Delivery Service Business Plan Template [Updated 2024]

/ 6997 0

Delivery Service Business Plan Template

If you want to start a successful delivery business or expand your current delivery service company, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of delivery service business plans.

The following delivery service business plan template and example gives you the key elements you must include in your plan. It can be used to create a business plan for a food delivery service, same day delivery, restaurant delivery service, grocery delivery or any other type of delivery services businesses. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our business plan template (including a full, customizable financial model) to your computer here.
 

Example Business Plan For Delivery Service Businesses

I. Executive Summary

Business Overview

[Company Name] is a new delivery service that operates in [location]. Our mission is to deliver parcels, documents, and packages for a variety of businesses and individuals located in [location] and the surrounding area. We offer delivery for all local industries and businesses, including the medical industry, retail establishments, corporate offices, and more. We ensure great customer service, special services, and speedy delivery for a moderate price. We aim to be as good as larger chains (such as FedEx and UPS) but offer more unique services for a more affordable price.

Services Provided

[Company Name] will deliver parcels, packages, and documents from local companies and residents to their local destinations. Packages can be of any size and weight, as long as they fit into one of our vehicles.

Furthermore, we offer a variety of shipping methods, from economy to same day delivery. We are flexible with the goods we deliver, as we want to fulfill all our customer’s delivery needs. Below are a few of the services that our customers will enjoy with us:

  • Same day delivery
  • On-call services
  • Monthly rates and volume discounts
  • Route delivery
  • Special handling services and requests

Customers can order their services either by calling us, scheduling a delivery on our website, or setting up a service in our app.

Customer Focus

[Company Name] will primarily serve businesses and industries in or near [location]. As the company grows, we will look to serve nearby communities as well. We are open to serving any business or industry that fits our needs. These can include, but are not limited to:

  • Medical industries and health professionals
  • Corporate offices
  • Retail establishments
  • Food and beverage
  • Attorneys and law firms
  • Real estate agents
  • Insurance companies
  • Construction companies
  • Accountants and personal finance consultants

Though we expect to primarily work with local businesses, solopreneurs and local residents are also welcomed to utilize our services.

Management Team

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer for much of that time. He has found the work highly rewarding, but noticed that national chains are often too expensive for customers and lack the personal detail a local company can provide.

Though he has never run a delivery service himself, he has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

  • The company will provide valuable delivery services to local businesses who don’t want to work with impersonal national chains.
  • The management team has a track record of success and experience in the delivery service market.
  • [Company Name] will provide high quality customer service and a variety of services catered to every business that partners with us.

Financial Highlights

[Company Name] is currently seeking $575,000 to launch. Specifically, these funds will be used as follows:

  • Office design/build: $200,000
  • Vehicle purchases and maintenance: $200,000
  • Technology development and maintenance: $50,000
  • Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new delivery service that operates in [location]. We will provide local businesses with fast, efficient, and smooth delivery services to ensure all their packages and parcels get to their destination quickly and in perfect condition. We offer delivery services for all local industries and businesses, including the medical industry, retail establishments, corporate offices, and more. We ensure quality, good customer service, and speedy delivery for a moderate price. We aim to be the dominant local delivery service that [location] can count on for all their delivery needs.

[Company Name] is run by its founder, [Founder’s Name], who has worked for the delivery service market for [X] years. He worked for national delivery chains during that time but wanted a company that offered more moderate pricing and focused on local relationships. He surveyed many local businesses and residents to see if they would be interested in a more localized delivery service. The survey had overwhelmingly positive responses, so [Founder’s Name] immediately began to research all the necessary elements to build his own delivery service.

[Company Name]’s History

[Founder’s Name] incorporated [Company Name] on [date of incorporation]. He has been primarily running the business from his home and personal vehicle but has found a potential commercial office space to lease. Once the lease is approved, all operations will be run from there. He will also purchase delivery vans that will be specifically used for delivery services and other business-related reasons.

Since incorporation, the company has achieved the following milestones:

  • Located a commercial office space and wrote a Letter of Intent to lease it
  • Developed the company’s name, logo and website
  • Developed the app and began testing it
  • Began recruiting key employees and drivers
  • Began partnering with local businesses and stores
  • Surveyed other possible locations for expansion

[Company Name]’s Products/Services

[Company Name] will deliver parcels, packages, and documents from local companies to their local destinations. We can deliver almost any product, including medical products, perishables, and legal documents. Packages can be of any size and weight, as long as they fit into one of our vehicles.

Furthermore, we offer a variety of shipping methods from economy to express and priority. We are flexible with what we deliver, as we want to fulfill all of our customer’s delivery news. Below are a few of the services that our customers will enjoy with us:

  • Same day delivery
  • On-call services
  • Monthly rates and volume discounts
  • Route delivery
  • Special handling services and requests

Customers can order their services either by calling us or setting up an order in our app.

 

III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Thanks to the digital age, there is great demand for delivery services. From food and groceries to medical products, every industry needs to transport goods and packages to its partners and customers. Almost every business and customer buys their products online these days, meaning that every business of every sector has some need for a delivery service.

Moreover, industries are demanding more from their couriers, such as same day delivery and special handling requests. Many national chains do not offer flexible pricing and services to meet their needs. Luckily, local couriers and delivery services can meet this demand.

The global courier service market was valued at $381 billion last year and is projected to reach $658.3 billion over the next 10 years. Furthermore, the industry is expected to grow at a compound annual growth rate of 5.7%. This shows that the courier industry is booming and has no plans to change anytime soon. There has never been a better time to start a delivery service.

 

IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

[Company Name] will primarily serve local businesses located in [location]. We are open to serving most industries, including medical, legal, and real estate. However, we are also open to helping local residents with their delivery needs as well.

Customer Segmentation

We will primarily target the following customer segments:

  • Local businesses: Our primary customer segment will be local businesses across a variety of industries. We aim to develop long-term relationships with these businesses while providing specialized delivery services that exceed expectations. We expect to make a majority of our revenue from these businesses so much of our marketing efforts will target them.
  • Solopreneurs: Solopreneurs (such as solo attorneys and personal financial advisors) have unique businesses and require exceptional delivery services. Their needs are often not accommodated well by large chain delivery models. We offer flexible and special services to help solopreneurs with all of their requests.
  • Individuals: Local residents have their own unique delivery needs as well. Though we expect most of our sales to come through businesses, we will offer special delivery services to individuals who want a more personalized delivery experience.

 

V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following delivery service companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Downtown Courier Services
Downtown Courier Services has been a successful courier and delivery service in downtown [location] for years. They provide delivery services to a variety of businesses located downtown and offer great services such as same day delivery, special handling requests, and on call services.

Though Downtown Courier Services is likely to remain successful, they operate in an extremely limited market. They only cater to businesses located in downtown [location] and only deliver packages for a handful of industries. [Company Name] will have a much larger market and geographic range of operation.

National Parcel Service
Established in 1977, National Parcel Service has been a dominant delivery company nationwide. Offering a variety of print, ship, and delivery services, it has become a convenient delivery service for both businesses and individuals.

While we expect National Parcel Service to continue to thrive, the business’ reputation has drastically decreased over recent years. Price hikes, restrictions on services, and labor strikes have given the company a negative public outlook. Individuals and local businesses expect high-quality services when prices increase, and National Parcel Service has not delivered on that. Furthermore, National Parcel Service does not have a history of maintaining long-term relationships with its customers nor treating its employees well. Local residents and companies are looking for a more ethical and friendly service to use instead.

Medical Delivery Inc.
Medical Delivery Inc. has provided an essential service for medical offices and health professionals since 1995. They deliver all sorts of medical products, including equipment, lab specimens, and test results. They also offer on-call services, same day delivery, and fixed route deliveries.

While Medical Delivery Inc. will continue to thrive, they only deliver medical products and are not open to delivering for other industries. Therefore, we will only see competition from them in this one sector.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Client-oriented service: [Company Name] will put a focus on customer service and maintaining long-term relationships. We aim to be the best delivery service in the area by catering to our customer’s needs and developing a strong connection with them.
  • Management: [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the best delivery and customer service experiences. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
  • Relationships: [Founder’s Name] knows many of the local leaders, business managers and other influencers within [location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
  • Technology: The delivery service market is one industry that struggles to keep up with technology. Unlike our competitors we will develop an app that will make scheduling delivery services quick and painless. However, we still have a phone number and website for those who prefer to schedule their services through those mediums.

 

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

[Company Name] seeks to position itself as a strong competitor in the delivery service market. Customers can expect great customer service, speedy delivery, and an overall wonderful experience by ordering through our delivery service.

Promotions Strategy

The [Company Name] brand will focus on the Company’s unique value proposition:

  • Safe and secured local deliveries of any package type, size, or weight
  • Service built on long-term relationships and personal attention
  • Premium services at affordable prices

Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its company offerings in popular local magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content and post customer reviews to increase audience awareness and loyalty.

Website
[Company Name] will develop a professional website where people can learn about our service and the industries covered. The website will utilize SEO to increase traffic, and to ensure that the company’s website will appear at the top of search engine results.

Billboards
[Company Name] will secure a billboard in the area that captures the attention of residents and local businesses. The billboard will draw attention to the new business and its service offerings.

Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced.

Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat deliveries, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value for their customized and professional delivery services. The customer can expect to receive quality services at a more affordable price than what they pay at pricey national courier services.

 

VII. Operations Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Functional Roles

To execute [Company Name]’s business model, the company needs to perform several functions, including the following:

Service Functions

  • Driving to customers and picking up packages
  • Delivering packages in a timely manner
  • Getting signatures when required
  • Providing excellent customer service throughout the process

Technology Functions

  • Curating the app and website for the best customer experience
  • Troubleshooting problems and errors
  • Creating frequent updates to keep up with latest technology changes

Administrative Functions

  • Bookkeeping
  • Marketing
  • Scheduling deliveries
  • General customer service
  • Hiring and training staff

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

 

VIII. Management Team

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team Members

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer for much of that time. He has found the work highly rewarding, but discovered that national chains are often too expensive for customers and lack the personal detail a local company can provide.

Though he has never run a delivery service himself, he has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Hiring Plan

[Founder’s Name] will serve as the Manager and CEO of [Company Name]. The following personnel are what the company needs to hire:

  • Drivers (3 to start)
  • Administrative staff (1 to start)
  • Software and app developers (1 to start)
  • Customer service associates (2 to start)

 

IX. Financial Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’s revenue will primarily come from delivery fees and providing extra services (such as on-call services).

The major costs drivers for the company will consist of salaries, marketing costs, vehicle purchases and maintenance, and lease expenses.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $575,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Office design/build: $200,000
  • Vehicle purchases and maintenance: $200,000
  • Technology development and maintenance: $50,000
  • Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of customers per day
FY 175
FY 2100
FY 3125
FY 4150
FY 5175
Annual Lease ( per location)$50,000

 
5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

 
5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

 
5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

 

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.