writing a business plan for a grocery delivery

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How to Write a Grocery Delivery Business Plan [Sample Template]

Are you about starting a grocery home delivery service? If YES, here is a complete sample grocery delivery business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a grocery delivery business.

We also took it further by analyzing and drafting a sample grocery delivery service marketing plan template backed up by actionable guerrilla marketing ideas for grocery home delivery businesses. So let’s proceed to the business planning section.

Why Start a Grocery Delivery Service?

For sure it is challenging starting any business, but one business that you can start with minimal challenges is a grocery home delivery business. A grocery home delivery business is a business that involves helping your clients shop groceries and get it deliver to them in their homes.

With this type of business, you can choose to own a store if you have the financial capacity to or you can choose to operate without a store. The bottom line is that you should know how to source for groceries and how to get delivered to your customers.

The truth is that, starting a grocery home delivery business is a profitable business, it is very easy business to start and it is not so capital intensive. Getting the right products that people want to buy and good stock keeping records are the secrets of running a grocery home delivery business. A grocery home delivery business can be run offline from a conventional retail store or online on an online e-commerce retail site.

So, if you have decided to start a grocery home delivery business, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business in a location with the right demography and then hit the ground running.

Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business. Below is a sample grocery home delivery business plan template that can help you to successfully write your own with little or no hassle.

A Sample Grocery Delivery Service Business Plan Template

1. industry overview.

The Grocery stores industry, including grocery home delivery, and supermarkets, account for the largest share of food sales in the US. In 2013, grocery stores and grocery home delivery services accounted for 90 percent of the country’s food and beverage sales, while supermarkets accounted for 95 percent of the total grocery sales.

The food retail industry is a high-volume, low-margin business, with cutthroat competition from all quarters. It includes grocery stores, grocery home deliver services and supermarkets, as well as convenience stores.

The staples offered at these stores make the industry non-cyclical. In addition, grocery stores, grocery home delivery services and supermarkets offer an alternative to restaurants during tough economic times, as buying groceries for home cooking is one alternative.

Buying prepared foods, which are new higher-margin offerings at grocery stores cum grocery home delivery services, is an additional alternative to restaurants. However, offering new higher-margin items such as gourmet foods, prepared foods, and general merchandise is making this industry more cyclical than in the past, creating pressures on revenue during the recent economic downturn.

Small chains and independent grocers still dominate this industry, but national chains, such as Kroger, are increasingly growing in dominance. Mass merchants, such as Wal-Mart, are competing with grocery stores cum grocery home delivery services at their “supercenters” by offering lower prices through lower cost structures. Wal-Mart is now the world’s No. 1 seller of groceries.

Warehouse clubs, such as Costco and SAM’S CLUB ( owned by Wal-Mart ), can also compete on price by selling in large bulk. Supermarkets have responded to these threats by building larger “superstores” and also engaging in home delivery services.

The truth is that, conventional supermarkets are grocery stores with over $2 million in revenue, with average square feet of 15,000. Grocery stores that have less than $2 million in annual revenue sell almost entirely packaged and perishable goods, and are mostly independently owned.

Superstores are supermarkets with about 30,000 square feet, averaging $12 million in revenue. They often have an extended selection of food and nonfood items, with specialty departments such as florists, delis, bakeries, banking, pharmacy, and video rentals. Combination stores are hybrids of superstores and drugstores under one roof, with an average of 55,000 square feet.

The grocery stores cum grocery home delivery services industry ( supermarkets inclusive ) is a major sector of the economy of the united states which generates a whooping sum of well over 2 billion annually from more than 42,539 outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 2,624,650 people. Experts project the Supermarket and grocery industry to grow at a 1.4 percent annual rate. The establishment in this industry that has a dominant market share in the United States are; Albertson, Kroger and Publix Super Markets Inc.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption of which the supermarket and grocery stores industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / grocery stores industry negatively which may result in the closure of some supermarket / grocery stores.

In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located. Hence the increase of grocery home delivery businesses.

Over and above, grocery home delivery services business is indeed a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale without a store or you can chose to start on a large scale with standard Grocery Store and strong online presence.

2. Executive Summary

Gina Grocery Home Delivery Services®, LLC is a standard and registered grocery store business that will also be involved in home delivery services. Our grocery store will be located in one of the busiest streets in Trenton – New Jersey. We have been able to lease a facility that is big enough to fit into the design of the kind of grocery store that we intend launching and the facility is centrally located in the heart of town with easy delivery network.

Gina Grocery Home Delivery Services®, LLC will retail (home delivery services inclusive) a wide range of durable goods and non – durable goods at affordable prices from different brands. We will engage in retailing general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products et al. to our customers and also offer home delivery services.

We are aware that there are several large and small chains of supermarket / grocery store outlets all around Trenton that are also into home delivery services, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, strong online presence and our outlet is well secured with the various payments of options.

Beyond selling the goods and products of top brands in the manufacturing and food industry and also offering home delivery services, our customer care is going to be second to none in the whole of Trenton – New Jersey and our home deliveries will be timely and highly reliable.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products and also to become our loyal customers and ambassadors.

Gina Grocery Home Delivery Services®, LLC will ensure that all our customers are given first class treatment whenever they visit our grocery store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.

Gina Grocery Home Delivery Services®, LLC will at all times demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Gina Grocery Home Delivery Services®, LLC is a family business that is owned by Gina Jefferson and her immediate family members. Gina Jefferson has a B.Sc. in Business Administration, with well over 15 years of experience in the retailing / supermarket and grocery store industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Trenton – New Jersey, but there is a plan to expand our distribution network all across the state of New – Jersey.

3. Our Products and Services

Gina Grocery Home Delivery Services®, LLC is in the supermarket and grocery store industry to ensure that we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. Our products and services offerings are listed below;

• Home delivery of fruit and vegetables
• Home delivery of fresh and frozen meat
• Home delivery of dairy products
• Home delivery of beverages (including alcohol)
• Home delivery of frozen foods
• Home delivery of other food items
• Home delivery of other non-food items
• Home delivery of drugs and health products

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the grocery home delivery services line of business in the whole of Trenton – New Jersey.
• Our mission is to establish a grocery home delivery services business that will make available a wide range of goods and products from top manufacturing / production brands at affordable prices to the residence of Trenton and other cities in New Jersey where we intend marketing our services and products.

Our Business Structure

Gina Grocery Home Delivery Services®, LLC do not intend to start a grocery home delivery services business like the usual mom and pop business around the street corner; our intention of starting a grocery home delivery services business is to build a standard and one stop grocery store cum home delivery business in Trenton – New Jersey.

Although our grocery home delivery services business might not be as big as Albertson, Kroger or Publix Super Markets Inc., but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Gina Grocery Home Delivery Services®, LLC;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive
• Drivers / Distributors

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store/ Warehouse Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
• Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Control goods distribution and supply inventory
• Supervise the workforce in the grocery sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of groceries on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Distribution Truck Drivers

• Assists in loading and unloading groceries
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assist the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

Our intention of starting just one outlet of our grocery store on concentrate our home delivery services only within Trenton – New Jersey is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then start our home delivery services all around the state of New Jersey.

We are quite aware that there are several supermarket and grocery stores all over Trenton and even in the same location where we intend locating ours who also into home delivery services, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Gina Grocery Home Delivery Services®, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Gina Grocery Home Delivery Services®, LLC;

Our location, the business model we will be operating on (physical store and online store with robust home delivery network), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for Gina Grocery Home Delivery Services®, LLC.

A major weakness that may count against us is the fact that we are a new grocery home delivery services business and we don’t have the financial capacity to compete with multi – billion dollars supermarket and grocery store outlets like Albertson, Kroger, Publix Super Markets Inc. and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our grocery home delivery services business in one of the busiest streets with the right demography in Trenton – New Jersey provides us with unlimited opportunities to sell our groceries to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new supermarket, grocery store or retail outlet that are also into home delivery services as we do in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Supermarket and grocery store business has been in existence for as long as human started trading goods, but one thing is certain, the supermarket and grocery store industry is still evolving. The introduction of technology and subsequently homed delivery options, online grocery cum retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for supermarkets and grocery outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help supermarkets and grocery stores serve them better.

Another common trend in the supermarket and grocery store industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for supermarket and grocery stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable in elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99.99 and $199.99 et al as against $4, $100 and $200. Supermarkets and grocery stores also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Perhaps the supermarket and grocery store industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a supermarket or grocery store. It is difficult to find people around who don’t patronize supermarket and grocery stores.

In view of that, we have positioned our grocery home delivery services to service the residence of Trenton – New Jersey and every other location our grocery stores will be located all over the state of New Jersey. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to retail ( home delivery services inclusive ) a wide range of groceries to the following groups of people;

• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our competitive advantage

A close study of the supermarket and grocery store industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading supermarkets and grocery stores in Trenton – New Jersey.

Gina Grocery Home Delivery Services®, LLC is launching a standard grocery store cum grocery home delivery services business that will indeed become the preferred choice of residence of Trenton – New Jersey. Our grocery store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Trenton – New Jersey. We have enough parking spaces that can accommodate well over 30 cars per time.

One thing is certain; we will ensure that we have a wide range of products available in our grocery store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goals is to make Gina Grocery Home Delivery Services®, LLC a one stop shop.

Our excellent customer service culture, timely and reliable home delivery services, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups supermarkets and grocery stores / grocery home delivery services businesses) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Gina Grocery Home Delivery Services®, LLC is in business to retail (home delivery services inclusive) a wide range of groceries to the residence of Trenton – New Jersey. We are in the supermarket and grocery industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing (home delivery services inclusive) of a wide range of durable goods and non – durable goods at affordable prices. We will retail groceries such as;

• Fruit and vegetables
• Fresh and frozen meat
• Dairy products
• Beverages (including alcohol)
• Frozen foods
• Other food items
• Other non-food items
• Drugs and health products

10. Sales Forecast

One thing is certain when it comes to supermarkets and grocery stores, if your store is well stocked and centrally positioned coupled with effective and reliable home delivery services, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the supermarket and grocery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Trenton – New Jersey.

Below are the sales projections for Gina Grocery Home Delivery Services®, LLC, it is based on the location of our business and other factors as it relates to supermarkets and grocery stores start – ups in the United States;

• First Fiscal Year-: $120,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $650,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, home delivery services and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Gina Grocery Home Delivery Services®, LLC, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Trenton – New Jersey. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the supermarket and grocery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Trenton.

In other to continue to be in business and grow, we must continue to sell the groceries that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Gina Grocery Home Delivery Services®, LLC will adopt the following sales and marketing approach to win customers over;

• Open our grocery store cum grocery home delivery services business in a grand style with a party for all.
• Introduce our grocery home delivery services business by sending introductory letters alongside our brochure to organizations, households and key stake holders in Trenton – New Jersey
• Ensure that we have a wide range of groceries from different brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our grocery store
• Position our signage / flexi banners at strategic places around Trenton – New Jersey
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our grocery home delivery services business.

11. Publicity and Advertising Strategy

Despite the fact that our grocery store cum grocery home delivery services business is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our grocery home delivery services business.

Gina Grocery Home Delivery Services®, LLC has a long term plan of opening expanding our home delivery services all around New Jersey which is why we will deliberately build our brand to be well accepted in Trenton before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand.

Here are the platforms we intend leveraging on to promote and advertise Gina Grocery Home Delivery Services®, LLC;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Trenton – New Jersey
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Gina Grocery Home Delivery Services®, LLC and the products we sell
• Advertise our grocery home delivery services business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and distribution vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to supermarkets and grocery stores, it is normal for consumers to go to places (retail outlets) where they can groceries at cheaper price which is why big player in the supermarket and grocery industry like Albertson, Kroger and Publix Super Markets Inc. will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Albertson, Kroger and Publix Super Markets Inc., but we will ensure that the prices of all the groceries that are available in our store are competitive with what is obtainable amongst supermarkets and grocery stores within our level.

We also have plans in place to discount our groceries and home delivery services once in a while and also to reward our loyal customers from time to time.

• Payment Options

The payment policy adopted by Gina Grocery Home Delivery Services®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Gina Grocery Home Delivery Services®, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via POS machines
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a grocery store cum grocery home delivery services business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Gina Grocery Home Delivery Services®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of groceries) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost for the purchase of delivery vans – $25,000
• The cost of Launching a Website –   $600
• The cost for our opening party –   $7,000
• Miscellaneous –   $10,000

We would need an estimate of $500,000 to successfully set up our grocery store cum grocery home deliver services business in Trenton – New Jersey. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Gina Grocery Home Delivery Services®, LLC

Gina Grocery Home Delivery Services®, LLC is a private business that is solely owned and financed by Gina Jefferson and her immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Gina Grocery Home Delivery Services®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our groceries a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Gina Grocery Home Delivery Services®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Purchase of distribution vans: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our grocery store: Completed
• Establishing business relationship with vendors – suppliers of groceries: In Progress

More on Wholesale & Retail

Delivery Service Business Plan: Guide and FREE Template

Did you know that the delivery service industry is expected to reach $658.3 billion by 2031 ? If you’ve been thinking about starting a small business like food delivery or grocery delivery, there has never been a better time. Customer demand is at an all-time high and startup costs are under $10,000 on average. 

The first step to creating a successful delivery service business is — no surprises here — writing a business plan. In this guide, we’ll outline everything you need to know to turn your business idea into reality, and provide a free template for you to get started.

💡If you’re already done your homework and just want to get started, go ahead and start filling out our free delivery service business plan template .

Six reasons to create a business plan for your delivery service 

Did you know that 71% of fast-growing companies have a detailed business plan? And entrepreneurs who have a written plan are 260% more likely to actually start their business and see success. 

That’s because your business plan is your blueprint for getting started, and then guiding you to success in your new business. It will help you:

• Decide if your business idea is viable.
• Conduct a market analysis to understand your competition, customers, and growth ability.
• Set your goals, and create strategies for achieving them.
• Make important decisions about products, marketing, staffing and funding. 
• Raise funding from banks or other investors. 
• Track your progress, growth and profitability.

The main components of a delivery service plan

A business plan is a summary of all your business’s potential operations, so it includes multiple components. Here they are:

1. Executive summary

This section is an introduction to your business, so you want to make it appealing. Answer the following questions: 

• What’s going on in the delivery service industry? 
• What type of delivery service business are you opening? 
• What sets your business apart from well-known delivery options, like FedEx and USPS? 
• Who are the key members of your team? If you are just starting out, your only team member might be you. In this case, list your experience and commitment to success. 
• What are your financial projections showing? What are your operating margins and tentative profitability? 

You don’t want to bore the reader in this section. Make it engaging, and outline key points and advantages of starting your business. Don’t include any negative information.  For example, you shouldn’t say that the delivery service market is oversaturated. If it was, opening a new business wouldn’t be very successful, would it? 

Another common mistake to avoid is understating the qualifications of your team. Don’t say you lack the capital to hire team members, or that you don’t have the necessary experience to run the business. Instead, stay positive with words like “the (company) plans on hiring additional help once we enter a growth phase.”

2. Company overview

The company overview is a deeper dive into the fundamentals of your delivery service. Here, you will pinpoint the type of business you will operate. For example, will you be a pure delivery company, like a courier or express messenger? Or will you be delivering your own products, like food, beverages or flowers? Or maybe you’ll deliver on behalf of other producers, like many grocery delivery services that work with different farmers. Will you offer same-day delivery?

A courier service business plan will be different in some ways from a plan for a grocery delivery service company, but you’ll need to answer all the same questions.

It’s not uncommon for delivery service businesses to engage in more than one service. List all services that you plan on operating. 

In the company overview, you will also outline your “why” for starting the business, important milestones you have already achieved, and information on the legal structure of your business. You may also want to include a mission statement here. 

3. Industry analysis

Now, it’s time to get down to the facts. Include industry growth facts, such as that the compound annual growth rate in the United States is 5.7% or that there are currently over 250,000 courier and local delivery companies . 

Properly completing this section will require some industry and market research. Great research starting points include IBISWorld , the Small Business Administration (SBA), and your state’s website, if you are offering local courier services.  This is not only beneficial to show the opportunities in the market, but you will also develop insights into how to set yourself apart from competitors. 

Be sure you include information on market conditions, main competitors, key suppliers, current trends, and where the industry is headed. 

4. Customer and market analysis

Who is your primary customer? Are you looking to work with individuals or businesses? What types of businesses or individuals are your ideal potential customers? Identifying your target market, and how will you win new customers, is critical to developing accurate marketing strategies. 

Try to be as detailed as possible. Pinpoint the age, gender, geographic location, income levels, and needs of your target market. 

5. Competitive analysis

The competitive analysis section will highlight your competition and how you plan on setting your business apart. You should uncover data to back up your claims. For example, recent studies show that 73% of customers have had bad delivery experiences , and 16% have advised friends or family to avoid the retailer. 

Statistics like these can help to show that prioritizing customer service is how your business will shine. You might choose to include a chart or graph on common traits that your business and competitors have. Identify weaknesses, strengths, pricing differences, and the target market of competitors as well. 

Could you offer local delivery to companies in your area to boost their revenue? How about delivering outside of normal hours, such as overnight? Do you have the capabilities to specialize in fragile package delivery? These are all ways that you can differentiate yourself from competitors. 

6. Marketing strategy

Using all of the information and data you have accumulated, you will piece together a marketing strategy. Going through the four Ps can give you a comprehensive marketing plan:

• Product: Discuss the type of services you are providing again, including the specifics, like late night delivery or fragile package options. 
• Price:   Reinforce your pricing structure and make a comparison with competitors. 
• Place: Identify where you will be delivering. This could be local, regional, or national. 
• Promotions: Put together a general strategy for how you will attract customers. Will you advertise in local papers, or go for a pure e-commerce model? How about social media or email marketing? Talk about how your delivery service website will use SEO, how you’ll build relationships with local businesses, or how you’ll search for jobs on courier listing sites. 

Your marketing strategy is very important for displaying how you will attract customers using your competitive edge. 

6. Operating strategy

This section of your delivery service business plan will outline both the day-to-day operations and the long-term goals of your business. In the executive summary, you touched on a few of your main goals. In this section, you will elaborate on those items. 

Common day-to-day operations might include listing the tasks of your team, like answering calls, scheduling, and dispatching routes to delivery drivers. How will you plan your deliveries? Will you hire your own drivers, or use contractors? What about a vehicle fleet? What software will you use to track deliveries, customer requests, and costs? 

Long-term goals might be increasing revenue by a certain percentage each year, or adding a specific number of trucks every few months. Maybe you want to grow revenue by 3% each year. What can you do to get your business there? Will you increase prices to match inflation, win new customers or hire additional staff? 

Both your short-term and long-term goals need to be reasonable. Don’t say you’ll grow revenue by 50% in your first year, or have 20 delivery team members right from the start. Reasonable goals are easier to work toward and can keep you and your team motivated. 

7. Management team

Your team is essential to the success of your delivery business. If you have a partner with years of industry experience or a manager with a stellar record, incorporate that expertise and experience into this section. 

You should have a clear management structure and chain of command. Keep in mind that job roles can overlap, especially if you only have a few team members. Identify who will handle hiring, day-to-day operations, high-level decisions, and customer service. 

Also, be sure that you include any mentors that are guiding you along the way. This could be an advisor in the industry, a family member, or a friend. 

8. Financial projections

A key component of your delivery business plan is projected financial statements. If you are just starting out, you might not have years of historical financial information. This is why you need to project your expected revenue, operating expenses, assets, and profit based on industry research and your specific business characteristics. 

Your financial plan should include at least five years of financial projections. This helps you determine your business’s chance of being successful and profitable. Prospective lenders and investors will also want to see this information. Here are the main financial statements you will develop: 

• Income statement : This outlines your revenue, expenses, and bottom-line number, known as net income. A positive net income indicates a profitable business, while a negative number suggests you are losing money. 
• Balance sheet : The balance sheet tracks your overall financial health by outlining assets (what you own), liabilities (what you owe), and equity (what you’ve earned, contributed, and taken out of the company). 
• Cash flow statement : This tracks the movement of money in your business. The three main categories found in this document are cash earned or spent from operations, financing activities, and investments. 

It can be hard to plan out all of these expenses, which is why many delivery service businesses use an accountant to help. 

Don’t just hire the first accountant you come across. Interview a few to confirm that you feel comfortable with them and can develop a good working relationship. Also check that they have experience helping startups, especially in the delivery service industry. This is because the business model that delivery service businesses follow isn’t the same as other industries. 

Accountants will usually list the clientele they work with directly on their websites. Otherwise, don’t be afraid to reach out and set up a consultation. 

9. Appendix

The appendix will contain additional schedules, financials, graphs, maps, and supporting information for your delivery service business plan. 

Top things to know before writing your delivery service business plan

Before you create your delivery service business plan, you will need to think about the big picture. This includes evaluating the following components: 

1. What delivery service model will you choose?

In your delivery business plan, you will need to decide exactly what kind of courier or delivery service you want to offer.

First, consider how you will run your daily delivery operations . Will you do it all in-house , including hiring and managing your own drivers? This is how Walden Local in New England does it, using their own branded vehicle fleet and drivers to deliver local meat and fish directly from farms to customers. This gives you total control over delivery operations, but you will need your own delivery vehicles. This can increase the costs, especially when you factor in vehicle maintenance.

Alternatively, you could outsource your actual deliveries via a gig economy app like DoorDash or Uber Eats. Many restaurants and ghost kitchens choose this operating model, preferring to focus their effort on the actual product they’re delivering. 

Second, what delivery time frames will you offer? The three main options here are:

• On-demand delivery: This literally means you will deliver (or pick up and deliver, in the case of a courier service) as soon as the customer places their order. Depending on the exact product, this could be the same day (groceries) or the same hour (restaurants). This is highly convenient for customers, but expensive to operate.
• Batched delivery: If you expect very high volumes, or if you choose to offer next-day delivery or later, you have the option of creating delivery batches so you can create more efficient delivery routes and schedules. This makes it easier to deliver profitably, but isn’t suitable for a business like a restaurant.
• Scheduled delivery : This is a favorite delivery model for subscription services like meal prep companies, and it can make delivery operations much easier. It means pre-planning deliveries to specific areas on specific days — for example, I subscribe to a flower delivery service that means I get fresh blooms on my doorstep every second Wednesday. You will need to be very clear upfront with your customers about how their deliveries will work, but if you manage expectations clearly this can be an excellent option.

You can read more insider tips for starting your own delivery business here . 

2. How will you set up and staff your business? 

During the  business planning process, you should form a legal business structure. This entails registering your business name with your state and applying for an Employer Identification Number. You will need to pick out a business structure, such as a single-member LLC, a partnership, or a corporation. Talking with an accountant can help you find the most favorable structure. 

Keep in mind that staffing can take some time, especially with talent shortages. Before you can accept your first delivery order, you need to go through the hiring and training process with staff members. Knowing how to hire and retain delivery drivers , in particular, can help you save a lot of time and money. 

Do your research on a competitive wage, determine how you will process payroll, pinpoint the benefits you will offer, and create job listings. The right team members working alongside you can help your business thrive. 

3. What delivery management software will you use?

If you want an efficient, profitable delivery service business , sooner or later you’ll need proper delivery management software . Plenty of delivery businesses have started out using nothing but Excel spreadsheets, but that can quickly become a brake on your growth. Considering your delivery software while you’re making your business plan can give you an edge. Look for software that will make it easy to:

• Upload orders
• Use route optimization to plan efficient delivery routes
• Dispatch to a mobile driver app
• Track delivery progress in real time
• Send customer notifications
• Manage driver timesheets and payroll

The right delivery management software can help you achieve profitability, offer a great customer experience, and ensure on-time deliveries.

How to use the template

Now that you know what to include in your delivery service business plan, it’s time to get started. You can open a copy of the template right now and start writing. Here are some tips we’ve learned along the way: 

• Don’t jump around: Work on your delivery business plan section by section, starting at the top. Jumping around results in missed information and confusion. 
• Re-read Sections – It’s helpful to read through each section a few times before you create your own. 
• Be Thorough – The more thorough you are, the more beneficial your plan will be. After all, the goal of a delivery business plan is to provide you with guidance for starting your business. 
• Be Honest – Oftentimes, delivery service business owners adjust their plans to make their business look more attractive. You want to be honest throughout the plan to give you an accurate roadmap of what you need to do to become successful. 

If you are still struggling to piece together your business plan after reading this guide, don’t hesitate to reach out to an expert for help. 

Final Thoughts and Access to Your Free Template

A delivery service business plan is a resource that can bolster the success of your new delivery business. Take the time to conduct research and put thought into your plan. You don’t want to start your business and scramble to figure out who your target market is or how to display your competitive advantage. Here is our free template . 

If you’re in the market for delivery management software, Routific has you covered. We infuse accuracy and efficiency into our platform, giving you the tools to increase profit, meet customer demands, and ensure your team maximizes productivity. Reach out to schedule your free consultation.

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Delivery Service Business Plan Template

Written by Dave Lavinsky

Delivery Service Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their delivery service companies.

If you’re unfamiliar with creating a delivery service business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a delivery service business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Delivery Service Business Plan?

A business plan provides a snapshot of your delivery service business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for a Delivery Service

If you’re looking to start a delivery service business or grow your existing delivery service company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your delivery service business to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Delivery Businesses

With regards to funding, the main sources of funding for a delivery service business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for delivery service companies.

How to Write a Business Plan for a Delivery Service Business

If you want to start a delivery service business or expand your current one, you need a business plan. The sample below details the necessary information for how to write each essential component of your delivery service business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of delivery service business you are running and the status. For example, are you a startup, do you have a delivery service business that you would like to grow, or are you operating a chain of delivery service businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the delivery service industry.
• Discuss the type of delivery service business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of delivery service business you are operating.

For example, you might specialize in one of the following types of delivery service businesses:

• Courier Delivery Services : This type of business provides air, ground, or combined courier delivery services.
• Express Messenger Services : This type of business provides express messenger and delivery services.
• Package Delivery Services : This type of business delivers parcels, documents. and packages.
• Packing and Sorting Services : This type of business prepares items to be delivered.
• Transporting and Trucking Services : This type of delivery business transports items via truck.

In addition to explaining the type of delivery service business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of delivery drivers you employ, the number of items delivered, reaching X number of clients served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the delivery service industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the delivery service industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the delivery service industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your delivery service business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your delivery service business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of delivery service business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other delivery businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other third-party delivery services, ship-to-store services, and other types of delivery services. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of delivery service business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for local and long distance delivery?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a delivery service, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of delivery service company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide express delivery, air transit courier services, or long distance delivery services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your delivery service company. Document where your company is situated and mention how the site will impact your success. For example, is your delivery service business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your delivery service marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your delivery service business, including answering calls, scheduling pick up and delivery of items, managing drivers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your X number of deliveries made, or when you hope to reach $X in revenue. It could also be when you expect to expand your delivery service business to a new city.  

Management Team

To demonstrate your delivery service business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing delivery businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a delivery service business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.  

Income Statement

In developing your income statement, you need to devise assumptions. For example, will you schedule 5-10 deliveries per driver per day and have 6 drivers? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your delivery service business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a delivery service business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of geographic locations you serve.  

Writing a business plan for your delivery company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert delivery service business plan; download it to PDF to show banks and investors. You will understand the delivery service industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful delivery service business.  

Delivery Service Business Plan FAQs

What is the easiest way to complete my delivery service business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your delivery service business plan.

How Do You Start a Delivery Service Business?

Starting a delivery service business is easy with these 14 steps:

• Choose the Name for Your Delivery Service Business
• Create Your Delivery Service Business Plan
• Choose the Legal Structure for Your Delivery Service Business
• Secure Startup Funding for Your Delivery Service Business (If Needed)
• Secure a Location for Your Business
• Register Your Delivery Service Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Delivery Service Business
• Buy or Lease the Right Delivery Service Business Equipment
• Develop Your Delivery Service Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Delivery Service Business
• Open for Business

Learn more about how to start your own delivery service business . 

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business planning advisors can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

Build a Successful Grocery Delivery Business Plan

Table of Contents

Grocery delivery business from market perspective, how to start a grocery delivery service, how does grocery delivery business make money, it’s time to start your own grocery delivery business.

The grocery delivery business has grown significantly over the last few years, with the trend accelerating during the pandemic. We have received many questions related to grocery delivery business models, such as how to make a successful grocery delivery business plan and what factors will play a key role in achieving success?

Indeed, the delivery business for groceries is one of the fastest-growing niches of eCommerce in 2023. Given the facts and stats on online grocery shopping services, the market is expected to grow by three-fold every year and any investment whether it be launching a grocery store or starting a grocery delivery service; will have a positive outcome.

So, if you are exploring how to start a grocery delivery business, then this article is good to read for you. You will get a comprehensive guide, tips and suggestions here.

Let’s begin with some fascinating facts about the online grocery business trends stated by Statista.

• A report by Statista says that the total retail sales in 2020 accounted for $5,638bn.
• The same report suggested that more than 260 million Americans will purchase things online, including groceries in 2021.
• Instacart, Walmart Grocery, and Shipt have witnessed a significant download surge of 218%, 160%, and 124% respectively.
• Online sales of consumer packaged goods have grown by 56% at the end of April 2020, as compared to the same time last year.
• A survey by Nielsen states that 70% of consumers worldwide will buy groceries online by 2024.

These are some overwhelming facts, and the best thing is that they will continue improving, ensuring sustained growth. The article is a comprehensive guide that covers a wide range of grocery delivery models. It outlines how to initiate operations during challenging times and maintain success in the long term, ensuring continued growth beyond current circumstances.

If you are considering starting a grocery delivery service with on-demand delivery apps, then this is the perfect time to hit the ball.

In this article, we’ve covered the following points:

1. Types of Grocery Delivery Business Model

2. Challenges of Grocery Delivery Business

3. Grocery Delivery Business Plan

#1. Types of Grocery Delivery Business Model

There are mainly three types of grocery delivery business models. They include:

• Inventory Models
• Multi-Vendor Marketplace Model
• Shopping Model

If you take a look at all the top grocery delivery service startups, they are either following one or a hybrid of these various grocery delivery business models. So first, it’s time to understand how these models work and then apply them as per your business goals:

Online Grocery Business: Inventory Model

In the inventory model, you stock up on grocery essentials directly from different suppliers and deliver the products to customers using an in-house or third-party delivery network. It’s basically like an offline store selling groceries that also start a grocery home delivery service . Now, customers can order online, and the grocery vendor will deliver the products to the customers using an in-house delivery network. If you don’t want to start a grocery store, you can choose to start a grocery delivery business , inspired by the inventory model.

Online Grocery Business: Multi-Vendor Marketplace Model

It’s one of the most preferred grocery delivery business models for startups, to begin with. When you choose the Multi-Vendor Marketplace Model, you do not have to manage stocks. All you have to do is become a medium between customers and grocery stores. You provide a digital platform in the form of a website portal or a mobile app using which the customers and grocery stores can interact.

The customers will send orders through the app; the app will further transfer the order to the respective grocery stores. Then a delivery person will collect the products and deliver them to the customers. Many eCommerce companies like Amazon, eBay, and Airbnb already follow this business model.

Online Grocery Business: Shopping Model

The shopping model is the most popular one, in terms of the global market. A lot of startups nowadays are exploring online how to start a grocery shopping business . It works the same as a multi-vendor marketplace model, except for one difference. The platform itself selects the vendor or grocery store instead of the customers, based on the customer’s location.

When a customer places an order, the platform chooses the vendor and uses an in-house delivery person to deliver the order to the customer. The Instacart business model works on the same approach.

#2. Challenges of Grocery Delivery Business

If you are a grocery delivery startup , you have no easy path ahead. The maximum challenges that a grocery delivery service startup would face in a pandemic is from the customer side, such as – around 40% of consumers complained about delayed delivery of groceries during the Coronavirus pandemic in the United States. At the same time, another 20% complained about facing issues with the delivery time range of the groceries.

There were only 9% of customers who responded saying that they did not face any difficulties while placing an order online. But the good thing here is that all the grocery delivery services are facing these problems, so you just need to be better than others. Ultimately, the goal has to be to build a profitable grocery delivery business . 

These are also other challenges that occur in the online grocery delivery business that faces other sources. Let’s take a look at some of them:

• Lack of Supply Chain Management
• Changes in Demand
• Changes in Customer’s Buying Behavior
• Dull Workforce
• Delivery Charges
• Stiff Competition

The grocery delivery business opportunity is a really lucrative one if you can overcome these challenges and be able to work efficiently. But, to do so, you need a well-defined grocery delivery business plan. Next, we’ll be taking a look at creating such a business plan.

Know more: How To Start A Successful Food Delivery Business?

#3. Grocery Delivery Business Plan

Whether you want to start a new online grocery store or want to take your existing physical grocery business online, you need to explore the grocery store business model and create a foolproof grocery delivery business plan. We have listed out some of the essential points which will help make things easy in planning your grocery delivery business venture.

Study The Market & Your Competitors

The first step you should take is to gather a list of your competitors, research, and take a competitive analysis to understand your market thoroughly. Understanding the market needs, customers’ pain points, and your competitors’ business moves will help you make better decisions while creating grocery delivery service business plans .

Start with some of the prominent names in grocery delivery service and explore their application, how they work, and gauge their strengths and weaknesses. Some of the best grocery delivery services are:

• Amazon Fresh

Invest in MVP Development

Building a full-fledged grocery delivery service app could be a costly affair that has to be done without any mistakes. The best way forward is to first create a Minimal Viable Product (MVP) on your grocery delivery app concept. It helps you analyze things and improvise without making a hefty investment on the first go.

Read Also: Grocery App Development: Tips, Cost, and Process

Best App Design, Features, & Technology Stack Will Set Your App Apart

Ever thought about what grabs the attention of the app users? It’s the app’s design, features, functionalities, and the level of technology stack working on running the app that makes the difference. So you must do a competitive analysis and select features and designs that your competitors lack and make them your app’s specialty. A bit of good advice is to integrate exceptional app design and include user-friendly functionalities, and effective technology while formulating your grocery delivery app.

Read more: Postmates VS DoorDash: Which Delivers the Best Food Experience?

How your grocery delivery business makes money depends on the type of grocery delivery business model you choose to follow. So you must select the business model carefully after considering its revenue model.

Some of the common sources of revenue for the Grocery Delivery app are:

• Commission on Orders
• Promoting Vendors on the App
• Selling Ad Space in the App
• Monthly Subscription Charges

Take the help of an expert business analyst and investors and do some brainstorming while deciding your grocery delivery business’ revenue model.

An Effective Grocery Delivery App Can Be a Game-Changer

You now know the on-demand grocery business model and have understood the challenges that come with them as well as the revenue models these business models apply. But all of this can only work if you have a competent and exceptional grocery delivery app.

It is essential to know how to make a useful grocery delivery app. Creating an excellent app depends on getting the right app development company and the perfect app solution from them.

If you don’t have the time and money to build an app from scratch, the best option is to get an Instacart clone script solution instead. So, the best call would be to purchase a customizable ready-made grocery delivery clone solution to create your perfect grocery business app.

The next possible solution would be to take a Grocery Delivery Franchise and start your own business quickly. Taking a franchise will help you with a shorter time to market and earn right from the beginning. However, you need to make sure that the franchise you are taking is popular, Instacart, Amazon Fresh, etc, and you don’t have to spend a lot on its marketing. 

Read More: Shipt vs Instacart

You may find plenty of data, surveys, studies, and research papers on how to start your own grocery delivery business. Still, all of these data dates before the Coronavirus pandemic outbreak hit us. We are not saying that they are wrong or not reliable, but you still need a set of experts that can break down the information based on the current situation.

The world is facing a health crisis, and the economy has been hit hard. Industries, businesses, lives, and livelihoods, everything has been affected by the pandemic. Even though things are getting back on track, it will take time (even years.) Don’t blindly believe in the business tips and guidance given before the pandemic.

Contact experts , share your concern, and you will get the perfect solutions.

Related Post

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Shipt vs Instacart: A Guide to Choose the Best Grocery Delivery App

May 18, 2022 • by Mahil Jasani

Grocery Delivery App Development Guide: Features, Benefits, Process, & Costs

September 8, 2023 • by Mahil Jasani

Home » Food

How to Start a Grocery Delivery Business [Business Plan]

A grocery delivery company is involved in the delivery of groceries to any destination within their coverage area as ordered by their clients. The process of ordering groceries from a grocery store or online market is through the telephone, website, or customized mobile app, and many of these grocery delivery companies allow customers to keep accounts with them to make frequent ordering convenient.

Payments are usually done either by credit card or cash, with the grocery store returning a percentage to the grocery delivery company if they are not the owners of the grocery store. Recent data shows that in 2020, the last-mile delivery market for food and grocery earned a revenue of approximately $25 billion.

This is expected to cross $72 billion in 2025, accounting for a surge in the market due to the COVID-19 pandemic. Almost 112 million Americans say they’ve used a food and grocery delivery service in 2020. That represents a 17 percent year-over-year increase from 2019.

Steps on How to Start a Grocery Delivery Business

Conduct market research.

If you are considering starting a grocery delivery business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your grocery delivery business should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source information that will help you maximize your business, give you a clue of what your potential market will be looking out for from a grocery delivery business and also help you operate your grocery delivery business with less stress and of course, build the business to profitability.

a. Who is the Target Market for Grocery Delivery Business?

Fast food restaurants , households, assisted living homes, nursing homes, hostels, dormitories, camp houses, and everyone who resides in the location where you intend to operate your grocery delivery business.

b. Is Grocery Delivery Business a Profitable Business?

Yes, the grocery delivery business is profitable. The industry is projected to grow by $ 631.84 billion from 2020 to 2024.

c. Are There Existing Niches in the Industry?

There is no known niche area when it comes to the grocery delivery business. Every player in this line of business is involved in the delivery of groceries as requested by their customers. Some may decide to operate online and others may decide to operate both offline and online.

d. Who are the Major Competitors?

• Amazon Fresh – Amazon’s grocery-delivery service
• America Grocer
• Austin Grocer
• Big Apple Grocer
• Blue Ribbon Foods
• Coborns Delivers
• Door-to-Door Organics
• Fresh Direct
• Gopher Grocery
• Groceries – Express
• Homeland Delivery
• Max Delivery
• One-Click Grocery services
• Planet Organics
• Roche Bros.
• Schnucks Express Connection
• Suburban services

e. Are There County or State Regulations or Zoning Laws for Grocery Delivery Business?

Yes, there are county or state regulations and zoning laws for grocery delivery businesses, and players in this industry are expected to work with the existing regulations governing such businesses in the county or state where their business is domiciled.

f. Is There a Franchise for Grocery Delivery Business?

Yes, there are franchise opportunities for the grocery delivery business. Here are some of them;

• Time To Eat Delivery
• Takeout Waiter

g. What Do You Need to Start a Grocery Delivery Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• Delivery Vans or Bikes
• Commercial Driver’s License (CDL) (at least a Class B CDL)
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a grocery delivery business are;

Creative Grocery Delivery Business Name ideas

• Kenny Grocery© Grocery Delivery, Inc.
• Praise Vitalis® Grocery Delivery, LLC
• Evergreen© Online Grocery Delivery, Inc.
• Grocery Solutions® Grocery Delivery Company, Inc.
• Grocery King™ Grocery Delivery Company, Inc.
• Grocery Line™ Grocery Delivery Company, LLC.
• Frenzy Gang© Grocery Delivery Company, LLC
• Grocery Guys® Grocery Delivery Company, Inc.
• Star Grocery© Grocery Delivery Company, Inc.
• Eight Twenty™ Grocery Delivery Company, LLC
• Grace 2 Grace® Grocery Delivery Services, LLC
• Tango & Charlie® Grocery Delivery Company, Inc.
• Thomas Page© Grocery Delivery Company, LLC
• White Angels® Grocery Delivery Company, Inc.
• Mike Pentagon® Grocery Delivery Company
• North End™ Grocery Delivery Company, Inc.
• Zaps® Grocery Delivery, Inc.
• The Vintage Group© Grocery Delivery Company, Inc.
• Finger Snaps™ Grocery Delivery Company, LLC
• Timely People™ Grocery Delivery Company, Inc.

Register Your Business

A. what type of business structure is best for grocery delivery business.

When it comes to the business structure of a grocery delivery business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Grocery Delivery Business?

• General Business License
• Zonal Permits
• Signage Permit
• Proof of ownership, proper identification, and vehicle license
• Proof of district-issued food manager identification card
• Food purchase record storage and record-keeping
• Depot, commissary, or service support facility meets vending unit operation needs
• Copy of license for the service support facility and/or a recent inspection report.

d. What Type of Certification is Needed to Start a Grocery Delivery Business?

You don’t need any certifications to start a grocery delivery business.

e. What Documents are Needed to Open a Grocery Delivery Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval (For your kitchen and parking)
• Certificate of Incorporation
• Food Handlers’ License
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a grocery delivery business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a grocery delivery business.

A grocery delivery business will cost from $5,000 – $100,000 to start and that can easily go higher depending on your overall business goals and objectives.

b. What are the Cost Involved in Starting a Grocery Delivery Business?

• The total fee for registering a business in the United States of America – is $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $1,300.
• Marketing promotion expenses for the grand opening for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring a business consultant including writing a business plan – is $2,500.
• Insurance (general liability, workers’ compensation, and auto insurance) coverage at a total premium – of $2,400.
• Other start-up expenses include stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, fueling of the grocery delivery vans and bikes, payments of bills et al) – $60,000
• The cost of storage hardware (bins, rack, shelves, food case) – is $3,720
• The cost for store equipment (cash register, security, ventilation, signage) – $3,750
• The cost of purchase of grocery delivery vans and bikes – is $30,000
• The cost of launching a website – is $1,200
• Miscellaneous – $5,000

c. What Factors Determine the Cost of Opening a Grocery Delivery Business?

• The size of grocery delivery business (number of vans and bikes you intend to start the business with)
• The choice of location
• The required licenses and permits
• The cost of branding, promotion, and marketing of the grocery delivery business
• The cost of insurance
• The cost of registering the business
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new grocery store or parking facility for your grocery delivery business. This is because the nature of the business makes it possible for you to get everything done on the go or online without owning a grocery store.

e. What are the Ongoing Expenses of a Grocery Delivery Business?

• Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
• Salaries of employees
• Delivery vans and bikes maintenance
• Marketing costs

f. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – $38,000 Per Year
• Manager – $30,000 Per Year
• Delivery Van and Bike Drivers – $26,800 Per Year
• Call Center Agents – $26,500 Per Year.

g. How Do You Get Funding to Start a Grocery Delivery Business

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

The Vintage Group© Grocery Delivery Company, Inc. is a licensed grocery delivery company that will be based in Oklahoma City, Oklahoma but operate all across major cities in Oklahoma.

The Vintage Group© Grocery Delivery Company, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States. We will ensure that we abide by the rules and regulations guiding the food and grocery delivery industry and we will only hire qualified drivers with valid commercial driver’s licenses (CDL) to handle our delivery.

b. Products and Service

Delivery of groceries such as;

• Bakery and Bread.
• Meat and Seafood.
• Pasta and Rice.
• Oils, Sauces, Salad Dressings, and Condiments.
• Cereals and Breakfast Foods.
• Soups and Canned Goods.
• Frozen Foods .
• Dairy, Cheese, and Eggs.

c. Mission Statement

Our mission is to build a grocery delivery business that will meet the needs of our customers in the regions and cities we will cover and also sell franchises all across the United States of America and Canada.

Vision Statement

Our vision is to become one of the preferred choices when it comes to the grocery delivery business in the whole of Oklahoma City, Oklahoma.

d. Goals and Objectives

The goals and objectives of a grocery delivery business are to breach the gap between grocery stores and customers; to make it easier for people to order their groceries from their homes or offices and get them delivered to them.

e. Organizational Structure

• Chief Operating Officer (Owner)
• Delivery Vans and Bikes Drivers
• Call Center Executives.

Marketing Plan

A. swot analysis.

• Excellent operational history
• Robust relationships with key stakeholders
• Experience and trained professionals.
• Excellent customer testimonials.
• Reliable and efficient grocery delivery vans and bikes and service.
• The owner is new to large scale marketing
• We will need a loan to purchase the latest grocery delivery vans and bikes
• The owner is currently running the business solo
• Lack of economies of scale.

Opportunities:

• Growing eCommerce activities such as people ordering groceries online
• Build upon existing clientele
• Online market, new services, new technology, and of course the opening of new markets.
• Increase the number of grocery stores that would want to leverage online ordering.
• Loans diminish profitability until they are paid off
• The first year will be financially tight while we gain customers and pay off loans
• Competition in the area could increase
• Management of employees requires time, money, and efforts
• The regulatory department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.

b. How Do Grocery Delivery Businesses Make Money?

Grocery delivery businesses make money by charging clients for the delivery of groceries.

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your grocery delivery company by sending introductory letters to fast-food restaurants, households, assisted living homes, nursing homes, hostels, dormitories, camp houses, and other stakeholders in and around the city you intend to cover.
• Advertise your grocery delivery in community-based newspapers, local TV and radio stations
• List your business and services on yellow page ads (local directories)
• Leverage the internet and mobile apps to promote your grocery delivery brands
• Engage in direct marketing and sales
• Deliberately brand your grocery delivery vans and bikes
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

Most grocery delivery businesses charge based on the quantity of the groceries and the distance the grocery is to be delivered. Generally, fixed fees range from $2 to $6+ and are paid by the customer, while percentages range from 20 percent to 30 percent and are paid by the restaurant.

b. How Much Profit Do Grocery Delivery Business Owners Make a Year?

It depends, but available reports show that on average, a grocery delivery business owner should net more than $60,000 per year assuming they have a steady clientele.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the grocery delivery business (number of grocery delivery vans and bikes owned)
• The location the grocery delivery business is covering
• The management style of the grocery delivery business
• The business approach of the grocery delivery business
• The advertising and marketing strategies adopted by the grocery delivery business.
• The number of years the grocery delivery business is in business

d. What is the Profit Margin of a Grocery Delivery Business?

The profit margin of a grocery delivery business is not fixed. It could range from 15 percent to 25 percent.

e. What is the Sales Forecast?

Below is the sales forecast for a grocery delivery business. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year: $240,000
• Second Fiscal Year: $430,000
• Third Fiscal Year: $550,000

Set Up your Office

A. how do you choose a perfect location for grocery delivery business.

• The demography of the location
• The demand for grocery delivery services in the location
• The purchasing power of businesses and residents of the location
• Accessibility of the location
• The number of grocery delivery businesses, and grocery stores in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Grocery Delivery Business?

• New York City, New York
• Dallas, Texas
• Columbus, Ohio
• Oklahoma City, Oklahoma
• Chicago, Illinois
• Boston, Massachusetts.
• Los Angeles, California
• Las Vegas, Nevada
• Miami, Florida
• Washington DC

c. What Equipment is Needed to Operate a Grocery delivery business?

• Grocery delivery vans, bikes, or drones
• Grocery bags and casing
• Relevant software (Apps).

Hire Employees

When it comes to hiring employees for a standard grocery delivery business, you should make plans to hire a competent chief executive officer (you can occupy this position), a manager, delivery van and bike drivers, and call center executives.

Launch the Business Proper

In recent times, no grocery delivery business opens its door for business without first organizing an opening party to officially launch the business. You can do a soft opening party if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with the proper launching of the grocery delivery business, you will officially inform people in your city that your grocery delivery business is open for business.

a. What Makes a Grocery Delivery Business Successful?

• Choose a good location, and reliable grocery delivery vans and bikes to launch the business
• Partner with the leading grocery stores in your city
• Build reliable and easy to use grocery ordering apps
• Hire only competent, hardworking, and trustworthy staff
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your grocery delivery business
• Leverage all available online and offline platforms to promote your grocery delivery business

b. What Happens During a Typical Day at a Grocery Delivery Business?

• The business is open for the day’s work
• The grocery delivery vans and bikes are washed, cleaned, and ready for business
• Customer’s requests are taken and they are delivered
• Schedule maintenance of delivery vans and bikes are carried out
• Marketing/website upkeep
• Supply ordering
• Administrative duties
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Grocery Delivery Business?

• Good driving skills
• Customer services skills
• Interpersonal skill
• Business management skills
• Work experience in a grocery delivery services industry
• Experience in managing people
• Experience in business administration
• Experience in handling relevant software apps.

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The Ultimate Guide to Writing a Delivery Service Business Plan

A delivery service business plan is the key to your organization’s long-term success. This is because 20% of businesses fail within the first two years of opening, and one of the reasons is a poor business plan. These figures change over time, but you won’t become part of the statistic if you have a proper plan.

A business plan is a roadmap that shows you how to reach company goals successfully. But there are mistakes you can make when creating your business plan that could have catastrophic consequences for your delivery service.

To help you avoid these mistakes, we’ve provided a comprehensive guide on creating a winning business plan for delivery service.

Table of Contents

Why do you need a delivery service business plan.

A delivery company business plan guides you through each stage of starting and managing your organization. Without a proper business plan, you won’t know your target market and industry competitors. You can’t make accurate financial forecasts or devise the right sales and marketing strategy for lead generation.

You need a well-structured delivery service business plan for the following reasons:

• To establish delivery business milestones
• To understand your competition and how they operate
• Understand your customers and their needs
• Assess the feasibility of your venture
• Determine your financial needs
• Attract investors
• Reduce the risk of perusing the wrong customers
• Position your brand
• Uncover new opportunities

With a plan for your service delivery business, you’ll have a 30% greater chance of sales growth than companies that don’t have a plan.

What to Avoid When Writing a Delivery Business Plan

Avoid being vague when writing your content for your business plan. You should define your delivery business model clearly without using jargon. Don’t include unrealistic information, and don’t leave out important facts and figures.

Your business plan shouldn’t be complex. And don’t forget to regularly view and edit your business plan to ensure it aligns with your company’s mission.

ALSO READ: How to Start a Delivery Service

What to Consider Before Writing Your Delivery Service Business Plan

According to a report by IBIS World , there are 256,633 couriers & local delivery Services businesses in the US as of 2022, which is a 5.1% increase from 2021.

Therefore, you need to create a business plan to offer a delivery service that sets you apart from your competitors.

Consider the following questions when writing your business plan for delivery service.

What Makes Your Delivery Service Unique?

What services can you offer your customers that your competitors aren’t?

For example, you may create a loyalty program where customers can earn points. Or offer free delivery for purchases over $50. Long story short, make your delivery business stand out by providing services that appeal to your audience.

How Will You Structure Your Operation?

When you start your delivery business, you must have a structure that optimizes workflow and your return on investment.

Consider how you’ll hire delivery drivers and train them or manage vehicle maintenance and inventory. You should also formulate a delivery service strategy for payroll management and winning new clients.

Learn the four delivery driver training tips to elevate your drivers’ skills .

Want To See For Yourself How Route4Me Can Make Your Delivery Operations Efficient and Boost Profit?

Whether you want to reduce fuel costs, track your delivery vehicles in real-time, increase the number of stops your drivers can make, or keep your customers satisfied knowing that your drivers show up on time… Route4Me helps you achieve that!

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How to Write a Business Plan for a Delivery Service

Whether you’re creating a food or courier service business plan, they all follow the same structure and formula.

It’s essential to follow the exact format of a traditional business plan so you can work on each section carefully. Here are all the elements included in a delivery service business plan:

Executive Summary

Summary of the delivery services you provide, market analysis, marketing strategy, your team’s skills, your business operations, financial planning.

Let’s look into each of the sections in detail.

Your executive summary is an overview of your services. In the opening paragraph, you should clearly outline the most exciting aspects of your company.

Make sure you provide a synopsis of the critical points of your delivery service business plan. Use engaging language and tone, and write concise sentences. Your executive summary section shouldn’t be longer than two paragraphs.

Company Description

This section should include your company’s history and how it was founded, and the progress and investments you’ve made along the way. In addition, you should add the following:

• Mission Statement
• Principal Members
• Legal Structure

In this section, summarize what type of delivery services you provide, such as:

• Medical courier services
• Food delivery
• Legal document delivery
• Same-day delivery

Describe your delivery business by defining:

• What makes it unique
• What benefits your company offers
• Why customers would use your delivery service instead of your competitors
• How do you plan on developing your services

You’ll also need to determine how you’ll charge for your services with a pricing structure.

Your market analysis section should provide a detailed outline of your market, your position in it, and who your competitors are.

Refer to any market research you’ve done and define who your target audience is. You must figure out whether your business can attract new customers in a growing market, especially against your competitors.

Here are the key factors you should include in your market analysis section when creating a business plan for delivery service:

• The size of your market and any current issues it’s facing
• Who your customer base is and whether they’ll be interested in your delivery services
• How do your competitors work and their marketing strategies
• What are your competitors’ strengths and weaknesses are

In this section, you can also create a SWOT analysis of your business to determine your own strengths, weaknesses, opportunities, and threats.

Every company, big or small, needs a marketing strategy. You can combine traditional and digital marketing to drive brand awareness.

Create a compatible website with mobile and desktop devices to build your online presence. Once you’re fully established, you can create accounts on popular social media platforms like Facebook, LinkedIn, and Twitter to expand your customer base.

Furthermore, you should create a Google My Business listing to start local geo-targeted marketing.

We’ve explained the process in detail in our post on how to get delivery contracts .

Draft the type of skills you’re looking for from management and staff. By defining what skills you require for your delivery service, you can hire quality candidates for the job. You can also structure a strategy for dealing with conflict within your organization so that it doesn’t affect workflow.

Decide how many people you need to run your delivery services and the departments you need to accommodate them. Determine whether you plan to outsource services or only use internal operations for the job.

Once you know the size of your team, you can start thinking about the equipment you need to buy or how many vehicles you should purchase for your delivery business. You can even deliver packages with your car .

Be specific about whether you want to rent or purchase a property to set up an office and warehouse. When choosing your property, determine how many competitors are nearby and how this can affect your business.

In this section, you’ll also need to determine who your suppliers will be because you’ll need materials for packaging or rigging.

You’ll also need to factor in quality control and stock control. Lastly, develop a proper crisis management strategy for unforeseen events such as a fire or bad weather.

For example, you could use the Route4Me route planner to plan well-optimized routes. The map route planner considers weather, traffic, roadblocks, avoidance zones, and more constraints that could slow you down.

So you or your drivers will never have to worry about making on-time deliveries .

Financial planning helps you determine how much capital you need to start your delivery business and how to purchase everything you need on a budget. You can also state money owed if you’ve taken out a business loan. Or how much money you’re seeking from investors.

Include revenues and sales projections to determine how much money you can make in the first year. Operational costs must also be included in your financial planning. Furthermore, incorporate financial forecasting, which should include:

• The amount of money you expect to make from sales
• Cash Flow statements for the first 12 to 18 months
• Profit and loss forecast
• Financial risks you may encounter

Now that you know what’s included in your business plan for your delivery service, it’s time to start drafting your document.

Which Application and Template Should You Use to Write Business Plan?

Before writing your business plan, you must choose an ideal platform for your draft. You can write your delivery business plan on Word or even Google Docs so you can securely share it with multiple people.

You can also use a delivery service business plan template if you don’t want to spend time drafting subheadings.

Presenting Your Delivery Service Business Plan

You may need to present your business plan if you seek investors or a business loan. Here is a short guide on how to present your delivery business plan professionally:

• Include a cover letter. If you’ve printed the business plan out, you should bind it neatly.
• Ensure you use standard fonts such as Calibri or Ariel, and it should be 10 points or above so that the content is easy to read.
• There should be no grammatical errors. Ask an editor to check the first draft for you before sending it to anyone.
• Show the document to experts to see if you need to change or improve on any sections of the business plan.
• Sentences should be written concisely, and you should include graphs and relevant data in your market analysis and financial planning section.
• If you want to email your document, you can create a business plan for delivery service in a pdf format.

A well-documented delivery service business plan will show that you understand your business’s elements and how you’d like operations to function. It will impress investors or anyone you show your document to.

Final Thoughts about Writing a Business Plan for Delivery Service

Now that you know exactly how to structure your delivery service business plan, you won’t leave any essential sections out.

Use this guide to structure a professional business plan that will help you become one of your industry’s top delivery service providers!

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How to Write a Grocery Store Business Plan

Marcel Deer Author

Marcel Deer

Business Plan for Grocery Store Guide

Americans spend 12.8% of their income on food , across both groceries and eating out. Grocery store spend for consumers is one of the largest monthly expenses and makes up a significant percentage of share of wallet spend. 

In the grocery retail landscape, success hinges on strategic market positioning, where both the bottom of the market and high end of the market being attractive options. Low-cost stores thrive by appealing to budget-conscious shoppers, offering affordable options through streamlined operations and high-volume sales. Meanwhile, premium grocery stores cater to a smaller yet willing clientele, who prioritize quality, unique offerings, and personalized service over price. By understanding and meeting the distinct needs of their respective customer bases, both low-cost and premium stores demonstrate the power of strategic alignment in achieving an enduring grocery store business.

Regardless of the strategy you choose, the best place to start is with a grocery store business plan that covers all the bases and helps you find stakeholders to support your enterprise. 

In this article, you’ll learn:

Why a grocery store business plan is so important

What your plan should include

How to present it to potential investors

Grocery can specialize in certain types of food, levels of quality, or price ranges. They can be local, family-owned businesses or massive corporate-owned superstores. But all of these businesses need plans. New owners need to know who they’re targeting and how, what’s necessary to create and operate their business, and how all of these pieces will fall into place.

It’s important to clarify and simplify your business ideas into one coherent direction, and your business plan can help you do just that. Ex-CEO of retail giant Costco, Craig Jelinek, says,

“We want to keep what we do simple. If you start to drift and become complicated, it costs you a lot of money to be complicated.”

By planning out the fine details, you can keep things on track and prevent issues from ever becoming problems.

Elements of a Grocery Store Business Plan

The major sections you need in your plan should give your readers the necessary details they need to understand how your business will be set up, how it will operate, and how money will flow through it. These include:

Executive summary

The most impactful part plan should be a strong summary that explains the major points of your business. This is also where you can define your company in terms of a mission statement, concept, potential costs, and core values. You should briefly but captivatingly explain the purpose of your business and why it will succeed so that your potential partners and investors will be enticed to read on.

Company Overview

Define the kind of company structure you want to set up. Will it be a sole proprietorship, a partnership, or a limited liability company? Define the ownership structure. Talk about the location you’ve selected or the general area and explain its significance. This is also the time to define your grocery store’s unique selling points. Explain to your audience what’s different about your business idea and how that will make you competitive.

Team and Management

Like with all enterprises, success in the grocery business requires strong leadership, excellent management, and great staff. This section of your business plan can focus on who will run the store’s day-to-day operations and who will manage the business at a higher level. You can define your staff schedule, the positions that you’ll need (like cashiers, stock handlers, delivery drivers, and more), and the strategies you’ll use to fill them. 

Market Analysis

It’s not enough to simply have an exciting business idea. Even if it’s novel, interesting, and likely effective, it could fall flat if it were set up in a location where it can’t outcompete a popular incumbent. This is why it’s crucial to look at what the competition is doing and to be sure that you have something better or different to offer.

Target Market

People have a lot of choices, so be sure you’re focused on certain segments of the population that may be underserved and looking for a new option. Find out who these people are and what they want in terms of products and services. They might be looking for Pick Up & Go services that are not yet available where they live or for specialty items like exotic produce that no one else is providing.

Grocery stores can target different market segments based on their offerings and pricing. Explain which market which segment you store is going after, and why you have a right to win in that segment.

Low-End Segment: Focuses on affordability with basic products and minimal frills, appealing to budget-conscious shoppers.

Mid-Market Segment: Balances affordability and quality, offering a diverse range of products including budget-friendly options and branded items.

Premium Segment: Emphasizes quality and specialty products, catering to affluent shoppers seeking gourmet foods and upscale offerings.

Location Analysis

A great location is paramount for a grocery store. Analyze the area you’ve selected by starting broad and zooming in to find a location that offers everything you need, from space to parking or easy access to public transportation. Make sure your target customers can and will get there easily.

Competitive Analysis

In what way is your business uniquely positioned to succeed in this market? Choose a vector or two that you can compete on and win. You might focus on affordability, convenience, product quality, or any number of other features. Define what they are and your advantage over your competitors.  

Marketing and Publicity

Unless people know about your business and what it offers, it won’t succeed. That’s why a marketing plan is an essential part of your overall grocery store business plan. You may need to work with a marketing firm or a consultant to develop effective strategies that range from special events to promotions. You’ll also need to define your budget for both startup and ongoing marketing as a percentage of your revenue.

Here are potential marketing ideas to improve your grocery store's marketing strategy, that you can include in your business plan.

Digital Loyalty Programs: Implement digital loyalty programs with incentives like discounts and exclusive deals to foster customer loyalty.

Social Media Engagement: Engage customers through captivating content on social media platforms, showcasing fresh produce, cooking tips, and behind-the-scenes insights.

Local Partnerships: Collaborate with local farmers and artisans to highlight locally sourced products, appealing to consumers' interest in sustainability.

Interactive In-Store Experiences: Host cooking demos, tasting events, and workshops to enhance the shopping experience and promote products.

Personalized Marketing Campaigns: Utilize data analytics to tailor marketing campaigns, sending personalized offers and recommendations via email or mobile apps.

Online Ordering and Delivery: Offer online ordering and delivery services for added convenience, ensuring a seamless shopping experience from click to doorstep.

Eco-Friendly Initiatives: Implement eco-friendly initiatives like plastic-free packaging and recycling programs, appealing to environmentally conscious shoppers.

Business Operations 

How will your operations work from day to day? Think about what you need in place to make sure the business keeps running smoothly. 

Systems and Equipment

Think about the systems you’ll need to use, especially for the complicated functions of inventory, point of sale, payroll, and team scheduling. You’ll also need great equipment, including things like carts, pallet trucks, freezers, coolers, and, of course, cash registers. Look into the latest technology for grocery stores, like automated scanners and self-checkout stations, to give yourself a leg up on the competition.

Suppliers 

A great grocer needs to have groceries fully in stock at all times. Figure out who your main suppliers will be and how you’ll build lasting relationships with them.

Sales Forecasts and Operating Expenses

Potential partners and investors want to see the bottom line. They want to know how profitable your business will be after one year, five, and ten so they can make their own projections. Some of the most important financial statements to show include:

Profit & Loss

Your profit and loss statement explains your profits, costs, and expenses over a period of time to show whether you’ll expect a profit or loss during that period.

Break-even analysis

Your break-even point is simply when your profit is greater than your fixed and variable costs. This will let you know how much you need to sell before you start making money.

Expected cash flow

Calculate how much money will come in and out of your grocery store in the course of a week or a month to know what volume of trade you expect to be doing.

Financing and Loans

Once you know how much you need to start and run your business, you’ll have to figure out where to get it. You can consider taking out a loan, in which case you’ll need to work out a plan for repayment. You could also ask for investment in exchange for equity in the business. Many companies work out a combination of debt and equity financing to get the funds they need to start doing business.

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How to Present a Grocery Store Business Plan

The process of creating your business plan makes you an expert on the details of your business. With the document you create, you’ll be able to communicate these details to the people who can support your idea. But how can you reach them?

Some entrepreneurs broadcast their business plans, emailing them out far and wide, while others use a targeted approach to gain meetings with potential investors through their network of contacts. Both approaches may bear fruit, especially if you have a very strong pitch to go along with your plan. You should be able to explain why someone should join you in this venture with a short, enticing pitch that makes you and your project memorable.

Why Toast Retail is Perfect for Grocery Stores

In today's competitive retail landscape, selecting the right technology is essential for both new ventures and established businesses aiming for success. Solutions like Toast retail not only streamline operations, making them more efficient, but also provide invaluable insights to optimize the financial health of the business. 

By harnessing the power of point of sale technology, retailers can gain a competitive edge, improve customer satisfaction, and drive sustainable growth. Choosing the right technology sets the foundation for long-term success, empowering businesses to adapt to evolving market demands and thrive in an increasingly digital world.

The tech that redefined restaurants is now here to transform retail. Supercharge your store with the POS built for high volumes and complexity, offering everything you need to run your business on one platform. Toast's retail offering is a game-changer for businesses like convenience stores, liquor stores, and grocery stores, revolutionizing how they operate and interact with customers. Here's why Toast is the perfect fit for these retail environments.

1. Helps Modernize How You Sell

Toast's intuitive, cloud-based system simplifies daily operations. Its user-friendly interface makes staff training a breeze, ensuring seamless adoption across your team. Whether it's processing payments in-store or integrating with online sales channels, Toast ensures a smooth and consistent experience for your customers regardless of how they shop.

Intuitive Cloud-Based System: Our intuitive, cloud-based system is easy to learn and easy to use. Say goodbye to complicated interfaces and hello to streamlined processes. Toast is designed to simplify your day-to-day operations, from staff training to consolidated operations, ensuring maximum efficiency and productivity.

Seamless Payment Processing: Toast’s seamless payment processing easily integrates with online payments for smoother sales every time, no matter how your customers are shopping. This integration ensures a hassle-free experience for both customers and staff, leading to increased satisfaction and faster transactions.

Flexible Order and Checkout Options: Offer flexible and efficient order and checkout options with reliable hardware including handhelds, kiosks, and guest-facing terminals. Adapt to the diverse needs of your customers and reduce wait times at checkout with Toast's versatile hardware solutions, enhancing the overall shopping experience.

2. Streamline Retail Management

Efficiency is key in retail, and Toast delivers with automated, mobile-first inventory management. Say goodbye to manual inventory tracking and hello to SmartScan, a feature that enables quick product scanning and shelf placement. Managing thousands of SKUs becomes effortless with Toast's intuitive product database and bulk update capabilities.

Automated, Mobile-First Inventory: Experience the freedom of automated, mobile-first inventory management with Toast. Create and print barcodes in bulk, and take new products from scan to shelf in seconds with our SmartScan feature. Say goodbye to tedious manual inventory tasks and hello to streamlined operations.

Efficient SKU Management: Easily manage thousands of SKUs with our intuitive product database and bulk updates feature. Modify, reprice, and import multiple products at once, saving valuable time and resources. With Toast, keeping track of your inventory has never been easier.

Retail-Enhanced Dashboards: Stay on top of your business with retail-specific dashboards and cost-tracking reports. Monitor trends, maximize margins, and ensure your top-selling products are always stocked, empowering you to make data-driven decisions that drive profitability.

3. Tailor Your Customer Experience

Toast empowers you to tailor the customer experience to fit your unique retail concept. Whether you're considering adding food service or expanding your offerings, Toast's flexible platform accommodates creative expansion.

Creative Expansion Opportunities: Thinking of adding food service to your retail concept? Including Kitchen Display Systems and Order Ready Boards, our flexible platform allows for creative expansion. Explore new revenue streams and enhance the overall customer experience with Toast's versatile features.

Online Ordering and Delivery Integrations: Give your guests the option to order from home with Toast’s Online Ordering and our third-party delivery integrations. Meet your customers where they are and provide convenience that keeps them coming back, increasing customer loyalty and satisfaction.

Loyalty Rewards and Personalized Offers: Be your neighborhood's favorite shop (and incentivize repeat visits) with loyalty rewards and personalized offers. Transform one-time shoppers into loyal patrons by engaging with your community and offering enticing rewards, making your store the go-to destination for your customers.

In conclusion, Toast's retail solution is more than just a point of sale system; it's a comprehensive toolkit designed to elevate your retail store to new heights. From modernizing sales processes to streamlining management and enhancing the customer experience, Toast empowers retail businesses to thrive in today's competitive market.

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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• Sample Business Plans
• Food, Beverage & Restaurant

Grocery Business Plan

There will be a market for groceries and other household goods because of the demand, and this can be a very profitable business venture. But opening and running a grocery store need thorough preparation, investigation, and attention to detail.

Are you looking to start writing a business plan for your grocery store? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a grocery store business plan template for you to help in start writing yours.

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Grocery Store Business Plan?

Writing a grocery store business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your products and services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of the grocery store and the concept behind it: like are you opening a supermarket, small grocery store, mini grocery store, convenience store, or something else?
• Company structure of your supermarket whether it is a sole proprietorship, LLC, partnership firm, or others.
• Location of your supermarket and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your grocery store business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your small grocery store business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a grocery store business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the product:

• Create a list of the services that your grocery store will offer: fresh produce, meat, poultry products, dairy products, turkey, cookies, chocolates, bread, grain, beverages, frozen food, and others.

Emphasize safety and quality:

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, technology and equipment:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your grocery store business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the grocery store. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the grocery industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your grocery store business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This grocery store business plan sample will provide an idea for writing a successful plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our grocery store business plan pdf .

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Frequently asked questions, why do you need a grocery store business plan.

A business plan is an essential tool for anyone looking to start or run a successful supermarket. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your grocery store.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your store.

How to get funding for your grocery store business?

There are several ways to get funding for your grocery store, but one of the most efficient and speedy funding options is self-funding. Other options for funding are

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your store, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your grocery store business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your grocery store business plan and outline your vision as you have in your mind.

What is the easiest way to write your grocery store business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any grocery store business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Write Grocery Business Plan? Guide & Template

In the bustling world of retail, the grocery business stands as a cornerstone, serving the basic needs of communities. Behind every successful grocery store, there lies a meticulously crafted Grocery Business Plan, a roadmap to sustainable growth and profitability. In this article, we delve into the essentials of creating a robust plan that not only attracts investors but also sets the stage for a thriving grocery business.

Download Now => Grocery Business Plan Template

What is a Grocery Business Plan?

A Grocery Business Plan is a strategic document that outlines the objectives, vision, and operational framework of a grocery store. It serves as a roadmap for the business owner, providing clarity on the direction the business will take over a specific period.

Key Components of a Grocery Business Plan

Executive Summary: An overview of your grocery business, including your mission, vision, and key objectives.

Business Description: Detailed information about your grocery store, its location, size, and the products or services you offer.

Market Analysis: Research on your target market, competition, and industry trends to identify opportunities and challenges.

Organization and Management: The structure of your business, roles of key personnel, and their qualifications.

Products and Services: A comprehensive list of the groceries and additional services you plan to provide.

Marketing and Sales Strategy: Plans for promoting your grocery store, attracting customers, and achieving sales targets.

Funding Request: If you’re seeking funding, specify the amount required and how it will be used.

Financial Projections: Projected income statements, balance sheets, and cash flow statements to showcase the financial viability of your grocery business.

Why You Need a Grocery Business Plan?

1. Guiding Your Business Journey

A Grocery Business Plan acts as a compass, guiding you through the complexities of the grocery retail landscape. It helps you stay focused on your goals and navigate challenges effectively.

2. Attracting Investors and Lenders

Investors and lenders often require a well-thought-out business plan before committing their resources. A compelling plan not only showcases your vision but also instills confidence in stakeholders, increasing the likelihood of securing funding.

3. Minimizing Risks

By conducting thorough market research and risk analysis, a business plan helps identify potential pitfalls, allowing you to implement preventive measures and minimize risks.

4. Strategic Decision-Making

Having a clear roadmap enables informed decision-making. Whether it’s expanding to a new location or introducing a new product line, your business plan provides a strategic framework for making these crucial decisions.

Sources of Funding for Grocery Businesses

When embarking on the journey of establishing a grocery store, securing adequate funding is often a pivotal challenge. Here are some common sources of funding for grocery businesses:

• Personal Savings Investing your own money demonstrates commitment.
• Bank Loans Traditional loans with varied interest rates.
• Investors Individuals or firms willing to invest in your store.
• Government Grants Certain grants support small businesses in retail.
• Crowdfunding Online platforms can be used to gather funds.

What to Include in Your Grocery Business Plan?

1. Executive Summary

The executive summary is the first section of your grocery business plan, providing a snapshot of your entire plan. It should encapsulate the essence of your grocery store, highlighting key points from each section.

2. Business Description

This section delves into the specifics of your grocery store. Include details such as the store’s location, size, layout, and the range of products you intend to offer.

3. Market Analysis

Conduct a comprehensive analysis of your target market, competitors, and industry trends. Identify gaps in the market that your grocery store can fill and assess potential challenges.

4. Organization and Management

Outline the organizational structure of your grocery business. Specify the roles and responsibilities of key personnel, emphasizing their qualifications and expertise.

5. Products and Services

Provide a detailed list of the groceries and additional services your store will offer. Highlight any unique selling propositions (USPs) that set your store apart from competitors.

6. Marketing and Sales Strategy

Detail your plans for promoting your grocery store and attracting customers. Outline your pricing strategy, advertising methods, and sales projections.

7. Funding Request

If seeking funding, clearly state the amount required and how it will be utilized. Include a detailed breakdown of costs, demonstrating a thorough understanding of your financial needs.

8. Financial Projections

Present projected income statements, balance sheets, and cash flow statements. Include realistic assumptions and financial forecasts to illustrate the potential profitability of your grocery business.

How Do I Write a Business Plan for Grocery?

Writing a business plan for your grocery store involves a systematic approach. Follow these steps to create a comprehensive and effective document:

• Research and Gather Information

Conduct thorough research on your target market, competitors, and industry trends. Collect data that will inform the various sections of your grocery business plan.

2. Define Your Vision and Objectives

Clearly articulate your vision for the grocery store and outline specific, measurable, and achievable objectives. Your goals should align with the market needs and opportunities identified during your research.

3. Create a Detailed Outline

Develop a structured outline for your business plan, incorporating the key components mentioned earlier. This will serve as a roadmap for organizing your thoughts and information.

4. Write Clearly and Concisely

Avoid unnecessary jargon and keep your language clear and concise. Ensure that each section communicates your ideas effectively, making it easy for readers to understand your vision and plans.

5. Review and Revise

Take the time to review and revise your business plan. Seek feedback from mentors, advisors, or colleagues to ensure that your document is well-polished and error-free.

6. Include Supporting Documents

Append any necessary supporting documents, such as market research data, resumes of key personnel, or financial statements. These documents provide credibility and context to your business plan.

In the competitive landscape of grocery retail, a well-crafted business plan is not just a formality but a strategic tool for success. By addressing key components, understanding the importance of a business plan, and exploring diverse funding sources, you pave the way for a flourishing grocery business.

Remember, the process of writing a business plan is not just about securing funding but about gaining a deep understanding of your business and its potential. Embrace it as an invaluable tool that will guide your grocery store to prosperity.

Grocery Business Plan FAQs

What is a grocery business?

A grocery business sells essential consumer staples like fresh and packaged foods, beverages, household goods, personal care items, and other regularly needed products out of large retail spaces with customer accessibility prioritized.

What is the business model of a grocery store?

Grocery stores operate on high sales volumes with low margins, relying on scale, customer loyalty incentives, and just-in-time regional supply chains to control commodity prices vulnerable to scarcity spikes.

How do I write a grocery business plan?

Research your competition, project startup costs for equipment/inventory/staff, obtain licenses and commercial real estate, find reliable vendors with wholesale distribution networks, and leverage promotions and loyalty programs to attract a consistent regional customer base.

Is grocery store business profitable?

Yes, an efficiently operated grocery store can achieve sustainable profitability through buying produce and dry goods at wholesale rates, maintaining high inventory turnover, controlling payroll costs with customer self-checkout, and retaining neighborhood regulars with quality selection.

How do grocery stores make money?

Grocery stores generate revenue through direct retail markup on goods, slotting and promotional fees from brands wanting shelf placement and advertisements, data mining rewards programs, and services like pharmacy counters or proprietary prepared foods.

What are the operations of a grocery store?

Core grocery store operations comprise supply chain management, inventory stocking, cashiering and customer service on the floor, sanitation, loss prevention, technology like self-checkouts, and community engagement through sales or donations.

Written by Ivan Smith

Hello, I'm Ivan Smith, a graduate with a Bachelor of Business Administration in Marketing. Currently, I'm actively engaged in practicing business plan writing.

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Food Delivery Business Plan Template

Written by Dave Lavinsky

Food Delivery Business Plan

You’ve come to the right place to create your Food Delivery business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Food Delivery companies.

Below is a template to help you create each section of your Food Delivery business plan.

Executive Summary

Business overview.

Dig In is a newly established food delivery business located in San Diego, California. The company will have an online platform that will also be able to be downloaded to users’ phones as an app. Users will be able to create a login profile and have instant access to all the local restaurants, bakeries, grocery stores, and fast food establishments.

The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In will reward users that frequently use their app. Users will be able to earn rewards and discounts for every order they place through the website or app. This will enable users to keep ordering their food delivery through Dig In.

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

Product Offering

Dig In will provide food delivery services for the residents of San Diego. Residents who want the convenience of food delivered to their doorstep can download our app, find the establishment of their choice, and order whatever they’re craving for. Most of our sales will come from orders to local restaurants but we will also offer delivery from grocery stores and drug stores. Customers will be charged a small delivery fee or have the option to join our membership for reduced fees and special deals.

Customer Focus

Dig In will target all residents living in and around San Diego. It will appeal to students, families, retirees, white collar, blue collar, and government employees. Because our fees are moderately priced compared to other delivery apps, all income levels will be able to enjoy our delivery services.

Management Team

With his entrepreneurial and tech knowledge, John will be able to quickly fix any issues with the platform. He has also formed relationships with the most sought after restaurants, bakeries, grocery stores in the area to sign them up to be part of the food delivery platform. He has also hired a team of independent food delivery drivers to earn extra money by completing the food delivery orders.

Success Factors

The following success factors will set Dig In apart from the competition:

• Comprehensive List of Restaurants and Food Stores: Dig In will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
• Membership Rewards: Dig In will allow users who create a profile to earn rewards for every order they place through its online platform. The rewards can be redeemed for delivery fee and order discounts.
• Faster Delivery Times: Dig In promises to have faster delivery times than its competitors.
• Pricing: Dig In’s price point for delivery fees is on par with its customers, if not cheaper.

Financial Highlights

Dig In is seeking a total funding of $500,000 of debt capital to launch. The funding will be dedicated for the design and development of the app, marketing expenses, working capital, and three months worth of payroll expenses. The breakout of the funding is below:

• Platform Development: $150,000
• Marketing and Brand Development: $100,000
• Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
• Working Capital: $100,000

The following graph outlines the pro forma financial projections for Dig In:

Company Overview

Who is dig in.

  The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In’s History

John Hutchinson has spent the last 2.5 years creating the food delivery online platform. As a tech entrepreneur, he knows how to map, develop, and implement an online platform. He has been instrumental in creating other apps and platforms for ecommerce companies and has created attractive and efficient apps for numerous Fortune 500 companies.

During the COVID-19 pandemic, John was on lockdown and working from his home. He used other food delivery services, but they were all slow, got his order wrong, or didn’t have a good selection of restaurants and establishments. It was then that he started developing his food delivery business and would implement and perfect all of the things that the competition suffered at.

Since incorporation, the company has achieved the following milestones:

• Mapped out the online platform for the food delivery business
• Developed the company’s name, logo, and website
• Approached multiple local restaurants, grocery stores, and bakeries to be a part of Dig In’s platform
• Determined necessary insurance and legal requirements
• Began recruiting key employees
• Written and developed the Delivery Driver processes and procedures.

Dig In’s Services

Industry analysis.

The Food Delivery industry has grown substantially in the past five years. The convenience of ordering food from home has appealed to large demographics and now nearly everyone orders through a food delivery app at some point. Food delivery apps became a necessity during the COVID pandemic and now they are a mainstay in modern society.

According to Grand View Research, the Food Delivery industry is set to grow at a CAGR of 18.7% from now until 2030. What helps this growth is the increasing popularity of smartphones and the expansion of these services overseas. Food delivery apps are becoming an essential tool in modern society, which makes this a great time to create a new food delivery service.

Customer Analysis

Demographic profile of target market.

Dig In will target millennials, young professionals, and college age students as this demographic is more comfortable with online delivery services and regularly use other similar apps such as Uber and Tasty.

However, we expect Dig In will appeal to other demographics as well as it will be a convenient and moderately priced option to get food delivered quickly. For example, we expect working parents will enjoy our app as well as elderly residents who have trouble leaving their home to go grocery shopping or go to a restaurant.

The precise demographics of the San Diego area are as follows:

Customer Segmentation

Dig In will primarily target the following customer profiles:

• Young professionals
• College students
• Working parents

Competitive Analysis

Direct and indirect competitors.

Dig In will be competing with other popular food delivery apps. A profile of each competitor is below.

Food at Your Door

Food at Your Door is an online and mobile platform for restaurant pick-up and delivery orders. The company is known for connecting over 30 million customers and processes on average about 500,000 daily orders in most cities around the United States. Customers are able to search for restaurants, order directly through the website or app, and then await their delivery from independent contractor drivers.

The company generates revenue from delivery fees paid by consumers as well as commissions paid by participating restaurants. Food at Your Door’s other offerings include a program for corporate food ordering, website design and hosting for participating restaurants, and point-of-sale integration services. The company is continuously updating its platform with innovative technological advancements to stay on top of the competition.

Fast Foodie

Fast Foodie is a technology company that connects people with the most popular food establishments in their neighborhoods. They enable local businesses to meet consumers’ needs of ease and convenience while enabling their independent contractors to generate an additional source of income. The company is passionate about transforming local businesses and dedicated to enabling new ways of working, earning, and living. They empower their local economies by ensuring that people have equal access to opportunities to reach their full potential.

Fast Foodie has expanded their database to include not only restaurants, but convenience stores, pet stores, grocery stores, and drug stores.

Ding Dong is an operator of an on-demand goods delivery platform that is intended to facilitate smooth delivery of essential goods. The company’s platform offers full-service and in-store shopper services through a network of independent shoppers with same-day delivery and pickup service of fresh groceries and everyday essentials. This enables users to select items from their favorite grocery stores and get them delivered almost instantly.

Ding Dong was the first online platform to expand their services and products by including anything that can be purchased at a local grocery store, convenience store, or drug store. The drivers/shoppers are required to ensure delivery during the selected timeframe that the user selects.

Competitive Advantage

Dig In offers several advantages over its competition. Those advantages are:

Marketing Plan

Brand & value proposition.

Dig In will offer the unique value proposition to its clientele:

• Comprehensive list of restaurants and grocery stores
• Membership rewards and specials
• Faster delivery times
• Moderately priced fee structure

Promotions Strategy

The promotions strategy for Dig In are as follows:

Social Media

Dig In will utilize the most popular social media platforms for ads since the majority of the clientele will be active on social media. The company will also have business accounts on each major platform to post regularly of food options that are available for delivery.

Collateral Material

Dig In will develop numerous collateral materials to have on hand to give out to potential customers at the local farmers markets, events, or restaurant or store events.

Website/SEO

Dig In will invest heavily in developing a professional website and app that displays all of the restaurant and store options the company will be able to deliver for. The company will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Billboards/Signage

Dig In will invest in attractive signage and billboards to increase the brand awareness of the local food delivery business.

Dig In’s fee structure will be moderate so clients feel they receive great value when placing their food delivery orders.

Operations Plan

Operation Functions: The following will be the operations plan for Dig In.

• John Hutchinson will operate as the CEO of Dig In. In addition to running the general operations, he will oversee the app development and provide app support.
• John will hire 2-3 additional web engineers to run the website and app.
• John will hire 20-30 delivery drivers to work on an independent contractor basis.
• John will also hire an administrative team for accounting/bookkeeping, sales and marketing, and customer service support.

Milestones:

Dig In will have the following milestones complete in the next six months.

• 8/202X – Finalize app development
• 9/202X – Hire and train initial staff
• 10/202X – Kickoff of promotional campaign
• 11/202X – Launch Dig In
• 12/202X – Reach break-even

Financial Plan

Key revenue & costs.

Dig In’s revenues will come primarily from the fees it receives from the food delivery orders.

The delivery driver commissions, website platform fees, supplies, marketing, and labor expenses will be the key cost drivers of Dig In.

Funding Requirements and Use of Funds

Key assumptions.

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

• Initial Number of Orders Per Day: 100
• Average Order per Customer: $25.00

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Food Delivery Business Plan FAQs

What is a food delivery business plan.

A food delivery business plan is a plan to start and/or grow your food delivery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Food Delivery business plan using our Food Delivery Business Plan Template here .

What are the Main Types of Food Delivery Businesses?

There are a number of different kinds of food delivery businesses , some examples include: Restaurant Delivery, Meal Kit Delivery, Grocery Delivery, and Veggie Box Delivery.

How Do You Get Funding for Your Food Delivery Business Plan?

Food Delivery businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Food Delivery Business?

Starting a food delivery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Delivery Business Plan - The first step in starting a business is to create a detailed food delivery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food delivery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food delivery business is in compliance with local laws.

3. Register Your Food Delivery Business - Once you have chosen a legal structure, the next step is to register your food delivery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food delivery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Food Delivery Equipment & Supplies - In order to start your food delivery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food delivery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food delivery business:

• How to Start a Food Delivery Business

Ultimate Guide on Online Food Delivery Business Plan

• Last Updated: May 30, 2024

As a food delivery service, you will be expanding convenience and choice for your existing and potential customers. You will be working towards making it easier for them to order a wide variety of food from various restaurants.

In the last few years, there have been huge changes in the food delivery market . These changes have come into effect due to:

• Increasing demand and competition;
• Competitive prices;
• The rise of digital technology;
• Evolving customer behavior; and 

At the time of creating a food delivery business plan , you may be required to consider several aspects in advance. In this blog, we will help you create an effective food delivery plan for small businesses in the online food delivery sector.

Table of Contents

Why Do You Need a Food Delivery Business Plan?

Key statistics to observe before entering the food delivery market, different food delivery business models, how to write a food delivery business plan, let upper help you grow your own food delivery business.

The customers have evolved. Their demand for food options, types of food delivery, and behaviors have changed. These points show how:

• Offer great speed of delivery and boost customer retention rate;
• Most meals are ordered from & delivered to homes;
• High volume of orders on Friday, Saturday, and Sunday.

In order to tackle these challenges and many others, you need to formulate a detailed food delivery business plan and affordable prices. The plan is not only an executive summary or roadmap, it is much more than that, incorporating advanced technology to meet these evolving needs.

Here’s how a well-developed winning business plan can help you:

• Offers an understanding of your industry, key competitors, target audience, food delivery platforms, and trends.
• Conducting a SWOT analysis for the food industry and getting insights on your strengths, weaknesses, opportunities, and threats.
• Works as a benchmark on how to conduct the business and know average prices for your products.
• You can find out the requirements of new members, tools, and equipment to help you reach any major goals or business goals.
• Helps with cash flow statements, financial statements, competitive strategies, and revenue models of the food business along with investment strategy.

Source: Statista

• The global revenue in the online food delivery segment has doubled since 2017.
• 57% of millennials prefer to have restaurant food delivered.
• 33% of consumers are willing to pay higher fees for faster delivery services.
• 60% of restaurant owners & operators said that offering delivery generated incremental sales.
• Joining hands with third-party delivery services has raised restaurant sales volume from 10% to 20%.
• 70% of consumers prefer to place delivery orders online for a seamless robust experience . 
• Ghost kitchens or cloud kitchens are going to be an office food delivery industry worth $1 trillion by 2030.

When you are ready to create a plan, you must know which business model you will acquire and how it will benefit you. Business models should be considered based on what are your requirements. Basically, it helps you choose which services you will offer to your target audience including strategic locations and operational cost. While doing so, you should decide whether you will run a food store or an online food delivery service business.

Here are different types of popular food delivery business models .

1. Order Only

This type of food delivery is followed by food delivery companies like Grubhub. These services only function as a software layer between the standard restaurant and the customers. Order-only platforms like Grubhub & Postmates have experienced remarkable growth.

This model becomes ideal for those who want to provide on-demand services. In fact, it is the best way to customer contact more easily. This business model will act as a medium between your restaurants and online services. Hence, making it easier for online users to take benefit of online purchase of food. This is why so many food business owners prefer to consider online order requests.

By opting for an order-only business model, your main job will be to deliver food to the buyer. In this process, the business cum restaurant will earn a commission of 10-15% for every order request they receive.

2. Order & Delivery

Apps like DoorDash , UberEats, and Deliveroo are food delivery platforms that bring in extra orders to restaurants in the form of takeaway and delivery. The apps manage the deliveries for these restaurants using their fleet of independent drivers.

It is quite different than what we understood in the previous model. In simple terms, the delivery process is not directly connected to restaurants. In fact, you need to hire a third-party delivery service that can provide timely delivery to the customer’s doorstep. Delivery service providers jointly work with the local restaurants to provide quicker meal deliveries or drinks to customers, but they also put on extra charges for received orders.

This order and delivery model also comes up with challenges that you should look at before acquiring it completely. Since you are handing over the delivery duties to another party, they should store the food at a consistent temperature. If not done, food may not have the same taste and freshness. Thus, you need to put a systematic delivery system. 

3. Fully Integrated

Fully Integrated delivery businesses develop their apps using which customers can get meal deliveries from cloud kitchens to the ideal location. These popular food delivery apps focus on convenience and direct experience to consumers.

It is usually preferred by startup restaurants or family businesses where they can prepare meals and deliver them to the food buyer. Business owners opting for a fully integrated model only serve in a specific service region. They also collaborate with chefs to provide a different range of foods and a better quantity of food. Going for this model, you need to pay for the cost of equipment which means your operational cost may raise.

With this model, you are likely to provide quicker deliveries and may find it easier to adjust the delivery schedule as per consumers’ requirements. Moreover, in the competitive delivery market, the ability to optimize delivery routes can give your business a significant edge.

Here are the handy tips to apply while creating a new plan to make a successful food delivery business.

Do In-depth Industry Analysis

Identifying your usp.

Make something memorable: A good USP is one that is memorable, makes a case against existing products, and offers valuable interaction with customers. How will you embody your USP in your products, services, user experience, and office food delivery brands?

What are you doing differently?: In order to identify your USP, look at the direct competitors, and indirect competitors and find out what you are doing differently from your major competitor. An on-demand delivery market analysis, customer analysis, and knowing the relevant market size will be helpful.

Notice patterns in the market: If you notice a pattern in the market about features or aspects missing in the competitors, note that down and see if you can offer those features or food services.  

Talk to your customers: Conduct a thorough survey of the food delivery market. Talk to your loyal customers or different types of customers and see what they have to tell you. It will help you find out what’s working for your food delivery model and what’s not working.

Developing your USP

Don’t try to be the best: Don’t try to be the best brand or product out there. Just carve out a niche for your own business in the food delivery industry and stick to it. You will not be concerned about the competition once you make the rules yourself. 

Who are you targeting?: Be particular about who your target market is. Focus on that particular audience. It will help you achieve corporate sales goals and keep your brand image consistent because you can’t be everything to everyone. 

Develop a personality: Incorporating a strong personality into your USP will make your product more memorable. Once you infuse a personality into your brand or product, it will be difficult for others to not notice you.

Create your USP 

Write things down: Create a list of all potential differentiators. You will find these points if you do a thorough actual market trends. Wrap these points around your advertising strategies, business strategies, and detailed strategies.

What are your unique angles?: Pitch your most unique angles against the customer’s needs. Learn about their pain points as it will help set long-term goals.

Compile data: Collect all the data you receive from your consumer and market research and integrate it with your product, service, marketing plan, and business idea.

Prepare a Financial Plan

Your budget will be dependent on your approach and the food delivery business model you choose. Your approach to market and growth strategy will also be an important factor in the total operational costs or key costs you incur. 

As an office food delivery company, you can choose if you will be building an in-house tech platform and support or whether you will be dependent on third-party services for the same. It is an expensive thing to integrate advanced technology in-house. You need a great amount of investment just to get started.  Figure out a budget considering all the major factors of your business model, revenue model, and food delivery marketing plan. You will have several financing options to choose from:

• PayPal Working Capital Loan: PayPal offers short-term loans to help small businesses grow. The application process for a PayPal Working Capital Loan is quick and easy and there are no extra fees and prepayment penalties. 
• Credit Cards/Personal Loans: Business credit or personal loans can be acquired to fuel the daily functions of your business. Small business owners can easily qualify for credit cards and personal loans.
• SBA Loans: You can apply for a small business loan under the Small Business Administration advantage program. SBA offers small business financing with lower interest rates compared to other options. SBA Microloans can be used for inventory, supplies, working capital, and machinery.
• Government Grants & Subsidies: There are several State and Federal Government grants and subsidies available to businesses. In recent times, the government has helped several small and medium-sized businesses to revive their existing food delivery business or any type of meal kit delivery startups.
• Crowdfunding: Reach out to investors and financial institutions to see if you are eligible for a loan. There are great opportunities for businesses with innovative ideas. An online platform where innovative businesses are identified and valued is KickStarter and Indiegogo .

Resource and team management

• Acquiring New Equipment & Vehicles: Decide which major sources and equipment or standard kitchen utensils you will require for your standard food delivery company, considering cash flow. Do you need bikes, box trucks, or cargo vans? Depending on your business model and budget, plan out the lease or acquisition of vehicles and new equipment to gain a competitive advantage.  
• Hiring Drivers: You will have to choose whether you want to hire contract drivers or full-time drivers. It will depend on your delivery business model. Look for drivers on industry-specific job boards. Make use of social media platforms to search for suitable drivers, while considering payroll expenses.
• Training Drivers: A thorough training will have to be provided for your newly hired drivers, whether they are involved on a full-time basis or a contract.
• Train your entire staff for your last mile delivery process; 
• State their responsibilities as a delivery driver;
• Form a strong management team to work with a customer-centric mindset;
• Give access and train management staff for the tools and equipment they will be using on the job;
• Help them establish excellent customer service culture;
• Train drivers to prioritize their health and safety over the package from time to time.

Generate an operations plan

• Plan Your Last Mile Process: Your last mile delivery process is the front-end process that is often trackable and visible to the customers. Try to make this process as efficient as possible. A month of operation on customer-facing troubles always be crystal clear and should be carried out without any uncertainty. 
• Simplify the Process by Employing the Right Tools: One major way of simplifying your last mile delivery process is to cut down planning and optimization time by eradicating a manual procedure. In order to automate these steps, you will have to integrate a food delivery planner and route optimization software in your last mile delivery process. 
• Executive Summary: As a food business owner, you will be employing multiple drivers and creating multiple routes for them daily. You will need to be prepared for every unexpected challenge. Create a summary of how your food delivery operations will take place. You can give an overview and discuss the business model with your delivery team. Address your marketing team to work on key issues that help them attract target customers.

Developing a meal delivery business plan can be challenging. There are quite a few aspects that need to be considered seriously. The increasing competition in the office food delivery services industry only makes it more difficult for new entrants to make space for themselves.

With a reliable food delivery business plan, you can never go wrong. Make sure you consider all the important pointers mentioned above before setting up your own online food delivery system. 

One of the most important aspects, as mentioned above, is planning and optimizing your delivery routes. Without proper optimization and a strong last mile delivery setup, you will not be able to gauge an audience in the market. 

Use a delivery management software like Upper to make sure your routes are optimized and you save the delivery time. It keeps an eye on your personal savings while achieving more deliveries per route.

Utilize Upper to Automize Food Deliveries

Preparing a food delivery business plan? Why not include the best route optimization for getting faster delivery routes. Start using Upper for better delivery management and timely deliveries.

Offices food delivery services are booming currently. The rise in quarantine and lockdown restrictions has people locked up in their houses. It has given a huge boost to online food ordering. Most businesses recorded the highest revenue only because of online food ordering and delivery.

Food delivery businesses either prepare the cooked food on their own or partner with the entire restaurant to handle food deliveries on behalf of them. These are the two main ways in which food delivery businesses operate. A food business that prepares and delivers on its own either receives orders through its website, third-party mobile app, or phone call.

You can start accepting orders for your homemade food online through your social media platforms, website, or phone calls. Many small businesses that sell homemade food accept orders through phone calls or online business plan software that helps them sell and deliver their food to the customers.

Food delivery services businesses like DoorDash, Grubhub, and Postmates are some of the most popular food delivery services having the potential market share in the online food delivery service industry.

If you are new to the food industry, it means you need to work hard for business planning. We discussed significant factors that should be considered while making your own business plan. So, all in all, you must analyze the current market statistics that may help you make a robust operations plan. For a new player like you, it becomes necessary to understand business models before implying them to your business.

Successful online business may not be possible even if you finish your food delivery business plan template, as you may need support from online tools. Upper is one such tool that streamlines your food delivery services and helps you reach the food buyers’ locations easily. You can manage unlimited food deliveries with route planning software . Import your data, optimize them, and hit the dispatch button with just a few clicks. Book a demo with us to get more insights into Upper Route Planner.

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

Related Posts

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6 Secret Food Delivery Hacks to Save Money and Time

How to Grow Your Customer Base Through Meal Prep Business Marketing?

How to Start an In-house Restaurant Delivery Service Effectively? Explained 101

Food Delivery Management Software: Top 8 Software to Try

5 Successful On-demand Food Delivery Business Model To Checkout

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Grocery Business Plan Template & Guidebook

How to write a grocery business plan in 7 steps:, 1. describe the purpose of your grocery business..

It also helps to include a vision statement so that readers can understand what type of company you want to build.

2. Products & Services Offered by Your Grocery Business.

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your grocery business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

Target market

Customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a grocery business, 5. management & organization of your grocery business., 6. grocery business startup expenses & captial needed..

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your grocery business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Frequently Asked Questions About Grocery Business Plans:

Why do you need a business plan for a grocery business.

A business plan is essential for a grocery business, as it provides direction and outlines the goals and objectives for the business. It serves as a roadmap to guide operations, and helps identify potential risks, opportunities, and areas of improvement. It is also valuable when seeking financing from banks or investors. Additionally, a business plan can help ensure that all necessary steps are taken to successfully start and manage the grocery business.

Who should you ask for help with your grocery business plan?

Can you write a grocery business plan yourself.

Yes, it is possible to write a grocery business plan yourself. Depending on the complexity and scope of your plan, it may be beneficial to seek assistance from an experienced business consultant or accountant. Additionally, there are many resources available online or through industry associations and organizations that can provide guidance and helpful advice on how to create a successful business plan.

Related Business Plans

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

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Online Grocery Delivery Proposal Template

Present your complete grocery store idea in front of your target audience using this proposal template..

Creating and submitting proposals is a tiring task, especially because of high competition and the ambiguity of rivals' price points. While we can't help you deal with prices, we can surely help you overcome the competition by designing the best proposal possible.

This grocery proposal template comes with a stunning design layout that strikes a perfect balance between text and visual content, so your content never goes unnoticed. Start by replacing the placeholder text and then proceed to add creative visual elements to make the template your own.

• Change colors, fonts and more to fit your branding
• Access free, built-in design assets or upload your own
• Visualize data with customizable charts and widgets
• Add animation, interactivity, audio, video and links
• Download in PDF, JPG, PNG and HTML5 format
• Create page-turners with Visme’s flipbook effect
• Share online with a link or embed it on your website

Get started with this grocery delivery proposal template today by clicking on Use this Template or browse our library of hundreds of other proposal templates to find your perfect fit.

Edit this template with our  proposal maker !

Template Specifications

6 Pages, 8.5” X 11” (US Letter) – Can also be customized to any desired dimension.

Customizable

This template can be fully customized. You can edit content, change image(s), apply custom colors, input your own fonts and logo, and more.

Download as a PDF to share with your recipient or generate a shareable link for online sharing.

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How to write a business plan for a grocery store?

Creating a business plan for a grocery store is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a grocery store business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a grocery store?

• What information is needed to create a business plan for a grocery store?
• What goes in the financial forecast for a grocery store?
• What goes in the written part of a grocery store business plan?
• What tool can I use to write my grocery store business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a grocery store business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your grocery store. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your grocery store to be in the next three to five years.

Once you have a clear destination for your grocery store, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your grocery store's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your grocery store.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your grocery store and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your grocery store's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your grocery store, let's explore what information is required to create a compelling plan.

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Information needed to create a business plan for a grocery store

Drafting a grocery store business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a grocery store

As you consider writing your business plan for a grocery store, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your grocery store.

Your market research may reveal that customers may be more likely to purchase organic or eco-friendly products, or that they might be looking for more convenience-focused items such as pre-prepared meals or ready-to-go snacks.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your grocery store.

Developing the marketing plan for a grocery store

Before delving into your grocery store business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a grocery store

Whether you are starting or expanding a grocery store, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A grocery store might incur staffing costs such as wages for grocery store employees, payroll taxes, and worker's compensation insurance. In addition, the grocery store might incur equipment costs such as refrigerators, freezers, shelves, and checkout counters.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your grocery store, it is time to start creating your financial forecast.

What goes into your grocery store's financial forecast?

The objective of the financial forecast of your grocery store's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a grocery store are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your grocery store forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established grocery store will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your grocery store

The balance sheet for a grocery store is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your grocery store's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your grocery store's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a grocery store is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your grocery store business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the grocery store is appropriately funded.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a grocery store.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the grocery store, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a grocery store business plan is understood, let's focus on what goes into the written part of the plan.

The written part of a grocery store business plan

The written part of a grocery store business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your grocery store's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your grocery store, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

As you build your grocery store business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your grocery store to a third party financier, you could emphasize that it is located in a densely populated area with a large customer base that may have a need for a convenient grocery store. You could also point out that it is close to other businesses, providing additional foot traffic and potential customers. Additionally, you may note that the area has ample parking, making it easier for customers to access the store. You might also highlight any public transportation options that are nearby, making it easier for customers to get to the store.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your grocery store might offer fresh produce, grocery delivery, and ready-made meals for customers who want convenience, quality, and variety. Fresh produce would let customers purchase all of their fruits and vegetables in one easy spot. Grocery delivery provides customers with an easy way to shop without having to leave their homes. Ready-made meals give customers the option to purchase pre-made meals that are quick and simple to prepare. These options would make it easier for customers to get the food they need without having to worry about long lines or waiting for their orders.

4. The market analysis

When outlining your market analysis in the grocery store business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your grocery store, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your grocery store targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include busy professionals. They often don't have the time or energy to cook, so they shop for pre-made meals or ready-to-cook ingredients. They tend to be willing to pay a premium for convenience.

In the competition subsection, introduce your main competitors and explain what sets your grocery store apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your grocery store.

5. The strategy section

When you write the strategy section of your grocery store business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your grocery store faces numerous risks. One risk could be the possibility of theft. Your store could be targeted by shoplifters, who might steal items from your shelves. Another risk could be shipping delays. Your store may order large quantities of food and supplies, but they could be delayed due to weather, traffic, or other unexpected events. Both of these risks could cause financial losses for your store, as well as negatively impacting the customer experience.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your grocery store.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your grocery store's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You may have a range of key assets and intellectual property that your grocery store could have. For example, you might have a unique brand logo or mascot that your customers recognize and associate with your store. Additionally, your store could have exclusive recipes, such as for sauces or other products, which could give you an edge in the market.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a grocery store business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my grocery store's business plan?

In this section, we will be reviewing the two main options for writing a grocery store business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your grocery store's business plan

Using online business planning software is the most efficient and modern way to create a grocery store business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your grocery store's business plan

Outsourcing your grocery store business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your grocery store business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your grocery store's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your grocery store business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your grocery store business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your grocery store and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your grocery store business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Guide to milestones in your business plan
• How to write the risks and mitigants section of your business plan?
• How to write the products and services section of your business plan
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a grocery store? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Write a Business Plan for Online Grocery Delivery in 9 Steps: Checklist

By alex ryzhkov, resources on online grocery delivery.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

With the increasing demand for convenience and the growth of e-commerce, online grocery delivery has become an essential service for many consumers. According to recent statistics , the online grocery market is expected to reach a value of $187.7 billion by 2025, with a compound annual growth rate of 28.8%. This presents a tremendous opportunity for entrepreneurs looking to start their own online grocery delivery business.

In order to succeed in this competitive industry, it is crucial to have a well-thought-out business plan that outlines every aspect of your venture. Whether you're an aspiring entrepreneur or an existing business owner looking to expand into online grocery delivery, this blog post will guide you through the 9 essential steps you need to take to create a comprehensive and effective business plan.

From identifying your target market and conducting thorough market research to establishing strategic partnerships and evaluating regulatory requirements, each step plays a crucial role in ensuring the success of your online grocery delivery business. By following this checklist, you'll be able to lay a solid foundation for your business and position yourself for growth and profitability in this rapidly expanding industry.

So, let's dive in and explore each step in detail to help you write a successful business plan for your online grocery delivery venture!

Identify Target Market and Customer Segments

Identifying your target market and customer segments is a crucial step in developing a successful business plan for online grocery delivery. By understanding who your customers are, you can tailor your services and marketing efforts to meet their specific needs and preferences. Here are some key points to consider:

• Demographics: Analyze the demographic characteristics of your target market, such as age, gender, income level, and location. This will help you determine the types of products and services that are most likely to appeal to them.
• Psychographics: Consider the psychographic factors that influence your customers' buying decisions, such as their lifestyle, values, and interests. This information will help you create targeted marketing messages and develop a unique selling proposition.
• Behavioral Patterns: Study the buying behaviors of your potential customers. Are they tech-savvy and comfortable with online shopping? Are they busy professionals looking for convenience? Understanding their purchasing habits will help you design an efficient and user-friendly online platform.
• Segmentation: Break down your target market into specific segments based on common characteristics. For example, you may have busy working parents who value time convenience or health-conscious individuals who seek organic and sustainable products. Tailoring your offerings to these segments will allow you to meet their unique needs and stand out from competitors.

Tips for Identifying Target Market and Customer Segments:

• Utilize market research tools and surveys to gather data on consumer preferences and behaviors.
• Stay updated on industry trends and changes in customer demand.
• Consider conducting focus groups or interviews with potential customers to gain deeper insights into their needs and preferences.
• Monitor social media platforms and online discussions to gather feedback and engage with your target market.
• Regularly review and refine your customer segmentation strategy as market dynamics evolve.

Identifying your target market and customer segments is the foundation for building a successful online grocery delivery business. By understanding your customers' needs and preferences, you can create a compelling value proposition and develop a strategic marketing plan that effectively reaches and engages your target audience.

Conduct Market Research And Competitor Analysis

Market research and competitor analysis are crucial steps in developing a successful business plan for online grocery delivery. By thoroughly understanding the market landscape and your competition, you can identify opportunities, make informed decisions, and gain a competitive advantage.

Market Research: Begin by gathering data on the online grocery delivery market, including its current size, growth rate, and projected future trends. Identify the target market demographics, such as age groups, income levels, and shopping preferences. Analyze consumer behavior, such as their willingness to pay for convenience and organic products. Understand the geographical scope of the market and any regional variations that may impact your business strategy.

Competitor Analysis: Study the existing online grocery delivery providers in your target area. Identify their strengths, weaknesses, and unique selling propositions. Analyze their pricing strategies, delivery options, customer service, and marketing tactics. By studying your competitors, you can identify gaps in the market and areas where your business can differentiate itself.

Here are some tips for conducting effective market research and competitor analysis:

• Use online surveys and focus groups to gather insights from potential customers about their preferences and pain points regarding online grocery shopping.
• Monitor social media platforms and online forums to understand customer feedback and sentiments towards existing online grocery delivery services.
• Analyze customer reviews and ratings of competitors' services to identify areas for improvement within your own business.
• Investigate the pricing strategies of your competitors, including any discounts, promotions, or loyalty programs they offer.
• Consider conducting mystery shopping to experience the online grocery delivery services firsthand and identify areas for differentiation.

By conducting thorough market research and competitor analysis, you can gain valuable insights that will drive the development of your business plan for online grocery delivery. This information will help you identify your target market, define your unique selling proposition, and develop strategies that will set your business apart from the competition.

Define The Unique Selling Proposition

Defining your unique selling proposition (USP) is crucial for the success of your online grocery delivery business. Your USP is what sets you apart from your competitors and gives customers a compelling reason to choose your service over others.

Your USP should clearly communicate the value you offer to customers and how your service addresses their needs and pain points. It should be specific, memorable, and differentiate you from similar businesses in the market.

To define your USP, consider the following:

• Identify your target market's key concerns: Understand your target customers' pain points and what they prioritize when it comes to online grocery delivery. This will help you develop a USP that directly addresses their needs.
• Showcase your unique features and benefits: Highlight what sets your service apart from competitors. Whether it's personalized shopping lists, access to rare products, or exclusive deals, emphasize the unique features and benefits that make your service appealing to customers.
• Emphasize convenience: Convenience is often a primary factor for customers when choosing an online grocery delivery service. Make sure your USP clearly communicates how your service makes the shopping experience easier, faster, and more efficient for customers.

Tips for defining your unique selling proposition:

• Research your competitors: Understand what they offer and identify gaps in the market that you can fill with your USP.
• Ask for customer feedback: Gather insights from potential customers to understand their preferences and expectations. Use this information to refine and strengthen your USP.
• Be authentic: Your USP should reflect your brand's values and resonate with your target audience. Avoid generic statements and focus on what makes your service truly unique.
• Keep it concise: A strong USP is clear and concise. Avoid using jargon or complex language that may confuse or overwhelm customers.

By defining a compelling and distinct USP, you can attract and retain customers in a competitive market, building a strong foundation for the success of your online grocery delivery business.

Create A Detailed Financial Plan

When starting an online grocery delivery business, it is crucial to create a detailed financial plan to understand the financial implications and forecast the future performance of your venture. Here are some essential steps to consider:

• Estimate Start-Up Costs: Calculate the expenses required to launch your online grocery delivery service. This includes costs for website or app development, inventory, warehouse setup, vehicles, marketing, and legal fees.
• Forecast Revenue Streams: Determine how your business will generate revenue. Estimate the commission you will charge partnering stores and the delivery fees from customers. Consider additional revenue streams such as advertisements, promotions, or partnerships with other businesses.
• Perform Profitability Analysis: Analyze the costs and revenue to determine the profitability of your business. This involves understanding the pricing dynamics, the volume of orders required to break even, and the potential for growth.
• Create a Sales Projection: Develop a sales forecast that projects the number of customers you expect to serve and the average order value. This will give you an idea of your revenue potential and help you set realistic financial targets.
• Assess Costs and Expenses: Identify the various costs and expenses associated with running your online grocery delivery service. This includes operational costs such as staff salaries, technology maintenance, inventory management, marketing, and delivery expenses.
• Set a Budget: Based on your projected revenue and expenses, establish a budget that outlines your financial allocation for different areas of your business. This will help you prioritize your spending and ensure financial discipline.
• Consider Cash Flow Management: Understand the cash flow patterns of your business. Anticipate the timing of expenses and revenue inflows to ensure you have sufficient funds to meet your financial obligations. Monitor your cash flow regularly and make adjustments as needed.
• Seek professional assistance from an accountant or financial advisor to ensure accuracy in your financial projections and to gain valuable insights.
• Regularly review and update your financial plan as your business progresses and market conditions change.
• Monitor key financial metrics such as gross margin, customer acquisition cost, and customer retention rate to track the financial performance of your online grocery delivery business.

Determine The Required Capital And Funding Sources

One of the crucial aspects of starting an online grocery delivery business is determining the required capital and identifying the appropriate funding sources. This step is essential as it lays the foundation for the financial viability and sustainability of your business.

To determine the required capital, you need to consider various factors such as the cost of developing and maintaining the online platform, acquiring inventory, setting up a warehouse or partnering with logistics companies, and marketing expenses. Conduct a thorough analysis and create a detailed financial plan that outlines all the anticipated costs.

Once you have determined the required capital, the next step is to explore funding sources. Here are some avenues to consider:

• Personal Investment: Consider investing your own savings or personal funds into the business. This demonstrates your commitment and confidence in the venture, which can attract other potential investors.
• Friends and Family: Reach out to your personal network and present your business idea. Family and friends may be willing to invest or provide loans to support your venture.
• Business Loans: Explore options for business loans from financial institutions. Prepare a comprehensive business plan and financial projections to present to lenders.
• Angel Investors: Connect with angel investors who are interested in supporting startups. They often provide capital in exchange for equity or convertible debt.
• Venture Capitalists: If you have a scalable business model with significant growth potential, consider approaching venture capitalists. They typically invest in early-stage businesses with high growth prospects.
• Crowdfunding: Explore crowdfunding platforms where you can pitch your business idea to attract a pool of small investors who contribute funds.
• Prepare a compelling pitch deck or business plan to attract potential investors.
• Consider joining startup accelerators or incubators that provide mentorship and funding opportunities.
• Research any government grants or subsidies available for startups in the online grocery delivery sector.
• Investigate partnerships with established grocery stores or supermarkets that may be interested in investing or providing financial support.

By carefully determining the required capital and exploring various funding sources, you can secure the necessary financial resources to launch and grow your online grocery delivery business. Remember to keep track of your financials and continually reassess your funding needs as your business scales.

Outline The Business Model And Operational Strategy

Once you have identified your target market and conducted thorough market research, the next crucial step is to outline your business model and operational strategy. This will serve as the foundation for your online grocery delivery business and guide your decision-making process.

An effective business model defines how your company will generate revenue, deliver value to customers, and sustain profitability. Begin by clearly defining how your service will work, including the order placement process, delivery options, and any additional features or services you plan to offer.

• Consider whether you will partner with local grocery stores or operate independently.
• Determine the optimal delivery model, such as employing in-house delivery staff or partnering with logistics companies.
• Explore potential strategies for increasing customer loyalty, such as personalized shopping lists, access to rare products, or exclusive deals for regular customers.

Next, outline your operational strategy, which includes the logistical aspects of running your online grocery delivery service. Determine how you will manage inventory, ensure timely deliveries, and handle customer service and support.

Additionally, think about any technological solutions you may need to implement, such as a user-friendly website or mobile app for customers to place orders. Consider the resources, equipment, and software you will require to streamline your operations and provide a seamless user experience.

Remember to include scalability in your business model and operational strategy. As your business grows, you will need to adapt and expand your operations to meet increasing customer demand. Plan for future growth by considering how you will scale your workforce, optimize delivery routes, and maintain efficiency.

By outlining your business model and operational strategy, you will have a clear roadmap for success. Regularly review and refine your strategies as you gain insights from customer feedback and market trends. With a well-thought-out plan, you will be better equipped to navigate the competitive online grocery delivery landscape and deliver a top-notch service to your customers.

Develop A Marketing And Sales Plan

Once you have identified your target market and customer segments, it is crucial to develop a comprehensive marketing and sales plan to effectively promote your online grocery delivery service and attract customers. This plan will outline your strategies and tactics to increase brand awareness, drive traffic to your platform, and ultimately boost sales.

1. Identify your unique selling proposition (USP) : Clearly define what sets your online grocery delivery service apart from competitors. Highlight your unique features, such as personalized shopping lists, access to rare products, or exclusive deals for regular customers. Communicate this USP in all your marketing materials to capture the attention of potential customers.

2. Create a multi-channel marketing strategy : Utilize various marketing channels to reach your target audience effectively. This could include online advertising, social media marketing, email marketing, content marketing, and search engine optimization (SEO). Each channel should be tailored to your specific customer segments and deliver a cohesive message that aligns with your brand.

3. Optimize your website and app for conversions : Ensure that your website and app provide a seamless and user-friendly experience. Make it easy for customers to browse and place orders, and optimize your checkout process to minimize cart abandonment. Implement analytics tools to track user behavior, identify areas for improvement, and continually optimize your platform for conversions.

4. Offer incentives and promotions : Attract new customers and reward loyalty by offering incentives and promotions. This could include discounts on first orders, referral programs, or special offers for regular customers. Additionally, consider partnering with local businesses to provide exclusive deals and further incentivize customers to choose your online grocery delivery service.

• Collaborate with influencers or bloggers in the food and lifestyle industry to promote your service and reach a wider audience.
• Collect and utilize customer data to personalize your marketing efforts and tailor offers according to individuals' preferences and purchase history.
• Implement a customer loyalty program to encourage repeat business and foster long-term relationships with your customers.
• Monitor and analyze your marketing and sales performance regularly. Use key performance indicators (KPIs) to measure the effectiveness of your strategies and make data-driven adjustments to optimize your results.

By developing a well-thought-out marketing and sales plan, you can effectively reach your target audience, differentiate your online grocery delivery service, and drive growth and profitability in the competitive market.

Establish Strategic Partnerships And Supplier Relationships

In order to successfully run an online grocery delivery business, it is crucial to establish strategic partnerships and build strong relationships with suppliers. These partnerships are essential for ensuring a reliable supply of high-quality groceries and products for your customers.

When looking for strategic partners , consider reaching out to local grocery stores, wholesalers, and farmers to discuss potential collaboration opportunities. Seek partnerships with suppliers who have a diverse range of products, excellent quality control, and reliable delivery services.

Tips for establishing strategic partnerships and supplier relationships:

• Research potential partners: Before approaching suppliers, research their reputation, reliability, and product quality to ensure they align with your business objectives.
• Identify mutually beneficial opportunities: Clearly communicate the benefits of partnership, such as increased exposure and potential for higher sales, to attract potential suppliers.
• Negotiate favorable terms: Discuss pricing, discounts, delivery terms, and product availability to establish mutually beneficial agreements.
• Establish clear communication channels: Regularly communicate with suppliers to ensure seamless order fulfillment, address any concerns, and maintain a strong partnership.
• Build long-term relationships: Nurture relationships with suppliers by providing feedback, offering promotional opportunities, and collaborating on marketing initiatives.

Remember, strong supplier relationships can contribute to your business's success by ensuring consistent delivery of high-quality products to satisfy your customers. Regularly evaluate and enhance these partnerships to adapt to your customers' evolving needs and preferences.

Evaluate Regulatory Requirements And Compliance Obligations

When starting an online grocery delivery business, it is crucial to thoroughly evaluate the regulatory requirements and compliance obligations that apply to your operations. This ensures that you operate within the legal framework and avoid any penalties or legal issues that may arise.

1. Research local and state regulations: Start by researching the specific regulations and requirements for online grocery delivery in your local area and state. This may include licenses, permits, and certifications that you need to obtain.

2. Understand food safety regulations: Familiarize yourself with the food safety regulations that govern the handling, storage, and delivery of perishable items. Ensure that your business follows proper hygiene practices and meets all necessary standards.

3. Comply with health and safety standards: Implement health and safety protocols to protect both your employees and customers. Develop effective procedures for product handling, storage, and delivery to prevent any contamination or accidents.

4. Comprehend labor laws: As an employer, it is essential to be aware of labor laws such as minimum wage, working hours, and employee rights. Ensure that you comply with these laws and provide a safe and fair working environment for your staff.

5. Secure necessary insurance: Evaluate the types of insurance coverage that may be required for your business, such as liability insurance and workers' compensation. Obtain adequate insurance to protect against potential risks and liabilities.

6. Understand data protection and privacy laws: In the digital age, data protection and privacy are of utmost importance. Comply with relevant laws regarding the collection, storage, and use of customer data to maintain their trust and confidentiality.

7. Seek legal advice: If you are unsure about any specific regulatory requirements or compliance obligations, it is advisable to seek legal advice. An experienced attorney can guide you through the process and ensure that you adhere to all necessary regulations.

Quick Tips:

• Stay updated with regulatory changes and adapt your operations accordingly.
• Keep detailed records and documentation to demonstrate compliance with regulations.
• Regularly train your employees on compliance matters to maintain a culture of compliance within your organization.

Conclusion:

In conclusion, writing a business plan for an online grocery delivery service requires careful consideration of several key factors. By identifying the target market, conducting market research, and developing a unique selling proposition, entrepreneurs can create a strong foundation for their business. Additionally, creating a detailed financial plan, determining funding sources, and outlining the business model and operational strategy will ensure the smooth operation of the online grocery delivery service. Lastly, establishing strategic partnerships, evaluating regulatory requirements, and developing marketing and sales plans will aid in the success and growth of the business. By following these nine steps, entrepreneurs can create a comprehensive business plan for online grocery delivery and set themselves up for success in this competitive industry.

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What Is a Marketing Plan and How To Write One (+ Template)

Learn the key elements of a marketing plan, access templates to get started, and get tips on how to write an effective plan.

No matter how much you stick to a plan, things go wrong. As the famous quote by US President Dwight D. Eisenhower goes: “Plans are useless, but planning is indispensable.”

When it comes to ecommerce, consumer trends shift, circumstances change, and initial experiments don’t always go as planned. All of these things impact your marketing plan. 

Research shows that marketers who proactively write a marketing plan are 356% more likely to report success. So, what does a realistic ecommerce marketing plan look like? And how do you handle unexpected obstacles and overestimations that threaten your company’s marketing strategy? This guide shares the answers.

What is a marketing plan?

A marketing plan is the strategy a business uses to get its products or services in front of its target customer. It includes who the target market is, the channels used to reach them, and the messaging that will help the business sell its products. 

The purpose of a marketing plan isn’t to create a step-by-step, never-fail manual. Rather, it’s a roadmap to help you accomplish the best-case scenario, while also maintaining realistic expectations for your marketing initiatives and establishing backup plans if something doesn’t work.

Marketing plan vs. business plan

A business plan paints a bigger picture of how you plan to run your business. It includes a mission statement, products you’ll launch, and market research. A marketing plan, on the other hand, is a specific document that details how you plan to achieve these wider goals through marketing . 

Marketing plan vs marketing strategy

An overarching marketing strategy details how marketing will drive business results. A marketing plan is the route you’ll use to get there. It’s more specific than a strategy and includes a practical roadmap on how you’ll put your marketing activities into play. 

Free marketing plan template to help you get started

Creating your own marketing plan is no small job. You put hours into customer and competitor research to find the channels likely to have the biggest impact on your marketing goals. You can check out marketing plan examples , but when it comes to creating your own, you can save time with a template.

Ditch the intimidating blank screen by building a marketing plan using Shopify’s free marketing plan template. Use it to guide your marketing strategy, tweaking the template to meet your business needs.

Download the template now

Types of marketing plans

Digital marketing plan.

A digital marketing plan is a specific type of marketing plan that revolves solely around online channels like social media, email, and search engines. It doesn’t include offline channels like billboards or radio ads.

Social media marketing plan

A social media marketing plan focuses specifically on how a business will use social media to reach its target market. It gives you a framework of which channels you’ll use, the types of content you’ll create, whether you’ll invest in social media ads, and how you’ll drive product sales. This can take place either through your online store or a social media storefront such as Facebook and Instagram Shops .

Content marketing plan 

A content marketing plan details how you’ll produce content that turns people into paying customers. This can span multiple formats, including an email newsletter, infographics, product documentation, and user-generated content (such as social media posts). 

Alongside the more traditional elements of a marketing plan, a content-marketing-specific strategy would include:

• Keywords you plan to target
• Who you’ll use to create the content (e.g., freelancers or in-house marketers)
• How you’ll promote and repurpose your content

Offline marketing plan

An offline marketing plan details how a business will reach its target market without using digital channels. This might include billboards, radio ads, direct mail, event sponsorships, and outdoor advertising. 

How to write a marketing plan

Detail your unique value proposition, outline your buyer personas, run a swot analysis, detail product features and benefits, set key performance indicators, outline your marketing funnel.

• Define your marketing channels

Decide on your content formats

• Plan your marketing resources

Create a measurement and optimization plan

A unique value proposition underlines your entire marketing plan. Regardless of the channels and formats you plan to use, consistency is key. Mixed messages on what you sell and what your brand stands for will only confuse potential customers.

A simple way to refine your messaging is to focus on your unique selling point. Costco, for example, is cheaper than its competitors. Harper Wilde’s products are comfier than any other bra retailer. Find the marketing channels each retailer uses and you’ll see messaging centered around its adjective.

Consult your customers if you’re unsure what your value proposition adjective should be. Research is the biggest part of any copywriting process . Survey people who’ve already bought from you, run an Instagram poll to discover why people follow your brand, and see where your competitors’ weaknesses lie. Look for adjectives that crop up frequently during the process.

What overarching goal are you trying to accomplish with the business? Why does it exist? Summarize it in one sentence, and you’ll have a mission statement to inform everything you do, which includes your marketing strategies .

Going overboard with assumptions is a common mistake among marketers. The end result is a marketing plan that doesn’t actually result in revenue.

While data won’t give you a foolproof plan, every assumption is one more bit of uncertainty you’re folding into your marketing goals . If an amazing plan has a 40% chance of holding up to real-world scenarios, one without much rigor—and lots of assumptions—might hold up 10% of the time.

Consult your customer segments and buyer personas to get as much information as you can about the person buying your products, such as: 

• Demographic data (location, age, and income level) 
• Interests, goals, and challenges 
• Channels they use to discover new products

Be careful not to confuse this with your target audience . Children would be the target audience of a toy brand; parents are the buyer persona. The latter is who you’ll be reaching out to with your marketing plan. 

A SWOT analysis helps uncover your strengths, weaknesses, opportunities, and threats relative to your competitors. It’s useful to include one as part of your marketing plan because it can help anticipate problems you might encounter, make more data-driven decisions, and spot areas where you can get ahead of your competitors. 

Dive deep into the data you already have about your customer base by investigating marketing analytics , social media audiences, and customer surveys . It reiterates who you’re trying to reach—and more importantly, the triggers that would make them buy your product over a competitor’s.

Remind yourself of your unique selling proposition (USP) throughout this process. Tailor your marketing plan around key takeaways from these. 

Include any special features, competitive advantages, or customer favorites your marketing plan will lean on.

You could have the best mattress in the world—one made with 100 springs and cotton stitching, vigorously tested by sleep experts. But you’d struggle to market it if you lean too heavily on product features. A customer cares more about getting a peaceful night’s sleep than detailed product specifications.

“Every great marketing plan needs one thing first: a product that is 10 times better than the next,” says Nick Saltarelli, co-founder of Mid-Day Squares . “Once you have that, marketing is about deep human connections.”

Nick says, “It felt obvious that there was a sweet spot somewhere in between: people who wanted to follow along, and a true behind-the-scenes look into building a massive chocolate business from the ground up.”

As a result, the Mid-Day Squares marketing plan doesn’t prioritize product promotion. The brand instead “focuses on getting people to fall in love with us, the founders, to scale the human connection,” Nick says.

What are you trying to achieve with your marketing plan? Create both short- and long-term business goals that relate to financial metrics like revenue growth, retention , or new customers .

Most marketers measure success using return on investment (ROI) —the revenue you expect to generate after spending your marketing budget. It’s every marketer’s dream to get $100,000 in sales from $1,000 in marketing spend. While that isn’t the most realistic expectation, knowing your target ROI will prevent overspending. If your ROI is hurtling beyond your predictions, you can better allocate that budget to be spent elsewhere.

But there’s more to marketing measurement than dollar returns. Revenue isn’t always the end goal. Brand awareness, website traffic, and social media followers are short-term marketing objectives that aim to get new people into your marketing funnel. Nail them early on and you set your business up for success later down the road.

Not everyone will see your products and convert into a customer instantly. Most people progress through a sales funnel. Content that will make someone progress to the next stage depends on the one they’re currently in. 

If you were to use Facebook ads to sell your products to a generic audience modeled on your buyer persona, for example, you might not get the highest conversion rate. These people don’t know who you are, what you stand for, or why they should choose you over a competitor. 

But if you used Facebook ads to specifically target people at the bottom of your marketing funnel, you could use retargeting ads to show items someone had in their shopping cart. You’re bound to get a better return on your investment with this strategy because you’re only investing money into reaching people who just need a final nudge to convert. 

Let’s break down how you might outline your marketing funnel in a marketing plan. 

Top of the funnel (TOFU)

People at the top of your marketing funnel don’t understand who you are or what you sell. Social media, podcasts, and video content play huge roles here. Each channel is used by potential customers looking to learn or be inspired.

For this stage, prioritize metrics that give insight into how people are engaging with your top-funnel content, such as:

• Video views
• Website clicks
• Click-through rate (CTR)
• Cost per click (CPC)

Middle of the funnel (MOFU)

People reach the middle of the funnel when they know they have a problem that needs to be solved. Look at the marketing channels and formats you’re using to target these people. Most often, it’s search engines and retargeted ads.

Google Analytics is your best bet here. While the dashboard can feel overwhelming for a lot of people, you don’t need to look at every report. Use the following metrics to see how people engage with your middle-funnel content:

• Bounce rate
• Pages per session 
• Users by traffic source
• Email subscriber conversion rate 

To track the data above, especially for advertising campaigns, add the Meta pixel to all pages of your store.

Bottom of the funnel (BOFU)

Going for the hard sell? For marketing messages where the only goal is to convert your audience into paying customers, consult the back end of your ecommerce store. It’s home to sales and product-related data that helps you understand whether your marketing plan is successful, such as:

• Added to cart conversion rate
• Average order value (AOV)
• Number of orders
• Reached checkout conversion rate
• Sales conversion rate

Post-funnel and retention

Planning to build a steady stream of paying customers off the back of your ecommerce marketing plan? It's easy to assume revenue growth comes from audience growth. But oftentimes, the easiest way to grow your revenue is by focusing on the people we forget about: existing customers.

Resist the temptation to focus on flashy metrics like social media followers and YouTube subscribers. Instead, involve existing customers in your marketing plan. Use them as a source of testimonials and word-of-mouth referrals.

“Happy customers have been powerful word-of-mouth catalysts for our brand, and it has made sense to keep them engaged,” says Chris Campbell, partner at The Charming Bench Company . “We’ve been getting a steady stream of five-star ratings on websites and social media, which we then share on our Facebook, X [formerly known as Twitter], Pinterest, and Instagram profiles. It’s a great alternative to pushing loud sales messages that don’t always work.”

Define your marketing channels 

Channels are the platforms you’ll use as part of your marketing plan. Go back to your market research and uncover the online and offline channels your target audience is using to shop and get entertained or inspired.

Some of the most popular channels for ecommerce businesses include:

• Social media . Social media is used by more than six out of 10 people . Platforms like Instagram, Facebook, X, LinkedIn, and Pinterest are free to use (on the whole) and help brands reach their target audience. 
• Search engines . Some 44% of online shoppers start their product research on search engines. By making search engine optimization (SEO) part of your marketing plan, you can generate new business by reaching people when they’re actively looking for your products or services.
• Email marketing  and  SMS marketing . Email and text message inboxes are two of the most sacred places for a marketer to reach. A phone number or email address gives you a direct line of communication with your target customers, if they opt in to hear from you.
• Podcasts . Record conversations you have with your team, customers, or experts in the industry and share them with your audience. By establishing yourself or your brand as a thought leader in your industry, you’ll inspire confidence that in turn builds trust in your products.
• Offline channels. While digital marketing is vital in today’s world, offline and in-person marketing efforts can be equally powerful. Get in front of people when they’re not online, using channels like word-of-mouth recommendations , radio, billboards and outdoor advertising , or TV marketing campaigns.

There’s a sweet spot to how many channels your marketing plan should include. Go too wide and you burn resources on channels with poor returns. But become too reliant on one channel and you’re at risk.

Algorithms power most digital marketing channels. They’re praised as the type of technology that delivers personalized experiences for their users, but any changes to an algorithm can make marketing plans utterly useless overnight.

“If you rely on SEO, then any algorithm updates could potentially cut your revenue for months before you recover,” explains Marquis Matson, VP of Growth at Sozy . “If you rely on paid ads, then any changes to privacy policies can cut your revenue. If you rely on email marketing, then any ESP  [email service provider]  policy changes can cut your revenue. Diversifying your acquisition is crucial in a fast-paced digital marketing world.”

Footwear brand Hippy Feet is one ecommerce brand that failed to diversify channels. “The original marketing plan was to drive traffic to our Shopify store through ads—relying heavily on paid Facebook and Instagram traffic,” says Sam Harper, Hippy Feet’s co-founder and CEO. “While this is still a major component of our marketing strategy, the decreasing effectiveness of these ads has forced us to expand our marketing efforts.

“A diverse media strategy is crucial to helping an ecommerce business survive in this highly-dynamic market. By driving traffic through SEO, email, and media coverage, we’re more resilient and less impacted by a single tech platform changing their algorithm.”

For each channel, define which content formats you’ll use to capture attention and drive website traffic. That could include:

• Audio. Reach podcast and radio listeners with audio content. 
• Images. Capture visual learners and shoppers on visually dominant social media sites with infographics, GIFs, and memes.
• Video. Get listed on YouTube , the world's second largest search engine, with explainer videos and product demonstrations. Many social media platforms— Instagram and TikTok included—are also evolving to prioritize video content. 
• Written content. Most search engine results retrieve links to optimized written content, such as blogs , transcripts, or landing pages .

Content marketing is a beast that constantly needs to be fed. Customers want newer, fresher, more exciting content on a regular basis. That’s demanding for a small business to keep up with.

If this sounds unsustainable, consider a content marketing strategy that collects user-generated content (UGC) from existing customers. The more they share their experiences with others, the more content you have to repurpose on each channel. It’s an effective route to scale your content marketing plan and stretch your editorial calendar if your marketing department has limited resources. Don’t have time to invest in promoting the content you create? Partner with popular influencers in your niche—those whose loyal audience overlaps with your target market .

Your marketing budget is the dollar amount you expect to spend executing your marketing plan. If you’re bootstrapped, you can run a marketing plan on a tight budget .

As part of your own marketing plan, state whether you intend to use each channel organically or boost it with advertising. Most channels allow businesses to run sponsored content, which is guaranteed to reach your target market across online and offline channels, like door-to-door sales , social media, TV, billboards, and radio.

“I apply for any competitions, press opportunities, and awards to get my small business out there at any given opportunity,” says Terri-Anne Turton, founder of The Tur-Shirt Company . 

The strategy has worked: The Tur-Shirt Company has won a Junior Design Award for best fashion newcomer and a shoutout from media entrepreneur Steven Bartlett after entering his #DeserveToBeFound competition with Facebook.

“I focus on those my target market knows of to build credibility,” says Terri-Anne. “Plus, most of the awards I enter are free or low-cost; they just need some time investment and creativity to take part. It proves my USP to my target market—that my kids’ clothing products are unique—without investing thousands into advertising.”

While you can run a strategy with little to no budget, this section of your marketing plan needs to account for more than any planned advertising spend. Time is a resource that needs to be managed and accounted for. Be sure to detail how much time you plan to spend executing your marketing strategy.

If you have a designated marketing team, it’s also worth noting who will be responsible for each element of your marketing plan. Who’s responsible for this marketing plan? Which team members are executing it? What experience do they have with marketing?

More importantly, detail what you expect from the resources you’re putting into your marketing plan. If you plan to spend $40,000 throughout the coming year, how much revenue will you get in return? If you’re producing a marketing plan for a large or public company, this is what stakeholders really want to see.

Go back to the KPIs (key performance indicators) you set in the earlier section of your marketing plan. How will you determine whether you’ve met these KPIs? What happens if you’re exceeding or falling short of your target? It’s good to have a plan of action for either case.

Let’s put that into practice and say you expected to increase sales by 20% through your social media marketing plan. Detail exactly how you’d measure this, for example, you could say, “we’ll look at our Shopify sales report once per month and analyze which channel is meeting this KPI. If a channel falls behind, we’ll evaluate why and either adjust our marketing plan or deprioritize it in favor of more effective channels.” 

The best marketers approach their plans with an open mind. The hypothesis you started with might be proven wrong. Don’t take that as a negative. You just got closer to finding what will work. 

Tips for creating your marketing plan

Set conservative expectations.

While it’s good to approach your marketing goals with confidence, high expectations often lead to disappointment when we fail to meet them. That disappointment is magnified in a marketing plan, as stakeholders or founders will have already bought into unrealistic predictions and business objectives.

Start small

Don’t overwhelm yourself and your team by trying to generate results with all marketing tactics at once: running Facebook ads, tweeting like crazy, writing daily blog posts for SEO, and making constant changes to site and content strategy to improve your conversion rate.

If you’re very lucky, one of these tactics will bring you consistent traffic and sales. But more often than not, trying everything at once will make you extremely busy without anything to show for it.

Take it from Jameela Ghann, owner of Alora : “When we first started Alora, 10 years ago, our marketing plan was unrealistic. We were just a couple of people making plans that were good on paper but almost impossible to execute with a small team.” 

Originally, Jameela’s team planned to invest in several marketing channels—online and offline advertising, PR, trade shows, influencer marketing, and blogging included. However, the team changed its marketing plan. They went deep on one channel instead of spreading resources too thin by trying to be everywhere at once.

“We stuck to one course of action that was where our customers were, and ready to buy, and easiest for us to see a good ROI,” Jameela says. “What really worked for us was focusing on a handful of channels that we knew we could do well.”

Go back to your audience research and identify three channels your target audience uses most often. Put most of your energy into perfecting those before overcomplicating things with a more comprehensive marketing plan.

Use historical data as a guide

Past performance can help you temper your expectations for your marketing plan. If you know your click-through rate (CTR) for Facebook ads is 0.1%, don’t stray too far from that baseline with your social media marketing .

The same goes for website content optimized for search : If you’re currently getting 10,000 visitors per month from Google, scaling your traffic up to a million is a tough battle. Instead, 50,000 visitors is a more achievable goal.

Allow for flexibility

The purpose of a marketing plan isn’t to create a never-fail manual. Whether your marketing team has fallen victim to completion bias or focused too heavily on one channel, sticking rigidly to your original plan can be a big mistake.

Imine Martinez, assistant manager at Rainbowly , says: “Our regular campaigns targeting mainly birthday celebrations and anniversaries offered poor return on ad spend and inconsistent results over the months.

“That said, during festive seasons, such as Christmas or New Year’s, our targeted campaigns were particularly profitable, achieving five times return on ad spend with much cheaper cost per click and impression.”

Continuing with the same marketing strategies despite this data would only have resulted in heartbreak. Rainbowly would be pouring money down the drain on ads that wouldn’t perform, just because its marketing plan said to do so.

Creating a marketing plan is the first step

A lot of hard work goes into a successful marketing plan. To create an attainable one, you’ll need to spend hours diving into competitive research, audience data, and channels your target market consults when researching new products.

Most importantly, know that marketing is unpredictable. There are thousands of scenarios that fundamentally change the marketing strategy that’s best for your business. Global pandemics, PR crises, and the emergence of new social media platforms are unpredictable.

Treat your marketing plan like the best-case scenario. Plan SMART goals and strategies but remember to be flexible to give your marketing the best chance of success.

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Marketing plan FAQ

How much does a marketing plan cost, how often should a marketing plan be reviewed, what are the 4 steps of a marketing plan.

• Conduct market research
• Outline your marketing channels and formats
• Create goals and measure performance

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What are some marketing plan mistakes.

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