Courier Company business plan for starting your own business

As long as the earth is populated by humans, they will send and receive things and that means the courier business has a very low probability of going into loss. If you are going to start your own business, the first thing that you need is a bunch of business plan delivery services that can give you an idea of how the business works and what is needed to start it. This article will tell you in sheer detail how to write a courier business plan but first you need to know what is a courier service business. Once you know that, creating a franchise business plan will be child’s play for you.

Executive Summary

2.1 The Business

Damian Courier Services (DCS) will be a registered courier services provider in Dallas, Texas. The business will cater to the needs of anyone who wants to send something on any point on the planet earth and if humanity expands to Mars, an express delivery service will be started for the red planet as well.

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2.2 Management of Courier Company

Management is the cornerstone of any courier services business plan as no business on earth (or Mars) can be successful without proper management. If you want to know how to start courier service, you need to have a proper management structure for the business in your mind even before you start it.

In this courier service business plan, the management will be headed by the owner of the business. They will hire to manage various aspects of the business plan delivery service. Management structure is also important for creating a business plan for a bank loan. This management structure will be closely related to the one we saw in business plan for a Mexican restaurant.

2.3 Customers of Courier Company

The next thing that we need to discuss are the customers that the business plan delivery service will be serving. It is important to know the customers as only then we can see how the business will be run. The main customers of the business will be the following:

  • Privat customers who want to send letters.
  • Businesses that want the service for their business plan delivery service.
  • Ecommerce companies.
  • Online stores.

2.4 Business Target

DCS is being started with the target of making life easier for the people of Dallas. It has been noted that the city lacks good courier service that are direly needed. The business plan delivery service aims to bridge the gap as best possible. The target will be broken down into the following:

  • Establishing a credible and dependable brand.
  • Providing best services in the sector.
  • Maintaining 100% customer satisfaction.
  • Charging better rates than any of the competitors.
3 Years Profit Forecast - Courier Company Business Plan Template
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Company Summary

3.1 Company Owner

The owner of this courier company business plan will be Damian Johansson. Damian has worked as a delivery boy for Pizza Hut for a long time and knows the method and importance of taking things from one place to the other.

3.2 Why the Courier Company is being started?

When Damian was asked why you are starting your own business plan delivery service, he said that he always wanted to employ someone as his delivery boy and treat them better than the way his employers treated him when he was in that place. Now, that there is a lot of potential in the business and he has the resources to pull this off, Damian is starting a courier business of his own, just because he can.

3.3 How the Courier Company will be started?

It might seem like starting courier service business is simple but it is not. You need to complete the courier franchise business plan before you can start the business plan delivery service and run it the right way. Here’s how this business will be started.

Step1: Market Need Analysis  


The most important thing to do in order to start this business is to run a market need analysis to determine the magnitude of business that we will be handling. This is the most important step as all the next steps depend on this. Once the market need is analyzed the right way, you can move on to the next arrangements to make the business a reality.

Step2: Signing Contract with Bulk Carriers  

As the courier services company is being started from a lower level, it will not have the infrastructure or resources to deliver the couriers to the world. For that, contracts will be signed with larger courier service providers to carry our mail.

Step3: Establishing the Outlet    

Once the company signs the contract with bulk carriers, the next step will be to establish an office or outlet from where the business will be run. We will open an office in downtown where many of the ecommerce companies and businesses are located.

Step4: Online Presence

Most of the customers search for courier services online and that makes having a website and online presence immensely important for the business plan delivery service. We will make a website and will optimize it for search engines so that we can reach the most customers.

Step5: Marketing

After completing all that, we will run a comprehensive marketing campaign to reach the customers and to make DCS known to the public of the area.

Startup Cost - Courier Company Business Plan Template
Start-up Expenses 
Research and Development$23,000
Expensed Equipment$52,000
Start-up Assets$343,000
Cash Required$356,000
Start-up Inventory$37,000
Other Current Assets$227,000
Long-term Assets$271,000
TOTAL ASSETS$1,234,000
Total Requirements$1,614,000
Start-up Expenses to Fund$380,000
Start-up Assets to Fund$1,234,000
Non-cash Assets from Start-up$1,614,000
Cash Requirements from Start-up$377,000
Additional Cash Raised$50,000
Cash Balance on Starting Date$35,000
TOTAL ASSETS$2,076,000
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$45,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,614,000
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$388,000
Total Funding$1,614,000
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    The next important thing in the courier company business plan pdf is the decision of the services that the company is going to provide. As there can be a lot of different services that a courier services company can offer, we need to narrow down the ones we will be focusing on before starting a business plan delivery service from home. This part of this courier company business plan gives you an idea of the services that you can provide. You can expand on this to add more services to your portfolio.

    Nationwide Courier

    This service will be aimed at sending parcels and letters to any location in the USA.

    International Courier

    All kinds of couriers will be sent to destinations across the globe under this service.

    One-Day Global Delivery

    This will be the flagship service of DCS, ensuring the delivery of any package up to 5kg anywhere in the world within 24 hours.

    Cash on Delivery Service

    For ecommerce service providers and online businesses, we will provide this service where they can send their products to customers, and we will collect the price.

    Marketing Analysis of Courier Company

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    If you are starting a courier service company, you need to run a complete marketing analysis of the business to make it successful. This is not a grocery store business plan and the factors at play here are far greater, often of global magnitude. If you want that your courier startup business plan delivery service is successful, it is important that you keep an eye on all the variables of the market.

    5.1 Market Trends

    Before opening a courier service, it is important to have a look at the market trends of the business you are about to enter. Just like the case with an airline business plan any person or company starting a business plan delivery service without having a look at the market trends of the industry fails miserably. The trend of courier business has gone down because of the widespread use of internet to send documents rather than mail.

    5.2 Marketing Segmentation

    Having an idea of the expected marketing segmentation is also one of the most important parts pf any sample business plan for a courier service. Here is the market segmentation that will be facing DCS:

    Marketing Segmentation - Courier Company Business Plan Template

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    5.2.1 Private Customers

    People who want to send letters and parcels will make a significant market segment for us.

    5.2.2 Ecommerce Platforms

    Ecommerce websites operating from Dallas will be a market segment. We will offer them national, global, and same-day services.

    5.2.3 Business Customers

    Businesses in the area that require to send/receive mail will also be a part of our market segments.

    5.2.4 Online Stores

    These will also be one of the largest market segments for the business.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Private Customers20%21,00023,00024,00026,00029,00010.00%
    Ecommerce Platforms29%32,00033,00035,00037,00039,00010.00%
    Business Customers24%24,00025,00027,00029,00031,00010.00%
    Online Stores27%28,00029,00031,00032,00034,00011.00%

    5.3 Business Target

    • To establish a credible name in the courier industry.
    • To improve the state of courier services in the area.
    • To make as much money as possible.
    • To expand to other cities.

    5.4 Product Pricing

    The services of DCS will be priced at the average of what other service providers charge in the area. We will charge the same but will offer better services to make as much profits as possible.

    Marketing Strategy

    , , courier service proposal sample, examples of courier service

    If you want to start an independent business plan delivery service, the first thing that you need to do is to make a marketing strategy for the business. No business on earth can be successful without one. If you want to know how to start your own courier service for food delivery, you need a food delivery service business plan. Once you have that, you can very easily start your own business plan delivery service and turn massive profits.

    You need to run competitive analysis and make a strategy to make your subscription box business plan a success.

    6.1 Competitive Analysis

    1. People are not happy at all with the courier services being provided in the area.
    2. The courier service providers in the area charge too much money and do not offer the services that are good enough for the cost they quote.
    3. Most people have to go to other cities to post their letters and parcels.
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    6.2 Sales Strategy

    • DCS will provide excellent courier services to all customers to make sure that everyone gets what they want.
    • DCS will provide service to all areas of the world so that no one needs to go to any other service provider.
    • DCS will offer discounts to bulk and repeat customers.

    6.3 Sales Monthly

    Sales Monthly - Courier Company Business Plan Template

    6.4 Sales Yearly

    Sales Yearly - Courier Company Business Plan Template

    6.5 Sales Forecast

    Unit Sales - Courier Company Business Plan Template
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Nationwide Courier46,00048,76051,686
    International Courier36,00038,16040,450
    One-Day Global Delivery32,00033,92035,955
    Cash on Delivery Service50,00053,00056,180
    TOTAL UNIT SALES164,000173,840184,270
    Unit PricesYear 1Year 2Year 3
    Nationwide Courier$35.00$40.60$47.10
    International Courier$65.00$75.40$87.46
    One-Day Global Delivery$80.00$92.80$107.65
    Cash on Delivery Service$37.00$42.92$49.79
    Nationwide Courier $1,610,000.00 $1,979,656.00 $2,434,185.02
    International Courier$2,340,000.00 $2,877,264.00 $3,537,883.81
    One-Day Global Delivery $2,560,000.00 $3,147,776.00 $3,870,505.37
    Cash on Delivery Service $1,850,000.00 $2,274,760.00 $2,797,044.90
    TOTAL SALES$8,360,000.00 $10,279,456.00 $12,639,619.10
    Direct Unit CostsYear 1Year 2Year 3
    Nationwide Courier$34.00$37.00$43.00
    International Courier$63.00$72.00$83.00
    One-Day Global Delivery$78.00$89.00$103.00
    Cash on Delivery Service$35.00$39.00$45.00
    Direct Cost of Sales   
    Nationwide Courier $1,564,000.00 $1,804,120.00 $2,222,480.80
    International Courier$2,268,000.00 $2,747,520.00 $3,357,316.80
    One-Day Global Delivery $2,496,000.00 $3,018,880.00 $3,703,385.60
    Cash on Delivery Service $1,750,000.00 $2,067,000.00 $2,528,100.00
    Subtotal Direct Cost of Sales$8,078,000.00 $9,637,520.00 $11,811,283.20

    Personnel plan

    Second to last thing that is important in making any courier business ideas a reality is the plan of the staff needed to make it happen. If you take a closer look a the courier service business model, you can notice that this is more of a services business plan delivery service than a products one. Such businesses, naturally, tend to be more labor intensive and cannot be run with efficiency without adequate staff.

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    7.1 Company Staff

    The following people will be needed to run DCS:

    • Damian Johansson will be the owner and CEO of the business.
    • 3 managers for procurement, operations and marketing.
    • 2 courier bookers.
    • 3 Delivery drivers.
    • 2 Office workers.
    • 2 guards.
    • 1 reception clerk.
    • 1 Accountant.

    7.2 Average Salary of Employees

    Personnel Plan   
     Year 1Year 2Year 3
    Procurement Manager$13,000$14,300$15,730
    Operations Manager$14,000$15,400$16,940
    Marketing Manager$13,000$14,300$15,730
    Courier bookers$16,000$17,600$19,360
    Delivery drivers$30,000$33,000$36,300
    Office workers$15,000$16,500$18,150
    Reception clerk$7,000$7,700$8,470
    Total Salaries$134,000 $147,400 $162,140

    Financial Plan

    The best approach is to look for a courier business for sale. However, if you cannot find that or just want to start one from scratch, you need to have an idea of the finances that will be involved in starting the business plan delivery service. Just like an organic restaurant business plan, the business is not a very finance intensive one and you can start it with a little capital. Here is an idea of the finances that will be involved in starting the business:

    • Money needed to make the office.
    • The cost of computers and other equipment needed.
    • The salary of employees.
    • The cost of buying delivery vehicles.
    • Bonds, securities, insurance, and registration costs.

    8.1 Important Assumptions

    General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.15%8.24%
    Long-term Interest Rate8.37%8.46%8.49%
    Tax Rate24.01%25.10%26.30%

    8.2 Break-even Analysis

    Break-even Analysis - Courier Company Business Plan Template
    Break-Even Analysis 
    Monthly Units Break-even5340
    Monthly Revenue Break-even$131,500
    Average Per-Unit Revenue$232.00
    Average Per-Unit Variable Cost$0.65
    Estimated Monthly Fixed Cost$163,400

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$8,360,000 $10,279,456 $12,639,619
    Direct Cost of Sales$8,078,000 $9,637,520 $11,811,283
    TOTAL COST OF SALES$8,078,000 $9,637,520 $11,811,283
    Gross Margin$282,000 $641,936 $828,336
    Gross Margin %3.37%6.24%6.55%
    Sales and Marketing and Other Expenses$137,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$31,000$32,000$33,000
    Total Operating Expenses$312,300 $337,900 $362,080
    Profit Before Interest and Taxes($30,300)$304,036$466,256
    Interest Expense$0$0$0
    Taxes Incurred($6,060)$60,807$93,251
    Net Profit($24,240)$243,229$373,005
    Net Profit/Sales-0.29%2.37%2.95%

    8.3.1 Profit Monthly

    Profit Monthly - Courier Company Business Plan Template
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    8.3.2 Profit Yearly

    Profit Yearly - Courier Company Business Plan Template

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Courier Company Business Plan Template

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Courier Company Business Plan Template

    8.4 Projected Cash Flow

    Projected Cash Flow - Courier Company Business Plan Template
    Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$52,000$56,160$60,653
    Cash from Receivables$14,000$15,120$16,330
    SUBTOTAL CASH FROM OPERATIONS$66,000 $71,940 $77,695
    Additional Cash Received   
    Sales Tax, VAT, HST/GST Received$0$0$0
    New Current Borrowing$0$0$0
    New Other Liabilities (interest-free)$0$0$0
    New Long-term Liabilities$0$0$0
    Sales of Other Current Assets$0$0$0
    Sales of Long-term Assets$0$0$0
    New Investment Received$0$0$0
    SUBTOTAL CASH RECEIVED$67,000 $72,000 $78,000
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$37,000$39,000$41,000
    Bill Payments$26,000$27,000$28,000
    SUBTOTAL SPENT ON OPERATIONS$63,000 $66,000 $69,000
    Additional Cash Spent   
    Sales Tax, VAT, HST/GST Paid Out$0$0$0
    Principal Repayment of Current Borrowing$0$0$0
    Other Liabilities Principal Repayment$0$0$0
    Long-term Liabilities Principal Repayment$0$0$0
    Purchase Other Current Assets$0$0$0
    Purchase Long-term Assets$0$0$0
    SUBTOTAL CASH SPENT$63,000 $68,040 $73,483
    Net Cash Flow$19,000$21,000$22,000
    Cash Balance$29,000$31,000$33,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$25,000$28,000$31,472
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$287,000 $321,440 $361,299
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$20,100$22,512$25,326
    TOTAL LONG-TERM ASSETS$24,000 $26,880 $30,240
    TOTAL ASSETS$293,000 $328,160 $369,180
    Liabilities and CapitalYear 4Year 5Year 6
    Current Liabilities   
    Accounts Payable$19,000$21,280$23,919
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$19,000 $21,280 $23,919
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$16,700 $18,704 $21,023
    Paid-in Capital$30,000$30,000$31,000
    Retained Earnings$53,800$58,642$64,506
    TOTAL CAPITAL$287,000 $312,830 $344,113
    TOTAL LIABILITIES AND CAPITAL$303,700 $328,160 $369,180
    Net Worth$300,100$327,109$359,820

    8.6 Business Ratios

    Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.23%8.01%8.88%3.00%
    Percent of Total Assets    
    Accounts Receivable9.20%10.19%11.29%9.80%
    Other Current Assets2.12%2.35%2.60%2.40%
    Total Current Assets149.00%152.00%152.00%158.00%
    Long-term Assets11.54%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.87%4.91%4.95%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.56%7.62%7.69%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.90%97.46%100.19%99.00%
    Selling, General & Administrative Expenses94.00%96.54%99.24%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.00%42.11%43.29%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.00%74.50%75.00%75.00%
    Pre-tax Return on Assets94.60%99.33%104.30%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.01%34.03%35.09%N.A.
    Return on Equity56.00%57.74%59.53%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0233N.A.
    Accounts Payable Turnover151616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.42.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$239,000$252,384$266,518N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.860.870.87N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test29.129.1229.16N.A.
    Sales/Net Worth2.12.22.3N.A.
    Dividend Payout000N.A.

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