How to Start a Small Delivery Business

by Josh Biggs in Business, Tips on 22nd January 2020

If starting a business is in your wishlist, then there are many major responsibilities you need to take care of. Leaving your 9 to 5 job and resuming your career as a boss must be exciting and thrilling, but it is quite challenging as well. If you have already decided to start a small business but worrying where to start? Or wondering if this is a good idea? Well, if you love taking risks and are capable of completing the tasks you have started, starting a small business is a pretty good idea.

If you do not know which niche to choose, then go with the one that is easiest and profitable. A business that brings a good amount of profit in a short time is the local delivery services business. No matter where you are located, the courier service business gives a quick start to your income. Like the grocery stores need to deliver the products to its customers as early as possible, or the lawyers need the same-day delivery of important documents or the restaurants want to serve the customers with hot food at their home and the list goes on. If you are convinced that delivery business is the right fit for you, go ahead and read the following steps to enjoy the success in no time.

Plan the budget

The first thing you need to do after you decide your niche is planning the budget. If you have decided to open your courier services, then the  budget depends on your locality and the number of people you target. Admit that you started the business expecting a great profit in return, so all you need to do is not spend huge in the initial stage of your business. The ideal plan is to set up a low budget which you can scale up later.

Budget involves buying vehicles (vans or trucks), buying the equipment and tools, hiring the drivers, insurance premiums and fuel costs. Research cheap websites that sell the equipment like tools, delivery bags for less cost. For example, if you collaborate with restaurants for delivering food, purchase delivery bags that can be used for various purposes at lowest costs possible.

To minimize the budget, make use of the trucks and tools if you already have. Or you can simply buy a pre-owned truck for nearly half the price. Also, avoid paying unnecessary rents and bills. How about having a home office? Sounds cool, right? Operate from the comfort of your home and avoid additional expenses.

Scale the business

Give a reasonable pricing for your services, this helps your customers to choose your service repeatedly. Do not raise the pricing until you build a good reputation among your customers and earn a decent income. But keep all your expenses in mind such as renewal fee, small taxes etc. and charge according to them. This helps you manage your business without any fuss and prevents you from breaking the banks in future.

Name the business

You are all set with your budget, it’s time to take your business to people and connect with them. Your business needs a name to call it and market it. Give a unique and catchy name to your business and work on promoting till people remember it. The name of the business represents the brand, which is going to give you recognition. So, be careful in choosing the name for it.

Make it legal

It is important to register your business legally to avoid further tax and legal complications. You need to operate as an LLC or Corp or as a sole proprietorship to start the business. To proceed as a legal business, apply for business license and get a federal tax identification number. It is good to have a registered agent for your business to take care of all your legal activities.

Maintain a separate bank account to run your expenses related to your business. Also, complete vehicle registration and make everything related to your business legal.

Web & social media presence

Create an official website and social media profiles for your business to make your presence online. Social media profiles will help you in reaching a wider audience. Let your existing customers or your audience share your business profiles with others. These days any business present online is gaining good traffic and good sales. Once you gain enough traction it will be time to up your game and think about developing a food delivery app of your own.

Promote & build reputation

Introduce new marketing strategies to stay on top of people’s minds, who will be looking for courier services. Promote your services in all possible social media channels and establish a brand reputation for your business.

Start promoting with unique ideas and innovative content to grab the attention of your audience. Contact influencers to take your business to the next level. Thus, acquiring a good reputation for your business. Though what matters is the satisfactory customer service.

Introduce new services

To keep your customers adhere to your business, introduce new features or services to impress them. Create a healthy bond with your customers. The satisfied customers can bring a good number of new customers for your business. So, having a nice rapport with existing customers will help you grow your profit. And this can happen only when the customers are happy with the services you are providing. Develop new features like 2-hour delivery, same-day delivery, discounts, usage of coupons, referral codes etc. to attract new customers.

Track your expenses

Watch out for your expenses and the budget to make sure they both go hand-in-hand. There are plethora of programs and software tools that let you manage your expenses. Overlook your taxes, deductions and finances with the tools, websites or applications or virtual agents available on the internet today. Tracking your finances will help you predict the budget and pricing for the upcoming services.

Insurance for your business

You may not need the insurance for your vehicles right away, but having an insurance policy will gain you customers trust. This also avoids the financial loss, in case of any accidents. The cost of insurance depends on your location and the type of delivery services you offer. Do not forget to count this policy amount and renewal amount in your budget list.


Follow above steps to let the success for your first business touch you. Make sure you plan well about the budget, niche, locations you are going to operate and the taxes before you start your business.

Categories: Business Tips