How to start a delivery business

man scanning parcel for delivery

So you want to know how to start a delivery business. We’ve come up with a few strategies that might just help.

Now we’re not saying that these are ALL the steps required to start a delivery business but it might make the process a little less tricky and daunting.

Figuring out your niche, getting the proper licenses and insurance, starting a website, creating social media accounts and using innovative technology like Locate2u are all ways that can help you get started.

Tips to starting a delivery business

Figure out your niche

The first thing you’ll want to figure out when starting a business in general is what problem you want to solve and whether the delivery service makes money.

Do you want to work with large e-commerce businesses, retailers or local businesses?

Do you need a special type of company vehicle?

And what industry do you want to work in?

These are just a few questions you’ll want to have answered when starting out in the delivery sector. That way you can reduce the number of possible markets. Some delivery businesses include local food delivery, local beverage delivery, prescription delivery etc. All of which require collecting proof of delivery, managing time-sensitive items and juggling set time windows.

Get a license!

Without proper licensing you could receive heavy fines or your business shutting down. Say if you’re specializing in food delivery you might need a Food license or a license for Food Transport Business.

For small businesses you must secure State and Local Business Licenses and Vehicle Registration Requirements.

You can learn more about obtaining the right licenses for your business by clicking here.

Business insurance

You NEED business insurance. That way your business’ financial wellbeing is protected so you can operate safely without fear of loss not being covered.

General liability insurance is the best policy to begin with if you’re unsure of the risks associated with your business. Most small businesses use this type of insurance to start off with.

Workers’ Compensation Insurance is relevant if your business has employees, making it useful for delivery businesses that have anywhere from 5 to 50 drivers.

The best way to go about business insurance is by doing copious amounts of research and meeting with insurance companies. This leaves no stone unturned and you can make the best decision regarding your company.

Hire and train drivers

When you’re ready to hire drivers, you can do this by posting job ads on sites like LinkedIn, Indeed etc. and ensure you list the requirements needed for the position.

You’ll want to clarify whether they need specific experience or licenses and if they’ll be using their own or a company vehicle. You should also make known the hourly rate and the length of the position (short-term, long-term), as well as the number of stops they’ll be completing on average.

When it comes to training your drivers you’ll want to emphasize the importance of customer experience, given they are a representative of your brand. Drivers should always deliver packages the way they would wish to receive.

You’ll also need to train them on the technology being used to manage delivery routes and incorporate healthy and safety training. A driver’s well being is more important than getting hundreds of packages delivered in a day. Taking good care of your team is what’s going to help your business flourish.

Build a website and social media page

When starting your own delivery business, you’ll want customers to have the ability to learn about your services on a well-presented website and social media accounts.

Include relevant information pertaining to your services and what you offer. Make sure to include case studies, blogs and other relevant content surrounding your business structure. The more professional you look the more customers will be more likely to use your services.

A business plan can never be quite complete without the use of social media platforms. Social media is a great way to reach potential customers and show off the capabilities of your delivery service. Facebook and Instagram ads can help your business get the traction it needs in order to compete with major delivery companies.

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What type of features are you interested in?

GPS Tracking

Live location sharing

Dispatch and scheduling

Route Optimization

Proof of delivery

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1-5

5-10

10-50

50-100

100-200

200-500

500+

How do you currently manage your bookings?

Spreadsheet

Google Sheets

Pen & Paper

Another Booking system

Other

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