delivery system in business plan

Delivery Service Business Plan: Guide and FREE Template

Did you know that the delivery service industry is expected to reach $658.3 billion by 2031 ? If you’ve been thinking about starting a small business like food delivery or grocery delivery, there has never been a better time. Customer demand is at an all-time high and startup costs are under $10,000 on average. 

The first step to creating a successful delivery service business is — no surprises here — writing a business plan. In this guide, we’ll outline everything you need to know to turn your business idea into reality, and provide a free template for you to get started.

💡If you’re already done your homework and just want to get started, go ahead and start filling out our free delivery service business plan template .

Six reasons to create a business plan for your delivery service 

Did you know that 71% of fast-growing companies have a detailed business plan? And entrepreneurs who have a written plan are 260% more likely to actually start their business and see success. 

That’s because your business plan is your blueprint for getting started, and then guiding you to success in your new business. It will help you:

• Decide if your business idea is viable.
• Conduct a market analysis to understand your competition, customers, and growth ability.
• Set your goals, and create strategies for achieving them.
• Make important decisions about products, marketing, staffing and funding. 
• Raise funding from banks or other investors. 
• Track your progress, growth and profitability.

The main components of a delivery service plan

A business plan is a summary of all your business’s potential operations, so it includes multiple components. Here they are:

1. Executive summary

This section is an introduction to your business, so you want to make it appealing. Answer the following questions: 

• What’s going on in the delivery service industry? 
• What type of delivery service business are you opening? 
• What sets your business apart from well-known delivery options, like FedEx and USPS? 
• Who are the key members of your team? If you are just starting out, your only team member might be you. In this case, list your experience and commitment to success. 
• What are your financial projections showing? What are your operating margins and tentative profitability? 

You don’t want to bore the reader in this section. Make it engaging, and outline key points and advantages of starting your business. Don’t include any negative information.  For example, you shouldn’t say that the delivery service market is oversaturated. If it was, opening a new business wouldn’t be very successful, would it? 

Another common mistake to avoid is understating the qualifications of your team. Don’t say you lack the capital to hire team members, or that you don’t have the necessary experience to run the business. Instead, stay positive with words like “the (company) plans on hiring additional help once we enter a growth phase.”

2. Company overview

The company overview is a deeper dive into the fundamentals of your delivery service. Here, you will pinpoint the type of business you will operate. For example, will you be a pure delivery company, like a courier or express messenger? Or will you be delivering your own products, like food, beverages or flowers? Or maybe you’ll deliver on behalf of other producers, like many grocery delivery services that work with different farmers. Will you offer same-day delivery?

A courier service business plan will be different in some ways from a plan for a grocery delivery service company, but you’ll need to answer all the same questions.

It’s not uncommon for delivery service businesses to engage in more than one service. List all services that you plan on operating. 

In the company overview, you will also outline your “why” for starting the business, important milestones you have already achieved, and information on the legal structure of your business. You may also want to include a mission statement here. 

3. Industry analysis

Now, it’s time to get down to the facts. Include industry growth facts, such as that the compound annual growth rate in the United States is 5.7% or that there are currently over 250,000 courier and local delivery companies . 

Properly completing this section will require some industry and market research. Great research starting points include IBISWorld , the Small Business Administration (SBA), and your state’s website, if you are offering local courier services.  This is not only beneficial to show the opportunities in the market, but you will also develop insights into how to set yourself apart from competitors. 

Be sure you include information on market conditions, main competitors, key suppliers, current trends, and where the industry is headed. 

4. Customer and market analysis

Who is your primary customer? Are you looking to work with individuals or businesses? What types of businesses or individuals are your ideal potential customers? Identifying your target market, and how will you win new customers, is critical to developing accurate marketing strategies. 

Try to be as detailed as possible. Pinpoint the age, gender, geographic location, income levels, and needs of your target market. 

5. Competitive analysis

The competitive analysis section will highlight your competition and how you plan on setting your business apart. You should uncover data to back up your claims. For example, recent studies show that 73% of customers have had bad delivery experiences , and 16% have advised friends or family to avoid the retailer. 

Statistics like these can help to show that prioritizing customer service is how your business will shine. You might choose to include a chart or graph on common traits that your business and competitors have. Identify weaknesses, strengths, pricing differences, and the target market of competitors as well. 

Could you offer local delivery to companies in your area to boost their revenue? How about delivering outside of normal hours, such as overnight? Do you have the capabilities to specialize in fragile package delivery? These are all ways that you can differentiate yourself from competitors. 

6. Marketing strategy

Using all of the information and data you have accumulated, you will piece together a marketing strategy. Going through the four Ps can give you a comprehensive marketing plan:

• Product: Discuss the type of services you are providing again, including the specifics, like late night delivery or fragile package options. 
• Price:   Reinforce your pricing structure and make a comparison with competitors. 
• Place: Identify where you will be delivering. This could be local, regional, or national. 
• Promotions: Put together a general strategy for how you will attract customers. Will you advertise in local papers, or go for a pure e-commerce model? How about social media or email marketing? Talk about how your delivery service website will use SEO, how you’ll build relationships with local businesses, or how you’ll search for jobs on courier listing sites. 

Your marketing strategy is very important for displaying how you will attract customers using your competitive edge. 

6. Operating strategy

This section of your delivery service business plan will outline both the day-to-day operations and the long-term goals of your business. In the executive summary, you touched on a few of your main goals. In this section, you will elaborate on those items. 

Common day-to-day operations might include listing the tasks of your team, like answering calls, scheduling, and dispatching routes to delivery drivers. How will you plan your deliveries? Will you hire your own drivers, or use contractors? What about a vehicle fleet? What software will you use to track deliveries, customer requests, and costs? 

Long-term goals might be increasing revenue by a certain percentage each year, or adding a specific number of trucks every few months. Maybe you want to grow revenue by 3% each year. What can you do to get your business there? Will you increase prices to match inflation, win new customers or hire additional staff? 

Both your short-term and long-term goals need to be reasonable. Don’t say you’ll grow revenue by 50% in your first year, or have 20 delivery team members right from the start. Reasonable goals are easier to work toward and can keep you and your team motivated. 

7. Management team

Your team is essential to the success of your delivery business. If you have a partner with years of industry experience or a manager with a stellar record, incorporate that expertise and experience into this section. 

You should have a clear management structure and chain of command. Keep in mind that job roles can overlap, especially if you only have a few team members. Identify who will handle hiring, day-to-day operations, high-level decisions, and customer service. 

Also, be sure that you include any mentors that are guiding you along the way. This could be an advisor in the industry, a family member, or a friend. 

8. Financial projections

A key component of your delivery business plan is projected financial statements. If you are just starting out, you might not have years of historical financial information. This is why you need to project your expected revenue, operating expenses, assets, and profit based on industry research and your specific business characteristics. 

Your financial plan should include at least five years of financial projections. This helps you determine your business’s chance of being successful and profitable. Prospective lenders and investors will also want to see this information. Here are the main financial statements you will develop: 

• Income statement : This outlines your revenue, expenses, and bottom-line number, known as net income. A positive net income indicates a profitable business, while a negative number suggests you are losing money. 
• Balance sheet : The balance sheet tracks your overall financial health by outlining assets (what you own), liabilities (what you owe), and equity (what you’ve earned, contributed, and taken out of the company). 
• Cash flow statement : This tracks the movement of money in your business. The three main categories found in this document are cash earned or spent from operations, financing activities, and investments. 

It can be hard to plan out all of these expenses, which is why many delivery service businesses use an accountant to help. 

Don’t just hire the first accountant you come across. Interview a few to confirm that you feel comfortable with them and can develop a good working relationship. Also check that they have experience helping startups, especially in the delivery service industry. This is because the business model that delivery service businesses follow isn’t the same as other industries. 

Accountants will usually list the clientele they work with directly on their websites. Otherwise, don’t be afraid to reach out and set up a consultation. 

9. Appendix

The appendix will contain additional schedules, financials, graphs, maps, and supporting information for your delivery service business plan. 

Top things to know before writing your delivery service business plan

Before you create your delivery service business plan, you will need to think about the big picture. This includes evaluating the following components: 

1. What delivery service model will you choose?

In your delivery business plan, you will need to decide exactly what kind of courier or delivery service you want to offer.

First, consider how you will run your daily delivery operations . Will you do it all in-house , including hiring and managing your own drivers? This is how Walden Local in New England does it, using their own branded vehicle fleet and drivers to deliver local meat and fish directly from farms to customers. This gives you total control over delivery operations, but you will need your own delivery vehicles. This can increase the costs, especially when you factor in vehicle maintenance.

Alternatively, you could outsource your actual deliveries via a gig economy app like DoorDash or Uber Eats. Many restaurants and ghost kitchens choose this operating model, preferring to focus their effort on the actual product they’re delivering. 

Second, what delivery time frames will you offer? The three main options here are:

• On-demand delivery: This literally means you will deliver (or pick up and deliver, in the case of a courier service) as soon as the customer places their order. Depending on the exact product, this could be the same day (groceries) or the same hour (restaurants). This is highly convenient for customers, but expensive to operate.
• Batched delivery: If you expect very high volumes, or if you choose to offer next-day delivery or later, you have the option of creating delivery batches so you can create more efficient delivery routes and schedules. This makes it easier to deliver profitably, but isn’t suitable for a business like a restaurant.
• Scheduled delivery : This is a favorite delivery model for subscription services like meal prep companies, and it can make delivery operations much easier. It means pre-planning deliveries to specific areas on specific days — for example, I subscribe to a flower delivery service that means I get fresh blooms on my doorstep every second Wednesday. You will need to be very clear upfront with your customers about how their deliveries will work, but if you manage expectations clearly this can be an excellent option.

Finally, how much will you charge for deliveries ? It may be tempting to offer free delivery to win customers, but the costs can really eat into your profitability. Do the work to figure out what you can afford to offer for free, and how to make your delivery charges palatable.

You can read more insider tips for starting your own delivery business here . 

2. How will you set up and staff your business? 

During the  business planning process, you should form a legal business structure. This entails registering your business name with your state and applying for an Employer Identification Number. You will need to pick out a business structure, such as a single-member LLC, a partnership, or a corporation. Talking with an accountant can help you find the most favorable structure. 

Keep in mind that staffing can take some time, especially with talent shortages. Before you can accept your first delivery order, you need to go through the hiring and training process with staff members. Knowing how to hire and retain delivery drivers , in particular, can help you save a lot of time and money. 

Do your research on a competitive wage, determine how you will process payroll, pinpoint the benefits you will offer, and create job listings. The right team members working alongside you can help your business thrive. 

3. What delivery management software will you use?

If you want an efficient, profitable delivery service business , sooner or later you’ll need proper delivery management software . Plenty of delivery businesses have started out using nothing but Excel spreadsheets, but that can quickly become a brake on your growth. Considering your delivery software while you’re making your business plan can give you an edge. Look for software that will make it easy to:

• Upload orders
• Use route optimization to plan efficient delivery routes
• Dispatch to a mobile driver app
• Track delivery progress in real time
• Send customer notifications
• Manage driver timesheets and payroll

The right delivery management software can help you achieve profitability, offer a great customer experience, and ensure on-time deliveries.

How to use the template

Now that you know what to include in your delivery service business plan, it’s time to get started. You can open a copy of the template right now and start writing. Here are some tips we’ve learned along the way: 

• Don’t jump around: Work on your delivery business plan section by section, starting at the top. Jumping around results in missed information and confusion. 
• Re-read Sections – It’s helpful to read through each section a few times before you create your own. 
• Be Thorough – The more thorough you are, the more beneficial your plan will be. After all, the goal of a delivery business plan is to provide you with guidance for starting your business. 
• Be Honest – Oftentimes, delivery service business owners adjust their plans to make their business look more attractive. You want to be honest throughout the plan to give you an accurate roadmap of what you need to do to become successful. 

If you are still struggling to piece together your business plan after reading this guide, don’t hesitate to reach out to an expert for help. 

Final Thoughts and Access to Your Free Template

A delivery service business plan is a resource that can bolster the success of your new delivery business. Take the time to conduct research and put thought into your plan. You don’t want to start your business and scramble to figure out who your target market is or how to display your competitive advantage. Here is our free template . 

If you’re in the market for delivery management software, Routific has you covered. We infuse accuracy and efficiency into our platform, giving you the tools to increase profit, meet customer demands, and ensure your team maximizes productivity. Reach out to schedule your free consultation.

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Delivery businesses have brought a new level of convenience into consumers' lives. Modern customers are used to ordering virtually anything online, from groceries to prescription meds. 

Delivery businesses help meet this growing demand for instant gratification. They provide orders to customers within a few hours or even less. A service may specialize in a specific type of delivery, such as flower delivery services, or it might deliver all kinds of packages.

If you’re thinking about starting your own delivery business, this article will help guide you. We’ll walk you through some of the most in-demand delivery businesses, how to get started, and answer the burning question — is starting a delivery business a good idea?

Are delivery businesses in demand? 

The shift in the buying trends of consumers has taken a drastic turn since the Covid-19 pandemic. As lockdowns made in-store shopping inaccessible, people turned to online ordering services out of necessity.

During the first year of the pandemic alone, ecommerce sales increased by        $244.2 billion , or 43%. And with the rise of online orders, so did the need for efficient delivery businesses to fulfill this unprecedented demand. 

Recent data shows the delivery industry   is booming . For example, food delivery has become a global market worth more than   $150 billion , having tripled in the last six years. 

Even since restaurants reopened, food delivery is still going strong. Most people have become accustomed to (and prefer) online ordering. Consumers prioritize convenience, whether it’s a quick UberEats order or a grocery delivery from their nearest supermarket. 

Morgan Stanley explains that the growth of ecommerce represents a permanent change in how people shop. While economic activity has slowed down since the early days of the pandemic, digital commerce still has room to grow and could increase from   $3.3 trillion   today to $5.4 trillion in 2026.

If you’re thinking of starting your own delivery business, this is an ideal time. There are many in-demand delivery services to choose from, and with the right strategy, you can start a profitable business and cash in on the delivery boom. 

7 profitable delivery businesses for 2023  

From emergency snacks to alcohol delivery, there’s no shortage of straight-to-door delivery services. There are plenty of options to choose from if you want to break into the growing delivery industry.

Since many successful businesses already exist, carving out a niche within your chosen category could drive your success. 

1. Food delivery 

The US food delivery market is hugely popular and in demand, having more than doubled since the pandemic. With   70%   of consumers preferring to place online orders, restaurants are rushing to offer food delivery services, while food delivery apps are raking in the profits. 

Consumers, especially Millennials and Gen Zers, prefer the convenience of ready-made meals from their favorite restaurants. While you’ll have plenty of demand, you’ll also face competition from big players such as DoorDash, UberEats, Grubhub, or Postmates. 

Ghost kitchens are becoming a lucrative business for aspiring restaurateurs who want to tap into the growing delivery market. Ghost kitchens are virtual restaurants that don't provide dine-in or takeaway services to customers. Instead, they accept orders online and rely on food delivery apps to fulfill orders. 

By 2030, ghost kitchens are expected to hold a   50%   share of the drive-thru and takeaway food service sectors worldwide. To operate successfully and maximize profitability, your budding ghost kitchen should consider adopting an omnichannel model. 

An omnichannel platform — like the   unified orchestration engine   by Delivery Solutions — can help you orchestrate operations, from online orders to pickup and delivery, freeing you to focus on building your brand. 

2. Courier service 

The courier service is a lucrative business. 

FedEx vice president, Brie Carere, predicts about   100 million   parcels will be delivered daily by 2026. Couriers locally transport and deliver packages quicker than traditional delivery providers like FedEx or UPS can provide. As online orders continue to grow, there will be a great need for small local couriers who can meet customers’ local delivery needs quickly and efficiently.

Businesses will need more diverse delivery solutions to   solve the last mile delivery problem   — and that’s where your courier delivery business comes in. Couriers can offer next-day or   same-day delivery   options giving customers the speed and efficiency they’re looking for. 

3. Meal kit delivery services 

Meal delivery services offer the convenience of healthy home-cooked meals without the hassle of grocery shopping and meal planning. Popular meal kit services like HelloFresh and Blue Apron deliver fresh, pre-portioned ingredients, making meal prepping a breeze for customers. 

Meal kit revenue worldwide is expected to reach over   $17 billion   in 2023 and is forecast to exceed $25 billion by 2027. If you’re planning to start your own meal delivery business, you’ll need to differentiate yourself from other meal kit companies. For example, you can offer eco-friendly meals or deliver ingredients for specific occasions like barbecues. 

4. Medical supplies and pharmaceuticals delivery

Starting a medical delivery service can be a very profitable and rewarding business venture with few startup costs. 

On-demand medical delivery apps allow customers to order medicine, medical supplies, and samples and specimens instantly, drastically reducing customer waiting times in long pharmacy or hospital queues. 

The global medical supply delivery service market was valued at over                        $48 billion   in 2020 and is expected to grow by 9.3% from 2021 to 2028. The expansion of healthcare logistics and the growing demand for medical couriers spur market growth. An aging population and the health problems that come with it also drive demand. According to the United Nations, the global geriatric population is expected to reach   2 billion by 2050 . 

5. Alcohol delivery

Like meal kits and medicine, delivery apps can bring wine, beer, and virtually any type of booze to your door. The US is said to be taking over China to become the   world’s largest   alcohol e-commerce market. If you’re in a state like California or Florida that   allows you to ship alcohol   directly to customers’ homes, alcohol delivery is another lucrative idea to consider.

From same-day deliveries for a last-minute get-together to wine subscription services, alcohol delivery services come in wide varieties. For example,                   LASH Delivery , (now acquired by grocery store H-E-B) is an alcohol delivery service that ships alcohol to your door in less than 60 minutes. 

Niche delivery markets like alcohol are profitable for new delivery companies. If you’re thinking about starting your own, partnering with Delivery Solutions can eliminate the challenges traditionally associated with alcohol delivery. For example, it can forecast whether a delivery is possible in a given area and whether or not alcohol delivery is allowed. 

6. Amazon delivery service partner 

Amazon has created the   Delivery Service Partner (DSP) program   to empower entrepreneurs who want to launch and operate their delivery businesses. As a Delivery Service Partner, you can deliver Amazon orders while maintaining control of your package delivery business.

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Joining the program requires an initial investment of as low as $10,000 for five delivery vehicles — a relatively low cost for startup expenses. The DSP program is highly competitive, and the application process focuses on finding candidates that demonstrate leadership and work ethic and are passionate about building a team of delivery associates. 

7. Grocery delivery services

Like meal kits and food delivery apps, online grocery delivery is skyrocketing in popularity. Instacart, the most popular grocery delivery app, was downloaded         over eight million   times in 2022. 

Grocery delivery apps make customers’ lives more convenient, allowing them to order groceries and deliver them straight to their homes without visiting a grocery store. People order groceries because they don’t have enough time to go to the store or have difficulty getting there.

If you’re considering starting your own grocery delivery business, there are several options. For example, you can partner directly with a grocery store that already has a customer base or start your delivery service and work directly with customers.

How to start a delivery business 

Starting any business takes an enormous amount of research and strategic planning to be successful. Here are some important steps to remember when starting your delivery business. 

1. Research, research, research

Doing thorough research into your market, competitors, customer needs, and everything in between can help you identify a market gap that needs to be filled. Any unmet need can be an opportunity for you to succeed in the competitive delivery business. 

2. Determine your delivery area

To figure out your delivery boundaries (aka the size of your delivery area), consider how many customers you want to reach or how long you want your customers to wait. 

These will help you determine how big or small your delivery area will be for maximum delivery efficiency. 

3. Create a business plan

Your business plan will be the blueprint for your delivery business, helping you secure investments and guiding your next steps. 

Create a solid business plan that includes essential information about your business such as a company description, the services you offer, financial projections, marketing plans, and market analysis.

4. Obtain licenses, permits, and insurance

Depending on the delivery business you choose, you’ll need specific licenses, permits, and business insurance. 

For example, if you deliver medicine, you must follow legal regulations like the   Health Insurance Portability and Accountability Act   (HIPAA) related to the transport of medical materials. Acquiring these ensures you comply with local licensing laws and protects your company. 

5. Create a marketing strategy. 

Investing in digital and traditional marketing is essential to attract new customers, build brand awareness, and differentiate yourself from competitors in your market. 

Whether you leverage social media platforms, build a strong website, or join a local business group, each tactic will help you reach more potential customers and grow your business. 

Fulfill orders quickly and efficiently with the help of Delivery Solutions 

Once your delivery business is up and running, you’ll need to use your time and resources efficiently, preparing your business for growth. 

Delivery Solutions is a leader in ecommerce delivery orchestration that can help your budding delivery business consolidate deliveries and streamline operations so you can focus on growing your delivery business.

For example, if you’re using multiple carriers to deliver orders, you’ll be able to manage and communicate with all your drivers in one place. Instead of randomly assigning deliveries, Delivery Solutions helps you choose the best carrier for each delivery based on their location and the types of delivered products. You’ll also have an efficient way to keep in touch with your drivers if they need to update or let you know about potential delays. 

Using live tracking technology, it also tracks the status of each order as it makes its way through the delivery cycle, and catches any operational issues along the way through SMS and email notifications. This way, you can fix issues quickly and optimize your deliveries in real-time. 

No matter where your delivery business is on their journey, Delivery Solutions can help you take the next step forward. 

Future proof your future delivery business

Delivery businesses offer a great opportunity to meet the demands of modern customers and enter a lucrative market. If you’re thinking about carving out a space in the delivery world, there’s never been a better time. Convenience sells, and there are many profitable delivery businesses to choose from. 

Find a niche within a popular delivery market and leverage a powerful omnichannel solution to future-proof your business. Get your omnichannel experience strategy in motion with an end-to-end SaaS solution like Delivery Solutions.                           Schedule a demo today . 

Ryan Caldarone

Ryan is a Sr. Digital Marketing Manager with over ten years of experience in B2B eCommerce, specializing in brand storytelling and content. Having contributed to hundreds of creative projects for SMBs and startups across the tech, energy, and fine arts sectors, Ryan brings diverse perspectives.

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