Starting a Personal Delivery Business

[BadJuju]

I have been mulling over starting a personal delivery business lately. It would essentially consist of me picking up things like groceries, medicine, and other necessities for people that either do not want to get them themselves or for those without the ability to do it. I would use my bicycle as my transportation, so travel costs would be miniscule. And I could put a motor on it if I needed good performance or to travel greater distances.

Any thoughts? Like it or dislike it?

[Adeptus]

Re: Starting a Personal Delivery Business

In my town, a couple of large grocery stores already offer for free (write that down as a business risk) that option and they have pharmacies built into the stores, though not sure how to get a prescription filled out over the internet or phone. I've never used it because I feel it would ultimately end up raising the cost of my groceries long term and it should be left for those who really need the service.

Do some more research (map out all major grocery stores in google maps and average distance to where most old communities are, estimate time required to travel and shop and collect $, then extrapolate max number of customers per day and expected revenue per hour). I wonder if you'd make more $$ working for starbucks instead, though the delivery service and work would surely be more gratifying. Lastly, add in the cost of a smartphone to view online customer requests as well as use the GPS for customer locations, unless you know your town insideout.

To your point, while travel costs would be miniscule on a bike, the number of trips back and forth from the grocery store + the time required to travel would eat away at *potential* profits if you had a mid sized van that you could pick up 5-10 customer's worth of groceries in one shot, then use a GPS app (travelling salesman) to auto figure out the fastest A to B to C to D to E route to your customers. The more you can serve in X time, the greater the profit. Also for families of 3 or more people, I seriously doubt you can fit 2 weeks worth of groceries in your bike.

Lastly, read up on where webvan.com went wrong as they were one of the biggest internet failures of the 1999 IPO days. There might be some free lessons to learn there in case you want to scale bigger later.

Please don't take my post as a downer, go through the business plan exercise if you haven't done it before, it may be very enlightening for you and lead to even better ideas. Good luck!! :-D

[doom&gloom]

Re: Starting a Personal Delivery Business

Examine the metrics of your local environment, and then target the most discretionary spending part, with the least mobility. In other words, find the wealthier elderly, or those who have wealthy kids supporting them, and find a service to take care of these elderly.

My mother no longer drives (good for the rest on the roads) so I take her out shopping 2x/wk for 4-5 hours at a time. We go where ever she wants to go. I imagine there are people who would pay you to do that kind of service, or "clean up" aorund a house (not house cleaning but organization, light yard work, etc).

In a day and age when getting my dog sat for a day can cost me upwards of $35/day, and he is no effort whatsoever, I would think in an affluent community there is money to earn taking elderly shopping etc.

BTW, build a good dog-walking practice in a city neighborhood full of skyscrapers and you could make bank in cash no less.

The key to any personal sevice business is to dress appropriately, always smile, and build good will and word of mouth referrals. Honesty and trust are very important as well. A customer who makes a mistake and maybe leaves a few grand in cash out, only to still find it all just where they left it if you were in their house will usually be duly impressed and tell their friends. When I sold my business I worked there for a few more month and had access to all the checks, bank accounts -- everything. the new controller was totally freaked out by this, but the buyers knew I wouldnt cheat anyone of $1.

There are lots of creative things you can do. I know a guy who knows weightlifing equipment well, and buys anything cheap and quality off CL and resells it for more a few weeks later. He has a vehicle to pick up and the room to store it. Mostly dumbbells but also power cages, etc. A woman in the apartment building where my mom lives walks dogs (for cash) and manages to make th rent plus on it, so she makes good money.

we're a couple months from xmas, and the seasonal UPS/Fedex hiring season for some seasonal cash.

reasonable paying non-skilled jobs around me include garbage collectors and grocery checksers, where the latter make $20/hr plus bennies.

there is a permanent food cart that sells "wood fired pizzas" from a closed Taco Bell parking lot, Business looks pretty good. Portland has a whole section of permanent food carts with some pretty damn good food.

garage sale buying and later reselling stuff on ebay can be profitable as well. have to know your merchandise though.

Window washing is a cheap business to get into, and you can walk entire neighborhoods and line up jobs door to door. Same for yard work.

[charliebrown]

Re: Starting a Personal Delivery Business

I've been thinking about it too.

I have been toying around with the idea of a business where I would do pick ups/deliveries, house sitting, pet sitting, simple handy man jobs, house cleaning, wellness checks etc. So many people in the burbs are too darn busy to do anything on their house anymore. They are working 5x11, or more. The real trick would be scheduling how to let your customers request services,then schedule those services maximizing the dollars captured and minimizing your time, perhaps multi tasking, like walking someone's dog at the same time waiting for an appliance repair man to show up at a close neighbor's etc.

You will have to build a reputation of trust so people won't mind letting you have their keys while they are away or taking rover for a walk.

[Bundi]

Re: Starting a Personal Delivery Business

Great responses here for you BadJuju. Only thing I would say is the following.

What makes you tick? What are your passions? What could you spend an inordinate amount of time doing and be happy?

Perhaps starting there is worthwhile.

Then I would suggest writing out your thoughts, in some detail. There is something about actually taking the time to write it out that helps crystalize what is inside.

Then think how you can overlay what moves you with delivering a value to a somewhat specific market.

At some point along the line you may just go for it. Details will be details, reality will drive the course.

Above all else, think long term in your decisions but of course be practical in the short term because it is a business.

Once you get a feel, find mentors to learn from. Here or perhaps locally as well. Good people that have been there and done that, want to help.

[doom&gloom]

Re: Starting a Personal Delivery Business

As I was tarping my trailerable boat for the next week while I will be on the road, I wanted to toss out that plenty of boaters might pay something to have someone come to a marina, start their boat, idle it 15 minutes and shut her down. I bet many of them would like to have their boats cleaned periodically, lines checked (especially before a storm hits the area), etc. For people who spend $300-800/mo on a slip for their toy, another $30/month to have someone look in on their toy 2x/mo and start it up for a few minutes each time would not be a stretch. Especially if they do not live close to the marina.

Anotherthought is a 2nd hand shop. Start small and expand, negotiate cheap rent somewhere, and do YOUR shopping at garage sales and on CL for deals. When you have been in business a while, people will then come to you. Our local thrift shop takes donations, and sells about $1.1-1.2 million a year in all kinds of goods. Granted you would pay for your stuff, but I would bet the profit margins could be quite good once you build it up. Clothing seems ot be very big in the used market.

[globaleconomicollaps]

Re: Starting a Personal Delivery Business

As I was tarping my trailerable boat for the next week while I will be on the road, I wanted to toss out that plenty of boaters might pay something to have someone come to a marina, start their boat, idle it 15 minutes and shut her down. I bet many of them would like to have their boats cleaned periodically, lines checked (especially before a storm hits the area), etc. For people who spend $300-800/mo on a slip for their toy, another $30/month to have someone look in on their toy 2x/mo and start it up for a few minutes each time would not be a stretch. Especially if they do not live close to the marina.

Anotherthought is a 2nd hand shop. Start small and expand, negotiate cheap rent somewhere, and do YOUR shopping at garage sales and on CL for deals. When you have been in business a while, people will then come to you. Our local thrift shop takes donations, and sells about $1.1-1.2 million a year in all kinds of goods. Granted you would pay for your stuff, but I would bet the profit margins could be quite good once you build it up. Clothing seems to be very big in the used market.

You know what has a good margin and is easy to do at home is canning fruit. Check the price on jam at the supermarket. Premium jars of jam cost big bucks.

Your boat idea sounds like a winner long term. Very low cost of entry and looks like high margin. Do you like to dive? Professional divers to clean and repair boats make a small fortune.

[dummass]

Re: Starting a Personal Delivery Business

Great responses here for you BadJuju. Only thing I would say is the following.

What makes you tick? What are your passions? What could you spend an inordinate amount of time doing and be happy?

Nobody is going to pay him to post comments on itulip.

[shiny!]

Re: Starting a Personal Delivery Business

Nobody is going to pay him to post comments on itulip.

Unnecessary and rude. It takes humility and guts to ask for advice, but none to put someone down anonymously.

[BadJuju]

Re: Starting a Personal Delivery Business

I just wanted to thank everyone for the great replies. I'll take some time later to make individual replies, but I didn't want any of you to think I had forgotten about the thread. Much appreciated.

[c1ue]

Re: Starting a Personal Delivery Business

I'd suggest also that you consider what the effects of technology might be.

Certainly in any form of personal service, the ability to forge relationships with customers is the most important.

Technology, however, particularly in the form of smartphone app based, auction priced, service jobs both depersonalizes (to some extent) relationships and lowers entry barriers.

[flintlock]

Re: Starting a Personal Delivery Business

Watch a few episodes of "Dirty Jobs". People always want someone to do those type things. They almost never want someone to escort their beautiful daughter around town, or help their wives pick out Bikinis.

Just kidding, but just remember to serve people's needs, don't necessarily try to emulate what others are doing. I like your idea, but don't feel like you have to limit yourself to one thing. I was working with a friend yesterday who has a Hot Tub company. Builds decks, sell Tubs, etc. But when business is slow he buys and sells all kinds of collectible stuff and other junk. He had 146 Ebay auctions close in the last two weeks. Stuff ranging from old postcards to thousand dollar beer memorabilia. He's a picker. His love is collectibles, so its also a labor of love for him. It's nice to have several avenues to pursue. Hell I cut grass until my business got off the ground. Just remember it takes time. Good luck.

[doom&gloom]

Re: Starting a Personal Delivery Business

http://worldnews.nbcnews.com/_news/2...-daughter?lite

I want that job -- the pay is good, even if the 'bennies' are non-existent, if you know what I mean.

[lakedaemonian]

Re: Starting a Personal Delivery Business

I just wanted to thank everyone for the great replies. I'll take some time later to make individual replies, but I didn't want any of you to think I had forgotten about the thread. Much appreciated.

Whatever you decide on, it doesn't have to be ground breaking and new.....than can be a long difficult and expensive road in educating the public to accept........sometimes it's easier to select an industry you enjoy/love.....where competition already exists......and provide a distinct point of difference.....such as truly exceptional customer service/engagement.

LOTS of people claim to offer a high level of customer service.....but it is always a moving target....and in my experience, few execute well consistently.

It's not rocket science......it's methodical focus.......heck...90% is just showing up early and staying late compared to your competition.

[doom&gloom]

Re: Starting a Personal Delivery Business

some very good advice there!