How to start a delivery business? (Complete Guide)

Business Knowledge

The ever-blossoming e-commerce industry has created a huge demand for delivery services. And while delivery giants like GrubHub, UberEats, and DoorDash are leveraging this demand to make millions of dollars per annum, there is room for others.

Would you like to be the next UberEats? What about UPS or FedEx? If this sounds like something you’ve always dreamt of, then you need to take the first step. And it involves knowing how to start a successful delivery business. Lucky for you, we have provided some helpful tips on that in this article.

6 Key Steps Starting a Successful Delivery Business

1 Create a Comprehensive Business Plan

Businesses aren’t created on a whim. For your delivery business to be successful, you need to develop a
comprehensive business plan. The plan should comprise of:

  • A short description of your business
  • Market analysis
  • The service you offer
  • Funding requests (if you need funding)
  • Financial projections
  • Organization and management

Your business plan should also contain a marketing and sales strategy.

Who are your target audience? What are their demographics or pain points? Who are your competitors?
In carrying out audience research, you can leverage market research software. This tool is ideal for
gathering data, market trends, and consumer insights that will help you make informed decisions. You
can also use the tool to carry out surveys to collect feedback.

When you have a well-laid-out business plan, it’s easy to monitor your progress and make changes
where needed to boost sales, rather than relying on guesswork. If you plan on getting a loan to kick-start
your delivery business, you’ll need to create a business plan that gets investors excited. Remember, no
one is happy losing money.

2. Legal Framework

A lot of legal groundwork goes into creating a successful delivery business. And you must be careful here
so you don’t end up in a legal mess. First off, you need to choose the right legal structure, one that is
ideal for your business.

There are a few options to select from:

  • Sole proprietorship
  • Partnership
  • LLC
  • Corporation

Of course, each structure comes with its pros and cons. So which do you select? It depends.

If you wish to scale your business later in the future, we advise you to go for a Corporation. However, note that it comes with complexities that make business management a bit of a headache. In addition to a Cooptation, we have The Limited Liability Company or LLC. This business structure is easier to start, manage, and file taxes than a Corporation. Also, it helps safeguard your assets should you get sued.

If a Corporation or LLC sounds like a bad idea, you can start a sole proprietor. However, note that your assets will be exposed if someone else decides to sue you. So, we recommend that you stick to an LCC or Corporation to safeguard your precious assets.

3. Secure Funding and the Necessary Resources

Before you dip into your savings to finance the cost of starting your delivery business, you need to conduct a thorough estimate. How many vehicles do you need? 5? Not bad. How much will each cost? What about insurance? How much will it cost as well? You’ll need technology. And don’t forget marketing expenses.

If you aren’t financing the cost with your savings, you can consider taking loans, grants, pitching your business idea to investors, or partnership options. When you get the funds, ensure you purchase the necessary resources needed to keep the business up and running while providing exceptional services to your customers.

4. Incorporating Technology into Your Business

Tech drives business growth and innovation. Thus, incorporating tech specific to your business will streamline your business operations, thus improving customer satisfaction. So, what tech should you invest in? There are a lot of them.
First, invest in GPS navigation systems, which can come in handy for your drivers when looking to make deliveries to customers in remote areas. These systems can also reduce delivery time as they help drivers detect and dodge traffic. You should also consider investing in tech to minimize paperwork and make customers’ and driver’s information easy to access anywhere and anytime.

To boost customer satisfaction and increase repeat patronage, consider investing in smart sensor technology, which helps customers know the exact location of an item in transit with impressive accuracy.

5. Take Care of Your Vehicles

Your fleet is the backbone of your business, so ensure you invest time, effort, and resources in ensuring that they are well-maintained and ready to hit the road. Consider partnering with a fleet maintenance company for optimum and professional maintenance.

We also suggest that you encourage your drivers to drive responsibly to prevent damage to the vehicles, thus improving their longevity. You can go further to insure each vehicle and establish a smart maintenance program designed to alert you when maintenance is needed.

6. Impressive customer service

If you want your customers to turn brand evangelists or you want them to become addicted to your brand, then you’d have to impress them with exceptional customer service.

And how do you do that?

Show empathy. Be friendly. Ask for feedback, and respond to their queries ASAP. Treat them like humans and not numbers. Let them see that you genuinely care about them and not their money, and you’d be their go-to business for their delivery service needs. Lastly, train your employees on how to handle customers’ queries and complaints professionally.


With many e-commerce businesses springing up and the demand for delivery services increasing, starting your own delivery service business can be a lucrative venture. With the right effort, commitment, and consistency, your delivery business can blossom and, who knows, compete with the big guns in the industry. We hope that this article serves as a roadmap to help you achieve your dream of establishing a successful delivery business.