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, picking up and dropping in, making reservations, doing household repairs, etc. It will be very profitable if you can offer several services in your errand business.
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 and 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.
What Is Errand Business?
This is the business where you help individuals handle their day-to-day activities that they cannot do due to lack of time, capacity or even willpower. It may involve getting groceries, drug store pickups and package deliveries, pet sitting or waiting for technicians. To put it simply, you assist people with what they have to do for payment.
Why Start an Errand Business?
- Low Startup Costs: The major point in favor of starting an errand business is low initial investment. You don’t have to invest in a shop and your main expenditures are likely going to include transportation, advertisement and insurance.
- Flexible Schedule: This type offers flexibility since you can decide when to work as well as what type of tasks to take up. It is ideal for individuals looking for extra income or those who want employment that is compatible with other commitments.
- Growing Demand: As more people seek ways to save time and delegate tedious chores, there has been an increase in request for errand services. These services may suit people who are busy professionals, old clients or those experiencing mobility problems.
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.
Challenges of Running an Errand Business
While starting an errand business has many benefits, it’s important to be aware of potential challenges:
- Variable Income: Your income may fluctuate based on the number of clients and the seasonality of certain tasks. Budgeting and financial planning are crucial.
- Physical Demands: Depending on the tasks you take on, running an errand business can be physically demanding. It’s essential to stay organized and manage your time efficiently to avoid burnout.
- Client Management: Handling multiple clients with different needs and preferences can be challenging. Good communication and customer service skills are vital.
How Much Does it Cost to Start an Errand Business?
Starting an errand business is relatively inexpensive. Initial costs include business registration, liability insurance, a website, marketing materials, and vehicle maintenance. These costs can range from $1,000 to $3,000, depending on your location and business setup.
How Much You Can Earn from Errand Business?
The earnings potential of an errand business can vary widely based on location, services offered, and the number of clients. On average, errand runners can charge $30 to $70 per hour. With consistent work, it’s possible to earn $2,000 to $7,000 per month or more, depending on how many hours you work and the demand for your services.
Frequently Asked Questions
Do I need a license to start an errand business?
Licensing requirements vary by state and city. In most cases, you’ll need to register your business and obtain a business license. You may also need liability insurance, and if you’re using your vehicle for business purposes, make sure it’s covered under your auto insurance policy.
How do I determine my pricing for errand services?
Pricing can be set based on an hourly rate or per-task fees. Hourly rates typically range from $20 to $50, depending on the complexity of the tasks and the local market. You can also offer package deals or subscription services for regular clients.
What are the most common tasks handled by errand businesses?
Common tasks include grocery shopping, prescription pickup, dry cleaning drop-off/pickup, package delivery, pet sitting, house sitting, and personal shopping. Some businesses also offer specialized services like event planning assistance or virtual concierge services.
Is an errand business profitable?
Yes, an errand business can be profitable, especially if there is high demand for services in your area. With consistent work and effective marketing, you can potentially earn between $1,000 and $4,000 per month, depending on the number of clients and hours worked.
Can I run an errand business part-time?
Yes, one of the key advantages of an errand business is its flexibility. You can choose to operate part-time, taking on tasks during your available hours. Many people start their errand business as a side hustle and later expand as demand grows.
How can I scale my errand business?
To scale your business, consider hiring employees or contractors to handle more tasks, expanding your service offerings, and potentially franchising your business in other markets. Efficient scheduling, clear client communication, and consistent marketing will be key to scaling successfully.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.