Errand Service Business Plan
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Below is a template to help you create each section of your Errand Service business plan.
Executive Summary
Business Overview
Rapid Runner Errand Service is a startup errand service business located in Dallas, Texas. The company is founded by Jimmy Hamm, who has over ten years of experience as the manager of a national errand service. Now, with the expertise of knowledge and acquired business acumen, he has determined he can confidently start and effectively grow a successful Rapid Runner Errand Service Business. Jimmy Hamm believes his experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of errand running practices will provide everything needed for long-term growth and profitability.
Rapid Runner Errand Service will provide a comprehensive array of services for a wide variety of clients. Rapid Runner Errand Service will be the premier errand service, providing quick delivery of requested products to each client while, at the same time, supporting the strategic goals of the company. Rapid Runner Errand Service will be the ultimate choice in Dallas, Texas to meet the need for reliable, fast errand service twenty-four hours each day.
Product Offering
The following are the services that Rapid Runner Errand Service will provide:
- The “Rapid Runner Guarantee” that all products will be delivered in one hour or less
- Providing products from grocery, pharmacy, restaurant, chain retail store, and other outlets
- Rapid Runner conducts errands that allow the customer to relax and enjoy the knowledge that products needed or errands completed will be completed without any effort on their part.
- Special occasions call for special errands; Rapid Runner Errand Service steps in
- Twenty-four hour service; open seven days each week.
- Reliable, experienced, and insured delivery employees
- New-to-the-industry website offers errand reservation system for all clients
- Digital app allows errands to be reserved “on the go”
- Emergency situation? Rapid Runner will flex to run your errands as needed
Customer Focus
Rapid Runner Errand Service will primarily target the residential audience in the highest concentration of condominiums and homes in the central Dallas area. In addition, Rapid Runner Errand Service will target small to medium-sized businesses in Dallas. Rapid Runner Errand Service will also target upper income residential neighborhoods in the suburban neighborhoods of Dallas.
Management Team
Rapid Runner Errand Service will be owned and operated by Jimmy Hamm. Jimmy graduated from the University of Texas with a Bachelor’s degree in Business. He has been working for a national chain of errand outlets in the errand service industry for over a decade as a manager of twenty errand runners. As Jimmy considered starting his own company, he has successfully secured Rapid Runner Errand Service and created proprietary software to make that dream become a reality.
Jimmy recruited Anthony Anderson, a former business associate, to be the Administrative Manager of the new company. In this role, Anthony will oversee and direct staff members in the execution of the company vision. Anthony has a bachelor’s degree in business administration and was formerly a manager at the same company with Jimmy Hamm.
Jimmy also recruited Sewell Jasmine to be the Office Manager of the new company. Her former employer trained her in office management and in her new role, she will help manage the office and operations. In this position, she will also oversee the office clerks and serve as the Human Resources Manager.
Success Factors
Rapid Runner Errand Service will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of Rapid Runner Errand Service
- Comprehensive menu of products and a guarantee to provide products as requested within a one-hour service window.
- Reasonable mileage and time rates for a variety of errand services required, including medical errands, liquor purchases, floral arrangements, grocery shopping and pet care.
- Year-round errand service from delivery staff that informs customers how much those customers are valued and appreciated.
- Rapid Runner Errand Service offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Errand Service business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Rapid Runner Errand Service is seeking $200,000 in debt financing to launch its Rapid Runner Errand Service. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Rapid Runner Errand Service.
Company Overview
Who is Rapid Runner Errand Service?
Rapid Runner Errand Service is a newly established, full-service delivery and errand business in Dallas, Texas. Rapid Runner Errand Service will be the most reliable, cost-effective, and efficient choice for many residents and businesses in Dallas and the surrounding communities. Rapid Runner Errand Service will provide a comprehensive menu of delivery and errand services for any customer to utilize. Their full-service approach includes a comprehensive list of errands that can be completed within one hour.
Jimmy Ham will be able to manage the team he has assembled in the new company. The team of professionals are highly qualified and experienced in building and growing an errand service. Rapid Runner Errand Service removes all headaches and issues for the customer who needs delivery of products or an errand performed and ensures all issues are taken care of expeditiously while delivering the best customer service.
Rapid Runner Errand Service History
Rapid Runner Errand Service is owned and operated by Jimmy Hamm. As a former manager for several years, Jimmy developed a unique capability to identify primary customers and satisfy their needs for errands and product delivery. This clearly reflects the goals of the Rapid Runner Errand Service. He has managed multiple growth-related projects for digital apps and website reservation systems and has innovated those for the new company. Jimmy believes he is ready to take his skills and knowledge to venture out on his own by starting his own company. Jimmy has gained the trust and commitment of several clients in advance of opening the new business and will sign contracts with key players when the company launches.
Since incorporation, Rapid Runner Errand Service has achieved the following milestones:
- Registered Rapid Runner Errand Service, LLC to transact business in the state of Texas.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous contacts to include Rapid Runner Errand Service as their 24/7, go-to runner and delivery service.
- Began recruiting a staff of three and three office personnel to work at Rapid Runner Errand Service
Rapid Runner Errand Service Services
The following will be the services Rapid Runner Errand Service will provide:
- The “Rapid Runner Guarantee” that all products will be delivered in one hour or less
- Providing products from grocery, pharmacy, restaurant, chain retail store, and other outlets
- Rapid Runner conducts errands that allow the customer to relax and enjoy the knowledge that products needed or errands completed will be completed without any effort on their part.
- Special occasions call for special errands; Rapid Runner Errand Service steps in
- Twenty-four hour service; open seven days each week.
- Reliable, experienced, and insured delivery employees
- New-to-the-industry website offers errand reservation system for all clients
- Digital app allows errands to be reserved “on the go”
- Emergency situation? Rapid Runner will flex to run your errands as needed
Industry Analysis
The errand service industry is expected to grow over the next five years to over $15 billion.
The growth will be driven by higher demand, consumer wealth, global economy, and an increase in the population. The business-to-consumer market is rapidly increasing due to these factors and it also can be attributed to consumers who no longer want to perform numerous mundane errands, but employ others to take care of such small tasks as needed.
Costs will likely be reduced as software is introduced to eliminate or partially alleviate the “road travel” for errand-running companies. Costs may be reduced with the introduction of drone deliveries that greatly reduce vehicle costs, while ensuring accurate deliveries. Costs will also be reduced as the population continues to engage errand services companies, as the systems will continue to be refined and the industry moves forward overall.
Download the Errand Service business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Rapid Runner Errand Service will primarily target the residential audience in the highest concentration of condominiums and homes in the central Dallas area. In addition, Rapid Runner Errand Service will target small to medium-sized businesses in Dallas. Rapid Runner Errand Service will also target upper income residential neighborhoods in the suburban neighborhoods of Dallas.
The precise demographics of Rapid Runner Errand Service are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Rapid Runner Errand Service will primarily target the following customer profiles:
- Residential home target market in Dallas
- Residents in the highest concentration of condominiums in Dallas
- Small to medium-sized businesses in Dallas
- Upper income residential neighborhoods in the suburban neighborhoods of Dallas
Competitive Analysis
Direct and Indirect Competitors
Rapid Runner Errand Service will face competition from other companies with similar business profiles. A description of each competitor company is below.
Speedy Errand Company
The Speedy Errand Company was formed in 2009 in Dallas during the boom of new growth throughout the region. The company, owned and operated by Dana Dawson, was created to meet the need of businesses within the core areas of Dallas. Dana Dawson was a former manager for a delivery service that specialized in the residential delivery of medical supplies, pharmacy medications and other related items to those recovering at home.
Currently, the Speedy Errand Company has three management members and five staff members who oversee thirty delivery people. Service includes not only delivery of all kinds of goods, but scheduled errands that include grocery shopping and pet care. Errands may also include medical visits; however, additional personnel and costs are added to the errand service.
Exceptional Corporate Errand Service (ECES)
Exceptional Corporate Errand Service (ECES) was formed in 2018 when delivery and errand services were a necessity in the Dallas area, but had only limited areas within which errands could take place. ECES was established by Crystal Stanton and David Stanton to meet the corporate needs in the highest-rated commercial areas of Dallas. ECES is more than an errand service, providing concierge services, special occasion servers (bartenders), and regular-route errands schedules for corporate clients.
Current services include such errands as daily pastry delivers, dry cleaning pick-up and delivery every day, gift shopping on behalf of executives and other personalized services. Crystal and David Stanton were both educated at a private academy during their childhood years and both graduated from Brown University with business degrees. The company currently has ten management personnel and fifteen staff members. The company employs fifty errand and special delivery personnel.
Taylor’s About Town
Taylor’s About Town is a residential errand service that covers the suburban areas of the northwest Dallas area. The service company was started by Ed Taylor, a local businessman, who noted that customers who visited his dry cleaning company frequently complained about having to drive back and forth to drop-off and pick-up their clothing. To meet this need, Ed began his errand company. The company has expanded during the years and now includes such local errand services as grocery shopping, medication pick-up at pharmacies, drop-off and pick-up of animals to groomers, and other errands as needed in the suburban area. Although Taylor’s About Town charges premium prices for these services, the loyal customer base has grown due to increased economic well-being in the community and the convenience that allows customers to relax vehicle the trusted errand company takes care of the chores.
Download the Errand Service business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Rapid Runner Errand Service will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of Rapid Runner Errand Service
- Comprehensive menu of products and a guarantee to provide products as requested within a one-hour service window.
- Reasonable mileage and time rates for a variety of errand services required, including medical errands, liquor purchases, floral arrangements, grocery shopping and pet care.
- Year-round errand service from delivery staff that informs customers how much those customers are valued and appreciated.
- Rapid Runner Errand Service offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
Rapid Runner Errand Service will offer a unique value proposition to its clientele:
- Comprehensive menu of products and a guarantee to provide products as requested within a one-hour service window.
- Reasonable mileage and time rates for a variety of errand services required, including medical errands, liquor purchases, floral arrangements, grocery shopping and pet care.
- Year-round errand service from delivery staff that informs customers how much those customers are valued and appreciated.
Promotions Strategy
The promotions strategy for Rapid Runner Errand Service is as follows:
Word of Mouth/Referrals
The Rapid Runner Errand Service management team has built up an extensive list of contacts over the years by providing exceptional service and expertise to former customers. The contacts and clients will follow them to this new company and help spread the word of Rapid Runner Errand Service.
Professional Associations and Networking
Members of the management team will both join and assist in leading area and national trade associations and business groups that align with their business perspectives and values. The networking opportunities will grow as the management team members take on these new responsibilities and form collaborations with local and regional partners.
Print Advertising
One month and one week prior to opening Rapid Runner Errand Service, a self-folded flyer will go out to all residents of the Dallas area. In addition, a business flyer will go to all small and medium-sized businesses within the region. This will be a duplication of information within a two-week period of time, which will alert and remind potential customers that the service is available and ready to start serving their needs and wants.
Website/SEO Marketing
Rapid Runner Errand Service will fully utilize their website. The website will be well organized, informative, and list all the services that Rapid Runner Errand Service provides. The website will also list their contact information and list their available services and reservation times available. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “errand service company” or “errand service near me,” Rapid Runner Errand Service will be listed at the top of the search results.
Pricing
The pricing of Rapid Runner Errand Service will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Rapid Runner Errand Service.
Operation Functions:
- Jimmy Hamm will be the owner and president of the company. He will oversee all staff and manage client relations. Jimmy has spent the past year recruiting the following staff:
- Anthony Anderson will be the Administrative Manager, overseeing and directing staff members in the execution of the company vision.
- Sewell Jasmine will be the Office Manager in the new company. Her role will be overseeing the office clerks and serving as the Human Resources Manager.
Download the Errand Service business plan template (including a customizable financial model) to your computer here <–
Milestones:
Rapid Runner Errand Service will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Rapid Runner Errand Service
- 6/1/202X – Finalize contracts for Rapid Runner Errand Service clients
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Rapid Runner Errand Service office
- 7/1/202X – Rapid Runner Errand Service opens its doors for business
Management Team
Rapid Runner Errand Service will be owned and operated by Jimmy Hamm. Jimmy graduated from the University of Texas with a Bachelor’s degree in Business. He has been working for a national chain of errand outlets in the errand service industry for over a decade as a manager of twenty errand runners. As Jimmy considered starting his own company, he has successfully secured Rapid Runner Errand Service and created proprietary software to make that dream become a reality.
Jimmy recruited Anthony Anderson, a former business associate, to be the Administrative Manager of the new company. In this role, Anthony will oversee and direct staff members in the execution of the company vision. Anthony has a bachelor’s degree in business administration and was formerly a manager at the same company with Jimmy Hamm.
Jimmy also recruited Sewell Jasmine to be the Office Manager of the new company. Her former employer trained her in office management and in her new role, she will help manage the office and operations. In this position, she will also oversee the office clerks and serve as the Human Resources Manager.
Financial Plan
Key Revenue & Costs
The revenue drivers for Rapid Runner Errand Service are the fees they will charge to customers for their services.
The cost drivers will be the overhead costs required in order to staff Rapid Runner Errand Service. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Rapid Runner Errand Service is seeking $200,000 in debt financing to launch its errand services business. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Errand Service business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of customers Per Month: 2750
- Average revenue per Month: $82,500
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Errand Service Business Plan FAQs
What Is an Errand Service Business Plan?
An errand service business plan is a plan to start and/or grow your errand service business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Errand Service business plan using our Errand Service Business Plan Template here.
What are the Main Types of Errand Service Businesses?
There are a number of different kinds of errand service businesses, some examples include: Pick-up and Drop-off Service, Shopping Service, and Food Delivery Service.
How Do You Get Funding for Your Errand Service Business Plan?
Errand Service businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start an Errand Service Business?
Starting an errand service business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop An Errand Service Business Plan - The first step in starting a business is to create a detailed errand service business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your errand service business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your errand service business is in compliance with local laws.
3. Register Your Errand Service Business - Once you have chosen a legal structure, the next step is to register your errand service business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your errand service business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Errand Service Equipment & Supplies - In order to start your errand service business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your errand service business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.