Do you want to start a food delivery business from home or on small scale? If so, you have landed at the right place. Here we will walk you through the basic steps to start a profitable food delivery business.
The reason for the popularity of this type of delivery business is because it offers home-cooked food to customers.
In this period of the pandemic, the food delivery business happens to be one of the most popular and profitable businesses to start.
Food Delivery Business Plan Guide for Beginners
1. Understand the Market
Do some market research. Try to identify the specific food habits of the immediate location of activity. What type of food the people generally are looking for? You need to have feedback on the potential competition you may face in the location if any. If yes, then identify the competitors and their sales strategy.
2. Choose the Food Niche
Based on the information collected from the market research, choose the type of food items you are going to serve the customers. Try to be creative and select the menus and recipes as per the tastes and trends of the local audience. You can focus on households, parties, and ceremonies, office meal deliveries, etc.
3. Create a Food Delivery Business Plan
Even you are planning to start at home, don’t ignore to document the business plan for your food delivery business. Try to write of your own putting in as much information as possible. For a larger scale, and looking for funding, it is advised to take help from professional business planers.
4. Name Your Business
Another important aspect that generally a startup often forgets is to create a catchy and relatable business name. Choose a business name that clearly manifests your home delivery business. Also, you must check whether a similar website domain name is available or not. You can check this guide to know more about naming a business.
5. Licenses and Permits
To start and run a legally compliant food delivery business, it is an absolute necessity to accomplish the required licenses and permits. The type of licenses will depend on the location where you are opening the business. Additionally, check the upcoming tax liabilities and yearly compliances.
6. Register Your Business
Even if you operate from home, it is advised to register the business. If you are starting with your own capital on a low budget, then you can start as a sole proprietor. Else for a larger scale, talk to local business registration authorities and attorneys, and select the most-suited business structure as per resources and scale of operation.
7. Procure Necessary Tools
You don’t need much equipment or tools to run this business. General items like bowls, baking dishes, spoons, and basic utensils. However, the nature of tools will largely depend on the type of good items you are going to make and deliver.
8. Set Up the Work Space
If you are starting the business from home, you must have a specific space for the entire operation. Broadly, you need space for inventory storage, cooking, packaging, and office space.
There are important questions to ask yourself to understand and plan your operational needs. Do you intend to deliver only one meal a day, say dinner, or are you equipped to handle breakfast, lunch, and dinner? In addition, can you take the orders for the small gathering or office get-together? Because your mode of operation will depend on these decisions.
Fix the menu carefully. Don’t try to be creative in this aspect. Keep it simple. Offer the food that people want to have. Additionally, fix the pricing carefully. Choose proper accounting software for maintaining daily transactions.
Another important aspect is the area that you are going to cover. Because delivering the food to a long distant customer attract more costs for transportation than a nearby consumer. Clearly, mention the PIN codes that you can cover.
9. Arrange Transport For Delivery
The delivery arrangement is one of the most crucial aspects of this business. The success mantra of the business is the timely delivery of food at a reasonable price. Normally, maximum workplaces maintain specific lunchtimes. And definitely, people will expect the food at a specific time without any late. Therefore, you must handle the delivery issues carefully.
If you are planning to launch on a bigger scale, experienced and skilled employees are required for a smooth-running operation. Broadly, you have to hire employees for preparing food and for delivery. Additionally, you may require employees for business operations such as taking calls, preparing bills, etc.
Suggested Read: How To Hire The Right Employee
11. Go Online
Having your own business website is a must for any business to be successful nowadays. The website not only makes your food delivery more accessible to potential customers but also gives easy access to customers to give online orders.
If you want to cater to a bigger audience and some budget, consider creating a mobile app or an online food ordering website.
12. Promote Your Food Delivery Business
You must promote your business both offline and online. For an office food delivery business, it is best to meet your customers personally. Introduce your business and give them a product catalog containing a menu list, price, and contact details. You can also use leaflets and flyers.
Additionally, outdoor advertising like billboards is an effective option for advertising this business. Make your business available on the local directories. You can also promote the business on social media. Additionally, you can offer discounts to regular customers. Also, you can expand the radius of your operation to reach more customers in your office food delivery business.
Frequently Asked Questions on Food Delivery Business:
Where Can I Start Food Delivery Business?
Ideally food delivery business is most suited for city and big town localities areas. The business is not financially feasible to start in rural areas. The location must consist of a large density of commercial offices. Because the cost of your overall transportation will affect your profit revenue. In starting, you can consider providing the service within a 20 Kilometer radius.
Who is Ideal to Start Food Delivery Business?
This business demands adequate networking skills. You must do well in social networking. Additionally, the business demands an attitude of getting satisfaction through serving others. Apart from this, you must have sales and management skills. Managing the business is the main part of this type of home-based venture. Efficiently managing your time and resources ensures more productivity at work.
What are the Challenges & Advantages of Food Delivery Business?
The biggest advantage of this business is the low investment. When you are starting and operating the business from home, it eliminates the need of having a retail location. Additionally, the part-time nature of this business allows you to move for other potential opportunities.
The downside to it is that you can’t cater to those people who prefer to have their lunch on different premises. Definitely, they will avail of a restaurant or coffee shop for having their meals.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.