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

The local delivery service and courier service industry has been impressively growing revenues over the last several years.  Mainly thanks to Amazon and their culturally changing same-day delivery service. 

However, there are other reasons why the local delivery service industry has been expanding.  For example, as the baby boomer population continues to age, their need for transportation to local medical facilities is growing.  From this need, established local delivery service companies had expanded service to include transporting individuals as well.  This is just one of many ways and reasons how and why the local delivery service industry has been expanding and will continue to expand in the foreseeable future.

In order to enter this industry, our business plan writer recommends that business owners should have a well thought out strategy and professionally written business plan.  From this foundation, business owners have a fighting chance to not only enter the market and gain market share quickly but also to create a sustainable advantage to ensure growth in the long-term.  It is here where our business plan writer wishes to offer some tips and tricks on writing a solid local delivery service business plan.

Executive Summary for a Local Delivery Service Business Plan.

The local delivery service executive summary section of a business plan should start by briefly explaining the problem that the organization is solving for the community.  For example, if your local delivery service specializes in delivering bread and other baked goods, then make sure to explain the need for prompt delivery from bakeries to retail locations or residential homes.  By explaining the need for the business, local delivery service business owners are able to better justify their business structure, strategy, and, quite frankly, the reason for existence.

Company Information and Location for a Courier Service Business Plan.

An important part of the company information and location section of a local delivery service business plan should include the geographic area served by the organization.  For some local delivery companies, they specialize in delivering products within a specific city.  Other local delivery services may offer services on a regional basis.  Regardless of what your strategic plan is for your delivery area, make sure to specifically state it in your location section.  Further, also highlight how your central business location supports your geographic delivery area.  In doing this, our business plan writer has found that business owners are able to show the alignment between the delivery area and the business location.

Product Description and Competitive Advantages

The competitive advantage section for a local delivery service and courier service company is a critical component of the information section and a business plan.  When writing this section, our business plan writer recommends differentiating your business from other competitors in the section.  For example, if your delivery service area is broader as compared to competitors, then make sure to discuss it.  In contrast, if your organization will specialize in niche products or services, then again, make sure to explain your delivery service differentiating factor and how it best aligns with your consumer needs.  By focusing on competitive advantage in this section, business owners are able to show how they will exploit weaknesses in competitors as well as fully meets the needs of their prospective clients.

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 the delivery service 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

The funding request section for local delivery service and courier business plan should start with 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 into categories 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 breakdown 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. 

Phone: 321-948-9588

Email: Paulb@Qualitybusinessplan.com

 

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

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

Date: 12/18/2020