If you have finally decided to start a grocery delivery service, then here is the place where we draft a sample business plan for your reference. We do not spoon-feed you with the details, but once you go through this template, you will be clear on how your business plan should look and contain the appropriate details.
But first, let us talk about the grocery delivery business. It is a business in which you will assist clients in buying groceries and delivering them to their homes. It requires minimal challenges, and you do not need to have a business tycoon mindset to get into this venture. If you have the financial resources, you can start your own store or operate without a physical presence. It does not require substantial capital, and it is easy to operate this kind of business.
The key is to source the right products ordered by the customers and provide them as soon as possible. No customer wants to get the groceries delivered late as they want to rush with the cooking stuff. If you are keen on opening a grocery store, then location is the crucial aspect. You have to survey the market conditions and demographics before you set up the store.
How to Start Grocery Delivery Business
The grocery industry contributes largely to the total food sales in the United States. Nearly 90 percent of the total food sales were accounted for by the grocery home delivery services. Even if there is severe competition from all sides as supermarkets, grocery, and convenience stores are coming up; you can observe a growing demand for more services of such kind.
According to experts, the grocery industry is expected to increase by 1.4% every year. Almost two-thirds of the Gross Domestic Product comes from the grocery markets and relevant stores. Grocery home delivery services are indeed profitable, less challenging, and with less capital, you can surely establish your existence easily.
Here is the business plan sample template of a grocery delivery service.
- Licensing and registration formalities of the company.
- Name of the corporation – You can even name it with a generic name as Quick Grocery Delivery Service or personalize it with your details.
- The prime location of the store – If you do not have a setup, it is alright to mention the name of the website that aligns with the corporation’s name.
- Retail of food products and other essentials.
- Feasibility and market studies conducted – analyzing what competitors are offering in the relevant area and tweaking our strategies accordingly.
- Self-service, home delivery options, payment options, and online presence to place orders easily.
- Time home deliveries with no discrepancies.
- CRM and other applications to record customer details with convenience.
- Type of business – whether it is owned by your family or only by yourself or a team of business partners.
- Experience, qualifications, and special skills of the business partners involved.
- Expansion plans for the future – whether you want to expand your services to other metro cities of the United States or add more product lines to your business.
Products and Services
Home delivery services of perishable and non-perishable goods such as fruits, vegetables, dairy, meat and seafood, food items, non-food items (shampoos, detergents, soaps, etc.) health products, frozen foods, and other essential items.
Mission and Vision Statement
- Mission – To establish a grocery delivery service of all reputed brands and other authentic companies for all the residents of Boston/ or other cities and the areas nearby as per the timelines provided by the customers.
- Vision – To become a reputable brand in the grocery delivery services in the entire city and spread out services to other cities and areas as well.
Even if the grocery delivery service looks like a simple and non-challenging idea to many, our intention is to spread these services and become a one-stop solution for all grocery requirements of people. As a business owner, you are not supposed to adopt a mediocre mindset even while setting up a tiny grocery delivery business. It always needs to be exceptional in your mind.
Hence, hiring the right staff, adopting the appropriate business structure, and setting up profit-sharing models is the best way to achieve success and desired intentions.
You will need the following personnel to run your business:
- Store Manager – in case you have a brick-and-mortar store, you will need a manager to oversee all the transactions and activities happening inside the store.
- Merchandize Manager – to check whether all goods and products are in stock and any orders need to be placed or not.
- IT professionals, HR Manager, Sales, and Marketing Manager.
- Cashiers – if you have multiple cash counters, you will need them to take care of the cash registers and perform the billing for customers.
- Delivery Agents – You will need them even if you have an online business. They are like the image of your organization and hence, ensure you hire reliable team members.
- Customer Service Representatives – they will receive and answer the calls of your customers and address their complaints and grievances.
- Strengths – Let us assume that you have a physical as well as online presence, and this counts as the most significant strength. You accept all kinds of payments, provide timely delivery and have a wide variety of food and non-food products to choose from.
- Weaknesses – Lack of financial strength to compete with the giants. The new grocery stores and delivery services are always a kind of tough competition for you.
- Opportunities – The location of the business is an interesting way to tap clients. As you have a wide array of products, customers will choose you as they can have a one-stop store for all their grocery requirements.
- Threats – The economic recession can tamper with the purchasing power of customers. As a result, there will be decreasing demand for grocery items.
It is essential to leverage technology to reach clients and assist them in placing orders online and getting the groceries delivered to home. You also need to conduct discount sales, flash sale offers, and loyalty programs to attract and retain customers. As you observe the other supermarkets, they constantly try to incorporate such programs for the new and existing customers. You are also required to do the same.
No doubt your audience will be large as you will be targeting households, singles, businessmen, couples, students, tourists, and corporate organizations. Every person needs to stock groceries, hence don’t worry about the demand. As you market properly and position yourself, you will always be flocked by an increasing number of customers.
In this part, a business has to project the sources of income to generate substantial revenue. The basic source of revenue is the sale of groceries and the delivery charges incurred. You can lower the delivery charges or even make it zero and request the customers to sign up for the annual subscription service. In this way, the grocery business will have a stable clientele, and you will have guaranteed income from the delivery charges.
As a grocery business owner, you have to entail all the expenses in this section of the business plan. It includes expenses required to set up the business, expenses for regular maintenance, and for expansion.
Marketing, sales, advertising, and promotional strategies
In this vast section, you are required to add all the plans and strategies essential to market your products and services. The promotional and marketing strategy should be such that it must also communicate the brand to the customers and attract them to your store. It can take place through newspapers, radio stations, shows and conferences, TV, social media, websites, and other avenues.
Market segmentation can also help you do this. As you focus on your target audience, you can draft your marketing and sales strategies efficiently.
As we already mentioned, you need to offer discounts and conduct sales to attract customers. For this purpose, it is better if you set competitive prices for your products and services and make the delivery charges nominal. The customers should feel that they are earning benefits by placing an order to you, and not result in an expensive task. Loyalty programs for existing customers can also help you retain them.
It will take approximately $100,000 to start a physical as well as virtual store to deliver groceries in the city you wish to operate. As you set this budget, you are required to reflect on ways to generate this capital amount. You can pull it from your personal savings or borrow from friends and financial institutions.
We are sure this business plan template provides you relevant insights to craft a proper business plan.