Starting a small delivery business: Advantages and disadvantages

There’s an unlimited number of business ideas out there for everyone to choose from. One idea that’s proving popular right now is the concept of starting a small delivery business. You set up a company that’s dedicated to delivering goods for other businesses. You could deliver products in your local area from small businesses, or you could deliver them across the country- the choice is yours.

One idea that’s proving popular right now is the concept of starting a small delivery business. You set up a company that’s dedicated to delivering goods for other businesses. You could deliver products in your local area from small businesses, or you could deliver them across the country- the choice is yours.

One idea that’s proving popular right now is the concept of starting a small delivery business. You set up a company that’s dedicated to delivering goods for other businesses. You could deliver products in your local area from small businesses, or you could deliver them across the country- the choice is yours.

Seeing as this idea is so popular, it makes sense to explore the advantages and disadvantages of it. What’s good about this idea, and what’s bad? Find all this information down below:

Advantages

The first advantage that springs to mind is the simplicity of this business idea. It’s a quintessential small business idea as anyone can start it without needing much money or many resources. All you need is some form of transport to deliver the goods and some customers. There are almost no overhead costs when you want to start this business.

Secondly, you have the advantage of offering a service that’s in demand right now. The idea of delivering things to customers is big in many business sectors, from retail to restaurants. Plus, with the online business boom, more and more companies depend on deliveries to get their items to their customers, as they don’t have physical shops or stores.

Another advantage is that you can do everything yourself if you want to. You can be the delivery driver, you can find new customers, and this means you have no one else to rely on. There’s no worry of employees not pulling their weight, and of course, you get to be your own boss too.

Last but not least, you have the money-making advantages of this idea. As long as you can find a good base of customers that pay for regular deliveries, you will make a lot of money. This is somewhat down to the fact you have very low overhead costs. Hardly any money gets spent, meaning you can make a lot more.

Disadvantages

There are a few disadvantages of this idea that might put some people off it.

The first is that it involves a lot of travel. Whether you’re cycling, riding a motorbike, or driving a car – it forms the basis of your business idea. Aside from being demanding and tiring, it can also present risks to you.

Especially if you have to drive long distances at the early hours of the morning or late at night. More to the point, you’re also likely to be surrounded by trucks doing the same thing as you. So, the chances of getting in an accident are increased.

It’s essential that you call a lawyer if you’ve been injured in a truck accident, as you need to sort out compensation right away. You can’t afford to lose more money for your business and need the whole insurance issue to be sorted as quickly as possible. This is sadly something you have to consider when operating a business like this, and you spend a lot of time on the roads around big 18-wheelers.

Another key disadvantage is that this business idea is expensive when you want to make it bigger. Yes, starting this company and operating it on a small-scale is highly affordable. But, how do you expand it?

You need to hire more drivers, get a bigger vehicle to store more goods – all of these things are expensive and come with additional costs like health insurance, etc. It’s one of those ideas where you can enjoy a lot of local success, but if you want to take things to the next level, it will cost you.

Finally, a big disadvantage for some is competition from the big boys. There are many well-established delivery companies out there that small businesses in your area might already use.

This could make it harder for you to get customers as they prefer the more established, bigger, delivery services. With something as serious as delivering consumer goods, reputation is a massive factor.

It’s clear that this business idea presents many advantages and disadvantages. There are risks associated with driving a lot at ungodly hours, but if you can beat the existing competition, then it may well be worth it.

Finding customers is the hardest part, nail that down, and you can make a lot of money. It’s a good little business idea to consider if you want to start something that’s fairly low-cost.

I’m sure there are many small businesses in your area that will jump at the chance to hire a delivery service to enhance their offerings too.