with opportunity as an aging population requires more prescriptions and medical equipment transport.
• Popular locations: Urban areas where consumers live in closer proximity naturally favor speedy delivery across shorter distances.

Overall, the delivery sector contains immense potential for new businesses to carve out a distinct niche. With the right mix of efficiency, specialization, localization, and strategic partnerships, an entrepreneur can capitalize on consumers’ appetite for delivery speed and convenience across markets.

2. Analyze the Competition

Competitive analysis is another important detail in starting a delivery service. Even an Amazon delivery service partner should know who else in the area is competing for jobs. In the fast-paced and ever-evolving delivery market, understanding the competitive landscape is essential for businesses to stay ahead.

Competitive analysis in this domain involves systematically evaluating the strategies, strengths, and weaknesses of current and potential competitors. By doing so, companies can identify gaps in the market, potential threats, and opportunities for differentiation.

Some key factors in analyzing competitors include:

• Coverage area
• Reliability
• Customer service

Get to know local competitors by:

• Visiting shops in person
• Checking websites for products and services
• Evaluating online presence through social media and search engine ranking
• Speaking to local consumers about delivery experiences
• Reading online reviews

A thorough competitive analysis gives you a leg up over local businesses in your market as you start your courier business .

3. Cost to Start a Delivery Business

Launching a delivery service requires careful budgeting and cost analysis even before the first order is delivered. Between initial investments in equipment, licensing, and staff to ongoing costs for marketing, insurance, and maintenance, expenses add up quickly.

Startup Costs

Starting costs for a delivery business typically range from $10,000-$30,000. The exact capital needed depends on size and model, but expect at least $10k minimum to cover core start-up needs:

• Business Registration Fees – $50-$500 to formally register your business structure and name with state/local agencies
• Commercial Auto Insurance – $2,000-$5,000 annually for commercial policies covering all fleet vehicles
• Fleet Purchase – $5,000-$10,000+ per vehicle to buy reliable used cars, motorcycles, e-bikes, etc. Plan for at least 2-5 to start.
• Vehicle Branding – $500+ per vehicle for custom wraps/decals with your logo and branding
• Driver Recruitment – $2,000+ for job listings and background checks to build your driver team
• Tech Integration – $1,000-$5,000 to build a website, integrate ordering platforms, payment processing, and fleet tracking
• Professional Services – $1,000-$2,000 for legal fees establishing compliant contracts and terms of service
• Office Equipment – $500-$2,000 for a computer, phones, printer, supplies
• Working Capital – $2,000-$5,000 reserve as a contingency buffer before revenue begins

Ongoing Costs

Ongoing monthly expenses typically range from $5,000-$20,000 depending on operations. Key costs include:

• Vehicle Fuel – approx $100 per vehicle for gas assuming local delivery range
• Vehicle Maintenance – $50-$200 per vehicle for routine service, cleaning, repairs
• Driver Wages – $2,500 per driver for fair hourly pay and/or per delivery commissions
• Technology Fees – $100-$500 for website and software subscriptions
• Office Rent – $500-$1,500+ depending on location size
• Utilities – $200-$500 covering electricity, Internet, phone
• Insurance Premiums – $500-$1,500 to cover fleet, liability, worker’s comp
• Accounting Fees – $200-$500 for a bookkeeper to handle finances
• Advertising – $500-$2,000 for digital, print, and social media marketing
• License Renewals – $100-$500 to renew key registrations and permits
• Legal/Professional Fees – $1,000-$3,000 for accounting, HR, and legal retainers
• Fleet Upgrades – $5,000-$20,000 to replace aging vehicles

By forecasting both start-up and ongoing costs accurately, delivery businesses can budget properly, secure financing, and establish profitable pricing to achieve sustainability. Upfront planning and cost control remain crucial even as revenues scale.

4. Form a Legal Business Entity

When starting a delivery business, one of the first key decisions is choosing your legal structure. The four main options each have pros and cons to weigh.

Sole Proprietorship

A sole proprietorship is the simplest structure with no formal registration needed beyond licenses. You retain full control and get taxed only once on business income. However, you have unlimited personal liability for debts and lawsuits. This poses a major risk given delivery drivers’ exposure to accidents.

Partnership

Partnerships like a general partnership or LP allow you to share ownership with one or more partners. You can combine strengths and capital. But you are personally liable for the actions of the other partners or the business as a whole. Disagreements over control or profits can also dissolve partnerships.

Corporation

A corporation provides limited liability protection for shareholders but requires extensive formalities like board meetings, annual filings, and corporate taxes. The legal complexity is often overkill for small delivery businesses. The sale of stock shares can make ownership transfer easier than other structures if you want to eventually exit the business.

Limited Liability Corporation (LLC)

An LLC or limited liability company provides the best of all worlds for most delivery startups. It protects your assets from business debts and claims, unlike a sole proprietorship or partnership. An LLC has flexibility for pass-through taxation if you remain a single member, but the ability to add partners and issue ownership shares like a corporation.

5. Register Your Business For Taxes

One of the crucial legal steps for any new business is obtaining an Employer Identification Number (EIN) from the IRS. This unique 9-digit number functions like a business’s social security number for tax purposes.

An EIN is required for key needs like opening a business bank account, hiring employees, and applying for licenses. Sole proprietors can use their SSN initially but should secure an EIN as soon as incorporating or adding staff.

The EIN application process is simple and free through the IRS website. You can obtain your EIN immediately by following these key steps:

• Navigate to the EIN Assistant page.
• Select view application as a sole proprietor, LLC, corporation, etc.
• Enter your personal info and business legal name/address.
• When prompted, state the reason you need an EIN. Select “Started a new business” or “Hired employees” etc.
• Submit the online form and your EIN will display immediately upon approval.

The entire process takes less than 15 minutes in most cases. The EIN is free and results instantly in an official IRS confirmation notice. Print this for your records.

You’ll also need to register with your state taxing authority for sales tax collection needs. Visit your Secretary of State website to find the registration form, submit it online, and receive your state tax ID. Costs vary by state from $10-$100+.

Having an EIN and sales tax ID enables delivery businesses to operate legally, open bank accounts properly, and avoid issues with vendors or tax agencies down the road. Don’t let this easy process slow down your progress!

6. Setup Your Accounting

With drivers on the road full-time, orders rolling in, and expenses mounting, delivery businesses quickly become accounting quagmires without proper financial systems in place. However, developing solid accounting habits from the start is crucial for success.

Get a Business Bank Account

Begin by separating business and personal finances. Open a dedicated business checking account using your EIN rather than SSN. This simplifies tracking income and expenses, provides records if audited, and protects your assets.

Accounting Software

Utilizing accounting software like QuickBooks streamlines the entire financial process through automated categorization, reporting, and syncing with bank/credit accounts. The basic QuickBooks package starts around $25/month and can save delivery businesses hours of manual work.

Hire an Accountant and Bookkeeper

As your delivery empire grows, consider hiring a bookkeeping service starting around $300/month. They can reconcile bank statements, code expenses, manage payroll, and provide financial reports to simplify oversight.

Come tax season, an accountant becomes invaluable. For delivery service, expect to pay $500-$2,000 for an accountant to handle fiscal year-end filings, depreciations, and deductions and ensure IRS compliance. If audited, having professional records readily accessible provides peace of mind.

Get a Business Credit Card

Applying for a small business credit card also simplifies accounting by consolidating expenses. Business cards don’t use your credit – issuers consider factors like business revenue, EIN age, and personal FICO score. Maintain a 30% or lower credit utilization for optimal approvals.

7. Obtain Licenses and Permits

Launching a delivery operation without the necessary licenses opens the doors to potential legal issues and penalties. Learn about federal license requirements through the U.S. Small Business Administration . The SBA also has a local search tool for state requirements.

Business License Registering your business entity with the state is the first step, but a separate local business license is often required within your city or county. Business license requirements and costs vary widely based on location. In Los Angeles for example, the initial license fee is $291 with an annual renewal of $143.

Commercial Driver’s License Delivery drivers operating vehicles over 10,000 lbs like box trucks will need a valid Commercial Driver’s License (CDL). Acquiring a CDL involves both knowledge and behind-the-wheel testing through your local DMV. Costs range from $50-$200. All delivery fleet drivers must have a non-commercial license at minimum.

Vehicle Registrations Registering all vehicles involved in your delivery operations is mandatory. Typical automobile registration fees range from $20-$80 annually depending on your state. Registration provides license plates and verifies all vehicles meet inspection, insurance, and emissions requirements.

Operating Authority Interstate delivery businesses shipping goods across state lines require federal operating authority through FMCSA. Gain this through the Unified Carrier Registration for $59 annually plus state-level fees. Intrastate movers can skip this step.

Food Handling/Prep Permit Delivering food, groceries, or other perishable goods? Many states require a food handler permit demonstrating your understanding of safe food prep and transport regulations. Courses and exams are offered online for fees ranging from $7-$50.

8. Get Business Insurance

Operating a delivery fleet without proper insurance is reckless given the risks drivers face daily. The right policies can save your business from financial ruin.

Consider the following:

• Scenario A: A driver gets in an at-fault accident injuring another motorist. Without insurance, you pay their soaring medical bills.
• Scenario B: An employee delivering packages slips on a wet porch and sues for damages. Lacking coverage, the legal judgment could bankrupt you.
• Scenario C: A late-night driver crashes into a storefront, destroying inventory. Without commercial insurance, you must cover the owner’s lost income.

These examples demonstrate how quickly an uncovered incident can upend an otherwise thriving delivery operation. But obtaining adequate policies to mitigate risks is straightforward:

• Inventory insurance needs like commercial auto, general liability, cargo, and worker’s comp.
• Request quotes from providers like Progressive, Geico, Travelers, and local brokers.
• Compare coverage terms and pricing to find the optimal balance of protection and affordability.
• Purchase required policies based on a business scale and locations served before opening.
• Review limits and exclusions annually and adjust coverages as needed as the business evolves.

Follow this checklist so your delivery enterprise can operate without fear of financial catastrophe. Minor monthly premiums today shield against potentially company-ending claims tomorrow.

9. Create an Office Space

While much of a delivery operation happens on the road, securing office space provides a critical home base for coordinating logistics and administration needs.

Home Office

A home office works well initially since overhead is low and you can deduct a portion of household expenses like utilities. However, conducting meetings with drivers in your living room has limitations.

Coworking Office

Coworking spaces like WeWork offer affordable, flexible shared offices starting around $300/month. Great for a lean startup, they provide amenities like meeting rooms, business MFPs, and networking. But space is limited as you scale.

Retail Office

Commercial retail space can enable customer walk-ins for deliveries and supplies if your model includes a storefront. Expect rents around $20-$30 per square foot in most markets. Limitations can include inflexible leases and renovations needed to convert retail to office use.

Commercial Office

Dedicated commercial office space provides room for expansion, storage, large teams, and freedom to operate 24/7. While traditional office leases run $25-$100 per square foot, cheaper options like older Class B buildings or suburban locales can keep costs affordable.

10. Source Your Equipment

A delivery operation relies on having the right vehicles and gear to handle orders efficiently. While buying new may be ideal, startup budgets often require more creative sourcing.

Purchasing new vehicles like cargo vans enables complete customization for your needs. But at $50k per van, the costs add up quickly. Economy cars like Toyotas can provide more affordable options under $20k. Shop dealerships negotiating fleet discounts.

Buying used through private sellers or auctions is a cost-effective way to acquire an initial fleet. Search major listings like Facebook Marketplace , eBay Motors , and AutoTrader for deals on lightly used cargo and passenger vehicles.

Renting through traditional agencies like Enterprise starts at around $500 weekly for cargo vans and could serve short-term needs like seasonal peak delivery times. Compare rates across major national brands and look for weekly/monthly discounts.

Don’t overlook leasing as an attractive middle ground when needing multiple vehicles long-term. Leasing provides reliable newer vehicles with maintenance included averaging $300-$500 monthly. Avoid mileage overages and wear-and-tear fees.

11. Establish Your Brand Assets

Distinguishing your delivery business starts with creating a strong brand identity. An iconic logo, professional website, branded collateral and more enable you to stand out from competitors and connect with customers.

Get a Business Phone Number

A unique business phone number builds credibility and appeal. Services like RingCentral provide local or 800 numbers with call routing, voicemail, and analytics starting at $30/month. Custom greetings and menus project the professionalism clients expect.

Design a Logo

Crafting a memorable logo is also invaluable. Consider name integration and icons representing speed and reliability. Graphic design platforms like Looka make logo DIY simple with customization options starting around $20.

With a logo set, complete your visual identity system with complementary letterheads, menus, uniforms, and vehicle decals. Consistent branding boosts recognition as you scale.

Print Business Cards

Business cards make an impression and build your network. Services like Vistaprint offer affordable, high-quality cards with your logo – perfect for leaving with merchants and hungry delivery takers. Keep a supply handy for chance encounters that convert to customers.

Get a Domain Name

Online domains reinforce your brand and drive discovery. Aim for domain names containing your business name or keywords related to delivery. Providers like Namecheap offer domains starting at around $15 annually.

Design a Website

An engaging website on your custom domain is vital for credibility, especially in e-commerce. Simple drag-and-drop builders like Wix allow anyone to create sites at no cost up to advanced paid plans. For large-scale sites, hiring a pro web developer from freelance sites like Fiverr ensures quality.

12. Join Associations and Groups

Joining relevant local organizations provides invaluable connections and insights for delivery businesses. Surrounding yourself with others and navigating similar hurdles accelerates growth.

Local Associations

Local associations like the National Home Delivery Association or Digital Restaurant Association open doors to large networks for referrals, tips, and potential partnerships. Membership fees are reasonable starting around $100 annually. Attend mixers and events to build your community.

Local Meetups

Local business meetups offer low-pressure networking and education through panels, speakers, and open discussions. Use sites like Meetup to find events like the Chicago Small Business Meetup or LA Delivery Business Mixer. The connections made can bring sales and hiring opportunities.

Facebook Groups

Industry-specific Facebook Groups enable connecting with delivery professionals across your region or country. The Delivery Drivers and Entrepreneurs Networking Group provides spaces to crowdsource advice on operational issues, marketing tactics, and scaling challenges from tens of thousands of members.

13. How to Market a Delivery Business

Implementing an ongoing marketing strategy is essential for delivery businesses to gain visibility and sales. While word-of-mouth referrals from delighted customers provide the most valuable promotion, you must supplement with targeted outreach across channels.

Explore Your Inner Network

Leverage your personal and professional network at launch by offering free meals for social media endorsements. Incentivize referrals with discounts for both new and existing patrons. Building an army of brand advocates reinforces quality perceptions.

Digital Marketing

Digital campaigns enable cost-efficient scaling if optimized effectively. Consider tactics like:

• Google Ads geo-targeting local delivery zones
• Facebook/Instagram ads promoting new menu additions
• Email collection pop-ups on your site for drip campaigns
• Search SEO optimization to rank for “food delivery” queries
• Starting a YouTube channel with driver interviews, service overviews, etc.
• Guest posting on local news sites relevant to your audience
• Social media contests awarding free delivery for a year

Traditional Marketing

While digital efforts expand your reach online, traditional marketing also has select applications:

• Direct mail postcards to households in your coverage zone
• Branded flyers distributed on doors and cars around large offices
• Promoted tweets targeting local followers based on delivery area
• Billboards on busy roads within your delivery footprint
• Radio ads on local stations touting your speed and reliability
• Sponsoring Little League teams and having a concession stand
• Vehicle wraps reinforce your brand as rolling billboards

Balance digital efficiency with real-world visibility. As you scale, consider opportunities like airport kiosks and university campus promotions. Experiment across channels to determine the optimal mix based on response and conversions.

14. Focus on the Customer

Providing exemplary customer service is mission-critical for delivery businesses to drive growth. In an increasingly crowded market, serious attention to supporting and satisfying your customers separates thriving operations from those that quickly fold.

Speedy, accurate deliveries are the baseline expectation – fulfilling this simply earns you the right to compete, not win. Look for opportunities to wow clients instead:

• Call after a first delivery to ensure satisfaction and ask for feedback. This personal touch and proactive care delights.
• Empower drivers to provide credits if an order is slightly late due to traffic. Avoiding finger-pointing builds trust.
• Send handwritten thank you notes to repeat customers congratulating their loyalty.
• Prominently display your support number on all materials so help is always accessible.
• Monitor social media for mentions and immediately address any complaints posted.

With digitally-enabled convenience prioritized over relationships today, rediscovering genuine customer service pays dividends. Word spreads quickly when you offer an outstanding end-to-end experience. Satisfied customers become your best promoters when you start a delivery service.

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How to start a delivery business.

With the e-commerce world showing no signs of slowing down, the demand for delivery services has skyrocketed. If you’ve been pondering how to start a delivery business, you’re onto something timely and potentially lucrative. Here’s a glimpse into how to start a business in this growing industry and  a business startup checklist to help you get started .

The Delivery Service Industry

We see delivery service trucks, bikes, and even drones buzzing around our neighborhoods daily. While big names dominate headlines, there’s plenty of room for newcomers, especially those who can offer unique or localized services.

The delivery service industry, as we know it, has evolved remarkably in recent years. Giants like FedEx, UPS, and Amazon are household names, but that doesn’t mean there’s no space for new ventures. In fact, with the surge in online shopping, many e-commerce businesses are constantly looking for more personalized, quick, or specialized delivery solutions. This presents a great opportunity for local and niche delivery service businesses. There are also many unique niches to consider, from food business ideas to logistics support for local e-commerce brands. There’s a slot in the market waiting for innovative minds.

Key Advantages of Starting a Delivery Business

If you’re still on the fence about starting a delivery service business, let’s talk about the good stuff—the real benefits that can come your way if you start a delivery service.

• Flexibility : One of the biggest draws for many entrepreneurs in the delivery sector is the flexibility it offers. You can choose to work on weekends, evenings, or only certain days of the week. Plus, as you grow, you can decide if you want to remain a local service or expand regionally.
• Growing Market Demand : As we touched upon earlier, the e-commerce boom isn’t going anywhere. With more people shopping online, the need for reliable delivery services is ever-present. It’s not just about parcels and packages; think about grocery deliveries, meal kits, and other day-to-day necessities people want at their doorsteps.
• Relatively Low Startup Costs : Delivery businesses are among the top businesses you can start with 1000 or less. Sure, there will be costs—maybe a vehicle, a website, some branding—but when compared to many other businesses, the initial investment for a delivery service can be relatively modest. This means the financial risk is lower, and there’s a good chance of seeing a quicker return on investment.

Steps to Starting Your Own Delivery Service Business

Navigating the journey of launching your own delivery business can be exhilarating. Let’s walk through this path step by step, ensuring you have a solid foundation for your venture.

Let’s start with a quick summary:

Assessing Your Local Market Needs

Knowing your local market is essential in ensuring you’re filling a genuine need.

Understanding local demand is crucial. This means identifying which areas are bustling with potential clients, such as local businesses, restaurants, or markets that require delivery services. Also, recognize peak delivery times. When are people most likely to need your service? Weekdays? Weekends? Mornings or evenings? Pinpointing these details will help you operate efficiently and effectively.

Drafting a Delivery Service Business Plan

Every successful venture starts with a vision. But to bring that vision to life, you need a structured plan.

A business plan isn’t just a document; it’s your roadmap. It should outline your business goals, target audience, competition analysis, financial projections, and marketing strategies. Think of it as the blueprint of your business, guiding you at every decision-making juncture.

Choosing a Delivery Service Business Name

First impressions matter. And your business name is often the first thing potential clients will know about you.

Your chosen name should be memorable, easy to pronounce, and relevant to delivery services. It’s also wise to check for domain availability if you plan to set up a website.

Securing Delivery Business Insurance

Safety first, always. Small business insurance isn’t just about protecting your assets; it’s about safeguarding your business’s future.

Commercial auto insurance is a must. But also consider other types, like liability insurance, to protect against potential claims.

Acquiring the Right Vehicles

Your vehicle is essentially your business partner in a delivery venture.

When choosing vehicles, consider factors like fuel efficiency, maintenance costs, and cargo space. Decide whether buying, leasing, or partnering with independent drivers suits your model best.

Permits and Licenses for Delivery Businesses

It’s not just about hitting the road; it’s about doing it legally.

While requirements might differ from state to state, some standard permits and licenses are generally needed. Ensure you’re compliant with local regulations to avoid unnecessary hitches down the road. Additionally, research common business structures to set up your business legally and avoid unnecessary liability issues.

Pricing Your Delivery Services

Pricing is a delicate art. Set it too high, and you might deter clients. Set it too low, and you risk running at a loss.

Research your competitors, understand your costs, and then strike a balance. Ensure your prices are competitive, but also reflective of the value and quality you bring.

Building an Efficient Routing System

Time is money. And in the delivery business, efficient routing can be the difference between profit and loss.

Utilizing GPS and routing software can help streamline your routes. Efficient routing saves time and fuel, leading to reduced costs.

Hiring and Training Delivery Drivers

Your drivers are the face of your business. They represent your brand with every delivery.

Hiring trustworthy, responsible drivers is crucial. Once on board, a thorough training program ensures they’re up to speed with company policies, safety practices, and customer service standards.

Marketing Your Delivery Company

Even the best service needs a spotlight. Let’s make sure your delivery business shines brightly in that spotlight.

So, exactly what is marketing for a delivery business? Effective strategies can range from local advertisement partnerships with local businesses to digital marketing campaigns. Understand where your potential clients are and reach out to them there.

Attracting Delivery Service Clients

Getting the word out is one thing. Building solid relationships is another.

Engage with potential clients through networking events, offering promotions, or showcasing client testimonials. Platforms like LinkedIn can be beneficial for forming partnerships. Remember, happy clients often lead to word-of-mouth referrals.

Tips for a Successful Delivery Service Business

Building a thriving delivery service business isn’t just about having a vehicle and a route. It’s about creating a brand that people trust and rely on. Here are some golden nuggets to help you on that path:

• Maintain Excellent Customer Service : A satisfied customer is often a repeat customer. Ensure prompt deliveries polite interactions, and handle any issues professionally and quickly.
• Leverage Technology : Use routing software to optimize delivery routes. Consider investing in an app or a user-friendly website where clients can easily place orders and track deliveries. Use our website startup guide to create a plan for your online presence.
• Stay Updated on Industry Trends : The delivery industry is always evolving. Whether it’s new vehicle technologies, changes in fuel prices, or shifts in consumer behavior, always be prepared to pivot and adapt.
• Safety is Key : Always prioritize the safety of your drivers and the security of the items you’re delivering. Regular vehicle maintenance and driver training can go a long way.

Joining an Existing Network: The Amazon Delivery Service Partner Program

For those who aren’t keen on starting entirely from scratch, partnering with a giant like Amazon can be a smart move. The Amazon Delivery Service Partner (DSP) program offers budding entrepreneurs a unique opportunity. Here’s why:

• Consistent Delivery Volume : Building a consistent clientele is one of the biggest challenges of starting a delivery business. With Amazon, you’ll have a steady stream of deliveries, ensuring stable income.
• Amazon-Branded Vehicles : Branding is crucial. By using Amazon-branded vehicles, you immediately gain the trust of customers. They know and trust the Amazon brand, which can lead to smoother interactions and deliveries.
• Comprehensive Training : Amazon doesn’t leave its partners in the lurch. They provide thorough training, ensuring that you and your drivers are equipped with the knowledge and skills to succeed.
• Operational Support : From sophisticated logistics software to hands-on support, Amazon provides the tools and resources to streamline your delivery operations.

Start a Delivery Service Locally: A Small Business Approach

When considering diving into the delivery service world, it’s tempting to dream big and wide. However, starting on a local scale has its own unique charm and set of advantages:

• Understanding Local Clientele : Operating in a familiar locale means you’re already attuned to the local pulse. You know, the streets, the neighborhoods, and the general vibe. This can be invaluable in anticipating and catering to local needs effectively.
• Building Trust : Establishing trust in a community where you’re known is much easier. People feel comfortable using services from someone they recognize or have mutual connections with.
• Lower Initial Investment : Starting local can mean reduced overheads. Fewer vehicles, less marketing spending, and perhaps even leveraging personal networks for resources can lead to a cost-efficient start.
• Fostering Community Ties : Local businesses are the heartbeat of any community. By serving local needs, you’re building a business and fostering relationships. These ties can lead to loyal clientele and valuable word-of-mouth marketing.
• Flexibility to Adapt and Pivot : Making changes in a smaller setup can be quicker and less cumbersome. Immediate feedback from your local clientele can help you adapt your services, ensuring you’re always meeting their needs effectively.

Expanding and Diversifying Your Delivery Business

Once you’ve got your local operations running smoothly, the horizon beckons. Expanding and diversifying can take many forms:

• Partnering with Local Businesses : Many businesses need reliable delivery services, from local restaurants and bakeries to hardware stores and boutiques. Forming partnerships can mean consistent business and a diversified clientele.
• Specialized Delivery Types : Consider offering services like same-day deliveries, scheduled slots, or even themed deliveries (like surprise birthday gifts or midnight anniversary surprises).
• Venturing into New Areas : While starting locally has its advantages, expanding into neighboring towns or regions can open up new markets. But remember, the same principles apply: understanding the new locale, establishing trust, and adapting services to cater to unique needs.
• Exploring Tech Integration : Consider integrating technologies like a customer app or advanced routing software as you grow. This not only streamlines operations but can also offer an enhanced customer experience.
• Broadening Service Offerings : Think beyond traditional parcel deliveries. Could you offer services like assembling furniture on delivery or a premium “white glove” delivery service for high-end products?

FAQs: How to Start a Delivery Business

Is a delivery business profitable.

Yes, a delivery business can be among the most profitable small business ideas , especially with the growing reliance on e-commerce and the increased demand for delivery services. Profitability largely depends on factors like operational efficiency, pricing strategies, and effective marketing. As with any business, understanding your costs and setting competitive prices is crucial to ensuring consistent profits.

How to start a delivery services business from home?

Starting a delivery business from home involves a few key steps:

• Research and Planning : Understand your local market needs and draft a business plan outlining your goals and strategies.
• Legalities : Register your business, acquire necessary permits, and consider the needed insurance.
• Infrastructure : While you won’t need a physical storefront, you’ll need a dedicated space for administration, communication, and planning. Ensure you have reliable communication tools.
• Vehicle Procurement : Decide if you’ll use your own vehicle, lease, or hire drivers with their own vehicles.
• Marketing : Establish an online presence through a website or social media platforms to attract clients.

What strategies can make a profitable delivery business?

Several strategies can enhance the profitability of a delivery business:

• Efficient Delivery Routes : Use software to optimize most efficient delivery routes, saving time and fuel.
• Diversify Services : Offer specialized delivery options or partner with different local businesses for consistent work.
• Pricing : Ensure your prices cover operational costs while remaining competitive.
• Maintain Quality Service : Quick, reliable deliveries and excellent customer service can lead to repeat business and referrals.
• Leverage Technology : Using digital tools for bookings, tracking, and customer communication can streamline operations and enhance customer experience.
• Regularly Review Costs : Monitor expenses and look for areas of potential savings or necessary adjustments.

Remember, the key to a profitable delivery business is a blend of operational efficiency, customer satisfaction, and adaptability to changing market demands.

Image: Envato Elements

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

• By Rakesh Patel
• Last Updated: April 23, 2024

• Launching a delivery business requires meticulous planning. From thorough market analysis to identifying target demographics and assessing competition, each step plays a critical role.
• To protect your business and customers, prioritize safety and compliance. Ensure all drivers are licensed and qualified, and conduct thorough background checks before hiring.
• Emphasize customer satisfaction to build loyalty and trust. Offer exceptional client support through various channels, including phone, email, and live chat.
• Utilize data analytics and client feedback to assess and improve your delivery service continually. Monitor key performance indicators, such as delivery times, accuracy, and customer satisfaction ratings.

Have you ever been inspired by the success stories of delivery giants like Instacart, DoorDash, Skip The Dishes, and the legendary UPS?

If yes, then you must know that the market for local delivery services and couriers is expected to grow by a startling 4.1% in 2023 alone. It’s huge, isn’t it?

To inspire you even more, we will continue to see an upward graph in the coming days, reflecting the huge demand for convenient deliveries. 

So, if you are deciding whether to start a delivery business, let us share. That’s where we come in—to provide you with the guidance and support you need to turn your idea into reality. 

Don’t worry about questions like how to start a delivery service business and how to manage it to make it successful. We are here to answer your queries. 

We’ll walk you through the process of starting and operating a profitable delivery service, from knowing what services to provide to get the appropriate vehicle, permits, technology, and much more.

Just like Wishlistlist.Delivery managed and automated its delivery planning and optimization process with Upper’s advanced feature set, you, too, can streamline your operations and drive success with the right tools at your disposal. 

So, let’s embark on this journey together. 

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Table of Contents

Top Reasons to Start Your Own Delivery Service

Steps to start a delivery service business from scratch.

The delivery services sector is expanding and presents a compelling business opportunity. This is the reason why: 

• The need for reliable delivery services is growing as eCommerce and convenience culture take off.
• Delivery services provide diversification by serving a range of businesses, including the food and retail sectors. 
• The upfront and ongoing costs of delivery services are less expensive than those of physical stores.
• You may expand your fleet, service locations, and clientele as your company expands.  
• Being a delivery service owner gives you the freedom to be your own boss and shape your own future.

Hence, establishing a delivery business may be profitable if you have the correct plan in place.

G et the latest updates and insights to accelerate your delivery service business – Follow us on Twitter for a sneak peek of industry-related news, articles, and upcoming feature releases to streamline your delivery management!

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

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

Step 1: Define your niche

Step 2: Build a delivery business plan 

Step 3: Develop a delivery process

Step 4: Setting up a legitimate delivery business

Step 5: Managing business finances

Step 6: Get business insurance policies

Step 7: Equip yourself with the necessary tools and software

Step 8: Hire and train drivers

Step 9: Market your business with successful branding

Step 10: Use route planning software to optimize last-mile delivery

1. Define your niche

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

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

A. Local delivery service

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

B. Global delivery service

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

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

C. Unique delivery business examples

Here are 4 examples of unique delivery businesses that you can consider to serve your customers and address their pain points:

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

2. Build a delivery business plan 

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

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

3. Develop a delivery process

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

A. Optimizing routes 

New businesses tend to plan routes manually, which is time-consuming and burdensome. It also takes a toll on delivery drivers, even if the route contains only 20 stops. 

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

B. Monitoring routes

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

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

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

C. Accomplishing last-mile delivery

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

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

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4. Setting up a legitimate delivery business

To successfully launch a local delivery service business, register your business as a legal entity. Begin by choosing a business name and creating a logo that represents your brand.

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

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

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

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

5. Managing business finances

After legally registering your company, the next step is opening a business bank account and a credit card for your delivery service. This will enable you to keep your business finances separate and protect your assets. A business credit card also helps build your company’s credit history. 

Proper financial management with separate business accounts, credit cards, and accounting software is essential for:

• Adhering to regulations
• Enabling business growth
• Maintaining organized financial records

Additionally, invest in accounting software like QuickBooks Online to streamline processes such as:

• Monitoring income and business expenses
• Simplifying tax filing

Thus, by taking these steps, you’ll create a strong financial foundation for your delivery company’s success.

6. Get business insurance policies

Operating a delivery service business involves various risks, making insurance coverage essential for compliance, protection, and smooth operations. Some of the insurance policies include: 

• General Liability Insurance is coverage that safeguards small businesses against financial losses.  
• Workers’ Compensation Insurance will cover a portion of your employee’s wages.
• Commercial auto insurance protects against accidents or other liabilities.

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

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

7. Equip yourself with the necessary tools and software

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

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

8. Hire and train drivers

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

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

You may also need to train the existing ones about your company policies and how they can perform their jobs productively. Some areas you can train them in are handling orders, following the maps properly, delivering parcels using optimized routes, and taking delivery proofs.

9. Market your business with successful branding

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

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

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

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

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

Effective route planning is crucial for both last-mile delivery and local businesses. Route planning software enhances the efficiency of routes by optimizing them according to delivery restrictions, such as traffic patterns. 

However, with so many alternatives available, selecting the best software may be difficult. Upper is a powerful route optimization software that simplifies the process and reduces manual effort. Its key features include:

• Importing addresses from Excel/CSV
• Creating advanced delivery schedules
• Dispatching optimized routes with a click
• Enabling e-signatures and proof of delivery
• Providing detailed reports and analytics.

Don’t only believe what we say. After using Upper, Parkwood Products Ltd., a door manufacturer in New Zealand, had amazing results. The supply manager, Jacob Steele, tells their success story:

Before Upper, the business struggled with manual route planning, had no delivery time estimates, and had unsatisfactory customer feedback because of inadequate delivery evidence. They greatly cut down on planning time after introducing Upper, improved productivity with multi-stop optimization and address import, and decreased complaints with alternatives for proof of delivery.

Because of Upper’s efficiency, Parkwood Products Ltd. can now handle a larger order volume in less time and with fewer human resources. Their success serves as an example of how route optimization technology has helped a variety of industries, including meal delivery , food delivery , essential meal delivery , furniture delivery , and residential cart solutions .

Give Your Route Planning Burden to Upper Route Planner

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

Frequently Asked Questions

Start by analyzing the growth prospects of business in your region, whether targeting global or local delivery services . Jot down the issues (pain points) of customers and identify their specific needs. Also, make sure that the field you choose offers long-term growth. This strategy enables you to customize your services to meet customer demands efficiently.

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

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

You might wish to select a business name that is distinct from your name if you establish a sole proprietorship. When thinking of name ideas for your delivery business , look through state and federal trademark records, social media accounts, business records, and web domain name availability.

The major startup costs of opening a delivery business include vehicle purchase, vehicle maintenance, insurance premiums, fuel costs, equipment costs, delivery driver payments, fees for business licenses, and marketing costs.

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

To start a delivery service with contract drivers , you will need a reliable car, the necessary licenses and insurance, a solid business plan, a successful marketing approach, the hardware or software to manage orders, and customer contacts.

The kind of service, delivery zones (location), number of vehicles, and staff may all have a significant impact on the startup costs of delivery businesses. Generally speaking, you should budget anything from a few thousand to more than $50,000 for initial operating costs, vehicles, equipment, insurance, and licensing.

When run well, delivery companies may make a lot of money. Delivery companies may create consistent income streams and turn a profit by utilizing technology, maintaining low operating costs, and providing convenient services, particularly in locations with high population density and demand for delivery services.

Delivery services that are frequently needed include courier services, food, grocery, and package delivery; they can also include medical delivery, flower, retail, or automotive industry-specific services. A wide range of delivery services is also available to meet consumer demands.

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

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

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

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

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Goods Delivery Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Transportation Industry » Courier Company

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.

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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

• Sample Business Plans
• Food, Beverage & Restaurant

Food Delivery Business Plan

Are you planning to venture into a food delivery business? Well, there is no better time than now. In today’s world, where people order food in a few clicks, it outgrows the number of people who prefer wine-and-dine.

According to Forbes , the food industry market will be $200 billion strong by 2025. In the wake of the current pandemic, the online food delivery market has seen exponential growth and insane potential revenue capture across the globe.

Need a food delivery business plan? We’re here to help!

To start a food delivery business , the first thing you will need is a business plan.

A business plan bridges the gap between your thoughts, assumptions, expectations, and actual market, competition, and customer expectations. Determining financial needs, documenting them alongside a marketing plan, and building your revenue model, all of this become easier with a winning business plan.

Before you start writing your business plan for your new food delivery business, spend as much time as you can reading through some examples of services-related business plans .

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample food delivery business plan for you to get a good idea about how perfect a food delivery business plan should look and what details you will need to include in your stunning business plan.

Food Delivery Business Plan Outline

This is the standard food delivery business plan outline, which will cover all important sections that you should include in your business plan.

• Business Overview
• Our vision and mission statement
• 3 Year profit forecast
• Registered name and corporate structure
• Company Location
• Company Resources
• The Financing
• Startup cost
• Funding Required
• Products and services
• The Order Process For Both Sides
• Regulatory Requirements
• On-Demand Delivery Market
• The United States Market
• SWOT Analysis
• Threats Mitigation
• Post-Launch
• Average Salary of Employees
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

After  getting started with upmetrics , you can copy this food delivery business plan example into your business plan and modify the required information and download your food delivery business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

How to write a food delivery business plan?

With so many things on the plate, the start point of the business plan may look blurry. You may want to hire a business plan writer, but remember that no person knows better about your business than yourself!

Using this food delivery business plan template, you don’t have to rely on an outsourced writer to write YOUR business plan. Also, you don’t have to put in immense effort in drafting the ideal outline.

What to include in a food delivery business plan?

Writing a business often seems overwhelming. However, here are a few tips that will help you outline your business plan.

• A business plan should typically have an executive summary – With this, you can have a primary understanding of your target group, business outline, and other administrative summaries.
• You can include a market analysis section that updates you with the latest statistics and trends in the on-demand delivery market.
• SWOT analysis is perhaps the most important section you can include to mitigate threats in the market, grab potential opportunities and outline the marketing and sales plan.
• Since the food-delivery business revolves around a delivery personnel network, make sure you have this section included in your plan. You could also add the restaurant partners and their set commission/fees.
• It all boils down to what and how are you going to invest. Thus, documenting your financial strategies, having a break-even analysis, and projecting cash flow is highly crucial.

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

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

Download a sample food delivery business plan

Need help writing your business plan from scratch? Here you go;  download our free food delivery business plan pdf  to start.

It’s a modern business plan template specifically designed for your food delivery business. Use the example business plan as a guide for writing your own.

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About the Author

Upmetrics Team

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

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USPS Shuts Out Wyomingites Who Want To Comment On Rural Delivery Plan

Wyoming residents trying to register for a Thursday virtual public forum to comment on the latest USPS plan to increase rural delivery times are out of luck. Registration to speak closed at noon Tuesday, but almost nobody knew about that.

September 04, 2024 6 min read

Secretary of State Chuck Gray was among dozens of Wyomingites trying without success Tuesday and Wednesday to register for a public forum that the U.S. Postal Service has said will be the lone opportunity to comment on a proposal to chop $3 billion in costs by sacrificing rural mail delivery.

The deadline to sign up for the forum expired at noon Tuesday, Cowboy State Daily was told by a postal official. The deadline was barely publicized, though, which left many people shut out of the process, including Gray, who was not happy about it.

“This is deeply troubling,” he told Cowboy State Daily in an email. “This is another example of the bureaucrats making these decisions refusing to listen to the people of Wyoming. I will continue to be clear that I strongly oppose these outrageously wrong proposals to damage mail delivery in Wyoming. I also view these proposals as detrimental to the administration of future elections once they go into effect.”

Rep. Harriet Hageman told Cowboy State Daily by email that she, too, has received a number of inquiries about the closure of the registration link for Thursday’s virtual session.

“In response, I have requested the USPS re-open registration or set an additional meeting date,” she said. “My office continues to monitor and engage with USPS on the many ongoing failures and proposed service disruptions throughout Wyoming. I encourage all Wyomingites to stay engaged in this process and make their voices heard.”

No Second Forum Planned

Cowboy State Daily has been told by U.S. Postal Service Spokeswoman Alexandra (Ali) Reams that the lone public forum on Thursday will be it.

“There will be one virtual conference,” she told Cowboy State Daily in an email on Wednesday. “Consistent with our notice on usps.com , registration closed at noon on Sept. 3.”

It was unclear which notice Reams was referring to.

An Aug. 22 media released published by USPS online about the forum does not mention the noon Sept. 3 deadline to register for the conference, which will be held at 11 a.m. Mountain Time on Thursday on Zoom.

Public notices were not sent to Cowboy State Daily prior to the meeting. The Aug. 22 release from USPS about the forum was something Cowboy State Daily discovered itself, in part thanks to a reader’s tip.

Ream did not respond to Cowboy State Daily’s question asking how people were to know about the deadline to register for the forum, given that no notices were sent out directly to statewide media organizations, and the one press release available at the USPS online “newsroom” also does not mention the deadline.

Ream also did not respond to a question asking if there’s any alternative means of commenting on the proposal.

Latest Plan Will Likely Slow Rural Mail Services

The meeting is being held to outline the newest proposal from USPS.

As outlined in a regulatory filing with the Postal Regulatory Commission, the proposal is part of an overall transformation of the postal service that USPS officials say is necessary to significantly reduce costs and enhance service.

The new proposal includes eliminating some routes to “improve efficiency and velocity of the processing network,” the regulatory filing states. It will also include consolidation of drop-off and pick-up points for mail in certain areas.

Areas that are more than 50 miles from a large processing center will be designated for “regional transportation optimization” under this plan, meaning they could require an extra day of delivery time.

The USPS request to increase on-time delivery standards dovetails with its regional optimization effort, which the filing states will be “more operationally precise and specific for customers,” and allow upgrades in service for a “majority of the volume” of mail that the Postal Service delivers.

It was not clear from the regulatory filing exactly how the service will be upgraded if the new delivery standards are longer than they used to be.

The existing delivery standard now is two days for local mail, and between three and five days for farther distances.

Under the new plan, USPS claims most mail will move more quickly than before, its move to lengthen on-time delivery standards that could add an extra day to rural mail delivery.

USPS has also highlighted that rural mail service will not be altogether cut, even if it’s slower than before.

Specifics Not Forthcoming

Cowboy State Daily has requested more specifics on the latest USPS plan as it will relate to Wyoming. So far, no answers have been forthcoming, despite the request having been made more than a week ago.

This new proposal follows on a previous Delivering for America plan, under which all of the Cowboy State’s large processing facilities would move out of the state and be placed in Colorado and Montana.

That plan is not necessarily off the table. It’s on hold until January 2025.

Among questions Cowboy State Daily has asked is whether the Delivering For America plan means all of Wyoming would effectively become a rural mail delivery area. None of Wyoming’s towns are within 50 miles of either Denver or Billings, which is where Cheyenne and Casper’s large processing functions would move to.

Causing A Huge Outcry In Wyoming

Delivering for America met with a huge outcry from residents in Wyoming who rely on rural mail service for life-saving medications, Social Security and payroll checks, bills and other correspondence.

Wyoming’s congressional delegation has also been united in its opposition to the Delivering for American plan. The delegation joined to propose legislation that would prohibit removing all of a state’s large processing centers. That legislation did not advance.

Postmaster Louis DeJoy has insisted that the changes he proposes are vital to saving the Postal Service and making it financially self-sufficient.

The USPS has lost $87 billion, DeJoy told Congress and the Postal Regulatory Commission, and suggested that is because the services have not evolved and changed with the times.

Single-piece first-class mail volume has declined 80%, according to Dejoy, while its package business has grown. But its services are still revolving around single-piece mail.

“Our 10-year Delivering for America plan is transforming our network to better reflect today’s standards,” he said in a media statement. “This revamped integrated network designed for a more unified, logically sequenced movement of mail and packages, combined with modifications to our service standards, will enable us to operate more efficiently and reliably grow our business and give us a chance for a viable future.”

The meeting DeJoy is holding Thursday is just first step in an overall process that the USPS must follow to request changes to its delivery standards from the Postal Regulatory Commission.

Editor's note: This story has been updated to include information and statements from Secretary of State Chuck Gray about the virtual USPS meeting.

Renée Jean can be reached at [email protected] .

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Online food delivery services in Russia - statistics & facts

E-grocery market insights, increased appetite for online catering in russia, key insights.

Detailed statistics

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Russian household expenditure on eating out 2015-2022

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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.

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.

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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• Agile, DevOps and software development methodologies

MoSCoW method

What is the MoSCoW method?

The MoSCoW method is a four-step approach to prioritizing which project requirements provide the best return on investment (ROI). MoSCoW stands for must have, should have, could have and will not have -- the o's make the acronym more pronounceable.

A variety of business disciplines use the MoSCoW method. It enables everyone involved in a project to know what work to complete first and how that work helps increase revenue, decrease operational costs, improve productivity or boost customer satisfaction. On the business side, it can help stakeholders frame discussions about the importance of specific product features when choosing a software vendor. On the IT side, the MoSCoW method plays an important role in Agile project management by helping project teams prioritize story points.

Furthermore, prioritizing requirements enables project teams to understand the amount of effort and resources each project element requires. This knowledge improves the team's time management, makes the project more manageable, increases the likelihood of completion by deadline and optimizes ROI .

The MoSCoW method is also known as MoSCoW analysis , MoSCoW prioritization , MoSCoW technique and MoSCoW rules .

Prioritization of requirements

Before implementing the MoSCoW method, businesses must ensure the teams involved in the project and other stakeholders agree on the project objectives and the factors they use for prioritization. They should also establish plans for settling disagreements.

Next, teams should decide what percentage of resources they assign to each category. For example, they could allocate 20% of the resources to the could-have requirements, while giving 40% to must-haves and 30% to should-haves.

Once the teams and stakeholders gather requirements and reach agreements, then the teams can start assigning requirements to each of the following four categories.

1. M: Must have

This first category includes all the requirements that are necessary for the successful completion of the project. These are non-negotiable elements that provide the minimum usable subset of requirements.

Statements that are true for must-haves include the following:

• There is no point completing the project by its target deadline without this requirement.
• The final product or software would not be compliant or legal without this requirement.
• The final product or software would not be safe without this requirement.
• The final product or software does not deliver an effective solution without this requirement.

If there is any way to work around a particular requirement, teams should consider it a should-have or could-have element. Assigning requirements to the should-have and could-have categories does not mean the team won't deliver the element; it just reveals that it is not necessary for completion and, therefore, is not guaranteed.

2. S: Should have

This second category of requirements is one step below must have. It can prep requirements for future release without impacting the current project. Should-have elements are important to project completion, but they are not necessary. In other words, if the final product doesn't include should-have requirements, then the product still functions. However, if it does include should-have elements, they greatly increase the value of the product. Minor bug fixes, performance improvements and new functionality are all examples of requirements that could fall into this category.

Teams can distinguish a should-have element from a could-have element by assessing the amount of pain caused by leaving the requirement out. This is often measured in terms of the business value or the number of people affected by its absence.

3. C: Could have

This category includes requirements that have a much smaller impact when left out of the project. As a result, could-have requirements are often the first ones teams deprioritize -- must-have and should-have requirements always take precedence as they impact the product more. An example of a could-have is a desirable but unimportant element.

4. W: Will not have

This final category includes all the requirements the team recognizes as not a priority for the project's time frame. Assigning elements to the will-not-have category helps strengthen the focus on requirements in the other three categories, while also setting realistic expectations for what the final product does not include. Furthermore, this category is beneficial in preventing scope creep -- or the tendency for product or project requirements to increase during development beyond what the team anticipated.

The team can eventually reprioritize some requirements in the will-not-have group and work them into future projects; others are never used. To differentiate between these types of elements, teams can create subcategories within the will-not-have group to identify which requirements they should still implement and which they can ignore.

MoSCoW method for Agile

The Agile project management methodology breaks projects into small sections called iterations. Each iteration focuses on completing specific project elements in work sessions called sprints -- typically lasting two to four weeks. The MoSCoW method is frequently used within Agile project management to determine which elements -- including tasks, requirements, products and user stories -- the team should prioritize and which can be put on hold. These decisions make an Agile project schedule that enables teams to rapidly deploy solutions, more efficiently use resources, increase their flexibility and adaptability to changes, and more quickly detect issues.

Advantages of the MoSCoW method

The MoSCoW method is easy to use and understand. It can help individuals with prioritization, but it more greatly benefits project teams. Other advantages include the following:

• Resolves disputes and form agreements with stakeholders.
• Ensures a minimum viable product is produced.
• Sets priorities at different levels of the development pipeline.
• Enables categorizing requirements to rely on the expertise of the team.
• Can be used for both existing and new projects.

In addition, the MoSCoW method enables users to assign specific percentages of resources to each of the four categories. This action ensures resources are effectively managed ,and it optimizes productivity analysis.

Criticism of the MoSCoW method

However, there are some drawbacks with the MoSCow method, including the following:

• There is uncertainty surrounding will-not-have requirements and whether they are left out of the release or the entire project.
• There's no clear way to prioritize requirements within the same category.
• There is no reasoning for why one requirement is a must-have and the other is a should-have.
• If an organization's decision-making process excludes collective leadership, prioritization may become subjective and inefficient.

History of the MoSCoW method

The MoSCoW method has its roots in the dynamic systems development method -- an Agile project delivery framework that aimed to improve rapid application development processes.

Software development expert Dai Clegg created the MoSCoW method while working at Oracle , the multinational computer technology corporation. Clegg initially designed the prioritization technique for timeboxed projects and initiatives within releases.

Editor's note: This article was reformatted in 2023 to improve the reader experience.

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U.S. researchers find probable launch site of Russia’s new nuclear-powered missile

Two U.S. researchers say they have identified the probable deployment site in Russia of the 9M370 Burevestnik, a new nuclear-powered, nuclear-armed cruise missile touted by President Vladimir Putin as “invincible.”

Putin has said the weapon – dubbed the SSC-X-9 Skyfall by NATO – has an almost unlimited range and can evade U.S. missile defences. But some Western experts dispute his claims and the Burevestnik’s strategic value, saying it will not add capabilities that Moscow does not already have and risks a radiation-spewing mishap.

Using images taken on July 26 by Planet Labs, a commercial satellite firm, the two researchers identified a construction project abutting a nuclear warhead storage facility known by two names – Vologda-20 and Chebsara – as the new missile’s potential deployment site. The facility is 295 miles (475 km) north of Moscow.

Reuters is the first to report this development.

Decker Eveleth, an analyst with the CNA research and analysis organization, found the satellite imagery and identified what he assessed are nine horizontal launch pads under construction. They are located in three groups inside high berms to shield them from attack or to prevent an accidental blast in one from detonating missiles in the others, he said.

The berms are linked by roads to what Eveleth concluded are likely buildings where the missiles and their components would be serviced, and to the existing complex of five nuclear warhead storage bunkers.

The site is “for a large, fixed missile system and the only large, fixed missile system that they’re (Russia) currently developing is the Skyfall,” said Eveleth.

Russia’s defence ministry and Washington embassy did not respond to a request to comment on his assessment, Burevestnik’s strategic value, its test record and the risks it poses.

A Kremlin spokesman said these were questions for the defence ministry and declined further comment.

The U.S. State Department, the CIA, the Office of the Director of National Intelligence and the U.S. Air Force National Air and Space Intelligence Center declined to comment.

The identification of the missile’s probable launch site suggests that Russia is proceeding with its deployment after a series of tests in recent years marred by problems, said Eveleth and the second researcher, Jeffery Lewis, of the Middlebury Institute of International Studies at Monterey.

Lewis agreed with Eveleth’s assessment after reviewing the imagery at his request. The imagery “suggests something very unique, very different. And obviously, we know that Russia is developing this nuclear-powered missile,” he said.

Hans Kristensen of the Federation of American Scientists, who also studied the Vologda imagery at Eveleth’s request, said that it appears to show launch pads and other features “possibly” related to Burevestnik. But he said he could not make a definitive assessment because Moscow does not typically place missile launchers next to nuclear warhead storage.

Eveleth, Lewis, Kristensen and three other experts said Moscow’s normal practice has been stockpiling nuclear payloads for land-based missiles far from launch sites – except for those on its deployed Intercontinental Ballistic Missile (ICBM) force.

But deploying the Burevestnik at Vologda would allow the Russian military to stockpile the nuclear-armed missiles in its bunkers, making them available to launch quickly, said Lewis and Eveleth.

Deputy Foreign Minister Sergei Ryabkov said Russia will make changes to its guidelines on the use of nuclear weapons in response to what it regards as Western escalation in the war in Ukraine, state news agency TASS reported on Sunday.

POOR TEST RECORD

A 2020 report by the United States Air Force’s National Air and Space Intelligence Center said that if Russia successfully brought the Burevestnik into service, it would give Moscow a “unique weapon with intercontinental-range capability."

But the weapon’s checkered past and design limitations raised doubts among eight experts interviewed by Reuters about whether its deployment would change the nuclear stakes for the West and other Russian foes.

The Burevestnik has a poor test record of at least 13 known tests, with only two partial successes, since 2016, according to the Nuclear Threat Initiative (NTI), an advocacy group focused on reducing nuclear, biological and emergent technology risks.

The setbacks include a 2019 blast during the botched recovery of an unshielded nuclear reactor allowed to “smoulder” on the White Sea floor for a year following a prototype crash, according to State Department reports.

Russia’s state nuclear agency Rosatom said five staff members died during the testing of a rocket on Aug. 8. Putin presented their widows with top state awards, saying the weapon they were developing was without equal in the world, without naming the Burevestnik.

Pavel Podvig, a Geneva-based expert on Russia’s nuclear forces, Lewis, Eveleth, and other experts said it will not add capabilities that Moscow’s nuclear forces already do not have, including the ability to overwhelm U.S. missile defences.

Moreover, its nuclear-powered engine threatens to disgorge radiation along its flight path and its deployment risks an accident that could contaminate the surrounding region, said Cheryl Rofer, a former U.S. nuclear weapons scientist and other experts.

“The Skyfall is a uniquely stupid weapon system, a flying Chernobyl that poses more threat to Russia than it does to other countries,” agreed Thomas Countryman, a former top State Department official with the Arms Control Association, referring to the 1986 nuclear plant disaster.

NATO did not respond to questions about how the alliance would respond to the weapon’s deployment.

Little publicly is known about the Burevestnik’s technical details.

Experts assess that it would be sent aloft by a small solid-fuel rocket to drive air into an engine containing a miniature nuclear reactor. Superheated and possibly radioactive air would be blasted out, providing forward thrust.

Putin unveiled it in March 2018, saying the missile would be “low flying,” with nearly unlimited range, an unpredictable flight path and “invincible” to current and future defences.

Many experts are skeptical of Putin’s claims.

The Burevestnik, they say, could have a range of some 15,000 miles (23,000 km) – compared to more than 11,000 miles (17,700 km) for the Sarmat, Russia’s newest ICBM – while its subsonic speed would make it detectable.

“It’s going to be as vulnerable as any cruise missile,” said Kristensen. “The longer it flies, the more vulnerable it becomes because there is more time to track it. I don’t understand Putin’s motive here.”

The Burevestnik’s deployment is not banned by New START, the last U.S.-Russian accord limiting strategic nuclear weapon deployments, which expires in February 2026.

A provision allows Washington to request negotiations with Moscow on bringing the Burevestnik under the caps but a State Department spokesperson said no such talks had been sought.

Citing the war in Ukraine, Russia has spurned U.S. calls for unconditional talks on replacing New START, stoking fears of an all-out nuclear arms race when it expires.

Podvig said Moscow might use the missile as a bargaining chip if talks ever resume.

He called the Burevestnik a “political weapon” that Putin used to bolster his strongman image before his 2018 re-election and to telegraph to Washington that it cannot dismiss his concerns over U.S. missile defences and other issues.

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