Month: July 2023

While there are national delivery services, such as USPS, FedEx and UPS, people often need packages delivered to nearby locations in a shorter time frame than these services are able to provide. A delivery service provides fast, often same-day delivery, within a particular area. A service may specialize in a specific type of delivery, such as delivering food, or it might deliver all kinds of packages.

Learn how to start your own Delivery Service and whether it is the right fit for you.

Start a delivery service by following these 10 steps

1. Plan your Delivery Service
2. Form your Delivery Service into a Legal Entity
3. Register your Delivery Service for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Delivery Service
6. Get the Necessary Permits & Licenses for your Delivery Service
7. Get Delivery Service Insurance
8. Define your Delivery Service Brand
9. Create your Delivery Service Website
10. Set up your Business Phone System

We have put together this simple guide to starting your delivery service. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Delivery Service Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state’s business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It’s very important to secure your domain name before someone else does.

What are the costs involved in opening a delivery service?

A delivery business’ largest startup cost is the acquisition of a suitable vehicle. A vehicle doesn’t need to be fancy, but it must be reliable. Such a vehicle usually costs several thousand dollars, at least.

The second-largest startup cost is often insurance. Delivery businesses might need commercial auto insurance, and they may want insurance for the packages being delivered. Without the proper insurance coverage, the business may be responsible for reimbursing any customers whose packages are damaged en route.

The other startup costs are minimal, often totaling only a few hundred dollars. These include any fuel, equipment costs (e.g. for a hand truck and ratcheting straps), licensure fees and marketing expenses. A cell phone is also needed to make calls, and most business owners rely on a computer as well.

Business owners who want to keep their upfront costs as small as possible can use a personal vehicle until the business’ profits support purchasing a different one. They also can use free marketing strategies, such as door-to-door marketing and social media marketing. Fuel can’t be avoided, but only a little is needed to get a business started. Revenue from the first delivery can be used to purchase more fuel for subsequent deliveries, which will generate more revenue.

What are the ongoing expenses for a delivery service?

The main ongoing expenses for a delivery service business include vehicles’ maintenance and depreciation, fuel costs and insurance premiums. All of these should be considered when determining what to charge.

Who is the target market?

A delivery service business’ ideal customer is a business that needs to make lots of quick, local deliveries. Partnering with local flower shops, cake shops and pizza places can provide steady business.

How does a delivery service make money?

A delivery service makes money by charging customers for deliveries made.

How much can you charge customers?

A few different factors go into how much delivery service businesses charge. A typical delivery charges may include a mileage charge of $0.50 to $2.50 per mile, with longer deliveries tending toward the higher end of the range, and a fuel surcharge of 15 percent. Deliveries that take longer than normal may be charged on an hourly rate rather than a distance-based rate.

There may be additional fees assessed for waiting, rush orders, after-hours deliveries, and heavy or oversized packages.

How much profit can a delivery service make?

A national survey of couriers found that the average deliverer makes $34 per hour. According to the survey, most work part-time by choice. Working 40 hours a week at this rate would provide a weekly paycheck of $1,360.

How can you make your business more profitable?

A delivery service business can generate more revenue by investing in more fuel-efficient vehicles. Although this won’t increase revenue, it will greatly reduce operating expenses because fuel is one of the biggest ongoing expenses. The net result will be an increase in profitability.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your delivery service is sued.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It’s really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business’ expenses all in one place.
• Build your company’s credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.’

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a delivery service. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits

Vehicle Registration

Businesses are required to register vehicles which will travel across state lines for commercial purposes. Check here for a list of state requirements.

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STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial well being in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers’ Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a delivery service

Two of the most effective ways of marketing a delivery service business include putting signs on the vehicle used for deliveries and going to highly desirable locations for potential customers (such as florists and pizzerias) and requesting to advertise at, and even partner with, these businesses. Many other free and inexpensive advertising methods, like creating a website, posting on social media and putting up flyers, can also be useful.

How to keep customers coming back

A delivery service can attract customers by promising fast delivery times. After all, this is one of the main reasons why people use local courier services rather than national companies.

Moreover, creating an incentive for customers to refer friends and family, like offering a reduced or free delivery, will ensure you build a larger customer base.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites – full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Is this Business Right For You?

A delivery service business may be a good choice for someone who is physically fit and has reliable transportation. Physical fitness is necessary because couriers sometimes have to deliver heavy or over sized packages. A larger vehicle, such as a van or SUV, is less fuel-efficient, but it ensures that a courier service can accept all kinds products.

Because deliveries may be scheduled for almost any time of day, it’s difficult to start this business while working a full-time job.

What happens during a typical day at a delivery service?

A delivery service business owner spends much of their day taking delivery orders, picking up packages and dropping them off. As a business grows, more drivers may be hired. Once there are multiple drivers, a business owner may transition to overseeing the fleet of couriers. This may involve accepting orders, passing them onto drivers and ensuring deliveries are made in the most efficient manner possible.

What are some skills and experiences that will help you build a successful delivery service?

In large metropolitan areas, such as New York City, some delivery services may deliver packages via bicycle. Most delivery services, however, rely on cars to take packages from their pickup location to their drop-off point. Therefore, most delivery service business owners need to have a driver’s license. Interested business owners who don’t have a driver’s license should contact their state’s department of motor vehicles to learn about the permitting and licensure process.

Customer service skills are also important in the delivery industry, as customers regularly change their orders. They may have more packages to deliver than they originally mentioned, need a package taken to a different address or want a package delivered sooner than initially agreed upon. Being able to gracefully respond to requests will help ensure customers are satisfied with the service provided.

What is the growth potential for a delivery service?

A delivery service may be a local operation that has just a few drivers, or it might be a national company. GrubHub and Zipments are two examples of larger delivery services.

Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

• Funding
• Events
• Guides
• Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

While a small delivery service business might be able to be run by one person, having multiple drivers lets a courier service deliver more packages and extend its delivery hours. Some companies directly employ couriers, but most hire them as independent contractors (the same way Uber hires drivers). Deliverers sign up to drive for a company, and they’re given a percentage of the delivery charge on all deliveries they make.

The independent contractor model is easier to scale, and it ensures businesses only have to pay deliverers if they make deliveries.

Introduction:

Time is undoubtedly one of the most valuable resources we have in our busy lives. Whether it’s arranging work commitments or managing personal responsibilities, we often find ourselves wanting more hours in a day. Fortunately, advances in technology have created an essential solution that can greatly ease the burden of time constraints: delivery services. In this blog, we’ll explore  ways  delivery services can unleash the power of time, making our ‘s life more efficient, convenient, and enjoyable.

 Convenience at your doorstep:

One of the most obvious ways that delivery saves us time  is through convenience.Whether it’s groceries, restaurant meals or packages, delivery brings these essentials to our doorstep. This means we no longer have to spend precious time walking to the shops or waiting in line. With just a few taps on our smartphones or clicking on a website, we can fulfill our needs  without leaving  our home or office.

Saving Commute Time:

Save travel time Commuting can be exhausting and time consuming, especially in congested urban areas. The delivery service not only saves us  the hassle of going to the store, but it also saves time when going to the restaurant for takeout. By delivering food, groceries and other essentials to us, we can use that time saved on activities that really matter – whether it’s spending quality time with family, pursuing a hobby or just relaxing.

 Fast and reliable service:

Competition in the delivery service industry has led to significant improvements in efficiency and speed. Companies are constantly striving to provide faster and more reliable services to their customers.With express delivery options  and real-time tracking, we can better plan and organize our days, knowing exactly when to deliver. This allows us to allocate time for other tasks and schedule appointments accordingly.

Focus on Productivity:

By outsourcing groceries and providing logistics to dedicated delivery service providers, businesses can take advantage of a multitude of benefits that directly impact productivity. Running errands and sending employees to pick up items can consume a significant portion of their workday. By delegating these time-consuming tasks to delivery services, employees can focus on their core responsibilities, allowing them to be more productive and effective in their roles. Constantly switching from main tasks to errands can lead to distracted attention and reduced productivity. Building and maintaining an in-house delivery infrastructure can be expensive and resource-intensive. Partnering with delivery service providers offers a flexible and scalable solution that allows businesses to efficiently optimize their resources. This allows them to redirect capital and human resources to more strategic areas of the business, such as research and development, marketing and customer service. In addition, partnering with delivery service providers opens the door to technology-based solutions. These technological innovations not only save time, but also provide businesses with valuable data insights that can inform decision making and further optimize it.

Acceptance of online shopping:

The growth of e-commerce has revolutionized the way we shop. Online retailers, coupled with efficient delivery services, provide us with a wide range of products at our fingertips. This convenience allows us to compare prices, read reviews, and shop without going to multiple stores. As a result, we can save a lot of time and effort while having a wider selection of products.

Eliminate waiting times:

Before delivery became mainstream, waiting for appointments, repair services or deliveries was often a tedious and unpredictable process.With on-time and scheduled deliveries, we can say goodbye to endless hours of waiting. Service providers, such as food delivery or home maintenance, now offer precise delivery times, allowing us to plan our day with minimal disruption.

Accessibility and Inclusion:

Delivery services play an important role in improving accessibility for people with limited mobilityor those living in remote areas. It ensures that everyone can access the products and services they need without overpaying. This inclusivity not only saves time for those with physical limitations but also promotes a more just society.

Streamlining business:

For entrepreneurs and business owners, delivery is an indispensable tool to streamline operations. By outsourcing delivery logistics, companies can focus on their core competencies, such as product development, marketing and customer service. This strategic approach allows companies to scale efficiently and stay competitive in the market.

 Contactless Delivery – Time-Saving and  Safety:

After the COVID-19 pandemic, contactless delivery has become the norm. This measure not only prioritizes security but also saves time in the transaction process.By eliminating the need for physical contact and signatures, delivery services have adapted to the changing landscape and deliver a seamless customer experience.

Improved work-life balance:

The time-saving benefits of delivery services ultimately contribute to a better work-life balance. With less time spent on errands and commuting, we can allocate more time to spend with loved ones, pursue hobbies, engage in physical activities, and simply relax. Improved work-life balance leads to enhanced overall well-being and a more fulfilled and satisfied life.

The order fulfillment industry is continuously facing new obstacles, one challenge is providing a timely delivery service to customers. Customers expect to receive their order as soon as possible. Therefore, it is extremely important to ensure timely delivery service to customers, regardless of the sort of eCommerce business you run.

According to Havard Business Review, in 2021, just 20% of customers were prepared to forgive eCommerce businesses for delivery delays caused by supply chain concerns. As a result, consumers are not willing to tolerate delivery delays. Timely delivery services are critical to meeting customer expectations many eCommerce firms struggle to meet customer demands on time to provide accurate and timely delivery of goods

The Impact of Poor Delivery Services

Providing poor delivery service to customers can have a damaging impact on businesses. The result of poor delivery services can lead to:

• Negative Customer Reviews

When a customer is unsatisfied with a delivery service, it will trigger them to create a negative review. Poor customer reviews harm the reputation of businesses. Customer reviews influence the purchasing behavior of 68% of customers.

Customers will be unlikely to purchase from an eCommerce business with a negative brand image therefore, it is important to ensure timely delivery services to customers to maintain positive customer service. It is extremely difficult to recover from a poor reputation therefore, it is important to continuously provide timely delivery services to customers and keep regular communication to restore customer trust.

• Lose Loyal Customers

Regular customers are a valuable element to your organization. Loyal customers provide repetitive orders and promote your business via word by mouth. Not meeting customer expectations with timely delivery services to provide accurate and timely delivery of goods results in losing loyal customers.

Consequently, it is important to keep the promise of ensuring a timely delivery service to retain customers and potentially attract potential customers.

How to Improve Timely Delivery Services:

You can relieve strain on your drivers and ensure timely delivery service by providing an on-time delivery improvement strategy and the use of relevant technological solutions:

• Maintain accurate inventory records

Ascertain that your purchasing and receiving operations are reliable and error-free. Before releasing a production order, do stock counts on key product lines to confirm they are in-house.

Accurate inventory counts increase satisfied customers ensuring they will receive their orders on time. Visibility is further enhanced by accurate and reliable inventory data, which allows managers to identify data trends and estimate future demand.

• Create a realistic journey schedule

There is no such thing as a one-size-fits-all approach when it comes to service delivery timescales. These timetables must be created on a case-by-case basis with representatives from each client’s company if you want speedy, high-quality services that meet each client’s individual demands.

Creating a realistic journey schedule can also help with improved communication throughout the service delivery process by defining milestones that may be used to track progress and increase transparency.

• Build relationships with suppliers

Supplier relationship management is extremely important for ensuring timely delivery of services to customers. Regular communication with suppliers is critical to ensure accurate and timely delivery of goods. Any delays can result in providing a poor delivery service to customers.

In today’s fast-paced world where speed is paramount, a standard delivery service won’t always get the job done. A courier service can step in and provide a much quicker and more reliable solution than old-fashioned “snail mail” or other slower delivery options that take three to five days.

A courier service is typically a privately owned company specializing in door-to-door pickup and delivery of parcels on short notice. Examples of businesses and organizations that rely on couriers include clinics and hospitals for transporting medical specimens, law firms when shipping crucial legal documents and automotive supply companies that must ship parts immediately to meet customer demands.

Why Use a Courier Delivery Company?

There are many reasons to use courier services in your business operations:

1. Speed

Hiring a courier is often the fastest way to get a parcel from point A to point B. Many companies offer same-day delivery services — the courier will come to your office, plant, clinic, store or any other location to pick up your item and immediately transport it to its destination. This process saves precious time and gives your business a competitive edge. In situations involving an urgent medical shipment, a courier service could even be a lifesaver.

2. Scheduled Deliveries

Have you ever had the unsettling experience of not knowing when the driver will arrive to pick up an important package? A local courier service offers the flexibility to schedule specific pickup and delivery times by establishing regular routes.

This is ideal for businesses that make repeat deliveries to the same locations at the same time. No more pacing the floor or looking out the window for signs of the FedEx or UPS Inc. truck, or worrying if a parcel reached your customer in time. Many couriers can even set up schedules that include after-hours, weekend and holiday service.

3. Reliable Service

Since most courier services are local or regional, you can have the peace of mind of dealing with a company you trust. Couriers usually know the area well and understand your business or organization’s unique delivery needs. If there’s ever a problem with a delivery, you can contact someone nearby who can handle the issue promptly. You can’t always say the same about larger national and international package delivery operations.

4. Security

Couriers offer a direct delivery service, making it less likely for your valuable item to get lost in transit. Fewer steps in the delivery process also reduce the risk of damage to fragile goods due to overhandling. As most couriers serve a small, familiar customer base, their reputation within the local business community matters. You can be sure your courier implements the most stringent safety and security measures to protect your precious parcels.

5. Cost Savings

Are you fed up with the exorbitant prices big delivery companies charge? Couriers can provide a more cost-effective alternative. Because these smaller businesses have lower operating expenses, they can often deliver your goods for less money. You’ll also benefit from working with a local company that can offer more flexible pricing options based on your unique needs. The reliability of a local courier can help you avoid loss of business due to poor delivery service.

6. Fewer Package Size and Type Restrictions

Do you have to ship extra-large or unusually shaped objects? While many larger standard carriers may refuse to make these deliveries, they’re usually not a problem for a local courier service. Many specialize in handling nonstandard parcels that are beyond the scope of other companies. They know how to handle these goods safely and ensure they arrive at their destination on time and in one piece.

7. Frees Up Resources

Another benefit of courier delivery services is that they allow companies to focus on what they do best — running their business. By serving as an extension of your business, a third-party courier removes the burden from your shoulders and allows you to devote more of your labor force to other tasks. Turning the delivery process over to a specialist can also increase efficiency and contribute to lower operating costs. Your customers will appreciate the professionalism a dedicated courier service provides.

8. Access to Support Services

Many companies that offer courier delivery are full-service transportation entities that can support your business in other ways. Some provide logistical solutions that add value to your distribution network. They may also offer warehousing facilities to assist with handling and storing your goods. Consolidating these services with one entity provides convenience and cost savings and can increase your company’s operating efficiency.

9. Reduced Liability

A reputable courier service carries insurance that protects you if your goods are damaged while in transit. Not using in-house drivers or maintaining a vehicle fleet also reduces your liability exposure. You won’t have to worry about company employees causing accidents while making deliveries that can raise your insurance costs and possibly result in an expensive lawsuit.

10. Increased Customer Retention

Your customers will benefit from the combination of on-time deliveries, professional handling, lower shipping costs and more reliable service you can provide while using a courier service. This increased satisfaction can boost loyalty and enable you to retain more business. You can also gain a competitive edge that allows you to attract more customers and grow your business.

A personal concierge service runs on the most basic of premises. People want things done but don’t have the time to do them. But they’re happy to pay someone to take care of their business efficiently and with a touch of class. Why not let that someone be you?

Although personal concierge services are a fairly recent development, the number of companies that serve time-starved clients is mushrooming, right along with customer demand for such businesses. One San Francisco-based concierge business saw its client base double in 1996 and continue to grow up to 50 percent annually for several years after that. Some 2,000 miles away, a Chicago concierge firm that began with 25 clients in 1997 grew to service more than 85 clients in just a few years. Membership in the National Association of Professional Organizers, which includes some professionals who provide concierge services, swelled from a few hundred when founded in 1985 to more than 1,100 members by the late 1990s.

Why the booming demand for concierges and organizers? A big reason is that most people have accumulated so much stuff–both in the workplace and in their homes. Just glance at your desk or kitchen counter, and you’ll probably see stacks of papers, bills, correspondence, etc. In fact, in a recent survey by Steelcase, a leading designer and manufacturer of office furnishings, 27 percent of office workers described themselves as “pilers,” while 12 percent described themselves as pack rats. Taking care of all that “stuff” requires time and organization. Some people need help just to get organized; others could manage the paperwork if they weren’t saddled with so many other chores. That’s when they turn to (or would like to be able to turn to) professionals to help keep them organized, run errands, and see to it that business and personal obligations are met.

Although it’s no secret that the personal concierge field is booming, hard numbers are difficult to come by. The National Concierge Association, a Chicago-based group that was founded in the late 1990s as a networking and resource organization for both personal and hotel concierges, doesn’t yet track numbers or statistics pertaining to the industry. Cynthia A., a former hotel concierge who runs her own personal concierge business in San Diego, estimates there are a few hundred personal concierges throughout the United States, along with thousands of hotel concierges. Several other personal concierges and concierge consultants agreed with that estimate but said the number of personal concierges is growing fast.

Target Market

Who uses personal concierges? Everyone from the millionaire corporate chairman to the single mom with two jobs and three children under age 10.

Income & Pricing

Personal concierges can expect to make anywhere from $40,000 to $60,000 a year, depending on how many clients they take on and the range of services they offer. In addition, concierges often receive tips or gifts from grateful clients.

Concierges can bill their clients in a variety of ways. For instance, some charge membership fees based on how many requests are usually made per month. Others bill on monthly retainers, while others charge per service or per hour. It’s your game, and you can tailor it to meet your needs.

When asked to put numbers to their fees, concierges say their typical charges would work out to be anywhere from $25 to $125 an hour, depending on the particular task. If concierges dip into their own money to purchase something for a client, the client is billed for the item later.

Some personal concierges also receive what are known as “referral fees” from various companies when they steer business to them. Companies that often pay referral fees include wedding planners, caterers and florists. Many concierges pick up extra income via this avenue.

What Will You Be Paid?

You might be wondering how your clients will be billed or what to charge for your time and efforts. In the rapidly developing personal concierge industry, how you charge your clients is another one of those gray areas with no set-in-stone guidelines. What and how you’re paid for your efforts is another area that you will have to research and design along the lines of your own preferences and ideas.

Most of the concierges we talked to charge their clients membership fees. Some memberships allow a certain number of requests each month for one annual fee. For those types of memberships, annual fees might start at around $1,000 to $1,500. Other memberships might be available for a smaller annual fee. For instance, if a client wanted to use the concierge services only once or twice a year for small errands, a fee of $500 might be established. Fees and contracts vary among concierges and clients.

Corporate clients are generally charged much higher fees because they require more services per month. For corporations, membership fees will vary widely depending on the size of the company and how many requests each employee is allowed. Again, most concierges declined to divulge exact fees, but a ballpark annual fee for a corporate client with many employees who are each allowed multiple requests each month could start at about $5,000. More employees and a greater number of requests could drive the fee much higher.

Operations

A Day in the Life

Wondering what a regular workday might be like once you get your business off the ground? Of course, “regular” means different things to different people. Many variables may affect your day, such as whether you have a home office or an office away from home; whether you’re working full time or part time; and whether you serve mostly corporate clients or mostly personal clients.

To give you an idea of what the workday could be like, we asked Cynthia A. to detail a typical day (if such a thing exists for concierges) in her work life.

“There were things that I could tell were personal mementos, so I gathered a few of those and I took them to the relative, who was in the hospital recuperating from a stroke. And when I stopped by the hospital, I ended up staying over an hour and sitting with someone I’d never met because I knew she didn’t have anyone else nearby.”

After she left the hospital, she made some arrangements for another out-of-state client who wanted to spend Christmas holidays at his beach house in California. “I took care of all the details to set up a Christmas tree at his beach house, as well as making arrangements for his mother to send a package to me with his own Christmas ornaments,” she says.

She spent the rest of her day returning phone calls, answering e-mails, meeting with the partners at her company, and being interviewed for this book.

Was the day Cynthia described a typical day for her? Well, she and the other concierges we interviewed said that no two days are alike in their business and that variety is one of the aspects that drew many of them to the business. The one thing they know they’ll be doing every day is juggling many tasks, and they must be prepared to do that.

Concierges also say no two clients are the same. Some clients call and want something done yesterday; others generally give the concierge some notice. But as a rule, most concierges said they receive lots of last-minute requests. “It can definitely throw a wrench in things if you’re going in one direction and have to change your pace,” Cynthia says. “But it’s also par for the course, and it’s one of the things I enjoy about my work–the unknown.”

Marketing

Letting the world know your business is up and running will bring clients your way. Start by attending some casual business functions and passing out business cards. For instance, find out when your local chamber of commerce, Rotary Club or Toastmasters group holds meetings. Often, they hold breakfast meetings that can be good “meet and greet” opportunities. If you have the time, start your own networking group. You can hold meetings at a local restaurant or even line up a seminar room at a college or university and publish a print or e-mail newsletter to keep members informed of meeting times and dates.

Put ads in the paper. A few of the concierges we talked to had some luck with newspaper ads, while others found they had better results from listings in the Yellow Pages. If you’re trying to cut costs, you might not want to spend all your money on expensive advertising. If that’s the case, have fliers made up and get permission to post them on bulletin boards in community centers, doctors’ offices, dental clinics or in break rooms and cafeterias of large companies. The fliers route is one of the least costly, depending on how much you spend for the printing. You can also send sales letters to potential clients.

Of course, there is always (gulp!) cold calling. Nobody ever looks forward to cold calling because of the fear of rejection. Admittedly, it’s no fun calling 10 people in a row who say no to your pitch. But if you stick with it, that 11th call could bring a yes and lots of new business.

There are many other ways you can get the word out. You can send informational packets or brochures about your company to the human resources departments of large corporations in your area or deliver brochures to smaller offices. You might also join a mailing service and send your sales letters and other materials to people on mailing lists. Mailing lists focus on all types of demographics, and you can request any particular one you want to target. Dual-income families and successful business people are two groups that are more likely to need concierge services, so keep this in mind when you’re selecting mailing lists.

The concierge business model is based on the personal concierge services a business provides to other businesses, employees, and individuals. The concierge business model is one in which a company provides a variety of services to businesses, employees, and individuals. Concierge services were once the domain of the rich and were mostly found in luxury hotels and other such establishments. However, many small business owners are now offering their services to increasingly-time poor consumers with disposable income.

Understanding the concierge business model

The services a concierge provides are extremely diverse and to some extent, depend on the individual needs of the client. However, most provide personal services that help the customer achieve a better work-life balance.

Elements of a successful concierge business model

The concierge business model is relatively simple. Nevertheless, there are some important factors to keep in mind for those thinking of entering the industry:

1. Consider the market – There are two broad concierge business model categories: corporate and personal. Corporate services include planning business trips and scheduling meetings, while personal services encompass nearly any household chore or otherwise mundane or time-consuming task. In some instances, concierge services may straddle both categories.
2. Focus on high value – Consumers from lower socio-economic backgrounds are not going to be attracted to concierge services for obvious reasons. The focus should always be on middle and high-income earners. Generation X and Millennial professionals also desire concierge services because they like to work hard and protect their leisure time.
3. Don’t neglect marketing – It is also important to market concierge services to new and existing clients. The concierge services industry is likely to become more competitive over time, so market differentiation should not be neglected.
4. Build the right relationships – Like other freelance industries, those who work under the concierge business model may have difficulty earning a consistent and reliable income. It is important the entrepreneur builds the sort of client relationships that result in repeat or long-term business.

Key takeaways:

• The concierge business model is one in which a company provides a variety of services to businesses, employees, and individuals.
• Once the domain of the wealthy, concierge services are now popular among time-poor consumers who desire a greater work-life balance. Some of the services on offer include home organization, travel arrangement booking, interior design, grocery shopping, restaurant reservations, and general errands such as dropping children off at school.
• The concierge business model is relatively straightforward, but concierge providers should begin by considering whether they want to provide corporate services, personal services, or a mixture of both. What’s more, providers should focus on middle and upper-class consumers and not discount the importance of marketing campaigns and long-term client relationships.

Connected Business Model Types And Frameworks

What’s A Business Model

An effective business model has to focus on two dimensions: the people dimension and the financial dimension. The people dimension will allow you to build a product or service that is 10X better than existing ones and a solid brand. The financial dimension will help you develop proper distribution channels by identifying the people that are willing to pay for your product or service and make it financially sustainable in the long run.

Business Model Innovation
Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customer.

Level of Digitization

Digital and tech business models can be classified according to four levels of transformation into digitally-enabled, digitally-enhanced, tech or platform business models, and business platforms/ecosystems.

Digital Business Model

A digital business model might be defined as a model that leverages digital technologies to improve several aspects of an organization. From how the company acquires customers, to what product/service it provides. A digital business model is such when digital technology helps enhance its value proposition.

Tech Business Model

A tech business model is made of four main components: value model (value propositions, mission, vision), technological model (R&D management), distribution model (sales and marketing organizational structure), and financial model (revenue modeling, cost structure, profitability and cash generation/management). Those elements coming together can serve as the basis to build a solid tech business model.

Platform Business Model

A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model success

AI Business Model

A Blockchain Business Model is made of four main components: Value Model (Core Philosophy, Core Value and Value Propositions for the key stakeholders), Blockchain Model (Protocol Rules, Network Shape and Applications Layer/Ecosystem), Distribution Model (the key channels amplifying the protocol and its communities), and the Economic Model (the dynamics through which protocol players make money). Those elements coming together can serve as the basis to build and analyze a solid Blockchain Business Model.

Asymmetric Business Models

In an asymmetric business model, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.

Attention Merchant Business Model

In an asymmetric business model, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus having a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility. This is how attention merchants make monetize their business models.

Open-Core Business Model

While the term has been coined by Andrew Lampitt, open-core is an evolution of open-source. Where a core part of the software/platform is offered for free, while on top of it are built premium features or add-ons, which get monetized by the corporation who developed the software/platform. An example of the GitLab open core model, where the hosted service is free and open, while the software is closed.

Cloud Business Models

Cloud business models are all built on top of cloud computing, a concept that took over around 2006 when former Google’s CEO Eric Schmit mentioned it. Most cloud-based business models can be classified as Ia As (Infrastructure as a Service), PaaS (Platform as a Service), or SaaS (Software as a Service). While those models are primarily monetized via subscriptions, they are monetized via pay-as-you-go revenue models and hybrid models (subscriptions + pay-as-you-go).

Open Source Business Model

Open source is licensed and usually developed and maintained by a community of independent developers. While the freemium is developed in-house. Thus the freemium give the company that developed it, full control over its distribution. In an open-source model, the for-profit company has to distribute its premium version per its open-source licensing model.

Freemium Business Model

The freemium – unless the whole organization is aligned around it – is a growth strategy rather than a business model. A free service is provided to a majority of users, while a small percentage of those users convert into paying customers through the sales funnel. Free users will help spread the brand through word of mouth.

Freeterprise Business Model

A freeterprise is a combination of free and enterprise where free professional accounts are driven into the funnel through the free product. As the opportunity is identified the company assigns the free account to a salesperson within the organization (inside sales or fields sales) to convert that into a B2B/enterprise account.

Marketplace Business Models

A marketplace is a platform where buyers and sellers interact and transact. The platform acts as a marketplace that will generate revenues in fees from one or all the parties involved in the transaction. Usually, marketplaces can be classified in several ways, like those selling services vs. products or those connecting buyers and sellers at B2B, B2C, or C2C level. And those marketplaces connecting two core players, or more.

B2B vs B2C Business Model

B2B, which stands for business-to-business, is a process for selling products or services to other businesses. On the other hand, a B2C sells directly to its consumers.

B2B2C Business Model

A B2B2C is a particular kind of business model where a company, rather than accessing the consumer market directly, it does that via another business. Yet the final consumers will recognize the brand or the service provided by the B2B2C. The company offering the service might gain direct access to consumers over time.

D2C Business Model

Direct-to-consumer (D2C) is a business model where companies sell their products directly to the consumer without the assistance of a third-party wholesaler or retailer. In this way, the company can cut through intermediaries and increase its margins. However, to be successful the direct-to-consumers company needs to build its own distribution, which in the short term can be more expensive. Yet in the long-term creates a competitive advantage.

C2C Business Model

The C2C business model describes a market environment where one customer purchases from another on a third-party platform that may also handle the transaction. Under the C2C model, both the seller and the buyer are considered consumers. Customer to customer (C2C) is, therefore, a business model where consumers buy and sell directly between themselves. Consumer-to-consumer has become a prevalent business model especially as the web helped disintermediate various industries.

Retail Business Model

A retail business model follows a direct-to-consumer approach, also called B2C, where the company sells directly to final customers a processed/finished product. This implies a business model that is mostly local-based, it carries higher margins, but also higher costs and distribution risks.

Wholesale Business Model

The wholesale model is a selling model where wholesalers sell their products in bulk to a retailer at a discounted price. The retailer then on-sells the products to consumers at a higher price. In the wholesale model, a wholesaler sells products in bulk to retail outlets for onward sale. Occasionally, the wholesaler sells direct to the consumer, with supermarket giant Costco the most obvious example.

Crowdsourcing Business Model

The term “crowdsourcing” was first coined by Wired Magazine editor Jeff Howe in a 2006 article titled Rise of Crowdsourcing. Though the practice has existed in some form or another for centuries, it rose to prominence when eCommerce, social media, and smartphone culture began to emerge. Crowdsourcing is the act of obtaining knowledge, goods, services, or opinions from a group of people. These people submit information via social media, smartphone apps, or dedicated crowdsourcing platforms.

Franchising Business Model

In a franchained business model (a short-term chain, long-term franchise) model, the company deliberately launched its operations by keeping tight ownership on the main assets, while those are established, thus choosing a chain model. Once operations are running and established, the company divests its ownership and opts instead for a franchising model.

Brokerage Business Model

Businesses employing the brokerage business model make money via brokerage services. This means they are involved with the facilitation, negotiation, or arbitration of a transaction between a buyer and a seller. The brokerage business model involves a business connecting buyers with sellers to collect a commission on the resultant transaction. Therefore, acting as a middleman within a transaction.

Dropshipping Business Model

Dropshipping is a retail business model where the dropshipper externalizes the manufacturing and logistics and focuses only on distribution and customer acquisition. Therefore, the dropshipper collects final customers’ sales orders, sending them over to third-party suppliers, who ship directly to those customers. In this way, through dropshipping, it is possible to run a business without operational costs and logistics management.aca

Virginia Beach

If you are running a retail, construction, healthcare, commercial or food related business in Virginia Beach, it is imperative to have an established courier services on your side to effectively tackle the lightening fast business world. We constantly keep on developing customized distribution solutions that can meet the incessantly evolving needs of your organization.

The potent combination of flexibility and experience enable to provide time-definite, high value pickup and delivery solutions to a wide range of business sectors that need courier capabilities. Subtly blends professional service with speed to offer you reliable and swift delivery solutions.

By taking into account the responsiveness which businesses need to survive and dominate in the marketplace, we have developed multiple modes of shipments, including same-day, next day, occasional and ongoing delivery services. We also understand that your urgent packages demand to be treated both carefully and quickly. This is why our highly trained professionals handle them with the utmost vigilance. Some of the top benefits are mention below:

• From next day to same day, diverse courier delivery service options
• Consistent integrity of shipments
• Competitive transit periods
• Proven prompt service standards
• Flexible pricing
• Real time tracing and tracking
• Enhanced experience of customers
• Diverse notification options, such as text, email etc.
• Customer focused processes
• Regulatory compliance delivery services
• Customized pickup and delivery solutions

Matchless Customer Support

It is natural if you have some questions regarding how you can incorporate the courier and logistics solutions offered by us. We are proud to say that over the time we have excellently trained our exceptional customer support team who are knowledgeable and experienced to articulately respond to any of your queries.

Our experts can assist you in choosing the mode of our courier delivery services that will be most suitable for your business. Plus, if you believe that unique distribution and logistics demands of your enterprise require a tailor-made solution, we can also get this done for you. It shows how much satisfaction of our clients matters to us. So grab your phone and let our passionate representative know your needs. We will do whatever in our power to help you and your business venture.

GoShare connects you with local delivery professionals on demand to help you deliver or move goods in the Charlottesville area. Help is just minutes away with GoShare’s same day last mile delivery service. With GoShare, you can deliver or move almost anything the same day in Charlottesville and nationwide with our unique mobile apps, website or our Delivery API for high volume shippers. Our team of delivery experts can handle most of your delivery needs in the greater Charlottesville region.

Modern consumer demands and the ongoing digital revolution require businesses to adopt a digital delivery and logistics strategy to support same day home delivery. GoShare can help you find vetted delivery professionals with the right equipment and help you manage and track deliveries while saving you time and money by automating manual tasks.

Delivery Service in Charlottesville

Our local driver network includes hundreds of delivery professionals in the greater Charlottesville area who are equipped to handle any and all of your delivery needs. Our delivery pros are experts in handling large and heavy shipments, oversized loads, and small parcels. We have a fleet of vehicles that can handle any size shipment, from box trucks, cargo vans, and pickup trucks to sedans. Our platform is flexible, so depending on your needs you can request one delivery pro for lighter cargo or two delivery pros for big and bulky items that require more than one person. From a single piece of furniture to a pallet of paint, we have the resources and knowledge to handle any size job.

GoShare is trusted by leading companies across a variety of industries such as retail, solar, food and beverage, automotive, clothing, construction supply, e-commerce, industrial supply, manufacturing, medical, transportation, and more.

Your Delivery Service Partner in Charlottesville, VA

We know you need to get your products delivered safely, and on time, to your customers. You need a delivery partner you can trust. We have partnered with thousands of businesses, helping them meet their delivery demand and increase their customer satisfaction. As last mile delivery experts in Charlottesville, we have a passion for making your deliveries easy, efficient, and fast. We pride ourselves on providing the highest levels of customer service.

GoShare is helping businesses like yours by offering modern delivery solutions such as: Proof of Delivery (POD) photographs, automated invoicing, rapid driver matching using Machine Learning (ML), real time order tracking, and a record of each delivery. Connect the GoShare Delivery API to your TMS, POS, WMS, or ERP system to automate order flow, exception handling, and payments.

Whether you need a small parcel delivery or pallets of items transferred from one location to another, our fleet of vetted independent drivers is equipped to handle almost anything you throw at them. All of our delivery pros are licensed, insured, and background checked to give you the peace of mind you need to run your business.

Delivery Service Made Easy in Charlottesville, VA

Your supply chain is our business and we’re committed to providing you with tools for easy scheduling, tracking, and delivery no matter where your business takes you. Our delivery service is available in many cities across the United States. As long as the shipment begins or ends in one of our nationwide service areas, we can accept your last mile delivery orders.

With trucks and vans of all sizes, GoShare specializes in big & bulky delivery in Charlottesville. We focus on providing fast, reliable service to any size business. We can pick up at your store or warehouse seven days a week. Expect rapid service and multiple service levels including: curbside, threshold, room of choice, and white glove delivery.

GoShare is a logistics technology company that facilitates last mile deliveries, middle mile deliveries, LTL shipments, hot shot trucking, and home delivery solutions for businesses nationwide. We are dedicated to delivering happiness in every aspect of our service, from our delivery pros and customer support team to our proprietary software. Try us and see why our customers say we’re the best delivery service available in Charlottesville.

If you need help with moving, furniture delivery, appliance delivery, or other moving and hauling jobs, help is just a tap away. Use GoShare’s app or website to get a free estimate. In less than a minute, you can hire delivery professionals with a pickup truck, cargo van, or box truck. Schedule ahead or request them to arrive in under an hour. Service areas include Charlottesville, Staunton, Crozet, Harrisonburg, Hollymead, Waynesboro, Lake Monticello, Stuarts Draft, Bridgewater, Fishersville, and more.

A lot of leaders, including some with decades of experience who work at top-tier companies, do not fully understand the difference between “hospitality” and “guest service.”

These terms are often used interchangeably, yet while they are related, and while guest satisfaction requires both, they are fundamentally different concepts. Understanding the difference, and being able to convey this to frontline staff, is essential for taking both to the next level at your hotel, resort or inn.

What Is the Difference?

Guest service” is delivering experiences that at least meet, and hopefully exceed expectations. Fundamentally, this requires providing a safe, secure, clean, updated and comfortable accommodation, which of course is the starting point. On top of that, excellent guest service requires communication that rises above merely being polite. A few examples:

• Holding eye contact with guests long enough to exchange smiles;
• Using open body language;
• Excellence in telephone communications (a positive opening greeting, asking for and using the caller’s name, asking permission to place them on hold, supervising call transfers, and ending the call by offering additional assistance, restating the caller’s name and thanking them);
• Using guest names conversationally;
• Using the language of hospitality (“Allow me to check on that,” not “I’ll have to check on that”); and
• Expressing empathy and apologizing when things go wrong.

It is entirely possible for a hotel colleague to use all of these communications techniques and still not even come close to delivering hospitality. As a case in point, I’m sure all readers have had customer service experiences in which the associate delivered the “product” as expected, and said all of the right things, but in a way that felt scripted, robotic and disingenuous.

Top-tier leaders know that hospitality is, at its core, a philosophy for living more than a script or list of “service standards.”

To start, let’s look at the root of the word itself, which is derived from the Latin word “hospes,” meaning both “guest” and “host.”

Dictionary definitions of the word “hospitality” all generally include some version of receiving guests in a way that is warm, generous and friendly.

In my hospitality training workshops, I often ask participants to work in groups and to formulate one collective definition. Their results are always interesting and insightful, but the best one yet was: “Hospitality means caring about, as well as for, others.”

In the hotel industry, when we care “for” others, we basically do our jobs. We clean the rooms, fix what is broken and provide a key in exchange for their credit card. Yet when we care “about” our guests, we understand that the person on the other side of the desk, counter, phone line or email exchange is a real person going through a uniquely personal travel experience. We take time to imagine that they might be in town for a wedding, birthday or a vacation, but also it might be for a funeral, memorial service or at the start or end of a hospital stay. They might be in town on business to capture new sales, hire new staff, testify in a lawsuit or perhaps to layoff an entire team.

Another definition of hospitality is “the delivery of human kindness, especially to strangers.”

Howard Feiertag, a true industry icon who has been my personal mentor and friend for 33 years, said in a 2019 speech accepting a lifetime achievement award from Virginia Tech that “hospitality is making people feel good … and when we make them feel good, it makes YOU feel good, too!”

Around 1990, Howard joined Virginia Tech as an adjunct professor, where he still teaches and inspires students at what is now known as the Howard Feiertag Department of Hospitality and Tourism Management. You can watch Howard’s speech on YouTube.

Hotel leaders: At your next staff meeting, shift lineup or management conference, take a few moments to discuss with your team the true meaning of hospitality, making certain to differentiate it from the concept of guest service techniques.

Guest services is a division of the hospitality industry. The goal of guest services is to provide customers with an enjoyable experience, primarily in the hotel and spa industry, sports facilities, and event venues. Your duties in a guest services position may include greeting and assisting guests, accommodating requests, answering calls, issuing keys, processing payments, providing recommendations, and more. Guest services is typically located at the front desk to provide easy access to information for guests and to ensure excellent customer service. In some hotels, a concierge is a person in charge of guest services, and their responsibilities range from arranging tours for guests, to making reservations, to ensuring rooms are to the guest’s liking.