Looking for a checklist on how to start a non-CDL business delivery service?
Online shopping became a convenient way of buying goods for many people.
More people want their products delivered to their door as fast as possible.
That is why more and more businesses hire non-CDL drivers to deliver their goods to their online customers.
Non-CDL drivers of a car, a box truck, a sprinter van, or a cargo van are a perfect option for delivering small freight.
So, it's an opportunity for non-CDL drivers to serve the local business while making money with a box truck or a cargo van.
The big guys like FedEx or UPS can't offer the same level of service as the independent courier does.
Starting a non-CDL delivery service is simpler and cheaper than starting a trucking business.
The main thing that you need is a box truck, a cargo van, or another small to medium-duty vehicle.
If you need a guide about starting a delivery service, follow the checklist of steps below.
Start a non-CDL business delivery service checklist
1. Choose a niche
Why would you spread yourself too thin if you can’t do good in a single niche? Right?
Provide good delivery service in a specific niche until you become an authority in it.
After doing business with your company for quite some time, your company may be on the customer’s mind whenever they need delivery service.
Position your business as the best delivery of furniture, trash, or food.
Positioning your service as delivering anything, customers may hardly differentiate it from the competition.
Do your research. Find a good niche and start from there.
If the business works well, you can expand into other niches.
2. Choose a name for your business
Choose a business name that people can spell and remember.
A good company name also helps customers differentiate you from the competition.
If possible, it should be simple, creative, and unique.
When you have an idea for your company name, check its availability at your local Secretary of State website.
Once it's available, set it up.
3. Register your business
The next step is to register your business with the state.
While starting a box truck business, you need to determine the structure of your company. Sole proprietorship, limited liability company, corporation are business structure options to choose from.
The most popular ones among small business owners are sole proprietorship and LLC.
An LLC works for those who plan to grow the business to many employees and possible partners. Also, an LLC provides protection to the business owner’s personal assets such as the vehicle, personal bank accounts, house, etc. .
But that is a very simple explanation.
To understand which structure works for your delivery business, consult an accountant or an attorney.
Here are the steps to register your business:
- Select a business entity type.
- Obtain an EIN (employer identification number).
- Register your business in the State where you will conduct business.
- Acquire any required license or permit in your State.
Once registration is complete, go to the IRS website and get a tax identification number.
You need that number to have the ability to finance the business, to file for taxes, to register for state permits and other requirements, and set up bank accounts for the business.
4. Acquire vehicles for the business
A delivery business requires at least one operational vehicle.
The needed type of vehicle depends on the cargo type you plan to transport.
If you plan to transport test results, documents, food, you'll need a smaller vehicle.
But, if you plan to transport furniture, you'll need bigger vehicle such as a cargo van or box truck.
If you don't have a vehicle, you'll have to buy one. You can buy a used or a new one.
If you don't have the money, consider taking a loan for your startup vehicle and equipment costs.
Generally, the price for delivery vehicles ranges between $15,000 and $50,000 or more.
In the case of the delivery businesses, buying a vehicle is the biggest startup expense.
As the business grows, you may need to optimize it by purchasing blankets, straps, boxes, etc.
In case of a damaged cargo, insurance protects your business against claims made by the customer.
Also, the customer may feel more confident working with your company.
For a non-CDL delivery business, there are no requirements for insurance. But, having one gives you and your customer peace of mind.
6. Marketing and Advertising
Once your business is set up, it's to time to market your delivery company to local businesses.
- Add your type of service and contact information on the sides of your delivery vehicle. In this way, businesses will notice your vehicle while you'll drive around the town.
- Increase your visibility online on through Facebook, Twitter, and LinkedIn. Build a company website.
- Go door to door to tell local businesses about your delivery service. Talk to them in person. Tell them what type of vehicle you have, what type of cargo you can deliver, and what are your routes.
- Advertise your delivery business on Craiglist and GoShare.
Once you secure your first customers, make sure to deliver the best service to them.
That will lead to repeat customers and more word-of-mouth referrals.
Conclusion: follow the non-CDL delivery business checklist
So, if you own a car, a box truck, a sprinter van, or cargo van, you can follow the above checklist to start your delivery service.
If you want to find out more about box trucks, please visit this box truck guide.