So, you’ve decided you want to start your own delivery service business, but first, you need to get your plans in order.
Delivery businesses have a lot of moving parts that are all essential to their success – and that can cause them to sink or swim. If you want to ensure that you’re fully prepared to meet the demands of your customers, make sure you consider these key factors before starting your delivery service business:
You have to make it legal
Starting a business is a great way to bring in income while enjoying the perks of being your own boss. However, you must do everything by the books, or there may be serious consequences. To ensure your delivery service business is in compliance with the law, you need to:
- Register with your state and local government
- Get a federal tax ID number
- Acquire any required licenses
While it might seem like a hassle, it’s actually fairly easy and shouldn’t take too long.
Insurance can help protect your business
First and foremost, you need liability insurance for your business should an incident occur. You also want to make sure that any cars that will be used for deliveries on behalf of your company are insured. Neglecting to get the right insurance policies could cost you substantially and maybe even put you out of business.
Efficiency is key
As you likely know, one of the most critical components of delivery is efficiency. Deliveries that are not made on-time can seriously hurt your business. To help make your routes as efficient as possible and keep track of deliveries, you should consider a GPS vehicle tracking system. Optimized routing can also help cut down on gas costs that eat up your budget.
You’ll need certain equipment and supplies
The right equipment can help you complete deliveries faster and prevent injuries.
Depending on the type of delivery service you are running, you may need certain equipment and supplies, including:
- Dollies
- Tie downs
- Moving straps
- Vehicle safety supplies
- Heating and cooling bags
- Cargo holders
One of the most important pieces of equipment you’ll need is a reliable car, or several, depending on how many drivers you’ll have. A fleet of vans or trucks is a substantial investment so you will need to plan your budget accordingly and may need to grow your delivery service in phases.
Partnering with other local businesses may be beneficial
Many local businesses can use a reliable delivery service to help them fulfill their customer’s needs. Whether you go around and introduce yourself at businesses in your area or attend community-based events, you can likely build a reliable client base with your fellow neighborhood business owners.
Business and personal finances should be kept separate
You need to open a business bank account so that the expenses and income from your delivery service are independent from your personal finances. This will make your life much easier when trying to keep track of your business’s profitability and when it comes time to file your taxes.
You need to market your business ASAP
If you want to build your business, your customers need to be able to find you. This means you will need to build a website and prioritize marketing. Many small business start with social media profiles to create brand awareness. You can also take advantage of the advertising space on the outside of your vehicles which will be driven all around town by investing in branded car wraps with your logo and contact information.
Plan ahead for an emergency fund
Unfortunately, vehicles come with a whole host of expensive issues. To ensure that your business isn’t severely impacted by necessary maintenance or repairs, you should set aside funds for these purposes early on. No matter how new your fleet is, or how well you take care of your vehicles, these problems are likely to arise at one point or another. However, if the expenses exceed your emergency fund, you may need to take out a loan.
Whether you’re starting a standard parcel delivery company, a food delivery service, or anything in between, planning ahead is the key to your success. These tips are a good place to start but be sure to consider the unique challenges and needs of your niche so you can hold your own amongst the competition.
Not 100% sold on starting a delivery service business? Explore our site for more cool business ideas to find the right venture for you!