How to Write a Courier Service Business Plan

How to Write a Courier Service and Local Delivery Service Business Plan

The local delivery service and courier service industry has been growing surprisingly well over the last 3 to 4 years, which has in turn driven the demand for local delivery company business plans, local delivery company business plan templates, and local delivery company pro forma financial projections.

There are numerous reasons why the local delivery service industry, as well as the courier service industry, has been needing business plans.  For example, our society has become more reliant upon delivery services thanks to Amazon and even Walmart with their new expansion to delivery.  As more organizations provide delivery services, the need for local delivery service companies and courier service companies will grow in tandem.  Further, small businesses that traditionally have a delivery component have also been moving away from the structure and outsourcing delivery services.  Not only does a strategy help increase bottom line profits for the small business, but it also provides startup entrepreneurs with opportunities to create businesses focused on the delivery component alone.

Regardless of why the local delivery service industry, as well as a courier service industry, are growing, the need for business plans, whether be for funding purposes or strategic initiatives, will continue to grow as well.  From this, our local delivery service business plan writer has come up with some tips and tricks for business owners to use when writing their own courier service business plan, business plan template, or business plan pro forma financial projections (1/22).


Executive Summary for a Local Delivery Service Business Plan.

A courier and local delivery service business plan’s executive summary should start off with providing general information in regards to the organization, such as the company name, location, and business owner.  From this foundation, our courier service business plan writer has found that these types of business plans should then discuss geographic areas serviced by the courier business.  In some instances, courier and local delivery services may provide services based on geographic distance from the organization’s physical location.  An example of this would be a 60 or 90-mile radius from the facility.  In other circumstances, local delivery services may deliver products based on the region, such as Central Florida or South Florida.  Regardless of the strategy behind delivery services provided, make sure to introduce the concept early in the executive summary and also support with reasonings for this decision (1/22).

Company Information and Location for a Courier Service Business Plan.

The company information section for a local delivery and courier service business plan should start off with general information about the company, such as the organization’s name, address, and the number of employees.  In addition, our local delivery and courier business plan writer recommends including business objectives and timeline in the company information section as well.  In the segment, courier business owners should first start out by creating time blocks, such as six-month time frames, for the business owner to categorize specific objectives that they wish to attain within the first 1 to 2 years of operation.  In each one of these time blocks, the business plan writer should then identify specific objectives they wish to accomplish in this timeframe, such as the number of loyal delivery customers, specific revenue targets, and possible expansion into new territories.  By structuring the business objectives and timeline segment in this manner, writers are able to clearly show how the organization views its future based on the construct (2/22).

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Product Description and Competitive Advantages

The product description section for a courier service or local delivery company should start off by identifying and describing the organization’s core services provided.  In some instances, a courier service will specialize in delivering pharmaceutical supplies from pharmacies to area customers.  In other cases, a local delivery company will specialize in picking up and delivering appliances and furniture for customers or even businesses.  Regardless of what the core competency is for the delivery company, make sure to expressly state it at the beginning of the section and provide substantial details as to why this niche service was selected and how it will be exploited in the marketplace (3/22).

Target Market for a Local Delivery Service Business

The target market for a local delivery service may actually be to parties.  The first party could be the actual seller of the product.  For example, if your local delivery service offers delivery for a bakery, then the seller, the baker, is your target market.  In contrast, if your local delivery service customers are usually baby boomers needing transportation to and from medical visits, then this party would be your target market.  In some instances, both parties, the seller and the buyer would be your target market.  An example of this would be a delivery service that offers grocery shopping.  Grocery stores may hire delivery services as well as buyers.  Regardless of your target market, make sure to correctly identify it, and discuss why you believe this demographic is your anticipated target market.

Industry research for a Local Delivery Service and Courier Service Business Plan

The industry research section of a local delivery service business plan should start with a national industry examination.  For example, make sure to highlight industry statistics on a national level for the industry.  Important local delivery service industry statistics should include revenues earned for the industry.  For this particular industry, in 2020, the local delivery service and courier industry generated approximately $116 billion.  In the last five years, this industry has grown by approximately 5%.  Further, industry experts anticipate the courier and local delivery service to continue to grow at a 5.1% growth rate for the foreseeable future.  These are just some industry statistics the business owner should include in their local delivery service and courier business plan.

Owner and Management Section

The owner and management section of this type of business plan should focus on the owner's ability for logistics.  As one can imagine, a local delivery service business owner should have extensive experience in planning delivery routes in the most expeditious manner possible.  From this, previous experience in trucking or working for another delivery service company is highly recommended.  However, all too often, business owners get into this type of business in accidents.  For example, people just keep asking to use your truck, and before you know it, you have a delivery service company.  When this is the case, try to use a story about how you entered the business to justify your business concept.

Funding Request for a Local Delivery Service Business Plan Template

The funding request section for local delivery service and courier business plans should start by telling the reader exactly how much money is needed for startup costs and operating costs for the business.  Once this is stated, then the delivery service and courier service business owner should state how much of the total cost will be paid by the owner and how much additional funding is needed for the business.  Once this breakdown is complete, then the business plan writer should then break it into categories of how the total funding needed for starting the business will be spent.  Some of these categories may include buildout for location, purchasing the building, purchasing vehicles for delivery, customizing the vehicles, hiring employees, working capital, and other important startup categories.  Once each category is completed, make sure to total the dollar amount needed for each category and then add up all categories in a total funding needed section.  Finally, make sure the total funding needed section dollar amount is identical to the requested dollar amount plus equity investments.  In following the strategy, delivery service, and courier service, business owners are able to best align their startup cost needs with funding requirements.

Financials and Financial Projections for a Local Delivery Service and Courier Service.

As we all know, business owners, as well as investors, are eagerly interested in how well financially a startup local delivery service and courier service business will do.  Because of this anticipated desire, business owners, when writing a courier service and delivery service business plan, should break down their financial projections section into bite-size pieces.  The first section should focus on daily or weekly anticipated revenues generated.  In some cases, courier service business owners will start their financial projections on a daily basis based on anticipated deliveries done daily.  For other courier services, they will focus on weekly routes based on loyal users.  Once the revenue section is complete, then align fixed costs and deduct them from the monthly revenues.  At the end of the day, courier service and local delivery service, and courier service business owners will have a basic profit loss statement for the monthly time span.  The next step is just to add in some growth rates, and you now have a projected first-year annual budget.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  As always, if you need help with a business plan or financial projections, just send us an email or give us a call. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan, and Quality Business Consultant.

Date: 6/27/2022