Build a Successful Grocery Delivery Business Plan Amid COVID-19
The grocery delivery business has grown up significantly over the last few years while the ongoing COVID-19 pandemic has added fuel to the fire. We have also received many questions related to grocery delivery business models, such as how to make a successful grocery delivery business plan and what factors will play a key role to make a successful start?
Indeed, the delivery business for groceries is one of the fastest-growing niches of eCommerce in 2021. Given the facts and stats on online grocery shopping services , the market is expected to grow by three-fold every year and any investment whether it be launching a grocery store or starting a grocery delivery service ; will have a positive outcome.
So, if you are exploring how to start a grocery delivery business , then this article is good to read for you. You will get a comprehensive guide, tips and suggestions here.
Grocery Delivery Business from Market Perspective
Let’s begin with some fascinating facts about the online grocery business trends stated by Statista.
- A report by Statista says that the total retail sales in 2020 accounted for $5,638bn.
- The same report suggested that more than 260 million Americans will purchase things online, including groceries in 2021.
- Instacart, Walmart Grocery, and Shipt have witnessed a significant download surge of 218%, 160%, and 124% respectively.
- Online sales of consumer packaged goods have grown by 56% at the end of April 2020, as compared to the same time last year.
- A survey by Nielsen states that 70% of consumers worldwide will buy groceries online by 2024.
These are some overwhelming facts, and the best thing is that they will continue improving, even if the pandemic is over. The article is a comprehensive guide that is not restricted to the pandemic only. You will understand the range of grocery delivery models as well as how to start it during the COVID-19 situation and continue to flourish even after the pandemic ends.
How To Start a Grocery Delivery Service?
If you are considering starting a grocery delivery service with on-demand delivery apps, then this is the perfect time to hit the ball. If you are flexible and looking for more options, you can visit this page to get a comprehensive guide on how to start a meal prep business .
In this article, we’ve covered the following points:
1. Types of Grocery Delivery Business Model
2. Challenges of Grocery Delivery Business
3. Grocery Delivery Business Plan
#1. Types of Grocery Delivery Business Model
There are mainly three types of grocery delivery business models. They include:
- Inventory Models
- Multi-Vendor Marketplace Model
- Shopping Model
If you take a look at all the top grocery delivery service startups, they are either following one or a hybrid of these various grocery delivery business models. So first, it’s time to understand how these models work and then apply them as per your business goals:
Online Grocery Business: Inventory Model
In the inventory model, you stock up on grocery essentials directly from different suppliers and deliver the products to customers using an in-house or third-party delivery network. It’s basically like an offline store selling groceries that also start a grocery home delivery service . Now, customers can order online, and the grocery vendor will deliver the products to the customers using an in-house delivery network. If you don’t want to start a grocery store, you can choose to start a grocery delivery business , inspired by the inventory model.
Online Grocery Business: Multi-Vendor Marketplace Model
It’s one of the most preferred grocery delivery business models for startups, to begin with. When you choose the Multi-Vendor Marketplace Model, you do not have to manage stocks. All you have to do is become a medium between customers and grocery stores. You provide a digital platform in the form of a website portal or a mobile app using which the customers and grocery stores can interact.
The customers will send orders through the app; the app will further transfer the order to the respective grocery stores. Then a delivery person will collect the products and deliver them to the customers. Many eCommerce companies like Amazon, eBay, and Airbnb already follow this business model.
Online Grocery Business: Shopping Model
The shopping model is the most popular one, in terms of the global market. A lot of startups nowadays are exploring online how to start a grocery shopping business . It works the same as a multi-vendor marketplace model, except for one difference. The platform itself selects the vendor or grocery store instead of the customers, based on the customer’s location.
When a customer places an order, the platform chooses the vendor and uses an in-house delivery person to deliver the order to the customer. The Instacart business model works on the same approach.
#2. Challenges of Grocery Delivery Business
If you are a grocery delivery startup , you have no easy path ahead. The maximum challenges that a grocery delivery service startup would face in a pandemic is from the customer side, such as – around 40% of consumers complained about delayed delivery of groceries during the Coronavirus pandemic in the United States. At the same time, another 20% complained about facing issues with the delivery time range of the groceries.
There were only 9% of customers who responded saying that they did not face any difficulties while placing an order online, during COVID-19. But the good thing here is that all the grocery delivery services are facing these problems, so you just need to be better than others. Ultimately, the goal has to be to build a profitable grocery delivery business .
These are also other challenges that occur in the online grocery delivery business that faces other sources. Let’s take a look at some of them:
- Lack of Supply Chain Management
- Changes in Demand
- Changes in Customer’s Buying Behavior
- Dull Workforce
- Delivery Charges
- Stiff Competition
The grocery delivery business opportunity is a really lucrative one if you can overcome these challenges and be able to work efficiently. But, to do so, you need a well-defined grocery delivery business plan. Next, we’ll be taking a look at creating such a business plan.
Know more: How To Start A Successful Food Delivery Business?
#3. Grocery Delivery Business Plan
Whether you want to start a new online grocery store or want to take your existing physical grocery business online, you need to explore the grocery store business model and create a foolproof grocery delivery business plan. We have listed out some of the essential points which will help make things easy in planning your grocery delivery business venture.
Study The Market & Your Competitors
The first step you should take is to gather a list of your competitors, research, and take a competitive analysis to understand your market thoroughly. Understanding the market needs, customers’ pain points, and your competitors’ business moves will help you make better decisions while creating grocery delivery service business plans .
Start with some of the prominent names in grocery delivery service and explore their application, how they work, and gauge their strengths and weaknesses. Some of the best grocery delivery services are:
- Amazon Fresh
Invest in MVP Development
Building a full-fledged grocery delivery service app could be a costly affair that has to be done without any mistakes. The best way forward is to first create a Minimal Viable Product (MVP) on your grocery delivery app concept. It helps you analyze things and improvise without making a hefty investment on the first go.
Best App Design, Features, & Technology Stack Will Set Your App Apart
Ever thought about what grabs the attention of the app users? It’s the app’s design, features, functionalities, and the level of technology stack working on running the app that makes the difference. So you must do a competitive analysis and select features and designs that your competitors lack and make them your app’s specialty.
A bit of good advice is to integrate exceptional app design and include user-friendly functionalities, and effective technology while formulating your grocery delivery app.
Read more: How to Build Your Farm-to-Table App Like GrubMarket?
How Does Grocery Delivery Business Make Money
How your grocery delivery business makes money depends on the type of grocery delivery business model you choose to follow. So you must select the business model carefully after considering its revenue model.
Some of the common sources of revenue for the Grocery Delivery app are:
- Commission on Orders
- Promoting Vendors on the App
- Selling Ad Space in the App
- Monthly Subscription Charges
Take the help of an expert business analyst and investors and do some brainstorming while deciding your grocery delivery business’ revenue model.
An Effective Grocery Delivery App Can Be a Game-Changer
You now know the on-demand grocery business model and have understood the challenges that come with them as well as the revenue models these business models apply. But all of this can only work if you have a competent and exceptional grocery delivery app.
It is essential to know how to make a useful grocery delivery app. Creating an excellent app depends on getting the right app development company and the perfect app solution from them.
If you don’t have the time and money to build an app from scratch, the best option is to get an Instacart clone script solution instead. So, the best call would be to purchase a customizable ready-made grocery delivery clone solution to create your perfect grocery business app.
The next possible solution would be to take a Grocery Delivery Franchise and start your own business quickly. Taking a franchise will help you with a shorter time to market and earn right from the beginning. However, you need to make sure that the franchise you are taking is popular, Instacart, Amazon Fresh, etc, and you don’t have to spend a lot on its marketing.
Read More: Shipt vs Instacart
It’s Time To Start Your Own Grocery Delivery Business
You may find plenty of data, surveys, studies, and research papers on how to start your own grocery delivery business. Still, all of these data dates before the Coronavirus pandemic outbreak hit us. We are not saying that they are wrong or not reliable, but you still need a set of experts that can break down the information based on the current situation.
The world is facing a health crisis, and the economy has been hit hard. Industries, businesses, lives, and livelihoods, everything has been affected by the pandemic. Even though things are getting back on track, it will take time (even years.) Don’t blindly believe in the business tips and guidance given before the pandemic.
Contact experts , share your concern, and you will get the perfect solutions.
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Home » Business ideas
How to Write a Goods Delivery Service Business Plan [Sample Template]
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.
Why Start a Delivery Service Business?
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 lays 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
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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
A delivery service business plan can also access startup capital, funding, partners, and even recruit employees. This is true whether you are starting a goods delivery or grocery delivery business or any other type of small business. If you have the question “ How to start a delivery service business ?” going in your mind, then keep reading.
Here are the strategy plans and steps that will help you start your own delivery service: Step 1: Define your niche Step 2: Build a delivery business plan Step 3: Develop a delivery process Step 4: Develop your delivery service business as a legal entity Step 5: Register for taxes, permits, and licenses
Types of Grocery Delivery Business Model 2. Challenges of Grocery Delivery Business 3. Grocery Delivery Business Plan #1. Types of Grocery Delivery Business Model There are mainly three types of grocery delivery business models. They include: Inventory Models Multi-Vendor Marketplace Model Shopping Model
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.