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How to Start an Errand Business in 12 Steps

Running errands for others will fetch you a good income. In this age of fast and busy life, people hardly get any time for errands which is an essential part of their daily lives. Hence, the errand business has become an essential service-providing business. You can start this business and get high profits.

Errand service has many types and areas like shopping, making appointments, pick-up, and drop-in, making the reservation, doing household repairs, etc. If you can offer several services in your errand business, it will be very profitable.

Errand business can be controlled and operated from your home. As the business is about running and doing outside jobs, your office can be at home. However, good connectivity both over the phone as well as the internet is essential for this business.

Choosing the area of your business, target clients, and marketing strategies are very important for growing your errand business. Do your homework diligently before starting the business.

Here are the 12 Steps to Start Errand Business

1. Understand the Local Market

Starting an errand business from your home is the most convenient option. However, before deciding on this, you have to research the demand for errand services in the area. Collect data on demographic details of the area like the number of senior adults (they need errand services to a great extent), the general job profile of the people, etc. This is to assess how busy they are and how much they can afford the charges of errand services. Along with that, also get data about the age profile of the people living in the area.

2. Choose Your Niche

Errand’s business has many categories as well as target clients. It is better to choose a niche before starting the business. You can choose the niche of senior service, wherein you will serve the senior adults of your area. If you have any special skills like auto repair or plumbing you can choose your niche based on them. Otherwise, you can choose a niche according to the demand of the people in the area.

3. Write Business Plan

In the next step, write the business plan for your errand business. Mention all the necessary points with proper data and clarification in the business plan. Don’t put any summary statements. Rather, try to be factual and realistic. Your business plan should contain points like

  • Importance of Errand’s Business at present
  • The reason behind your selection of this business
  • The area you want to cover in your business
  • Types of services you want to offer
  • Your Target Clientele
  • How much money do you need to start an errand business
  • Marketing strategies
  • Expected Profit

Think thoroughly and if needed take experts’ assistance in writing the business plan.

4. Name Your Business

The next step of your errand business is choosing a name for your business. Find a smart and brief name for your business. The name should describe your service and be easy to remember. You have to get the domain in the name of your business. If you don’t get the domain, go for another name because getting the domain is very important.

5. Legal Status

Register your errand business for giving it legal status. You have options of LLC, S. Corp., Partnership, Sole Proprietorship, etc. Choose a status that is most convenient and feasible in your case. Also, obtain the Employer Identification Number or EIN.

6. Licenses and Permits

Get the necessary licenses and permits from the state and federal authorities for your errand business. This will enable you to run the business easily, free from hassles.

7. Tax Registration

Register your errand business for the taxes applicable to your errand business.

8. Open a Business Bank Account

Open a bank account in the name of your errand business. Also, try to get a business credit card.

9. Insurance

Your errand business must have insurance coverage for any accident or unforeseen incident. General Liability Insurance, Worker’s Compensation Insurance, and Motor Vehicle Insurance for your car and/or bike are the primary requirements.

10. Office and Staff

Start your office, preferably from home. However, you will need a separate space for the office. Essential equipment includes a computer or laptop with an internet connection, printer, mobile phone, bike, or car for quick movement.

Errand-related business can be done in your capacity. However, for a business with high profit, you will need to hire persons who will run errands to complete the assignments along with you. Apart from that, you will need an accountant-cum-office executive for the office and accounting work.

11. Fix Charges of Errand Business

Most errand jobs are paid on an hourly basis and the rate varies between $30 and $40 per hour. If you are using a car to pick up, drop in, or both, you can demand higher rates or ask for mileage. In the case of reservations, there are fixed rates. For concierges, the hourly rates are according to the nature of the jobs and may be anywhere between $30 and $130.

12. Marketing Strategies

This is one of the most important factors for the success of your errand business. While chalking the marketing strategies, keep in mind that letting more and more people know about your business is the key to your success. The important strategies include

a) Create a Website

Your website is a great medium of information about your errand business as well as its publicity. Design a good, attractive, and user-friendly website for your company. Describe the services you offer along with the rates and contact details.

b) Printed Materials

Distribution of pamphlets, flyers, brochures, etc is very effective for errand business. Distribute them to people at large to let them know about your business.

c) Publish Ads

Ads in newspapers, magazines, radio, TV and online publications and channels are good marketing as well as publicity strategies.

d) Posters, Hoardings

Use posters, hoardings, glow signs, etc at prominent places to grab the attention of your prospective clients. Do not forget to create an attractive logo for your errand business.

e) Explore Social Media

Use social media handles in publicizing your business. Create pages in the name of your errand business on social media handles and update them regularly. Share the link to your website on these pages. Also, give paid ads on social media for greater reach.

f) Personal Visits

Pay visits to your prospective clients and explain to them the merits of your service. Also, give them brochures with contact details for further communication.

g) E-mail Marketing

Sending e-mails to your prospective clients describing your services and offers is an important marketing strategy.

h) Enlistment

Enlist your name on various errand-related websites, apps, and yellow pages so that more people get information about your errand business.

Frequently Asked Questions

How Much Money is Needed to Start an Errand Business?

It depends on the scale of your business. However, for an errand business with office staff, 2-3 errand runners, yourself as an errand runner, and necessary equipment and vehicles, you will need $20,000 to $30,000.

Is the Errand Business Profitable?

Yes, it is a profitable business. If you do it yourself, you can earn $200-$300 daily working 6-7 hours a day. So you can earn approximately $48,000 to $ 55,000 annually and after deducting all costs, you can take home $38,000 to $ 45,000 annually. Even if you hire a person for an annual wage of $25,000 to $30,000, you will get 20-30% profit.

Essential Qualities of an Errand Runner

To become a successful errand business owner, you must have certain qualities. They are

  • 2. Promptness in providing service
  • Seamless Service Quality
  • Strong Sense of time
  • Trustworthy
  • Punctual
  • Caring
  • Understanding the importance of errand jobs

Errand’s business is not only profitable, but it is also rewarding business too. Work hard, plan well and get the maximum benefits from this business.