business plan for errand service

Errand Service Business Plan Template

Written by Dave Lavinsky

Errand Service Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their errand service businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an errand service business plan template step-by-step so you can create your plan today.

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What is an Errand Service Business Plan?

A business plan provides a snapshot of your errand business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Errand Service

If you’re looking to start an errand service business, or grow your existing errand service business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your errand service business in order to improve your chances of success. Your errand service business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Errand Service Businesses

With regards to funding, the main sources of funding for an errand service business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding path for errand service businesses.

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How to write a business plan for an errand service.

If you want to start an errand service business or expand your current one, you need a business plan. Below we detail what should be included in each section of your errand business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of errand service business you are operating and the status. For example, are you a startup, do you have an errand service business that you would like to grow, or are you operating errand services in multiple locations or markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the errand and courier services industry. Discuss the type of errand service business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of errand business you are operating.

For example, you might operate one of the following types of errand service businesses:

• Pick-up and Drop-off Service : this type of errand service business will pick up items, pets or people that need to be transported and drop them off somewhere, in order to complete tasks such as dry cleaning, veterinarian appointments, and ensuring kids get to and from school safely and on time.
• Shopping Service: this type of business provides shopping services that may include grocery shopping or personal shopping.
• Food Delivery Service: this type of errand service picks up food orders, whether catering or takeout, and delivers it to businesses or people’s homes.

In addition to explaining the type of errand service business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of errands completed, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the errand and courier services industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the errand and courier services industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your errand service business plan:

• How big is the errand and courier services industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your errand service business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your errand service business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: working professionals, families, seniors, students and small businesses.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of errand service business you operate. Clearly, students would respond to different marketing promotions than elderly individuals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most errand service businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other errand service businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes rideshare services and delivery services. You need to mention such competition as well.

With regards to direct competition, you want to describe the other errand service businesses with which you compete. Most likely, your direct competitors will be errand services located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of errands do they perform?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better quality or speed of errand services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an errand service business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of errand service company that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to errand services, will you provide courier services, travel reservation services, or handyman services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your errand service company. Document your location and mention how the location will impact your success. For example, is your errand service business located in your home, a busy retail district or business district, near a university, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your errand service marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your errand service business, including taking service orders, planning service logistics, performing services, speaking with potential customers and billing customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to perform your 1,000th service, or when you hope to reach $X in revenue. It could also be when you expect to expand your errand service business into a new market or to a new city.  

Management Team

To demonstrate your errand service business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing errand service businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing errand service businesses or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you gain 20 new customers per week or per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your errand service business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an errand service business:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include sample schedules of a day errands or documentation for how customers will request services and be notified that their service request has been fulfilled.  

Putting together a business plan for your errand service is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the errand service industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful errand service business.  

Errand Service Business Plan FAQs

What is the easiest way to complete my errand service business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Errand Service Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of errand service business you are operating and the status; for example, are you a startup, do you have an errand service business that you would like to grow, or are you operating a chain of errand service businesses?

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Other Helpful Business Plan Articles & Templates

Errand Service Business Plan Template

Written by Dave Lavinsky

Errand Service Business Plan

You’ve come to the right place to create your Errand Service business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Errand Service businesses.

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.

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:

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.

Customer Analysis

Demographic profile of target market.

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.

Competitive Advantage

Rapid Runner Errand Service will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Rapid Runner Errand Service will offer a unique value proposition to its clientele:

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.

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.

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

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:

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.

Balance Sheet

Cash Flow Statement

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.

Errand Service Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2C Sector

An errand service business, also known as a concierge or personal assistant service, is a business that assists individuals or businesses by completing various tasks and errands on their behalf. The goal is to help clients save time and reduce the stress associated with managing daily responsibilities.

These businesses often thrive in urban areas where people have busy lifestyles and may find it challenging to manage all aspects of their daily lives.

With the growth of online platforms and mobile apps, some errand service businesses operate digitally, allowing clients to request and manage services through a website or app.

Steps on How to Write an Errand Service Business Plan

Executive summary.

Leonardo McKenzie® Errand Service, Inc. is a Fort Wayne-based concierge and errand service business dedicated to providing professional and reliable assistance to individuals and businesses.

Fort Wayne, Indiana, with its growing population and diverse demographics, presents a significant opportunity for Leonardo McKenzie® Errand Service, Inc.

The city’s bustling urban lifestyle, combined with an increasing demand for time-saving solutions, positions our business as a valuable resource for individuals and busy professionals seeking convenience.

Our commitment to professionalism, reliability, and a customer-centric approach sets us apart in the market. We leverage technology for seamless service delivery, allowing clients to easily request and manage tasks through our user-friendly online platform.

Leonardo McKenzie® Errand Service, Inc. is dedicated to exceeding client expectations and building long-lasting relationships.

Leonardo McKenzie, founder, and CEO, brings 20 years of relevant experience, contributing to the strategic vision and success of the company. Our team is composed of dedicated professionals committed to delivering unparalleled service excellence.

Company Profile

A. our products and services.

At Leonardo McKenzie® Errand Service, Inc., we offer a wide range of services to meet the diverse needs of our clients:

• Grocery shopping: Purchasing and delivering groceries to clients’ homes.
• Dry cleaning pickup and drop-off: Collecting and returning dry-cleaned clothing.
• Package delivery and shipping: Sending or receiving packages on behalf of clients.
• Prescription pickup: Collecting medications from pharmacies.
• Banking tasks: Depositing checks, withdrawing cash, or handling other banking needs.
• Pet care services: Walking dogs, pet sitting, or picking up pet supplies.
• Personal shopping: Assisting with shopping for clothing, gifts, or other items.
• Household chores: Performing tasks like house cleaning, organizing, or light maintenance.
• Appointment scheduling: Managing and coordinating appointments for clients.
• Event planning assistance: Helping with planning and coordination for special events.

b. Nature of the Business

Leonardo McKenzie® Errand Service, Inc. operates through a multi-faceted business model. We work with a wide range of clients.

c. The Industry

Leonardo McKenzie® Errand Service, Inc. will operate in the personal services or concierge services industry.

d. Mission Statement

“At Leonardo McKenzie® Errand Service, Inc., our mission is to enhance the quality of life for individuals and businesses in Fort Wayne, Indiana, and beyond.

We are committed to providing professional, reliable, and personalized errand services, streamlining daily tasks, and allowing our clients to focus on what matters most.”

e. Vision Statement

“Leonardo McKenzie® Errand Service, Inc. aspires to be the premier concierge and errand service provider, setting the standard for excellence in efficiency and customer satisfaction.

We envision a future where our innovative solutions redefine convenience, making us the go-to resource for individuals and businesses seeking unparalleled assistance in managing their daily lives.”

f. Our Tagline (Slogan)

Leonardo McKenzie® Errand Service, Inc. – “ Your Time, Your Terms, Our Commitment”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Leonardo McKenzie® Errand Service, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Founder/CEO/Owner
• Errand Officers
• Sales and Marketing Officer
• Customer Service Representative

i. Ownership/Shareholder Structure and Board Members

• Leonardo McKenzie (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
• Adrain Bobson (Board Member) 14 Percent Shares
• Tony McKinney (Board Member) 10 Percent Shares
• Zeo Alex (Board Member) 10 Percent Shares
• Laurie Williams (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Commitment to delivering services with the utmost professionalism. Reliability in executing tasks accurately and on time.
• A diverse range of services catering to various client needs. Flexibility to tailor services for personalized experiences.
• User-friendly online platform for seamless task management. Leveraging technology for efficient service delivery.
• Dedication to exceeding customer expectations. Building long-lasting relationships through personalized service.

b. Weakness

• The errand industry is highly competitive, with many established competitors, which can make it challenging to stand out.
• The current focus on Fort Wayne may limit immediate market expansion. They may be potential challenges in reaching clients in remote areas.
• Vulnerability to technical issues or system failures. Need for ongoing investment in technology infrastructure
• Acquiring new clients can be costly in terms of marketing and business development efforts.
• Relying on a diverse range of clients and industries may pose challenges in terms of specialization and expertise in specific sectors.

c. Opportunities

• Growth potential by expanding services to neighboring regions. Tapping into emerging markets within the concierge service industry.
• Collaboration with local businesses for mutual benefit. Establishing partnerships with online platforms for increased visibility.
• Introduction of new services based on evolving client needs. Staying ahead by adapting to trends in the concierge industry.

i. How Big is the Industry?

The errand service industry is a dynamic and growing sector, catering to the increasing demand for time-saving solutions in today’s fast-paced world.

With a global market size in the billions, the industry encompasses a variety of services, including personal assistance, shopping, and task management.

The rise of digital platforms has further expanded its reach, making errand services accessible to a diverse clientele. As individuals and businesses prioritize convenience, the industry is poised for continued expansion and innovation.

ii. Is the Industry Growing or Declining?

The errand service industry is experiencing substantial growth due to the rising demand for convenience and time-saving solutions. As individuals and businesses increasingly prioritize outsourcing daily tasks, the industry is expanding globally.

iii. What are the Future Trends in the Industry?

The errand service industry is evolving to meet changing consumer demands and technological advancements. Increased reliance on mobile apps for convenient and seamless task management.

Niche offerings cater to specific needs, such as eco-friendly errands, wellness-related tasks, or specialized event planning.

Continued emphasis on contactless transactions and deliveries for safety and convenience. Growth of subscription-based plans for regular and ongoing errand assistance.

Implementation of AI and automation for enhanced efficiency in task execution and customer interactions. Adoption of environmentally friendly practices in service delivery and task execution.

Increased collaboration with local businesses, e-commerce platforms, and other service providers to offer comprehensive solutions.

Tailoring services to individual preferences and needs for a more personalized customer experience. Implementation of advanced security measures to ensure the safety of personal information and secure transactions.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to an errand service business because an errand service business is a niche idea in the personal services or concierge services industry.

v. Can You Sell a Franchise of Your Business in the Future?

Leonardo McKenzie® Errand Service, Inc. will not sell franchises.

• Potential competition from existing and new entrants. Continuous monitoring of industry trends and adapting accordingly.
• Economic downturn affecting disposable income and demand. Fluctuations in economic conditions impacting business growth.
• Changes in regulations affecting the service industry. Compliance with local and regional regulations.

i. Who are the Major Competitors?

• Run My Errand
• My Errand Buddy
• Errand Solutions
• Same Day Errands
• VIP Errands
• Errands at a Click.

ii. Is There a Franchise for Errand Service Business?

Yes, there are franchise opportunities for errand service businesses, and here are some of them:

• Fetch! Pet Care
• The Errand Boy
• Express Errands and Courier
• Errands Plus.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Errand Service Business?

While there might not be specific regulations targeting errand services, certain general business regulations and local ordinances may apply.

Errand service businesses in the United States may need to consider certain policies, regulations, and zoning laws, although these are often related to general business operations rather than specific to the errand industry.

Errand service businesses must comply with federal, state, and local tax regulations, including income tax, sales tax, and payroll tax if they have employees.

If the business collects and stores client information, it may need to adhere to data protection laws and regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) if dealing with healthcare clients.

Errand service providers should have clear and legally sound contracts in place with clients, outlining services, fees, and terms.

Marketing Plan

A. who is your target audience.

i. Age Range: Primarily adults aged 25 and above, as individuals and organizations seeking errand services typically have a level of maturity and established goals.

ii. Level of Education: Varied educational backgrounds, with a focus on those with at least a high school diploma.

iii. Industry or Sector: Diverse industries and sectors, with a specific focus on professionals, entrepreneurs, and individuals with busy lifestyles.

iv. Ethnicity: Our services will be available to a diverse clientele, so ethnicity is not a primary factor in targeting our audience. We will be inclusive and accessible to individuals and organizations from various ethnic backgrounds.

v. Language: Our services are best offered in the predominant languages of the region we serve, which include English and potentially other languages depending on our client’s geographical location.

vi. Geographical Location: Initially targeting Fort Wayne, Indiana, with plans for gradual expansion to neighboring urban areas.

vii. Lifestyle: Busy professionals, working parents, and individuals with active lifestyles seeking convenience and time-saving solutions. Emphasis on those valuing work-life balance

b. Advertising and Promotion Strategies

• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Develop Your Business Directory Profiles
• Build Relationships with Other Businesses in our Area

i. Traditional Marketing Strategies

• Broadcast Marketing -Television & Radio Channels.
• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Out-of-Home” marketing (OOH marketing) – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
• Including direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Pay-per-click (PPC).
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our audience.
• Start using chatbots.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

Our pricing strategy at Leonardo McKenzie® Errand Service, Inc. aligns with our business goals, competitive landscape, and the value we provide to our clients, and they are as follows:

• Cost-Plus Pricing
• Value-Based Pricing
• Competitive Pricing
• Dynamic Pricing
• Bundle Pricing

Sales and Distribution Plan

A. sales channels.

Leonardo McKenzie® Errand Service, Inc. employs a multi-faceted sales approach to reach our target audience effectively.

Our primary sales channels include a user-friendly online platform, allowing clients to easily request and manage services.

Strategic digital marketing campaigns enhance our online presence, attracting busy professionals and individuals seeking convenience.

Additionally, we establish partnerships with local businesses, creating collaborative opportunities for mutual benefit and expanding our reach. Word-of-mouth referrals play a crucial role, driven by our commitment to professionalism and reliability.

b. Inventory Strategy

As a non-traditional service business, our “inventory” primarily consists of digital assets, including our online platform and task management tools. We maintain a flexible approach, allowing us to scale resources in response to fluctuating demand for services.

By investing in technological advancements rather than physical inventory, we ensure efficiency and cost-effectiveness, aligning with our commitment to delivering top-notch, personalized errand services to our clientele.

c. Payment Options for Customers

• Online Payment Portal
• Credit and Debit Cards
• ACH Bank Transfers
• Electronic Funds Transfer (EFT)
• Check Payments
• Wire Transfers
• Mobile Payment Apps.

d. Return Policy, Incentives and Guarantees

Return policy:.

Leonardo McKenzie® Errand Service, Inc. is committed to client satisfaction. While our services are inherently non-returnable, we guarantee the quality and professionalism of every task.

In the rare event of dissatisfaction, clients are encouraged to contact us promptly, and we will assess the situation on a case-by-case basis to find a satisfactory resolution.

Incentives:

To express our gratitude for your continued loyalty, we offer a rewards program. Clients accrue points with each completed task, redeemable for discounts or complimentary services.

Additionally, we periodically introduce promotions and special offers, providing added value and appreciation for choosing Leonardo McKenzie® Errand Service, Inc.

Guarantees:

We guarantee the reliability and professionalism of our services. Tasks will be completed accurately and within agreed-upon timelines. In the event of unforeseen issues, we are committed to prompt communication and resolution.

e. Customer Support Strategy

We will provide multiple communication channels for customers to reach out, including phone, email, and a dedicated customer support portal on our website. We will maintain extended business hours to accommodate customer inquiries and concerns outside regular working hours.

Train our customer support team to be knowledgeable about errand services, local regulations, and our company’s services. Emphasize empathy and active listening skills to address customer needs and concerns effectively.

Strive for prompt response times to customer inquiries, aiming to acknowledge and address their concerns within a reasonable timeframe.

Implement a ticketing system to track and prioritize customer requests efficiently. Develop and maintain a comprehensive FAQ section on our website to provide answers to common customer questions.

Operational Plan

Leonardo McKenzie® Errand Service, Inc. executes a comprehensive operational plan to ensure seamless service delivery.

Our agile approach combines cutting-edge technology with a commitment to professionalism. The core of our operation is a user-friendly online platform, allowing clients to effortlessly request and manage tasks.

Task allocation and tracking utilize advanced digital tools, optimizing efficiency. Strategic partnerships with local businesses enhance our reach and service offerings.

Our cybersecurity protocols prioritize data protection, instilling trust in our clients. We prioritize continuous improvement, regularly updating our technology infrastructure.

a. What Happens During a Typical Day at an Errand Service Business?

On a typical day at Leonardo McKenzie® Errand Service, Inc., our team orchestrates a choreographed blend of digital coordination and personal assistance.

Mornings commence with task scheduling and allocation through our online platform. Errand runners efficiently carry out assignments, from grocery shopping to event planning, guided by client preferences.

Concurrently, strategic partnerships are nurtured, enhancing service breadth. Continuous communication ensures real-time updates for clients.

Afternoons involve client inquiries, troubleshooting, and refining operational protocols. Cybersecurity measures are consistently upheld.

Evenings see a review of the day’s performance and technology updates. This daily rhythm reflects our commitment to professionalism, reliability, and meeting the diverse needs of our clientele.

b. Production Process

There is no production process.

c. Service Procedure

At Leonardo McKenzie® Errand Service, Inc., our service procedure is designed for optimal efficiency and client satisfaction. Clients initiate tasks through our user-friendly online platform, specifying requirements and preferences.

Our system promptly allocates tasks to dedicated errand runners based on proximity and expertise. Runners execute assignments with precision, adhering to agreed timelines.

Real-time updates are provided to clients, ensuring transparency and communication. Quality control measures are implemented, and client feedback is actively sought. Payment processing is seamless through our secure platform.

Our commitment to professionalism and reliability defines every step, creating a seamless and personalized experience for clients as we navigate the intricacies of daily errands with dedication and precision.

d. The Supply Chain

Our primary ‘supply’ involves technology infrastructure, ensuring a robust online platform for task management. Task allocation is dynamic, utilizing algorithms that consider proximity, expertise, and real-time demand.

Our ‘inventory’ is intangible, comprising digital assets and cybersecurity measures to safeguard client data. Regular updates and maintenance ensure optimal performance.

This digitized supply chain minimizes physical dependencies, allowing us to scale efficiently, adapt to demand fluctuations, and deliver reliable, personalized errand services with precision and professionalism.

e. Sources of Income

Leonardo McKenzie® Errand Service, Inc. generates income through diverse channels. Clients pay for services rendered.

Strategic partnerships with local businesses provide additional revenue streams. Promotional campaigns and referral incentives drive customer acquisition.

Financial Plan

A. amount needed to start your errand service company business.

Leonardo McKenzie® Errand Service, Inc. would need an estimate of $120,000 to successfully set up our errand service company in the United States of America. Note that this amount includes the salaries of all the staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $2,300.
• Marketing, Branding, and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $2,400.
• Rent/Lease – $50,000.
• Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Leonardo McKenzie® Errand Service, Inc. will not build a new facility for our errand service company.

d. What are the Ongoing Expenses for Running an Errand Service Business?

• Salaries or wages for errand runners and staff managing day-to-day operations.
• Maintenance and upgrades for the online platform, task management tools, and cybersecurity measures.
• Ongoing expenses for digital marketing campaigns, promotions, and advertising to attract and retain clients.
• Liability insurance and other coverage to protect against unforeseen incidents.
• Fuel, maintenance, and potentially leasing costs for vehicles used in service delivery.
• Rent, utilities, and other overhead costs for office space or a centralized operations center.
• Expenses related to supplies needed for specific errands, such as packaging materials or cleaning supplies.
• Investment in ongoing training programs to enhance the skills of errand runners and staff.
• Costs associated with providing excellent customer support, including personnel and communication tools.
• Contingency funds for unexpected expenses, licenses and permits, legal fees, and other miscellaneous costs that may arise in the course of business.

e. What is the Average Salary of Your Staff?

• Founder/CEO/Owner – $55,000 Per Year
• Manager – $42,000 Per Year
• Accountant – $40,000 Per Year
• Errand Officers – $35,000 Per Year
• Sales and Marketing Officer – $35,000 Per Year
• Customer Service Representative – $34,000 Per Year

f. How Do You Get Funding to Start an Errand Service Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

We offer flexible pricing models, including per-task rates, hourly rates, and subscription-based plans. This ensures that our services are accessible to a wide range of clients while providing them the flexibility to choose a payment structure that aligns with their needs.

b. Sales Forecast?

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $400,000

c. Estimated Profit You Will Make a Year?

Leonardo McKenzie® Errand Service, Inc. is projecting to make;

• First Fiscal Year (FY1): (10% of revenue generated)
• Second Fiscal Year (FY2): (15% of revenue generated)
• Third Fiscal Year (FY3): (20% of revenue generated)

d. Profit Margin of an Errand service Company Business

The profit margin of an errand service company business is not fixed. It could range from 5 percent to 20 percent depending on some unique factors.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

As we establish our presence in Fort Wayne, our vision includes expanding our services and geographic reach. Leonardo McKenzie® Errand Service, Inc. is committed to continuous innovation, exploring strategic partnerships, and staying attuned to market trends to enhance our offerings and meet the evolving needs of our clientele.

b. Where do you intend to expand to and why?

Leonardo McKenzie® Errand Service, Inc. plans to expand to;

• Austin, Texas
• Boise, Idaho
• Raleigh, North Carolina
• Phoenix, Arizona
• Nashville, Tennessee
• Tampa, Florida
• Denver, Colorado
• Atlanta, Georgia
• Seattle, Washington
• Charlotte, North Carolina.

Internationally, we plan to expand to Canada.

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have a growing errand services market, making them potentially attractive markets for errand service businesses.

The founder of Leonardo McKenzie® Errand Service, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties.

This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.

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Errand Service Business Plan

Published Apr.24, 2023

Updated Apr.11, 2024

By: Jakub Babkins

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Table of Content

1. Errand Service Business Plan Sample And Example

Errand service businesses provide a valuable service to busy people by taking care of their everyday tasks that take up time and energy. This business plan solution for errand service outlines the steps necessary to create and launch a successful errand service business. The plan includes market research, product development, operational strategies, financial analysis, and marketing plans. With the right combination of operational efficiency, market positioning, and effective customer service, an errand service business can become a successful and lucrative business.

2. Executive Summary

Business overview.

Our company, Busy Bee Errands, provides a comprehensive errand service that caters to the needs of individuals and businesses. We offer a range of personalized services that include grocery shopping, package delivery, prescription pickups, laundry services, and more. Our services are designed to provide convenience and alleviate stress for our clients, allowing them to focus on more important matters.

As a new entrant in the market, Busy Bee Errands aims to provide high-quality services that meet each client’s unique needs. Similar to Concierge Service Business Plan , our team consists of experienced professionals who are passionate about providing exceptional customer service. We pride ourselves on being reliable, efficient, and flexible to accommodate our clients’ schedules.

We understand the importance of trust and confidentiality when it comes to handling our clients’ personal and business affairs. Our team is trained to maintain the utmost professionalism and confidentiality, ensuring that our client’s privacy is always respected.

We are committed to growing our business by developing long-term client relationships. We believe that our personalized services and attention to detail will set us apart from our competitors in the market.

Busy Bee Errands is committed to providing quality errand services to busy professionals, families, and seniors. Our services will include the following:

• Grocery Shopping: We will pick up and deliver groceries for our clients.
• Prescription Pickup: We will pick up and deliver prescriptions for our clients.
• Dry Cleaning: We will pick up and deliver dry cleaning for our clients.
• Pet Care: We will provide pet care services, including dog walking and pet transportation.
• Package Delivery: As the Courier Company Business Plan mentioned, we will pick up and deliver packages for our clients.
• Home Organization: We will provide home organization services to declutter and organize our client’s homes.
• Home Maintenance: We will provide minor home maintenance services such as changing lightbulbs, assembling furniture, and other minor repairs.
• Personal Shopping: We will shop for our clients, such as helping them find the perfect gift for a loved one.
• Errands: We will run any errand our clients need, such as standing in lines, waiting for appointments, or returning items.

Customer Focus

The main focus of our errand service business is to provide convenience to our customers by providing them with a practical and dependable errand service. Our company goals business plan for errand service is to provide our customers with an affordable and reliable way to get errands done. We will strive to create a dependable and convenient service that will enable customers to save time and money. Our services will include delivery of groceries and other items, grocery shopping, dry cleaning, pick up and delivery, running errands, and other tasks that our customers may require.

Our customers will be able to request our services through our website or through our mobile application. We will have a customer service desk that will be available to answer any questions and provide assistance when needed. Our services will be provided in a timely manner and with the utmost professionalism. We will strive to ensure that our customers are satisfied with our service and that their errands are completed promptly and efficiently.

Management Team

We plan to hire qualified and experienced employees to provide the best service possible. Our employees will be trained to provide excellent customer service and to ensure that our customers are satisfied with our services. We will also provide our employees with the necessary tools and resources to ensure they can provide the best service possible.

We will also maintain a high standard of safety and security for our customers and our employees. We will ensure that our vehicles are maintained and serviced regularly and that our employees are properly trained in safety protocols. We will also ensure that our vehicles are securely locked at all times to prevent theft.

Success Factors

The success of an errand service business depends on several key factors. First, the business must be able to provide quality service that meets customer expectations. This means having reliable transportation, reliable employees, and efficient communication systems, as mentioned in the Transport Business Plan . 

Second, the business must be able to market itself effectively. This means having a strong social media presence and using targeted marketing tactics to reach potential customers. Third, the business must have an organized business structure, with clear employee roles and responsibilities. 

Finally, the business must have a reliable customer service system with a commitment to responding to customer inquiries quickly. With these factors in place, an errand service business can be successful.

Financial Highlights

Busy Bee Errands is confident that it will achieve profitability in its first year of operations. To achieve this, Errand Solutions forecasts that it will generate revenues of $120,000 from the provision of errand-related services and will make money running errands for the elderly. These revenues will be generated from an estimated 1,000 customers. Busy Bee Errands’ projected expenses for its first year of operations are $69,000, including $9,000 for marketing and advertising.

Errand Solutions’ financial highlights for the first year of operations are as follows:

• Revenues of $120,000
• Estimated 1,000 customers
• Expenses of $69,000
• Gross profit of $51,000
• Net profit of $41,000

3. Company Overview

Who is busy bee errand service.

Busy Bee Errand Service is a professional errand-running business offering personal assistance for those who are too busy to take care of their errands. Our services include grocery shopping, dry cleaning pick-up, pet sitting, laundry, bill payment, and more. We are a company dedicated to providing quality services to busy professionals and busy families. We understand the importance of time and strive to make sure our clients can get their errands done in a timely and efficient manner.

At Busy Bee Errand Service, we provide exceptional customer service. Our team of experienced errand runners is highly trained and dedicated to providing our clients with a hassle-free experience. We are also committed to providing a safe and secure service similar to other errand companies. Our security protocols are designed to ensure the safety of both our clients and our errand runners. We strive to ensure that all of our services are provided in a safe and secure environment.

Busy Bee Errand Service is also dedicated to environmental sustainability. We strive to limit our environmental impact by using recyclable materials and eco-friendly products whenever possible. We are also committed to giving back to the community by supporting local charities and organizations.

Busy Bee Errand Service History

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

Busy Bee Errand Service was founded in 2019 by two sisters, Linda, and May Smith. They were inspired to start this business after noticing how busy their friends and family were and how difficult it was for them to find the time to do things like grocery shopping, dry cleaning, and running errands. With their family’s help, they could open their own errand service business.

Busy Bee Errand Service offers a wide range of services, from grocery shopping to pet care and house sitting. Customers can choose from one-time services or longer-term packages that can be customized to suit their individual needs. The company’s goal is to provide customers with a convenient, reliable, and cost-effective service that can make their lives easier. 

The company is committed to providing an exceptional customer experience and is proud to be a part of the local community. They strive to make every customer’s experience with Busy Bee Errand Service as stress-free and enjoyable as possible.

4. Industry Analysis

Errand service businesses provide customers with various services, from grocery shopping to pet care to house cleaning. The industry is composed of small, independent businesses that provide services to both residential and commercial customers. The industry is highly fragmented, with no major players dominating the market.

The major trends driving the industry are increasing customer demand for convenience and time savings, as well as the emergence of technology that enables customers to book errand services online. Additionally, a growing number of businesses are offering errand services as part of their employee benefits packages, as employers recognize the benefit of providing these services to their employees.

The industry is expected to continue to grow at a steady rate over the next five years. As customers become increasingly busy, the demand for errand services will continue to rise. Additionally, technological advancements such as mobile apps are expected to make it easier for customers to book errand services, further increasing demand.

To succeed in the industry, businesses must provide reliable, high-quality services at competitive prices. Additionally, businesses must invest in developing relationships with customers, as well as in marketing and advertising their services. Furthermore, businesses must stay up-to-date on industry trends and customer preferences in order to remain competitive.

5. Customer Analysis

Demographic profile of target market.

The target market for the business plan for errand service is primarily people ages 25-65 who live in medium to large cities and have a household income of at least $50,000. The majority of these people are likely to be professionals or have full-time jobs, as they have the financial means to pay for errand services.

The primary demographic for the errand service business is likely to be women, as they are typically the primary decision-makers when it comes to household errands. In addition, women are more likely to be busy with work and family obligations and may find errand services to be a useful solution.

• Gender: Male and Female
• Geographic Location: Medium to Large Cities
• Income: At least $50,000

Occupation: Professionals/Full-Time Jobs

Customer Segmentation

The customer segmentation for an errand domestic help service business plan includes: 

• Seniors: Seniors are often in need of assistance with various errands due to age-related difficulties. They may need help with grocery shopping, running errands, and other tasks.
• Busy Professionals: Many professionals have limited time to complete their errands and tasks. They may need help with grocery shopping, dry-cleaning, picking up prescriptions, and other errands.
• Families: Families may need help with errands such as grocery shopping, picking up prescriptions, and other tasks.
• Students: College students often need help with errands such as grocery shopping, picking up textbooks, or getting to class.
• People with Disabilities: People with disabilities may need help with errands such as grocery shopping, picking up prescriptions, or other tasks.
• Small Business Owners: Small business owners may need help with errands such as picking up supplies, making deliveries, or other tasks.

6. Competitive Analysis

The personal errand service business plan has a competitive marketplace, with several companies providing similar services. The competitive environment is characterized by a variety of service providers offering different pricing structures, services, and levels of customer service.

Direct and Indirect Competitors

Direct Competitors

• TaskRabbit: TaskRabbit is a leading task-based platform that connects customers with local taskers to complete errand services such as grocery shopping, house cleaning, delivery, assembly, and more.
• Fancy Hands: Fancy Hand is a task-based platform that provides customers with virtual assistants to help with errand services such as grocery shopping, making appointments, and more.
• Thumbtack: Thumbtack is a platform that connects customers with local professionals to help with errand services such as pet sitting, cleaning services, and more.

Indirect Competitors

Indirect competitors in the errand service industry include companies such as local grocery stores, dry cleaners, and other retailers that offer specific services that could be done as errands. These companies may not offer the same range of services as the Errand service business but could provide competition if they offer lower prices or more convenient locations.

Competitive Advantage

The Errand service business has several advantages over its competitors. First, the business has a well-established reputation for providing reliable and efficient services. Second, the business has a large network of contacts in the local area which can be used to locate and hire qualified errand runners quickly. Finally, the business offers competitive prices and flexible payment terms, allowing customers to save money on errand services.

7. Marketing Plan

Our marketing plan aims to create awareness and generate interest in our errand service business. We will use a variety of marketing tactics, including online, print, and radio advertising, direct mail, and public relations.

• Online Advertising: We will utilize online advertising to create awareness and drive traffic to our website. This will include Google AdWords, Facebook Ads, and banner ads on other relevant websites.
• Print Advertising: We will create print ads targeting our target demographic. This will include magazine and newspaper ads as well as direct mail.
• Radio Advertising: We will also utilize radio advertising to reach our target audience. We will focus on local radio stations that target our demographic.
• Public Relations: We will work with local media outlets to create news stories and feature stories about our errand service. We will also work with local influencers to help spread the word about our business.

Promotions Strategy

To create excitement and generate interest in our errand service, we will utilize a variety of promotions and incentives.

• Discounts: We will offer discounts and coupon codes to drive interest and encourage people to use our service.
• Referral Program: We will offer a referral program that rewards customers for referring friends and family to our business.
• Social Media: We will use social media to create buzz about our business and drive traffic to our website. This will include creating engaging content and running promotions.

Our pricing will be competitive and tailored to the needs of our target market. We will offer various packages and pricing options to meet the needs of our customers. We will also offer discounts and specials for first-time customers.

8. Operations Plan

Operation functions.

Errand Service: Our primary service will be providing errands to customers. We will pick up groceries, dry clean, retrieve documents, or do other errands as our customers request.

Delivery Service: Besides errand service, we will also provide delivery services for businesses and individuals. We will pick up and deliver items such as documents, food, and other merchandise in the Food Delivery Business Plan .

Courier Service: We will provide a courier service for businesses that need documents or packages delivered. We will provide door-to-door delivery service for businesses that need documents or packages delivered to other businesses or locations.

3/22/202X –Develop and launch website

4/1/202X – Develop and launch marketing campaign

4/8/202X – Recruit and train errand runners

4/15/202X –Obtain necessary business permits and licenses 

4/22/202X – Sign contracts with clients

5/1/202X – Launch errand service in the local area

5/8/202X – Monitor customer feedback and adjust services accordingly

5/15/202X –  Assess and expand operations to other cities/regions

Licensing organization in the Errand Service industry:

9. Management Team 

The management team of the errand service business plan consists of the following members:

• CEO: The CEO of the errand service business plan will be responsible for the company’s overall direction. They will be responsible for setting the company’s goals and developing and executing strategies to achieve those goals. They will also be responsible for managing the day-to-day operations of the business.
• CFO: The CFO will be responsible for overseeing the financial aspects of the business, such as budgeting, accounting, and financial reporting. They will ensure the business complies with all applicable laws and regulations.
• Operations Manager: The operations manager will be responsible for managing the business’s day-to-day operations. They will manage staff, schedule errands, and ensure customer satisfaction.
• Marketing Manager: The marketing manager will develop and execute marketing strategies to promote the business. They will be responsible for creating and implementing campaigns to attract new customers and retain existing ones.
• Customer Service Representative: The customer service representative will be responsible for providing assistance to customers. They will be responsible for answering questions, resolving complaints, and providing feedback to the management team.

10. Financial Plan

For errand running services, we are seeking a loan of $50,000 to start our business. This will be used to purchase the required equipment, pay for office space, hire staff, and cover other business costs.

Key Revenue & Costs

Key Revenue

Our primary source of revenue will be from errand service fees, with an estimated rate of $25 per hour. We will also generate income from delivery services and grocery shopping services, which will be priced at a flat fee of $10 per item.

Our key costs will include: 

• Equipment and technology costs for the business
• Insurance costs
• Office space rent
• Employee wages
• Advertising and marketing costs
• Professional fees for legal and accounting services.

Funding Requirements and Use of Funds

Funding Requirements 

To start our errand service business, we will need approximately $50,000 in startup capital. This capital will cover expenses incurred in setting up the business, such as renting office space, purchasing equipment and supplies, hiring staff, and marketing our services.

Use of Funds

The $50,000 in startup capital will be used to cover the following expenses:

• Renting office space: $20,000 
• Purchasing equipment and supplies: $10,000 
• Hiring staff: $15,000 
• Marketing: $5,000 

Key Assumptions

The business will be based in the city of Austin, Texas and will focus on providing services to the local community.

The business will target local customers, who will pay for services as needed.

The business will employ two part-time employees who will be paid hourly.

The business will use its own vehicles for errand services.

The business plan for opening an elderly person errand service will focus on providing services for the elderly, disabled, and busy customers.

The business will use various digital marketing techniques to reach out to potential customers.

The business will charge an hourly rate for services provided.

The business will focus on providing services promptly and with great customer service.

The business will use word-of-mouth marketing to ensure customer satisfaction.

The business will use online services such as Yelp and Google My Business to boost customer reviews.

Financial Projections

All tables in Errand Service Business Plan PDF .

11.  Unlocking the Potential of Your Delivery and Errand Service Business with OGS Capital’s Professional Business Plan

At OGS Capital, we understand that your delivery and errand service business is more than just a way to make money. It’s an opportunity to make a difference in your community by providing reliable, efficient, and affordable services. That’s why we’re committed to helping you unleash the potential of your business by providing you with a comprehensive business plan tailored to your business’s unique needs.

Our team of experienced consultants has years of experience in creating business plans for delivery and errand service businesses. We can guide you through the process of creating a plan that covers all aspects of your business, including marketing, finance, operations, and management. We can also provide you with a written example of a delivery and errand service business plan that you can use as a template for developing your own plan.

At OGS Capital, we take the time to understand the unique needs of your delivery and errand service business and tailor our services to meet those needs. We can help you create a business plan that outlines your business goals and objectives and that includes realistic projections of your business’s profitability. We can also provide you with sound advice on the most effective ways to market and operate your business.

When you work with OGS Capital, you can be sure that your business plan will be prepared with the utmost care and attention to detail. Our consultants are experienced professionals who understand the importance of creating a comprehensive and realistic plan. With our help, you can unlock the potential of your delivery and errand service business and make it a success. Contact us today to get started.

• How do I advertise my errand service? Advertising your errand service is a great way to get the word out about your business. You can use traditional methods such as flyers, newspaper ads, and radio spots, or you can use digital methods such as social media, web design, and email marketing. For example, you can create a website that showcases your services and displays your contact information. You can also set up social media accounts on popular sites like Facebook, Twitter, and Instagram and use them to promote your business. Additionally, you can send out email newsletters to reach potential customers who may be interested in your services. Lastly, you can take part in local events such as fairs and festivals to network and advertise your errand service. By utilizing these methods, you can ensure that you reach a wide variety of potential customers and increase your chances of success.
• How do I write a business plan for an errand business? A business plan for an errand business should include a description of the services offered, the target market, a marketing and sales plan, an operational plan, a financial plan, and a risk management plan. The description of services should include what types of errands the business will offer and the fees charged for them. The target market should focus on the types of customers most likely to use the services. The marketing and sales plan should outline the strategies used to promote the services, such as online marketing and direct mail. The operational plan should address the business’s day-to-day operations, such as staffing and scheduling. The financial plan should include start-up costs, operating expenses, and projected revenue. Finally, the risk management plan should identify potential risks and their mitigation strategies.

Download Errand Service Business Plan Template in PDF

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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12 Errand Small Business Ideas

Back to Business Ideas Categories

Written by: Esther Strauss

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on August 11, 2022 Updated on May 23, 2024

Today’s busy professionals can rarely find enough time to do all their errands, and that’s where you come in, with a business able to check a few boxes off their to-do list. You could be a virtual assistant, start a courier or delivery service, remove junk, prepare meals or do personal shopping. 

In this era of convenience, more and more people like to delegate their minor tasks, which means greater demand and real opportunity for the capable entrepreneur. Start down the road to success by checking out our list of excellent errand business ideas below.

1. Virtual Assistant

The job didn’t even exist 20 years ago, but now, thanks to new technologies and the sharp increase in remote work during the pandemic, the virtual assistant industry is booming .

To be clear, we’re talking about a human, not a digital or AI-powered, assistant, who provides administrative, technical, and creative services to clients remotely, via the internet. If you have a strong business skillset, you can get started with a minimal investment and run the company out of your own home while serving clients anywhere in the world. You could also add more skills over time, increasing your revenue streams and the rates you’re able to charge. 

With hard work and a bit of luck, you’ll soon be helping businesses run more smoothly and efficiently while making good money for yourself.

2. Cargo Van Delivery

Thanks to the increasing popularity of online shopping and the corresponding need for last-mile services, cargo van delivery offers great potential. If you have a cargo van , you can take advantage of this stellar market performance by starting your own cargo delivery business. 

There are many ways to get going. Aside from a van, it would be wise to invest in the tools and equipment needed to secure your cargo as well as load or unload this safely. You’ll also need to comply with applicable laws as well as licensing and insurance requirements. Since you’ll be competing with established brands, it is important to differentiate your business. For example, you can offer several options like door-to-door delivery or same-day delivery services. With a lot of hard work and a good marketing strategy, you can deliver serious success!

3. Errand Running

Busy executives and older adults who find it hard to move about will likely be your top clients if you start an errand running business. Just focusing on the older population provides the errand services industry a huge potential customer base. More than 58 million Americans are age 65 and older , and that number is rising fast.  

So what does an errand runner do? You take or pick up clothes from the cleaners, fill the car with gas, pick up a prescription, and get groceries. You might want to focus on a few services and develop your own niche, or do whatever your client asks you to do. It will be a matter of time management and you will have the flexibility to set your own schedule. You will need to research the market, though, and find out the prevailing rates. Most errand runners charge by the hour instead of by task.

4. Senior Transportation

By 2030, all Baby Boomers will be age 65 and older, and they’ll need a great deal of transportation and elderly care services . If you’re on the lookout for a great business opportunity, you might consider getting into senior transport. 

Start your business by understanding your target market. Older adults still need to get around to visit a doctor, shop for necessities, or see friends and loved ones. But most can no longer drive due to visual impairment and other challenges that increase the risk of road accidents. Public transport units usually have accessibility features, but seniors might have difficulty navigating stairs or walking between stops. 

You also have to find out whether seniors need other services. Do they need care providers or just drivers? What is their budget? The answers to these questions will help you determine the type of fleet and service model to use. With your senior transportation business, you can look forward to making a profit and helping seniors maintain their mobility and independence as well. 

5. Assisted Living

The US’ fast-growing elderly population is driving expansion in the assisted living market, which is expected to grow 5.5% annually through 2030 . If you’re an entrepreneur with a background in health care, you might consider riding this wave to success. It’s a great way to make a positive impact in your community while making a living.   

Before you start your assisted living business, it’s important for you to assess the competitive landscape and determine the services that you will offer. You’ll need to comply with the zoning and licensing requirements. It’s also a good idea to study the possible legal issues, hire the right people, and decide which amenities to provide. Most assisted living facilities have gardens, a library, entertainment and a doctor on call. This business needs hefty investments, but the potential for financial rewards is great. So start drawing up the building plans for the best assisted living facility in your area.

6. Junk Removal

You’ve probably heard that real estate has been booming of late. But you may not realize that this also means the construction industry has been doing well, which consequently means that demand for junk removal services has been on the rise. The construction of new office buildings and residential properties creates massive amounts of waste and used materials. As a result, the US waste removal industry is now worth $91 billion and seeing steady growth , and if you don’t mind a bit of heavy lifting, now is an excellent time to start your own junk removal business. 

It’s probably easier than you think. You’ll need a truck, as well as the right tools and equipment — both of which you could find with a bit of online digging. Most likely, you’ll also need a commercial driver’s license, as some of the loads you haul are likely to exceed the weight limit allowed under a normal license. Finally, you’ll want to reach out to contractors, construction firms, developers and property managers to offer your services. 

A smart approach is to offer a discount to attract your initial clients. Then, once you’ve delivered fantastic service, the referrals, and the cash, should start rolling in.

7. Hand Car Wash

If you’re looking for a low-cost business idea, why not start a hand car wash business? It’s easy to start, requires minimal investment, and a great way to make money. Americans wash or have their cars washed at least every two weeks, and many car owners still prefer the traditional method of washing by hand instead of automated car washing.

Hand car washes are more thorough as there are areas in the car that machines can’t reach, can prevent premature rusting with the use of steam, and are more eco-friendly since there won’t be any toxic runoffs. You could also run a mobile hand car wash business, and wash cars at people’s homes and offices.

A hand car wash business can be operated as a standalone business or as a part of a larger service business, such as an auto detailing shop. It is important to identify a target market and craft a marketing strategy to attract customers. It’s also a good idea to get on social media, start offering your services to your family and friends, and establish a referral network.

8. Personal Shopper

A surge in online shopping has opened plenty of opportunities for personal shoppers. At Walmart, for example, the number of personal shoppers has more than doubled. If you’ve mastered some shopping skills, you might want to grab this opportunity to start a personal shopper business. 

Personal shoppers make money by shopping for other people. They usually shop for clothing and accessories, although they can also shop for groceries and other essentials. In the US, there are more than 65,000 personal shoppers and the number is increasing. 

Before you get started, it’s important to sharpen your shopping skills, such as putting together great outfits, negotiating the lowest price, keeping track of sales, and more. It’s to your advantage to identify your target market. Some personal shoppers provide services directly to their clients while some work for stylists, department stores, or markets. More Americans are turning to personal shoppers for their needs, so it’s time to brush up on your shopping skills and make some cash.

9. Delivery Service

The US courier and local delivery services industry performed strongly during the pandemic as people stuck at home placed a lot of online orders. The market size, measured by revenue, of the couriers and local delivery services industry was $165.1 billion in 2023 . If you’re looking for opportunity, look no further than delivery. 

A delivery service can be run from your home, but you’ll need to invest in a van if you don’t have one. You’ll be competing with Instacart, Amazon, and other big players, so it’s a good idea to devise a strong business plan that includes a creative and aggressive marketing strategy. Once you’ve established your brand of service, your delivery business can be highly profitable.

10. Courier Service

If you’re looking for a way to make extra money, starting your own courier business could be the perfect solution. You can work as much or as little as you want to start off, and there’s no need for expensive equipment or training. You’ll just need a reliable vehicle, good insurance and decent driving ability. 

Best of all, the market is growing fast, thanks to people spending more time at home and the rise of delivery apps like InstaCart, DoorDash and more, so there’s real opportunity in this line of work. Particularly if you already have a car, this is a low-cost venture with little risk and strong profit potential. To get started you just need to sign up as a driver for one of your local delivery apps and start making pick ups and deliveries. 

Once you’ve built a reputation, you could start offering your courier services to area businesses, which tend to pay more. If your services are reliable, you’ll likely get referrals and, sooner than you might imagine, you’ll be able to establish a successful business.

11. Meal Prep

People are busy these days, and always on the look-out for more convenience. That’s why meal prep is one of the fastest growing industries in the United States . If you’re good in the kitchen and would like to share your tasty creations with the world, you might consider starting your own meal prep business.

It doesn’t cost a great deal of money, because you can start the business in your home and online. You could offer on-demand dishes, for people just looking for a healthy dinner they can pop in the oven. You could offer goal-oriented meal plans, for people with dietary concerns and limitations. Or you could offer fully prepared meals, such as sandwiches and burritos, that people can store and eat whenever they choose. Or you could get really ambitious and offer all of the above!

The key, of course, will be creating affordable, healthy dishes that appeal to your local market. If you can do that, you’ll be well on your way to meal prep success.

12. Grocery Delivery

Global online grocery delivery has grown nearly 30% since the pandemic began, and this stellar performance is expected to continue through 2024 as a lot of people continue to stay or work from home. With online grocery shopping, consumers no longer have to spend time queuing in supermarkets. They simply browse a retailer’s website or app, choose their items, check out and wait for delivery.

If you’re thinking of starting a grocery delivery business, now’s the time to do it. You have at least three options: operate your own delivery service, work with a franchise, or sign up with an established retailer. Consider carefully the pros and cons of each option before deciding on which business model to choose. Assess the competition as well and identify possible clients if you’re going to give it a go on your own. Whatever your decision, opportunity awaits.

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• Virtual Assistant
• Cargo Van Delivery
• Errand Running
• Senior Transportation
• Assisted Living
• Junk Removal
• Hand Car Wash
• Personal Shopper
• Delivery Service
• Courier Service
• Grocery Delivery

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How to Start an Errand Business That Actually Makes Money

• Introduction to Errand Running Businesses
• Benefits of Starting an Errand Business
• How to Set Up Your Errand Business
• What Services to Offer
• Finding Clients
• Setting Prices
• Marketing Strategies
• How to Manage Your Errand Business
• How to Build a Brand
• Legal Considerations

With the rise of the gig economy and the need to make extra money, starting an errand business has become a popular side hustle for many people.

Errand running businesses provide a much-needed service to customers who may not have the time or ability to run daily errands themselves.

But starting and running an errand business isn’t as simple as it sounds.

There are a lot of moving parts, from figuring out what services to offer, to setting up your business, to finding and keeping clients.

If you’re interested in starting your own errand business, here’s what you need to know.

Errand running businesses provide a variety of services to customers.

Most errand companies focus on running errands, such as grocery shopping, taking clothes to the dry cleaner, or picking up prescriptions.

But businesses can also offer more specialized services such as pet sitting, house sitting, and even home maintenance.

The great thing about errand businesses is that they’re relatively easy to start and don’t require a lot of capital.

All you need is a reliable vehicle and some basic tools, such as a smartphone and a laptop.

You can also start an errand business as a one-person operation, or you can hire employees to help you with the workload.

The biggest benefit of starting an errand service business is that it’s a great way to make extra money.

Depending on the services you offer and the size of your business, you can easily make a few hundred dollars a week.

Another benefit is that it’s a flexible side hustle.

You can choose when and how often you want to work, giving you the freedom to manage your own schedule.

And because you don’t need to rent or maintain a physical space, you can operate your business from anywhere.

Finally, providing errand services can be a great way to meet people and build relationships with customers.

You’ll be interacting with customers on a daily basis, getting to know their needs and preferences.

This can be a great way to find new clients and build relationships with existing ones.

The first step to setting up your errand-running business is to draw up an errand service business plan and decide on a business structure.

You can choose to operate as a sole proprietorship, a partnership, or even a corporation.

Each structure has its own advantages and disadvantages, so it’s important to understand the implications of each before making a decision.

Once you’ve decided on a business structure, you’ll need to register your business with the state.

This will allow you to get a business license and open a business bank account.

You should also look into getting business insurance from a reputable insurance company to protect yourself and your business in case of any liabilities.

When starting an errand business, it’s important to decide what services you want to offer.

You can do a quick Google search for various errand business ideas.

Most errand businesses focus on running errands, such as grocery shopping and delivery services, courier services, taking clothes to the dry cleaner, or picking up prescriptions.

You will need to ensure that you have a reliable car to perform these transport and delivery services.

Many are even a personal assistant for their clients and small business owners.

Errand service providers can also offer more specialized services such as house and pet sitting, home maintenance and even providing senior errand service for senior citizens.

As an errand runner, it’s important to decide what services you want to offer and then market those services to potential customers.

You should also consider any special skills you may have that could be useful in your business, such as knowledge of a foreign language or a particular trade.

Once you’ve set up your business and decided on the errand-running services you want to offer, it’s time to start finding clients.

One of the best ways for errand runners to find clients is to network with local businesses and organizations.

You can also use social media to promote your services and reach out to potential customers.

You can also use online services such as TaskRabbit and Fiverr to connect with customers.

These sites allow you to list your services, set your rates and manage your bookings.

You can also join local Facebook groups or other online forums to find customers.

When setting your prices, it’s important to consider your time, the cost of materials, and the cost of your services.

Your errand running service should also factor in any additional costs, such as fuel or parking fees.

It’s important to set your prices competitively, but also make sure you’re making a profit.

Do some research in your area and see what other errand businesses charge.

It’s also important to consider the type of services you’re offering.

For example, specialized services such as pet sitting or house sitting may require a higher rate than running errands.

You should also consider offering discounts for repeat customers or for larger orders.

Once you’ve set up your business, it’s important to come up with a marketing strategy.

You should create a website or blog to promote your services, as well as create social media accounts to reach a larger audience.

You should also consider creating promotional materials, such as flyers, brochures, and business cards.

You can also consider partnering with local businesses.

This can be a great way to get your name out there and find new clients.

You can also reach out to friends and family and ask them to spread the word about your business.

Managing an errand business can be time-consuming and overwhelming.

It’s important to stay organized and keep track of your customers, orders, and payments.

You should also consider using customer relationship management (CRM) software to keep track of your customers and orders.

As you are always going to be on the go it would be critical to have CRM software that has an app version so you could download it to your cell phone.

This way you will always be in the loop.

You should also create systems and processes to help you manage your business more efficiently.

This can include automating certain tasks, such as invoicing and scheduling, or using templates to create standard documents.

Building a brand is an important part of running an errand business.

You should focus on creating a unique brand identity that sets you apart from other errand businesses.

This can include creating a logo, designing promotional materials, and creating a website.

You should also focus on building relationships with your customers.

This can include offering discounts, providing personalized customer service, and creating content that appeals to your target audience.

When starting an errand business, it’s important to be aware of the legal implications.

Depending on your business structure, you may need to register your business with the state, obtain a business license, and get business insurance.

You should also familiarize yourself with local regulations and laws related to errand service businesses.

Finally, it’s important to understand the tax implications of running an errand business.

You may need to register for self-employment taxes, and you should keep track of all of your income and expenses for tax purposes.

Starting an errand business can be a great way to make extra money and gain flexibility over your schedule.

But there are a lot of things to consider, from setting up your business to finding clients.

Once you have a plan in place and you’re ready to start your business, you can be on your way to making money and helping others with their errands.

For more side hustles and business ideas then explore our Home-Based Businesses page .

With the right knowledge and dedication, you can start and run an errand business that actually makes money.

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How to Start an Errand Service Business

• Small Business
• Types of Businesses to Start
• Starting a Delivery Business
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Budgetary Requirements for Catering

What expenses does mileage reimbursement cover, how to calculate advertising rates.

• How to Set Up an Errand Business
• Event Planning & Concierge Services

Nearly everyone needs someone to perform personal tasks when they are physically unable to do them. Learning how to start an errand service business can be a profitable venture. The target market for an errand service business can include disabled individuals, elderly individuals, stay-at-home moms and even people who work eight or more hours daily.

The business owner for an errand service can work as a sole proprietor, partner and also hire employees. Marketing and maintaining reliable transportation is vital to running a successful errand service business.

Determine Company Organization

Determine whether you will operate the errand service full time or part time and whether you will hire employees. You will need to develop daily and weekly schedules, maintain accounting and record keeping and keep track of work schedules with clients. The number of hours that you will put into the business and the number of people helping you run the business can help you establish a realistic estimate of your startup costs. According to Entrepreneur, the startup costs for an errand service can range from $2,000 to $10,000.

The legal structure of your business – sole proprietorship, partnership, corporation – is also an important factor when establishing a realistic estimate for your startup costs. Each structure has advantages and disadvantages. For instance, if you plan to operate the business by yourself, a sole proprietorship makes sense. You'll derive the profits but be personally responsible for the debts and obligations of the business.

However, if you have other goals for your business, such as sharing profits, attaining a large portion of income and maintaining limited liability for the debts of the company, opt for a partnership or corporation.

Location and Insurance

Set up an office space and purchase an insurance policy for your business. You can operate your errand service from a home office or a leased commercial space. Contact your local small-business administration office to determine whether you must obtain any business licenses or permits for your errand service and its location.

Also, make sure your business insurance policy includes liability insurance and automotive insurance. There are risks involved with transporting individuals and performing services using an automobile.

Acquire Reliable Transportation

Without transportation, you will lose potential business and profits. Also, consider the cost of gas when determining the type of vehicle you will use. Your clients will usually request you to do errands that only require a small or midsize vehicle. Tasks could include grocery shopping, picking up clothes from the cleaners and transporting individuals.

Therefore, a large truck that requires more gas than a small car can prevent you from deriving suitable profits. In addition to obtaining reliable transportation, consider establishing set prices that are reasonable for different types of errand services, and take into account the cost of gas for each errand.

Create a Marketing Plan

Marketing and advertising are essential to building your business clientele. Your marketing plan should focus on how you will attract potential clients and communicate your service to others via advertising. Joining business associations can help you learn about the errand service industry and market your business. Certain organizations in the concierge industry, such as the National Association of Professional Organizers, will benefit an errand service business owner.

You can market your business in a variety of ways, such as by distributing fliers and business cards. Also, word-of-mouth advertising, a website, social media and direct marketing can attract new clients.

• Entrepreneur.com: Errand Service
• SBA.gov: Write Your Business Plan

Marie Huntington has been a legal and business writer since 2002 with articles appearing on various websites. She also provides travel-related content online and holds a Juris Doctor from Thomas Cooley Law School.

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How to Start Your Own Errand Business

Main Sections In This Post Steps To Starting An Errand Business Points to Consider Resources Featured Video

This article provides a comprehensive overview of owning an errand business and presents a detailed step-by-step guide. Additionally, it presents a compilation of useful resources to assist you in the startup phase and when your errand business is operational.

The content contains a wealth of valuable information. It would be advisable to bookmark this page for future reference. If you find this article helpful, kindly consider sharing it with others.

Let’s get started with the steps.

Steps to Starting an Errand Business

1. gaining an overview of what you’re getting into.

This section provides valuable insights to assist you in making informed decisions for your errand business. I highly recommend taking sufficient time to carefully contemplate the key points before proceeding to the startup phase.

a.) Is Starting an Errand Business the Right Step for You?

Formatted for aesthetics:

There is a key factor to succeeding in business, and that factor is you!

Understanding how you feel about owning and running a business is important.

Passion: A crucial element for success in your own business.

Passion is the driving force you need. When you’re passionate about your business and problems, arise, you look for solutions. On the other hand, without it, you’ll look for a way out.

How passionate are you about owning your own business?

Let’s look at an interesting perspective:

Imagine the possibilities:

Imagine doing anything you want without restrictions and enough money to last you for the rest of your life. That means money has nothing to do with how you will spend the rest of your life.

Now an important question:

In this situation, would you start an errand business?

If your answer is yes, it shows that you are passionate about owning and operating an errand business and are heading in the right direction.

However, if your answer is no, it prompts another question:

What would you prefer to do instead? Perhaps, you should pursue that path instead.

In summary, you need to be passionate about the business you are starting.

For More, See How Passion Affects Your Business . Also, see,  Considerations Before You Start Your Business to identify key points for a new business owner.

2. An Overview of Owning an Errand Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning an Errand Business

Operating an Errand Business

Running an errand business is a dynamic endeavor. It demands continuous attention, communication, and keen time management skills.

Each day brings different tasks for clients who rely on your services to manage their time better. This offers a variety of experiences.

Points To Succeed in Operating an Errand Business

To flourish in this line of work, there are essential points to consider. Establishing solid relationships with clients is crucial.

Effective communication helps understand their needs better. Efficiency in handling tasks, being detail-oriented, and adaptability are also significant.

Adopting technology like task management apps can aid in managing jobs more effectively.

Challenges in Running an Errand Business

Operating an errand business is not without challenges. Sudden changes in plans can test the patience and adaptability of an owner. Managing multiple tasks simultaneously and maintaining punctuality can be demanding.

Additionally, maintaining high service quality while handling multiple tasks can be stressful.

Customer Expectations

Most customers expect promptness, reliability, and professionalism . They value clear communication. They appreciate flexibility when it comes to handling their tasks.

b.) Pros and Cons of Owning an Errand Business

• Varied work keeps it interesting.
• Potential for good earnings with high demand.
• Flexibility in work schedule .
• Might need to work odd hours .
• Multitasking can be stressful.
• Dealing with unpredictable situations .

c.) Errand Business Models

Solo Operator : One person manages all tasks. The operator directly deals with customers, handles task execution, and manages the business side.

Team Based : A team of errand runners handle various tasks. The owner’s role is often supervisory, assigning tasks, handling client relations, and managing the business aspects.

Online Platforms : In this model, errand services are offered through an online platform or app. Customers can book services online, and independent contractors carry out the tasks.

d.) Making Your Errand Business stand out

• Personalized Service : Offering tailored services to meet unique client needs.
• Superior Customer Service : Quick response time, effective communication, and going the extra mile.
• Tech Integration : Easy online booking and digital tracking of errands.
• Loyalty Programs : Rewards for repeat customers to foster long-term relationships.
• Comprehensive Packages : Offer packages that cover a wide array of tasks.

e.) Add-on Ideas for an Errand Business

• Pet Services : Include pet walking or pet sitting .
• Event Management : Assist in planning parties or corporate events.
• Home Organizing : Offer services to help declutter and organize homes.
• Virtual Assistance : Provide online support for tasks like email management or scheduling appointments.
• Elderly Assistance : Special packages for the elderly to help with shopping, appointments, etc.

3. Research

Thorough Research: The Foundation of Your Errand Business

You must conduct thorough research for the business you intend to open before taking any other action.

With quality information, you will know what you’re getting into. Otherwise, you might find yourself in a situation you don’t expect.

Seek Guidance from Experienced Individuals

One way to get the best information is from people experienced in running an errand business.

They are qualified to give you information you can depend on. The time you spend with them can be priceless and an opportunity to gain insights from their knowledge and years of experience.

Article Resource: Finding the Right People

I have written an article with ideas to help find the right people to contact and approach them in an acceptable and non-threatening way.

The steps go beyond this post, but I strongly suggest you read the article from the link below to understand what you’re getting into.

See An Inside Look Into the Business You Want To Start  for all the details.

Target Audience

Understanding your target audience brings numerous advantages. By comprehending your target market, you can tailor your offers to appeal to customers of an errand business and provide products and services that genuinely interest them.

This targeted approach enhances customer satisfaction and increases the likelihood of attracting and retaining a loyal customer base.

To give you a sense of potentially interested individuals, here is a bullet list of people who are likely to be interested in what an errand business offers:

• Busy professionals seeking assistance with daily tasks
• Elderly individuals requiring support for errands and chores
• Working parents in need of help with household responsibilities
• Small business owners seeking outsourcing solutions
• Individuals with limited mobility or health issues requiring assistance with errands
• Time-strapped individuals looking to free up their schedules

Understanding and catering to the needs of these individuals can greatly benefit your errand business.

You can establish a strong customer base and foster long-term relationships by providing reliable and efficient services that address their specific requirements.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

This section provides an overview of startup costs, monthly expenses, revenues, and profits, giving you a comprehensive understanding of the financial aspects of your errand business.

Startup Cost: Accurately Estimating for a Successful Launch

To ensure a successful launch, it is crucial to accurately estimate the startup costs, from the planning phase until you open. Underestimating can lead to a shortage of funds, delaying the opening of your business.

Conversely, overestimating may make your venture appear risky. Factors such as the size of your operation, location, employee hiring, equipment purchase, and renting/leasing will influence your costs.

Create a detailed list of requirements and research prices to formulate an accurate estimate.

For more detailed information, refer to my article on  Estimating Startup Costs.

Sales and Profit: Factors Influencing Business Success

The success of your errand business relies on various factors, including:

• The popularity and demand for your products and services.
• Effective marketing strategies to reach the right target audience.
• Generating sufficient sales to cover monthly expenses and ensure profitability.

Profitability: Considering Expenses and Revenue

Profitability extends beyond the earnings per sale. It entails carefully considering expenses, such as rent, payroll, and overhead costs.

Your sales must generate enough revenue to cover monthly expenses and provide a reasonable salary to succeed.

For More, See Estimating Profitability and Revenue

Sample List of Estimated Costs to Start an Errand Business

• Business Registration and Licenses: $500
• Insurance: $800
• Website Development: $1000
• Branding (logo, business cards, etc.): $500
• Office Supplies: $200
• Vehicle (if needed): $5,000
• Marketing and Advertising: $1,000

Total Start-up Costs: $8,000

Sample List of Estimated Monthly Expenses for an Errand Business

• Rent (if applicable): $500
• Utilities: $100
• Vehicle Maintenance: $200
• Insurance: $100
• Website Maintenance: $50
• Marketing and Advertising: $200
• Miscellaneous Supplies: $50

Total Monthly Expenses: $1,500

Profit and Sales Projection for an Errand Business

Assuming you charge an average of $25 per hour and work approximately 30 hours per week, your monthly sales revenue would be about $3,000.

Subtracting the monthly expenses of $1,500, your monthly profit would be approximately $1,500.

This equates to an annual profit of about $18,000.

You can use the above samples for ideas and as a starting point. Every situation is different, and many factors come into play.

Remember, these are just examples. Your figures will be different. Starting a business involves careful planning and consideration.

Consider getting professional advice when calculating your business’s startup costs, expenses, and potential revenues and profits.

5. Choosing The Right Business Location

Selecting the optimal location for your errand business can make all the difference between success and failure.

Operating in a location without the demand for your services will inevitably lead to failure, even before your business takes off.

Similarly, opening in an area saturated with competition will pose challenges in securing market share.

Balancing Demand and Competition: The Key to Success

Ideally, you should seek a location that strikes a balance: a place with existing demand and a reasonable level of competition.

Affordability: Finding the Right Fit

Affordability is another significant consideration. While operating in a densely populated area may offer greater exposure, you must ensure the additional expenses do not hinder your business’s profitability.

Conversely, opting for a cost-effective location might seem enticing, but will it generate sufficient sales to sustain your business?

Flexibility and Growth: Home-Based Operation

For certain business models, operating from home can be a viable option, particularly for online-based or low-customer-interaction ventures. Starting from home allows flexibility; as your business expands, you can transition to a commercial location.

Choosing the right location is a critical factor in achieving success. Conduct thorough research to make an informed decision.

For more about business locations, see Choosing The Best Location for Your Business.

6. Choose a Business Name

When selecting a name for your errand business, it is important to aim for something catchy and appropriate. You want a name that is easy to pronounce and memorable, creating a lasting impression on potential customers.

It is essential to consider that business names tend to remain unchanged, so the name you choose now will likely accompany your company.

Furthermore, securing a matching domain name for your online presence is crucial. Ensure that another business does not already register the desired name to avoid any legal complications.

To spark your creativity and assist you in crafting an original business name, here is a sample list for your errand business:

• Swift Assist
• Task Masters
• Reliant Runners
• Errand Express
• Quick Helpers
• Service Savvy
• Proactive Assistants
• Rapid Reliance
• Efficient Errands
• Reliable Runners
• Errand Solutions
• Task Titans
• Prompt Partners
• Speedy Support
• Handy Helpers
• Seamless Services
• Priority Pursuit
• Task Tacklers
• Errand Oasis
• Accomplish Assist
• Swift Solutions
• Actionable Aid
• Dependable Doers
• Efficiency Experts
• Errand Pros
• Reliable Reach
• Action Assistants

Let these ideas inspire your creativity as you strive to develop an original and compelling business name for your errand venture.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

7. Register Your Company

Ensuring Legal Compliance for Your Errand Business

1. Ensuring your business is legal

Operating a legal business is essential for long-term success and compliance with regulations.

It is crucial to familiarize yourself with the necessary legal requirements and take the appropriate steps to establish your errand business within the bounds of the law.

2. Consider consulting with a professional for legal and tax setup

Consider consulting with a professional, such as a lawyer or accountant, to ensure your business is set up correctly from a legal and tax perspective.

They can guide you on the best tax benefits and liability protection structure based on your specific circumstances.

Common Types of Registrations for an Errand Business

• Business Name Registration : Registering your business name ensures that it is unique and legally recognized.
• Employer Identification Number (EIN) : Obtaining an EIN from the IRS is necessary if you plan to hire employees.
• Business Entity Registration : Depending on your situation, you may need to register your business as a sole proprietorship, partnership, limited liability company (LLC), or corporation.

Permits and Licenses for an Errand Business

• Local Business License : Check with your local city or county government for any required licenses or permits specific to operating a business in your area.
• Insurance Coverage : Consider obtaining liability insurance to protect yourself and your clients in case of any unforeseen incidents.
• Transportation Permit : If your errand business involves the transportation of goods or individuals, you may need specific permits or licenses related to transportation services.

It is important to conduct thorough research and consult with relevant authorities or professionals to ensure your errand business complies with all necessary registrations, permits, and licenses.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

8. Create Your Corporate Identity

Establishing Your Corporate Identity for Your Errand Business

A Corporate ID serves as a visual representation of your business, encompassing key components such as your logo , business cards , website , stationary, business sign , promotional items, etc.

Impress with a Professional Design: A Constant Presence

Naturally, you want a constant professional design to impress new and existing customers.

Components of a Corporate ID

A Corporate ID consists of various components, including:

• Logo : A well-designed logo helps customers recognize and remember your brand.
• Business Cards : Provide a tangible and convenient way for potential clients to contact you.
• Website : A professional website showcases your services and allows customers to learn more about your business.
• Stationary : Items like letterheads and envelopes add a professional touch to your communication materials.
• Business Sign : A well-designed sign creates visibility and attracts attention to your establishment.
• Promotional Items : Serve as effective marketing tools, reinforcing your brand identity and leaving a lasting impression.

Investing in a cohesive and professional Corporate ID demonstrates your commitment to quality and professionalism, helping your errand business stand out from competitors and build a strong brand reputation.

By ensuring a consistent and professional design , you create a favorable impression that resonates with customers, conveying professionalism, reliability, and trustworthiness.

A strong corporate identity is key to making your errand business memorable and establishing a solid brand presence.

See A Complete Introduction to Corporate Identity Packages for more.

9. Writing a Business Plan

Crafting an Effective Business Plan for Your Errand Business

A business plan is essential for funding and attracting investors. It also serves as a guide during startup and operation.

Writing a comprehensive business plan takes time and effort as it creates a vision for your business.

Choose from options like writing from scratch, hiring a professional, using a template, or business plan software.

Active participation is crucial for a distinctive plan that communicates your business nature and management approach.

Your business plan can be optimized and adjusted as you gain experience. Review periodically for necessary changes.

A Fictitious Sample Business Plan for an Errand Business.

Executive Summary

EfficientErrands aims to provide top-notch errand services in New York City. Our key value propositions are promptness, flexibility, and a client-centric approach. We strive to help our clients reclaim their time and reduce stress by managing their errands effectively.

Company Description

Founded by Jane Doe, a seasoned project manager, EfficientErrands will provide various errand services, including grocery shopping, package delivery, pet services, and more. Our services cater to busy professionals, elderly citizens, and businesses that require assistance with routine tasks.

Market Analysis

New York City is bustling with busy individuals who often struggle to complete their daily errands.

Our target market is broad, covering professionals, elderly individuals, and businesses.

With an increase in the aging population and the demand for work-life balance among professionals, the market potential for our errand service is robust.

Organization and Management

EfficientErrands will start as a solo operator business model. Jane will manage all client interactions, task execution, and business management. As the business grows, we plan to expand into a team-based model, employing a small, dedicated team of errand runners.

Our offerings include but are not limited to shopping, delivery, home organizing, pet services, and personal assistance. Each service is flexible and can be customized to meet client’s unique needs.

Marketing and Sales Strategy

Our marketing strategy includes a strong online presence through our website and social media.

We’ll leverage SEO to attract organic traffic and use targeted advertising to reach potential customers. Customer referrals will also be vital to our strategy, incentivizing existing clients to refer others.

Funding Request

At this stage, we are not seeking external funding. The business will be self-financed by Jane Doe. However, we may consider funding options in the future to scale the business.

Financial Projections

Given our market analysis and pricing strategy, we forecast first-year revenue of $75,000 with operating costs of around $20,000, projecting a net profit of $55,000. We expect steady growth and predict a 20% increase in revenue for the second year.

Exit Strategy

If the business performs as expected, Jane will consider options for scaling further, potentially through franchising. In the event the business is less successful than planned, Jane may consider offering the business for sale to another errand company.

Remember, this business plan is a living document. It should adapt and change as the business evolves. Consider consulting with business professionals for guidance in crafting your own business plan.

For information on creating your business plan, see,  How to Write a Business Plan.

10. Banking Considerations

Establishing a Banking Relationship for Your Errand Business

Consider choosing a nearby bank that caters to business owners.

A separate business account separates your business expenses from personal spending. As a result, it’s easier to track expenses and manage your bookkeeping and can provide proof in case of a tax audit.

Developing a professional relationship with your banker is also a good idea. They can assist you with advice and financial services and streamline applications.

You will also want to consider applying for a merchant account or a similar setup like Square, PayPal, etc., so you can accept credit and debit cards.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

11. Getting the Funds for Your Operation

Getting Funding for Your Errand Business: Exploring Financing Options

Various funding options are available if you need a loan to start your errand business .

Obtaining the necessary funds to launch and operate your business is crucial for a successful start.

Tips for Obtaining a Loan:

• Research and compare funding options, including traditional lenders, private loans, investors, selling assets, using collateral, and government-backed loan programs.
• Prepare a solid business plan that outlines your goals, financial projections, and repayment strategy to demonstrate your business’s potential.

Funding Options:

Consider traditional lenders such as banks, credit unions, or online lenders. Explore private loans from family and friends or seek investment from angel investors or venture capitalists.

Additionally, assess the possibility of selling assets or using collateral to secure a loan.

Meeting with a Loan Officer: Considerations

When meeting with a loan officer, be prepared by:

• Demonstrating knowledge of your business and its financial needs.
• Providing accurate and detailed financial statements.
• Presenting a clear repayment plan.

Sample List of Documents Needed to Apply for a Business Loan:

• Business plan
• Financial statements (balance sheet, income statement, cash flow statement)
• Personal and business tax returns
• Business licenses and permits
• Bank statements
• Collateral documentation (if applicable)
• Personal identification documents (e.g., driver’s license, social security card)

By exploring funding options, preparing a comprehensive business plan, and gathering the necessary documents, you can increase your chances of securing the funding needed to launch and operate your errand business successfully.

See, Getting a Small Business Loan for more.

12. Software Setup

Software Considerations for Your Errand Business

When selecting the software for your errand business, it’s important to keep the following in mind:

• Researching Software : Implementing a program from scratch is easier than switching systems later. Look for demos, read reviews, and seek feedback from others who have used the software.
• Expense Tracking and Financial Documents : Research software options for tracking expenses and preparing financial documents for tax filing. Consult with your bookkeeper or accountant to choose the right accounting software.

List of Software Used for an Errand Business:

• Task management software (e.g., Trello, Asana)
• Customer relationship management (CRM) software (e.g., HubSpot, Salesforce)
• Accounting software (e.g., QuickBooks, Xero)
• Expense tracking software (e.g., Expensify, Zoho Expense)
• Communication and collaboration tools (e.g., Slack, Microsoft Teams)
• Time tracking software (e.g., Toggl, Harvest)
• Route optimization software (e.g., Route4Me, OptimoRoute)

Consider these software options based on your specific needs, ensuring they improve productivity , streamline operations, and support your business goals.

Check out Google’s latest search results for software packages for a errand business.

13. Get The Right Business Insurance

Insurance Considerations for Your Errand Business

When seeking insurance for your errand business, it is crucial to address the following concerns:

• Comprehensive Coverage : Ensure that your insurance provides adequate protection for various aspects of your business, including customers, employees, yourself, anyone on the premises, and your property. Assess the specific risks associated with your errand business and choose coverage accordingly.
• Professional Liability Insurance : Consider obtaining professional liability insurance to safeguard yourself against potential lawsuits from errors, omissions, or negligence in your services.
• Home-Based Business : If you plan to operate or manage your errand business from your home, inform your home insurance agent. This is important as it may impact your existing home insurance policy, and you may need additional coverage to protect your business assets.
• Insurance Broker Guidance : Utilize the expertise of a competent insurance broker who specializes in business insurance. They can guide you in understanding your coverage needs and ensure that you have sufficient protection against potential risks and liabilities.

By addressing these concerns and working with an experienced insurance broker, you can secure comprehensive coverage that safeguards your errand business, provides peace of mind, and helps you mitigate potential risks effectively.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for errand business insurance .

14. Hiring Employees

Operating Your Errand Business: Considerations for Staffing

In the early stages of your errand business, handling operations on your own is common to keep costs low, particularly payroll expenses during the initial phase.

However, as your business expands, managing and operating it alone may become overwhelming. Hiring the right people can significantly enhance productivity and help you effectively handle the growing demands of your business.

Consider the Following Job Positions or Outsourced Services for Your Errand Business if and When It Expands:

• Customer Service Representatives: Support and assist clients, addressing inquiries and resolving issues.
• Dispatchers: Coordinate and schedule errand requests, ensuring timely and efficient delivery of services.
• Drivers: Responsible for transportation and delivery of goods, navigating routes efficiently.
• Administrative Assistants: Assist with administrative tasks, including scheduling, documentation, and data management.
• Marketing Specialists: Develop and implement marketing strategies to promote your errand business and attract new clients.
• Bookkeepers or Accountants: Manage financial records, track expenses, and ensure accurate financial reporting.
• IT Support: Maintain and troubleshoot technology systems, ensuring smooth operations.
• Legal and Insurance Professionals: Seek advice and services from legal and insurance professionals to protect your business interests and ensure compliance.

Remember, as your errand business grows and achieves success, considering these positions or outsourcing services can help you effectively manage the increasing demands and deliver quality services to your clients.

For more, see, How and When to Hire a New Employee.

Points To Consider

Hours of operation for your errand business.

Consider the following options for determining your hours of operation:

• Regular Business Hours: Set standard operating hours that align with typical business hours in your area.
• Extended Hours: Offer additional operating hours to accommodate customers outside of regular business hours.
• Flexible Hours: Provide on-call or appointment-based services to cater to specific time-sensitive needs.
• 24/7 Availability: Consider operating around the clock if there is a demand for round-the-clock services.
• Seasonal Adjustments: Modify your hours during busy periods or holidays to meet increased demand.

By assessing customer needs and market research, choose the most suitable hours of operation for your errand business to ensure optimal customer satisfaction and business success .

A List of Equipment You May Need for an Errand Business:

1. Reliable Vehicle : This is essential for transportation to complete various errands. It should be reliable and well-maintained for efficiency.

2. Smartphone : A smartphone can help with communication, navigation, task tracking, and more.

3. Computer : Useful for managing business operations, including finances, marketing, and client communication.

4. Office Supplies : This may include stationery, a planner or digital management app for scheduling, and file storage solutions for record-keeping.

5. GPS System : A dedicated GPS system can be helpful for efficient navigation, especially if the smartphone is being used for other tasks.

6. Safety Equipment : Depending on the errands, safety gear may be necessary. This can include gloves, masks, or sanitizing supplies, especially if dealing with potentially hazardous materials or during a health crisis.

7. Insulated Bags : If you’re delivering food or other temperature-sensitive items, insulated bags are crucial to maintain the right temperature.

8. Trolleys or Carts : These can be useful for carrying heavy items or large loads.

Remember, the equipment you need may vary depending on the specific errands you plan to handle for your clients.

Marketing Considerations

Attracting Customers for Your Errand Business: Effective Marketing Strategies

To thrive, your errand business must attract customers. However, this can be challenging when your operation is new and unfamiliar to people.

As you establish a strong reputation over time, attracting customers becomes easier. You also gain valuable marketing experience along the way.

Remember, marketing your errand business is an ongoing process. The more you invest in effective marketing techniques, the more revenue you can generate.

You don’t always need to rely on a marketing agency or expert. Instead, think of marketing as raising awareness about your business, which you can do whenever an opportunity arises.

Consider the following strategies to promote your errand business:

• Word-of-Mouth Referrals : Encourage satisfied customers to spread the word and refer others to your services.
• Online Presence : Establish a professional website, create social media profiles, and utilize online directories to enhance your visibility.
• Networking : Attend industry events, join local business groups, and connect with potential customers and partners.
• Targeted Advertising : Utilize online platforms and local advertising channels to reach your specific target audience.
• Community Involvement : Engage with the local community through sponsorships, partnerships, or participating in charitable events.

By implementing these marketing strategies and raising awareness about your errand business, you can attract customers, drive revenue growth, and establish a strong presence in your target market.

See our article How To Get Customers Through the Door and our marketing section for articles that will provide ideas to bring awareness to your errand business.

Evaluating Your Skill Set for Running an Errand Business

It’s crucial to assess your skill set and determine if you possess the necessary abilities to successfully run an errand business.

Recognize the importance of focusing on your strengths while identifying any skills you lack. Remember, if there’s a skill gap, you can acquire it through learning or hire someone with the expertise.

Essential Skills for an Errand Business Owner:

• Organization and Time Management: Efficiently managing tasks, schedules, and deadlines.
• Communication: Effectively conveying information and building relationships with clients and partners.
• Problem-Solving : Identifying and resolving challenges or obstacles that may arise.
• Attention to Detail: Ensuring accuracy and precision in handling client requests and delivering services.
• Customer Service: Providing exceptional service, addressing customer needs, and maintaining client satisfaction.
• Flexibility and Adaptability: Adjusting to changing priorities and accommodating diverse client requirements.
• Reliability and Trustworthiness: Consistently delivering on commitments and maintaining client trust.
• Basic Financial Management: Handling invoices, tracking expenses, and maintaining financial records.
• Tech Savviness: Utilizing digital tools, communication platforms, and software relevant to the business.
• Problem-Solving: Efficiently resolving issues and finding innovative solutions for clients.

These essential skills will contribute to your success as an errand business owner, ensuring efficiency.

Expert Tips

Expert tips provide valuable insights for both seasoned professionals and novices.

Experts can discover more efficient methods or gain new perspectives, while novices can benefit from a wealth of tips to enhance their skills and knowledge in their respective field.

See the latest search results for expert errand tips to gain tips and insights.

Valuable Resources for Your Errand Business

In this section, you will find a curated list of resources that provide up-to-date and popular information relevant to your errand business. These resources can be utilized both during the startup phase and when your business is fully operational.

By exploring these resources, you will gain a deeper understanding of the industry and discover valuable tips to enhance your business operations and strategies.

Stay informed and make the most of these resources to drive success in your errand business.

Industry Trends and Statistics

The Value of Industry Trends and Statistics for Your Errand Business

Examining industry trends and statistics offers several benefits for your errand business.

Gain insights into market demand, customer preferences, and emerging opportunities, enabling you to make informed decisions and stay ahead of the competition.

See the latest search results for trends and statistics related to the errand industry.

Top Errand Business

Drawing Inspiration from Established Errand Businesses

Analyzing established errand businesses can spark ideas for identifying gaps in the industry or areas where improvements can be made in your own business.

By learning from successful ventures, you can uncover valuable insights and discover opportunities that may have been overlooked.

See the latest search results for the top errand businesses.

The Future of the Errand Industry

The Advantages of Researching the Future of the Errand Business Industry

Researching the future of the errand business industry provides significant benefits for aspiring entrepreneurs.

Gain valuable insights into emerging trends, evolving customer needs, and potential market opportunities, allowing for informed decision-making and strategic planning.

See the search results for the future of the errand industry.

The Advantages of Researching Industry Prices for Starting an Errand Business

Conducting thorough research on industry prices offers several benefits for aspiring entrepreneurs entering the errand business.

It provides insights into pricing strategies, competitive rates, and customer expectations, enabling you to set competitive prices and maximize profitability.

See the latest errand prices.

Errand Businesses for Sale

Considerations When Buying an Established Errand Business

When deciding between buying an existing errand business or starting from scratch, it’s important to weigh the pros and cons:

Benefits of Buying an Established Errand Business:

• Immediate Revenue : You can start earning revenue from the day you take over the business.
• Skip the Startup Phase : By purchasing an established business, you bypass the challenges of starting from scratch.
• Proven Track Record : The business has a track record of success, giving you confidence in its viability.
• Existing Customer Base : You already have a customer base, saving time and effort in acquiring new clients.
• Reputation : The business has built a reputation, providing a foundation for future growth.

Disadvantages of Buying an Established Errand Business:

• Higher Cost : The purchase price is usually higher due to the goodwill associated with the existing customer base.
• Potential Customer Loss : If you want to implement changes, you risk losing customers accustomed to the previous way of doing business.
• Inherited Reputation : When you purchase a business, you acquire its reputation, including any negative aspects.

Carefully evaluate these factors when buying an established errand business to make an informed decision aligned with your goals and circumstances.

See the latest search results related to errand – businesses for sale to browse the latest listings.

A Day in the Life

Gaining Insights into the Life of an Errand Business Owner

“A Day in the Life of an Errand Business Owner” provides valuable tips and insights industry professionals share.

This resource offers an overview of the daily experiences, helping you better understand what to expect in this line of work.

See the search results related to a day in the life of errand business owners.

Errand Business Owners Interviews

Valuable Insights from Errand Business Owners

Interviews with experienced business owners in the errand industry provide crucial information and insights.

Exploring this section offers diverse perspectives and valuable insights, allowing you to comprehensively understand the industry and better prepare for what lies ahead.

See the search results related to interviews of errand business owners.

Staying Updated with Errand Industry News

Keeping up with the latest news is a valuable way to stay informed about the errand industry.

Setting up news alerts ensures you receive notifications whenever the media cover new developments. Stay in the know and stay ahead.

See what’s in the news related to an errand business?

Watching videos about the errand industry provides valuable tips and insights. Additionally, explore related videos suggested by YouTube, as they often cover topics you may not have considered, broadening your knowledge and understanding of the industry.

See the links to YouTube Videos Below.

• Videos related to starting an errand business can be found here.

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Errand Service Financial Model

• Services/ Consulting , Financial Excel Model , Financial Excel Template , Browse by Categories , Browse by Industry , Services/ Consulting Financial Model , Consulting Business Financial Model , Small Online Business Excel Financial Model Projection

$ 190 Original price was: $190. $ 95 Current price is: $95.

The Errand Service Financial Model allows a user to forecast the business’s performance. Those who have no idea about financial modeling want to include detailed financial analysis and valuation in their financial model. We have prepared a perfect Errand Service Financial Model template for you. The Errand Service Financial Model template includes all the necessary financial and valuation reports, including Company evaluation, Sensitivity analysis report, Cash flow, break-even, Start-up Cost plan, Balance sheet, and Net income statements. This model is perfect for start-ups and individuals seeking loans or investments. A hassle-free document with no further editing required. Just buy, include numbers, and be ready to go!

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• This Product: Errand Service Financial Model - $ 190 Original price was: $190. $ 95 Current price is: $95.
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Errand Service Financial Model Template

Establishing an Errand service and running it efficiently isn’t that hard. The business can be fun and profitable at the same time. If you want to help others carry out their chores by carrying out their other chores and earning good money, you have to see your financial projection. If you had a proper Errand Service Financial Model template consisting of all relevant financial statements and performance metrics. It will enable the user to make sound decisions by considering all operational and financial risk factors.

The Errand service Financial Model is highly adaptable and dynamic for forming a 5-year monthly and yearly 3-statement ( Income Statement, Balance sheet, and Cash Flow Statement) financial projection for a start-up or existing agency. This model also consolidates a discounted cash flow valuation calculation using the projected Free Cash Flows. The Errand services Financial Model also calculates the main relevant financial performance ratios and KPIs banks and investors require to estimate business profitability and liquidity.

How To Use Model

It is very simple to use the Errand Service Excel Financial Model Template. On the Input tab, you can feed the financial information for the model, such as sales price, cost, expenses, etc. Inputs are shown in this model with a Peach fill and call-up (direct links from other cells) filled in grey with black letters, while calculations depict white fill and black characters.

In the sensitivity analysis tab, you can see a high-level report with the main business scenarios. The tab shows the company’s profit in case of any uncertainty. For example, if the cost or expenses increase by 10%.

Calculations: This is where all calculation performs. The revenues are calculated based on the product or services sold, promotion, pricing, promotions, and marketing campaign , deducting the business variable and fixed costs. With the help of working capital assumptions, we have measured the impact on business cycles. In last, the level of the investment. Consider calculating the relevant debt financing.

Moving to the Project Valuation tab, a company valuation is performed by using the free cash flows with discount rates to the firm. Then a series of investment metrics are presented (IRR, NPV , ROE).

The Dashboard tab: Various graphs present the revenues, cash analysis, break-even analysis, sensitivity, assets vs. liabilities, start-up summary, etc.

Key Inputs of Errand service Excel Financial Model Template

• The growth rate, Price, and Expense.
• Various Bouquets with prices and segmentation of revenue.
• Marketing Budget Sheet (which measures how many customers we get from marketing).
• Revenue Assumptions
• Average Payable and Receivable days your business is following.
• Cost of Goods.
• Fixed Asset and Capital Expenditure.
• Investment table

Key Features of Errand Service Excel Financial Model Template

Input sheet.

This financial model template contains inputs that, when changed, impact the calculations; therefore, the changes are applied to all relevant sheets. This financial model always has built-in flexibility to display different outcomes or final calculations based on this sheet’s changes.

Start-up  Summary

A start-up summary tab includes the total cost incurred at the start of business and capital expenditure, how much cash has been injected by the company so far, and the amount of investment required is calculated based on the number of months.

A Start-up Summary helps you take a realistic view of your idea and double-check whether the business has enough funds to support operations.

Monthly & Yearly Income Statement

The Errand Service Financial Model provides the monthly and yearly income statement structure. The framework for creating a full corporate forecasting model tailored to your business.

An integrated financial model is powerful since it enables the Financial Model user to change any assumption in one part of the statement to see how it impacts all other parts of the statements accurately and consistently.

The monthly Income Statement sheet of the Financial Model is perfect for those who require regular reporting and details. Additionally, Income Statement contains all revenue streamlines with gross and net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands Errand Service’s business goal . Therefore, we have developed a mechanism that helps business owners determine whether they are making profits.

Furthermore, the Yearly Income Statement gives you complete insights into revenue and general & administrative expenses. The Yearly Income Statement also contains several graphs, assumptions, ratios, net profit, cost of services, and profit after tax.

Balance Sheet

This balance sheet enables you to analyze your position of current assets, fixed assets, liabilities, and equity. This also allows you to monitor your accounts receivable, accounts payable, accrued expenses, etc. Therefore, this specific financial model gives you the perfect space to analyze your key financial balance accounts.

The Cash Flow Statement is the vital part of the three statements that report the cash spent and generated during a specific period. The Cash Flow Statements bridge the income statement and balance sheet by how money has moved in and out of business.

Three main sections of the Cashflow Statement

• Operating Activities : We have included all cash in and out related to the operations of the business
• Investing Activities : Any cash from the disposal of an asset and investments included in this section and linked to the inputs and fixed asset tab.
• Financing Activities : We have separately made a loan-related tab where you can enter all loan-related information. The tab is linked to the Financing Activities of Cashflow Statement .

The Cashflow Statement in our Model contains a dedicated sheet to monitor and analyze your company cash-ins and out. This cash flow statement is based on several key inputs: Payable and Receivable Days, yearly income, working capital, long-term debt, net cash, etc. This calculation computes your net cash flow and beginning and end cash balances. This is a perfect template for your company’s cash flow management.

Break-Even Analysis

A break-even analysis can help you measure how different scenarios might play out financially. For example, if you increase the marketing budget or add another employee to the payroll, how many extra sales will be needed to recover that additional expense?

As a coup, we have included a Break-even analysis of our Financial Model, which will help the user determine sales. The break-even analysis will help determine the profits generated at the various sales levels. The Break-Even Analysis refers to the total sales contribution refers to fixed costs at zero profit and loss. This Technique is primarily based on marginal costing, which behaves differently at various levels of output activity.

Project Evaluation

Since the table calculates Return on Investment, Investor’s Future Equity Share, and Cash Burn Rate Analysis, analyzing the company’s performance becomes easy to capture potential investors.

Diagnostic Sheet

This Diagnostic sheet is a new inclusion to our financial model . This automatically explains the condition of the business. For example, if your company’s profit is 30% of the total sales, the sheet will include favorable comments ( As mentioned above in the picture ). The comments are automatically connected to the numbers of financial data in the income statement, balance sheet, and Cashflow. The Diagnostic Sheet is beneficial to give the company’s insights in just one line.

Users and readers respond and process visual graphs better than data. Furthermore, This dashboard provides you with a graphical management tool that enables you to track all your relevant financial KPIs , improve cash flow management, and track expenses, sales, and net revenue in detail to meet and outperform the financial objectives of your business.

Benefits of Errand Service Excel Financial Model Template

Encapsulate Company Performance- The errand service Financial Model analysis simplifies a company’s financial statements. It allows the user to express critical profitability and financial position information in just a few numbers. For example, the company’s net profit margin encapsulates the net effect of a company’s revenues and all expenses. It will enable the user to conclude a company’s profitability without going through lengthy account statements.

Bottom Line – An errand service financial model can be the key to your company’s better and informed future. Succeeding in planning your Company’s finances well will mean overall success in making wise investment decisions, purchasing the right operating assets, controlling costs, and determining company valuation .

Accommodates Investors – This model provides valuation and performance analysis charts. It enables the investors and banks to determine the company’s worth considering lending funds to your company.

Based on Financial Principles – We researched this business model with logic.

Properly Integrated – The model assumptions and calculations are structurally integrated. So the change in the main sheet will automatically lead to the change in all related sheets easily.

Visualization Tool –  This Financial model also prepares a clear communication of the quantitative outcomes. As obtained by calculations via  various graphs and charts .  Therefore, the user does not need to pay much attention to the financial model’s inner workings.

The retail industry includes different types of businesses, such as errand services and similar ventures. Studies investigating the effects of the retail industry on the economy examine how this sector affects the growth of the economy, employment levels, and how people spend their money. For more details, click Retail Industry Impact on the Economy  here.

Testimonial

Our primary objective is to ensure the happiness and satisfaction of our customers. We strongly emphasize meeting their requirements and upholding a positive image. To accomplish this, we actively solicit customer feedback to evaluate our product’s effectiveness and pinpoint areas where we can make enhancements. Provided below is a testimonial from a customer that showcases the quality of our service.

Walk-Through Video of Errand Service   Excel Financial Model

This Product Includes: 1 Excel File

7 reviews for errand service financial model.

emily johnson – March 30, 2021

As someone with limited knowledge of financial modeling, I was looking for a comprehensive solution that could provide detailed financial analysis and valuation, and this template has exceeded my expectations.

Lorelai Carrington – November 10, 2021

This Excel model provided me with an in-depth future analysis and forecast. It was definitely helpful.

Luke – August 21, 2022

Its user-friendly nature and comprehensive reports make it suitable for both start-ups and individuals seeking financial insights. It saved me a significant amount of time and effort, and I am confident that it will continue to be a valuable tool for my business’s success.

Ruth – October 3, 2022

I am extremely satisfied with the Errand Service Financial Model template. It has made financial modeling accessible and easy for someone like me with limited expertise. I highly recommend this template to anyone seeking a comprehensive financial analysis tool for their business.

Nathan Harrison – October 28, 2022

I must say it exceeded my expectations. As someone with no prior knowledge of financial modeling, I found this template incredibly helpful in analyzing and forecasting my business’s performance. I highly recommend the Errand Service Financial Model template to anyone in need of a reliable and comprehensive financial analysis tool.

Zion – February 27, 2023

It has saved me a tremendous amount of time and effort by providing a comprehensive and ready-to-use financial analysis tool. I highly recommend this template to anyone in need of detailed financial modeling and analysis for their business.

Talia – April 8, 2023

I am extremely satisfied with my decision. As someone who has limited knowledge of financial modeling, I was looking for a solution that would provide me with detailed financial analysis and valuation for my business, and this template delivered exactly that.

Only logged in customers who have purchased this product may leave a review.

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Voices of Victory: Client Testimonials of Triumph

Dana Todd Founder & CEO

Services: Accounting and Bookkeeping Services

Industry: Fashion Clothing Store

It is my pleasure to recommend Oak’s bookkeeping services to anyone, as I have been using them for many years, and I believe they are genuine and really know their stuff.

Andrina Founder

Services: CFO Services , Market Research

Industry: Beauty Products and Manufacturing

No amount of praise can do justice to the quality of Sadaf’s CFO services. Her dedication to her clients is unparalleled. I have trusted her with two complicated accounts, and she handled everything with a professional attitude and without making any errors.

Denver Maloney CEO

Industry: Healthcare

It is a pleasure to work with the Oak Team, particularly Sadaf. As a result of her partnership with me, I was able to gain a better understanding of financial decisions. For my CFO needs, I fully trust Oak!

Lars Narfeldt COO

Services: Investor-Ready Document Services

Industry: Real Estate

This was our first time working together, but it was so easy to get started and Sadaf quickly understood our targets and accommodated the way we work. She was extremely patient with our continuous change in deliverables, worked hard to meet our expectations and often suggested how we could improve our work and make the project more efficient. Well skilled in her profession and an absolute pleasure to work with.

Emma Sánchez Andrade Smith Co-Founder

Services: Financial Model , Financial Forecasting , Pitch Deck & Market Research

Industry: Fintech

Sadaf was above & beyond what we could’ve asked for! I will certainly hire her again, and will recommend her to anyone I can! Her and her team’s quality of work is excellent, and she gets things done very quickly. She is very engaging, and responsive, there for our every beckon call. She spent nearly an hour on a phone call with us to go over the numbers and helped us brainstorm some new numbers when we needed them. Amazing, incredibly talented professional – you will be doing yourself a big favor if you hire her!! :)

Sufian Chowdhury Founder & CEO

Services: Startup Saas Financial Model , Market Research

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Thanks so much for working so hard on this project. Looking forward to working on many more projects with you and your team!

Stephanie Skourti Co-Founder

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There is no doubt that Oak is a game-changer. A unique combination of experience and expertise makes them the best in the business. They have helped me relieve a lot of stress and improved the stability of my business. Having a teammate to guide me through big financial decisions is truly a blessing.

Luisa Silva Co- Founder

Industry: Health Care

Sadaf and her team are really helpful and hardworking, would recommend them for any concrete tasks you may need help with in your organization.

Lalit Vidhani Consultant

Services: Financial Model , Business Plan , Pitch Deck & Market Research

Industry: Blockchain

Excellent and professional approach and I am happy with the results. The working with team Oak Consultant was wonderful and all assignments were completed with lot of energy and professionalism by members of the team.

Stacey Powell CEO

Services: Cash Flow Analysis Tool

Industry: Consulting Firm

Sadaf and her team have excellent excel spreadsheet skills. My client provided a rather complicated set of accounting reports that needed to be integrated into a spreadsheet format I had, but I didn’t have time to do it myself. With very limited instructions, Sadaf and her team successfully completed the integration and improved upon my spreadsheet with pivot tables and graphs. Will definitely keep her for future financial analysis and spreadsheet work.

Sabeen Ali Founder

Industry: Information Technology Company

Oak bookkeeping services have been a great help. This company has a high level of professionalism, friendliness, and positivity! The service they provide is excellent, and I highly recommend them.

Ramin Heydari CEO & President

Industry: Telecom

Oak provides exceptional accounting services. You’ll find that they offer a much wider range of knowledge than your average accountant, making them a valuable asset to your company. Highly recommended!!!

How much does it cost to establish an errand service?

By alex ryzhkov, resources on errand service.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Introduction

Welcome to our blog post on the thriving industry of errand services! In recent years, the demand for convenient and efficient errand solutions has skyrocketed, leading to the emergence of innovative business models. According to the latest statistics, the errand service industry in the US has experienced remarkable growth, with an annual increase of XX% . This surge can be attributed to the rise of the on-demand model, which allows customers to request services through a mobile app or website, revolutionizing the way errands are handled.

Operating Expenses

Operating a successful errand service requires careful consideration of various operating expenses. These costs are essential for ensuring the smooth functioning of the business and providing quality services to clients. Below is a list of the key operating expenses that errand service providers need to account for:

By carefully managing and budgeting for these operating expenses, errand service providers can maintain a sustainable business model while delivering exceptional service to their clients.

Employee wages and benefits

When it comes to employee wages and benefits in the errand service industry, it is important to consider the various factors that can influence compensation. According to recent statistical information, the average hourly wage for independent contractors in the US ranges from $15 to $25, depending on the specific tasks and location.

While the on-demand model allows for flexibility in pricing, it is crucial for companies to ensure that their contractors are fairly compensated for their work. This not only helps attract and retain skilled individuals but also contributes to overall customer satisfaction.

In addition to wages, companies in the errand service industry often provide certain benefits to their employees. These benefits can include access to healthcare plans, retirement savings options, and paid time off. Offering such benefits not only helps attract and retain talented individuals but also demonstrates a commitment to the well-being of the workforce.

It is worth noting that the specific wages and benefits offered may vary from company to company. Some errand service companies may choose to provide higher wages or more comprehensive benefits packages to differentiate themselves in the market and attract top talent.

Overall, the errand service industry recognizes the importance of fair compensation and benefits for its employees. By offering competitive wages and attractive benefits packages, companies can create a positive work environment and ensure the satisfaction of both their workforce and customers.

Vehicle maintenance and fuel

When it comes to running an errand service, vehicle maintenance and fuel costs are crucial factors to consider. Keeping vehicles in good condition and ensuring they have enough fuel is essential for providing efficient and reliable services to customers.

According to the latest statistical information, the average annual cost of vehicle maintenance in the United States is approximately $1,186 per vehicle. This includes expenses such as routine maintenance, repairs, and replacement of parts. It is important for errand service companies to budget for these costs to ensure their vehicles remain in optimal condition.

In addition to maintenance costs, fuel expenses also play a significant role in the overall operational costs of an errand service. The average price of gasoline in the US is currently around $3.00 per gallon. With the constant need for vehicles to be on the road, errand service companies must carefully monitor fuel consumption and plan routes efficiently to minimize costs.

To mitigate the impact of vehicle maintenance and fuel expenses, errand service companies can implement strategies such as regular vehicle inspections, preventive maintenance, and driver training programs. By proactively addressing maintenance issues and promoting fuel-efficient driving habits, companies can reduce the frequency of repairs and optimize fuel consumption.

Furthermore, embracing technology can also help in managing vehicle maintenance and fuel costs. Utilizing fleet management software can provide real-time data on vehicle performance, fuel consumption, and maintenance schedules. This enables companies to identify potential issues early on, schedule maintenance more effectively, and optimize fuel usage.

In conclusion, vehicle maintenance and fuel costs are significant considerations for errand service companies. By budgeting for maintenance expenses, implementing preventive measures, and leveraging technology, companies can ensure their vehicles are well-maintained and fuel-efficient, ultimately enhancing the overall efficiency and profitability of their operations.

Insurance premiums

When operating an errand service business, it is crucial to consider the cost of insurance premiums. Insurance coverage is essential to protect both the company and its contractors from potential liabilities and risks that may arise during the course of providing services.

According to the latest statistical information, the average annual insurance premium for errand service businesses in the US ranges from $500 to $2,000, depending on various factors such as the size of the business, the number of contractors, and the types of services offered. This cost can vary significantly based on the specific insurance coverage required, including general liability insurance, workers' compensation insurance, and commercial auto insurance.

General liability insurance is a fundamental coverage that protects the business against claims of bodily injury, property damage, or personal injury caused by the company's operations. The premium for general liability insurance typically ranges from $500 to $1,500 per year.

Workers' compensation insurance is crucial for businesses that have contractors or employees. It provides coverage for medical expenses and lost wages in the event of work-related injuries or illnesses. The premium for workers' compensation insurance varies based on the number of contractors or employees and the nature of the work performed. On average, it can range from $500 to $2,000 per year.

Commercial auto insurance is necessary if the business owns or operates vehicles for errand services. The premium for commercial auto insurance depends on factors such as the number of vehicles, the driving records of the contractors, and the coverage limits required. It typically ranges from $1,000 to $3,000 per year.

It is important for errand service businesses to carefully assess their insurance needs and work with an insurance provider to determine the appropriate coverage and premiums. By adequately protecting the business and its contractors, insurance coverage helps mitigate potential financial risks and ensures peace of mind for both the company and its customers.

Advertising and Marketing Expenses

When it comes to running an errand service business, advertising and marketing expenses play a crucial role in attracting customers and promoting the services offered. In the United States, companies in this industry typically allocate a significant portion of their budget towards advertising and marketing efforts.

According to the latest statistical information, the average annual advertising and marketing expenses for errand service businesses in the US range from $10,000 to $50,000. This amount may vary depending on the size of the company, its target market, and the level of competition in the area.

These expenses cover various marketing activities, including online advertising, social media campaigns, search engine optimization (SEO), content creation, and traditional advertising methods such as print ads and direct mail. Additionally, companies may also invest in promotional events, sponsorships, and partnerships to increase brand visibility and reach a wider audience.

It is important for errand service businesses to carefully plan and allocate their advertising and marketing budget to ensure maximum return on investment. This involves identifying the most effective channels to reach their target audience and creating compelling and engaging content that resonates with potential customers.

Furthermore, tracking and analyzing the performance of advertising and marketing campaigns is essential to optimize strategies and allocate resources effectively. By monitoring key metrics such as customer acquisition cost, conversion rates, and customer feedback, businesses can make data-driven decisions to improve their marketing efforts and drive growth.

In conclusion, advertising and marketing expenses are a significant aspect of running an errand service business. By investing in strategic and targeted marketing initiatives, companies can increase their brand awareness, attract new customers, and ultimately drive revenue growth.

Office rent and utilities

When starting an errand service business, one of the key considerations is the cost of office rent and utilities. These expenses can vary depending on the location and size of the office space, as well as the specific utilities required.

According to recent statistics, the average monthly cost of office rent in the United States ranges from $1,000 to $5,000, depending on the city and the size of the office. In major metropolitan areas, such as New York City or San Francisco, the rent can be significantly higher, reaching up to $10,000 or more per month.

In addition to office rent, utilities such as electricity, water, and internet are essential for running a successful errand service business. The average monthly cost of utilities in the US is around $200 to $500, depending on the size of the office and the specific needs of the business.

It is important for entrepreneurs in the errand service industry to carefully consider their budget and choose an office space that meets their needs without exceeding their financial capabilities. Opting for a smaller office space or considering shared office spaces can help reduce the cost of rent. Additionally, implementing energy-efficient practices and technologies can help lower utility expenses.

By carefully managing office rent and utilities, errand service businesses can allocate their resources more effectively and focus on providing excellent service to their customers.

Technology and software expenses

Technology and software play a crucial role in the success of an errand service business. From managing customer requests to dispatching contractors and tracking their progress, a reliable and efficient system is essential. However, implementing and maintaining such technology does come with expenses.

According to recent statistics, the average annual technology and software expenses for an errand service business in the US range from $10,000 to $50,000. This includes the cost of developing and maintaining a mobile app or website, as well as any additional software or tools required for smooth operations.

One of the major expenses in this category is the development of a user-friendly and intuitive mobile app or website. This can cost anywhere from $5,000 to $30,000, depending on the complexity and features required. Additionally, ongoing maintenance and updates to the app or website can incur additional costs.

Another significant expense is the implementation of a robust backend system that handles customer requests, dispatches contractors, and tracks their progress. This system may require custom development or the use of existing software solutions, which can range from $2,000 to $20,000 annually.

In addition to the core technology expenses, there may be additional costs for integrating third-party services, such as payment gateways or mapping services, into the platform. These costs can vary depending on the specific services chosen and the level of integration required.

It is important for errand service businesses to carefully consider their technology and software expenses and budget accordingly. Investing in reliable and efficient technology can greatly enhance the customer experience and streamline operations, leading to increased revenue and customer satisfaction.

Supplies and Equipment Costs

When starting an errand service business, it is important to consider the costs associated with supplies and equipment. These expenses can vary depending on the specific services offered, but they are essential for ensuring the smooth operation of the business.

According to the latest statistical information, the average cost of supplies and equipment for an errand service business in the US is approximately $2,000 to $5,000. This includes items such as office supplies, communication devices, transportation vehicles, and any specialized equipment required for specific services.

Office supplies, such as stationery, computer equipment, and software, are necessary for managing administrative tasks and communicating with clients. The cost of these supplies can range from $500 to $1,000, depending on the size and complexity of the business.

Communication devices, such as smartphones or tablets, are crucial for staying connected with clients and dispatching contractors. The cost of these devices can vary, but on average, it ranges from $500 to $1,000 per device.

Transportation vehicles are essential for fulfilling errand requests, especially for services that involve deliveries or transportation of goods. The cost of vehicles can vary significantly depending on whether the business opts for purchasing or leasing. On average, the cost of transportation vehicles ranges from $10,000 to $20,000.

In addition to these general supplies and equipment costs, specialized equipment may be required for specific services. For example, if the business offers pet care services, it may need to invest in pet grooming tools or pet carriers. The cost of specialized equipment can vary depending on the nature of the service, but it is important to budget for these additional expenses.

Overall, it is crucial for an errand service business to carefully consider and budget for supplies and equipment costs. These expenses are necessary for providing efficient and reliable services to customers, and they contribute to the overall success and profitability of the business.

Licensing and Permit Fees

When starting an errand service business, it is important to consider the licensing and permit fees required to operate legally. These fees vary depending on the location and specific requirements of each state or municipality. It is crucial to research and understand the licensing and permit fees in your area to ensure compliance with local regulations.

According to the latest statistical information, the average licensing and permit fees for an errand service business in the United States range from $100 to $500. However, it is important to note that these fees can vary significantly depending on the state and local regulations.

Obtaining the necessary licenses and permits is essential for establishing trust and credibility with both customers and regulatory authorities. It demonstrates your commitment to operating a legitimate and professional business. Failure to obtain the required licenses and permits can result in fines, penalties, and even the closure of your business.

Some common licenses and permits that may be required for an errand service business include:

• Business License: This is a general license that allows you to operate a business in a specific jurisdiction.
• Professional License: Depending on the services you offer, you may need specific professional licenses, such as a driver's license or a pet care license.
• Vehicle Permit: If you use a vehicle for your errand services, you may need to obtain a commercial vehicle permit or a special license plate.
• Insurance: While not a license or permit, it is important to mention that obtaining the appropriate insurance coverage is crucial for protecting your business and clients.

It is recommended to consult with a local business attorney or regulatory agency to determine the specific licenses and permits required for your errand service business. They can provide guidance on the application process, associated fees, and any additional requirements.

Remember, investing in the necessary licenses and permits is an important step towards building a successful and compliant errand service business. It ensures that you are operating within the legal framework and provides peace of mind to both you and your customers.

Professional services fees

When it comes to professional services fees in the errand service industry, it is important to consider the latest statistical information. According to recent data, the average fee for professional errand services in the US ranges from $25 to $50 per hour, depending on the complexity and nature of the task.

It is worth noting that these fees can vary based on factors such as location, market demand, and the specific services being offered. For example, in major metropolitan areas where the cost of living is higher, professional errand services may command higher fees compared to smaller towns or rural areas.

Furthermore, certain specialized services within the errand industry, such as legal or financial assistance, may have higher fees due to the expertise and qualifications required. These professionals often charge a flat fee or an hourly rate that is significantly higher than the average.

It is also important to consider that professional errand services may offer different pricing structures. Some companies may charge a flat fee for specific tasks, while others may charge an hourly rate. Additionally, there may be additional charges for rush or same-day services.

When determining professional services fees, errand service providers must carefully consider their operating costs, including labor, transportation, and any additional expenses incurred during the fulfillment of tasks. It is crucial to strike a balance between competitive pricing and ensuring profitability for the business.

Ultimately, the professional services fees in the errand service industry are influenced by various factors and can vary significantly. It is essential for errand service providers to conduct market research, analyze their costs, and consider the value they provide to their customers in order to establish fair and competitive pricing.

In conclusion, the errand service industry has experienced remarkable growth in recent years, with an annual increase of XX% . This can be attributed to the convenience and efficiency offered by innovative business models, such as the on-demand model. However, it is important to note that running an errand service business comes with various expenses, including employee wages and benefits, vehicle maintenance and fuel, insurance premiums, advertising and marketing expenses, office rent and utilities, technology and software expenses, supplies and equipment costs, licensing and permit fees, and professional services fees. These costs are necessary to ensure the smooth operation and success of the business. As the demand for errand services continues to rise, it is crucial for businesses in this industry to carefully manage their expenses and provide exceptional service to meet customer expectations.

Errand Service Financial Model

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Senior Errand Service

How to Start an Errand Running Business for Seniors

by Craig Wallin

With 50 million Americans over age 65 and 6 million over 85, the senior service business has become a cottage industry, requiring everyone from home health care workers to gardeners to fall prevention specialists. One of the fastest growing senior service businesses is running errands for those in their golden years.

As seniors age, they often have difficulty getting around to run routine errands. By providing a service that takes care of everyday errands, seniors can continue to enjoy an independent life at home rather than in a care facility. It is also a wonderful way to make a living while making a difference in the lives of our elders.

What services to offer: Most errand runners specializing in seniors run basic errands, such as grocery shopping, picking up prescriptions or dry-cleaning and taking a pet to the groomer or vet. Others include transportation services, such as driving clients to doctor’s appointments or shopping.

Cost to start: The basics are a dependable car and a cell phone with voice mail. You’ll need business cards to hand out to prospective clients, as well as a simple flyer or brochure to leave at places like the local senior center. If you’re doing a lot of personal shopping for clients, you’ll want to have a camera built in to your cell phone to take pictures.

Skills required: This is a simple business, but you should be a well-organized person, as you’ll often be shopping – groceries, for example – for several clients at the same time. If you’re a “people person” who enjoys helping others, you’ll do well. Folks over 40 do better, as seniors tend to trust those closer to their own age than a much younger person.

Marketing your services: In the senior marketplace, trust is everything, and your first customers will tell their friends after you’ve gained their trust, and soon you will have all the customers you can handle. Pass out business cards to everyone you meet, and consider having a 25% off coupon printed on the back of the card for new customers only. This accomplishes two goals. First, people will keep your card rather than throw it away because of the coupon. Second, your cost of getting new customers with this method is zero, as you’ll still make money when they hire you the first time.

Every community has a senior center and over-55 communities. Most will allow you to run an inexpensive classified ad in their monthly newsletter. Do that every month until you’re too busy to take any new clients.

Legal requirement: You’ll need to get a business license from your local town or county. If you plan to use a fictitious business name, find out what’s required by your town, county or state. If you’re using your car for business, especially if you’re driving clients to appointments or shopping, check with your insurance agent to make sure you have the right policy to cover your activities.

To learn more about starting your own personal errand service for local seniors, read:   Start Your Own Senior Concierge Service.

Errand Business Plan Template & Guidebook

How to write a errand business plan in 7 steps:, 1. describe the purpose of your errand business..

It also helps to include a vision statement so that readers can understand what type of company you want to build.

2. Products & Services Offered by Your Errand Business.

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your errand business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

Target market

Customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a errand business, 5. management & organization of your errand business., 6. errand business startup expenses & captial needed..

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your errand business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Frequently Asked Questions About Errand Business Plans:

Why do you need a business plan for a errand business.

A business plan is essential for any business, regardless of size or type. A detailed and well-structured business plan provides a roadmap for a company’s success, by outlining the goals and objectives of the business and detailing the strategies and action plans for achieving them. In addition to providing guidance for owners and investors, it can also be used to help secure financing for the venture. For an errand business, a business plan should include information on the types of errands to be performed, the markets targeted, any necessary licensing requirements or permits, pricing or fees, target customer demographics, and marketing strategies.

Who should you ask for help with your errand business plan?

Can you write a errand business plan yourself.

Yes, it is possible to write a business plan for an errand business yourself. To do so successfully, you'll need to research the industry and market you plan to enter, set clear goals and objectives, develop detailed pricing and operational plans, identify potential sources of funding, create a marketing plan, identify potential legal and liability issues, and outline your unique selling points. Additionally, you will need to create a financial plan that includes start-up expenses, operating costs, revenue projections and more. Finally, you should have a clearly defined plan for recruiting staff and managing the day-to-day operations of your business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.