Courier Company Business Plan Template

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.

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.

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Helps the franchisee get business case approval from the franchisor

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  

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.

Start-up Expenses
Legal	$245,000
Consultants	$0
Insurance	$29,000
Rent	$27,000
Research and Development	$23,000
Expensed Equipment	$52,000
Signs	$4,000
TOTAL START-UP EXPENSES	$380,000
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 FUNDING
Start-up Expenses to Fund	$380,000
Start-up Assets to Fund	$1,234,000
TOTAL FUNDING REQUIRED	$1,614,000
Assets
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
Liabilities	$29,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$45,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$74,000
Capital
Planned Investment	$1,614,000
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,614,000
Loss at Start-up (Start-up Expenses)	$388,000
TOTAL CAPITAL	$2,002,000
TOTAL CAPITAL AND LIABILITIES	$2,076,000
Total Funding	$1,614,000

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Services

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

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:

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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 Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Private Customers	20%	21,000	23,000	24,000	26,000	29,000	10.00%
Ecommerce Platforms	29%	32,000	33,000	35,000	37,000	39,000	10.00%
Business Customers	24%	24,000	25,000	27,000	29,000	31,000	10.00%
Online Stores	27%	28,000	29,000	31,000	32,000	34,000	11.00%
Total	100%	105,000	110,000	117,000	124,000	133,000	10%

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

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Nationwide Courier	46,000	48,760	51,686
International Courier	36,000	38,160	40,450
One-Day Global Delivery	32,000	33,920	35,955
Cash on Delivery Service	50,000	53,000	56,180
TOTAL UNIT SALES	164,000	173,840	184,270
Unit Prices	Year 1	Year 2	Year 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
Sales
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 Costs	Year 1	Year 2	Year 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 1	Year 2	Year 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
Guards	$16,000	$17,600	$19,360
Reception clerk	$7,000	$7,700	$8,470
Accountant	$10,000	$11,000	$12,100
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 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.15%	8.24%
Long-term Interest Rate	8.37%	8.46%	8.49%
Tax Rate	24.01%	25.10%	26.30%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$131,500
Assumptions:
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 1	Year 2	Year 3
Sales	$8,360,000	$10,279,456	$12,639,619
Direct Cost of Sales	$8,078,000	$9,637,520	$11,811,283
Other	$0	$0	$0
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%
Expenses
Payroll	$134,000	$147,400	$162,140
Sales and Marketing and Other Expenses	$137,000	$148,000	$156,000
Depreciation	$2,100	$2,200	$2,340
Leased Equipment	$0	$0	$0
Utilities	$3,000	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$3,100	$3,200	$3,400
Payroll Taxes	$31,000	$32,000	$33,000
Other	$0	$0	$0
Total Operating Expenses	$312,300	$337,900	$362,080
Profit Before Interest and Taxes	($30,300)	$304,036	$466,256
EBITDA	($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

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8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 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
Expenditures	Year 1	Year 2	Year 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
Dividends	$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
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$25,000	$28,000	$31,472
Inventory	$4,000	$4,480	$4,900
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 Capital	Year 4	Year 5	Year 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
Earnings	$198,000	$215,820	$237,402
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 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.23%	8.01%	8.88%	3.00%
Percent of Total Assets
Accounts Receivable	9.20%	10.19%	11.29%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.12%	2.35%	2.60%	2.40%
Total Current Assets	149.00%	152.00%	152.00%	158.00%
Long-term Assets	11.54%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.87%	4.91%	4.95%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.56%	7.62%	7.69%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.90%	97.46%	100.19%	99.00%
Selling, General & Administrative Expenses	94.00%	96.54%	99.24%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.00%	42.11%	43.29%	33.90%
Main Ratios
Current	34	35	36	32
Quick	32	32.6	33.415	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.00%	74.50%	75.00%	75.00%
Pre-tax Return on Assets	94.60%	99.33%	104.30%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.01%	34.03%	35.09%	N.A.
Return on Equity	56.00%	57.74%	59.53%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	33	N.A.
Accounts Payable Turnover	15	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$239,000	$252,384	$266,518	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.86	0.87	0.87	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29.1	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.3	N.A.
Dividend Payout	0	0	0	N.A.

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