Package Delivery Service Business Plan and SWOT Analysis

Package Delivery Service Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Package Delivery Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Package Delivery Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Independently owned and operated package delivery services have become extremely popular over the past five years given now that many mobile applications allow individuals to operate as package deliverers using their own vehicles. In fact, many major corporations including Amazon and major supermarket chains have taken to using independent drivers to deliver packages and related items directly to customers via independently contracted individuals that operate as package delivery services. This trend is expected to continue in perpetuity as applications such as Uber and Lyft have allowed individual drivers to operate in this capacity. While the initial focus of the industry has been on providing taxi services, it has been a natural progression for allowing individuals to deliver packages as well. One of the nice things about owning and operating a package delivery services that very little is needed in regards to startup capital, business licensure, and marketing. Many major corporations as well as regional businesses frequently post advertisements for independent drivers that can act as delivery people for their operations.

Typically, the startup costs associated with a new package delivery service range anywhere from $10,000 to $50,000 depending on whether or not a new vehicle is going to be purchased in conjunction with developing this type of business. The startup costs relating to incorporation fees, business licenses, and insurance typically are about $2,000 for each individual vehicle that will be used during the course of normal business operations. The gross margins that are generated from package delivery services typically range anywhere from 70% to 95% depending on whether or not the cost of fuel is integrated into the cost of goods sold. In most cases, it is frequently included as part of this accounting line item but it can be considered an operating expense depending on how thing on which type of accounting system is used.

Given that most of these businesses are acquiring tangible vehicles,  furniture, fixtures, and equipment – most financial institutions are willing to put up about 90% of the money needed in order to start a new independently owned and operated package delivery service. Of course, a business plan is going to be required if an individual or company is seeking capital for this purpose. This business plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features industry-standard information for a package delivery service or similarly situated courier service.

As it relates to industry research, the package delivery industry generates $95 billion per year of revenues and employs nearly 900,000 people among 200,000 businesses. Industry payrolls in each of the last five year has exceeded $25 billion.

One of the things that needs to be included within the package delivery service business plan is a discussion of the number of households and businesses within any specific market. This will allow the owner to have an understanding of the number of potential delivery routes that will be available from the onset of operations. Additionally, an analysis of the local market were regional market should be included as well and it should feature information regarding population size, population density, median household income, median family income, average business revenue, and a number of small and medium-size businesses operating within the target market. It is important to note the median household income within this analysis as it will give an indication of the number of packages that are delivered on a daily or weekly basis. Given that most people now conduct their shopping online, wealthier areas will tend to have a much higher volume of business available given that wealthier people tend to buy more things. As such, this should be one of the focal points when determining the potential revenue streams for any specific market.

A package delivery service marketing plan needs to be developed as well. However, this documentation can be somewhat on the lighter side given that most orders will come directly from large corporations as well as mobile applications such as Uber, Lyft, Amazon, and grocery stores who are now getting into the package delivery market space. Most small package delivery companies will maintain a small proprietary website that showcases hours of operation, ability to transport goods on behalf of third parties, preliminary pricing information, as well as other relevant information to the operations of the business. A presence on social media is not needed but it can boost revenues for individuals that need to have something moved locally. Additionally, a print advertising campaign can be kept to an absolute minimum. If the individual package delivery service will be directly soliciting business from the general public that may be in the best interest of the company to maintain a modest presence on both social media and through traditional print advertising channels.

A package delivery service SWOT analysis should be produced as well. This document outlines, for any business, the strengths, weaknesses, opportunities, and threats that are normally faced by these companies. As it relates to strengths, the demand for independent package delivery services has increased significantly as large corporations seek to reduce their ongoing merchandise transportation costs. These businesses frequently have regional distribution channels where packages can be sorted and delivered without having to go three major carrier such as FedEx, UPS, or DHL. The ongoing operating expenses for this type of business are considered to be moderately low given that the major cost are typically the driver fees as well as the cost of fuel. The gross margins are extremely high for this type of company.

For weaknesses, these businesses will continue to face downward pricing pressure as more independent drivers enter this field. While it has been both a blessing and a curse for these companies, mobile applications allow for the easy distribution of delivery orders have streamlined this industry tremendously. The technology that is used in conjunction with package delivery services is expected to continue to increase as more people want to be able to track their packages from point-to-point. As such, it is going to be incumbent upon the entrepreneur looking to get into this market to develop operations that keep the ongoing operating costs to an absolute minimum.

For opportunities, this is quite simple given that package delivery services can do simply increase the number of vehicles that are serviced in any given market. There is also the ability to develop secondary locations and other regional areas that will allow for the easy transportation of merchandise to a customer’s home or business.

For threats, outside of ongoing downward pricing pressure and continued competitive threats – the biggest change will be to any potential piece of legislation that impacts a way that package delivery services operating. Given that these businesses often use independent contractors as labor, changes to employment law can impact the underlying costs associated with hiring and maintaining a staff of drivers. Additionally, automation is going to be a threat for these businesses given that in the future deliveries will be completed by self driving vehicles and autonomous robots.

While this is an industry that is rapidly expanding, there are many considerations that need to be taken into account in developing a new package delivery service. However, if run well – these businesses can be highly lucrative and provide a strong stream of revenue to the owner on a daily basis. The startup costs are low, the operating costs are low, and the demand for this type of service is increasing exponentially.