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SEPT.08, 2021

Courier Company Business Plan Template

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Courier Company Business Plan

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    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  

    Note

    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
    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
    Any questions? Get in Touch!

    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

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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 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.
    Any questions? Get in Touch

    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 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.

    Any questions? Get in Touch

    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 - Courier Company Business Plan Template

    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

    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 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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