An errand service business, also known as a concierge or personal assistant service, is a business that assists individuals or businesses by completing various tasks and errands on their behalf. The goal is to help clients save time and reduce the stress associated with managing daily responsibilities.
These businesses often thrive in urban areas where people have busy lifestyles and may find it challenging to manage all aspects of their daily lives.
With the growth of online platforms and mobile apps, some errand service businesses operate digitally, allowing clients to request and manage services through a website or app.
Steps on How to Write an Errand Service Business Plan
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Executive Summary
Leonardo McKenzie® Errand Service, Inc. is a Fort Wayne-based concierge and errand service business dedicated to providing professional and reliable assistance to individuals and businesses.
Fort Wayne, Indiana, with its growing population and diverse demographics, presents a significant opportunity for Leonardo McKenzie® Errand Service, Inc.
The city’s bustling urban lifestyle, combined with an increasing demand for time-saving solutions, positions our business as a valuable resource for individuals and busy professionals seeking convenience.
Our commitment to professionalism, reliability, and a customer-centric approach sets us apart in the market. We leverage technology for seamless service delivery, allowing clients to easily request and manage tasks through our user-friendly online platform.
Leonardo McKenzie® Errand Service, Inc. is dedicated to exceeding client expectations and building long-lasting relationships.
Leonardo McKenzie, founder, and CEO, brings 20 years of relevant experience, contributing to the strategic vision and success of the company. Our team is composed of dedicated professionals committed to delivering unparalleled service excellence.
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Company Profile
a. Our Products and Services
At Leonardo McKenzie® Errand Service, Inc., we offer a wide range of services to meet the diverse needs of our clients:
- Grocery shopping: Purchasing and delivering groceries to clients’ homes.
- Dry cleaning pickup and drop-off: Collecting and returning dry-cleaned clothing.
- Package delivery and shipping: Sending or receiving packages on behalf of clients.
- Prescription pickup: Collecting medications from pharmacies.
- Banking tasks: Depositing checks, withdrawing cash, or handling other banking needs.
- Pet care services: Walking dogs, pet sitting, or picking up pet supplies.
- Personal shopping: Assisting with shopping for clothing, gifts, or other items.
- Household chores: Performing tasks like house cleaning, organizing, or light maintenance.
- Appointment scheduling: Managing and coordinating appointments for clients.
- Event planning assistance: Helping with planning and coordination for special events.
b. Nature of the Business
Leonardo McKenzie® Errand Service, Inc. operates through a multi-faceted business model. We work with a wide range of clients.
c. The Industry
Leonardo McKenzie® Errand Service, Inc. will operate in the personal services or concierge services industry.
d. Mission Statement
“At Leonardo McKenzie® Errand Service, Inc., our mission is to enhance the quality of life for individuals and businesses in Fort Wayne, Indiana, and beyond.
We are committed to providing professional, reliable, and personalized errand services, streamlining daily tasks, and allowing our clients to focus on what matters most.”
e. Vision Statement
“Leonardo McKenzie® Errand Service, Inc. aspires to be the premier concierge and errand service provider, setting the standard for excellence in efficiency and customer satisfaction.
We envision a future where our innovative solutions redefine convenience, making us the go-to resource for individuals and businesses seeking unparalleled assistance in managing their daily lives.”
f. Our Tagline (Slogan)
Leonardo McKenzie® Errand Service, Inc. – “ Your Time, Your Terms, Our Commitment”
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Leonardo McKenzie® Errand Service, Inc. will be formed as a Limited Liability Company (LLC).
h. Our Organizational Structure
- Founder/CEO/Owner
- Manager
- Accountant
- Errand Officers
- Sales and Marketing Officer
- Customer Service Representative
i. Ownership/Shareholder Structure and Board Members
- Leonardo McKenzie (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
- Adrain Bobson (Board Member) 14 Percent Shares
- Tony McKinney (Board Member) 10 Percent Shares
- Zeo Alex (Board Member) 10 Percent Shares
- Laurie Williams (Board Member and Secretary) 10 Percent Shares.
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SWOT Analysis
a. Strength
- Commitment to delivering services with the utmost professionalism. Reliability in executing tasks accurately and on time.
- A diverse range of services catering to various client needs. Flexibility to tailor services for personalized experiences.
- User-friendly online platform for seamless task management. Leveraging technology for efficient service delivery.
- Dedication to exceeding customer expectations. Building long-lasting relationships through personalized service.
b. Weakness
- The errand industry is highly competitive, with many established competitors, which can make it challenging to stand out.
- The current focus on Fort Wayne may limit immediate market expansion. They may be potential challenges in reaching clients in remote areas.
- Vulnerability to technical issues or system failures. Need for ongoing investment in technology infrastructure
- Acquiring new clients can be costly in terms of marketing and business development efforts.
- Relying on a diverse range of clients and industries may pose challenges in terms of specialization and expertise in specific sectors.
c. Opportunities
- Growth potential by expanding services to neighboring regions. Tapping into emerging markets within the concierge service industry.
- Collaboration with local businesses for mutual benefit. Establishing partnerships with online platforms for increased visibility.
- Introduction of new services based on evolving client needs. Staying ahead by adapting to trends in the concierge industry.
i. How Big is the Industry?
The errand service industry is a dynamic and growing sector, catering to the increasing demand for time-saving solutions in today’s fast-paced world.
With a global market size in the billions, the industry encompasses a variety of services, including personal assistance, shopping, and task management.
The rise of digital platforms has further expanded its reach, making errand services accessible to a diverse clientele. As individuals and businesses prioritize convenience, the industry is poised for continued expansion and innovation.
ii. Is the Industry Growing or Declining?
The errand service industry is experiencing substantial growth due to the rising demand for convenience and time-saving solutions. As individuals and businesses increasingly prioritize outsourcing daily tasks, the industry is expanding globally.
iii. What are the Future Trends in the Industry?
The errand service industry is evolving to meet changing consumer demands and technological advancements. Increased reliance on mobile apps for convenient and seamless task management.
Niche offerings cater to specific needs, such as eco-friendly errands, wellness-related tasks, or specialized event planning.
Continued emphasis on contactless transactions and deliveries for safety and convenience. Growth of subscription-based plans for regular and ongoing errand assistance.
Implementation of AI and automation for enhanced efficiency in task execution and customer interactions. Adoption of environmentally friendly practices in service delivery and task execution.
Increased collaboration with local businesses, e-commerce platforms, and other service providers to offer comprehensive solutions.
Tailoring services to individual preferences and needs for a more personalized customer experience. Implementation of advanced security measures to ensure the safety of personal information and secure transactions.
iv. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to an errand service business because an errand service business is a niche idea in the personal services or concierge services industry.
v. Can You Sell a Franchise of Your Business in the Future?
Leonardo McKenzie® Errand Service, Inc. will not sell franchises.
d. Threats
- Potential competition from existing and new entrants. Continuous monitoring of industry trends and adapting accordingly.
- Economic downturn affecting disposable income and demand. Fluctuations in economic conditions impacting business growth.
- Changes in regulations affecting the service industry. Compliance with local and regional regulations.
i. Who are the Major Competitors?
- TaskRabbit
- Instacart
- Postmates
- Shipt
- Favor
- Gofer
- Fetch
- Dunzo
- Magic
- NeedTo
- Run My Errand
- My Errand Buddy
- Doorman
- GoPuff
- Errand Solutions
- Same Day Errands
- Errand Up
- VIP Errands
- Go Errands
- Errands at a Click.
ii. Is There a Franchise for Errand Service Business?
Yes, there are franchise opportunities for errand service businesses, and here are some of them:
- TaskRabbit
- Fetch! Pet Care
- Run My Errand
- Errand Solutions
- The Errand Boy
- Express Errands and Courier
- My Errand Buddy
- Gofer
- Go-For
- Errands Plus.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Errand Service Business?
While there might not be specific regulations targeting errand services, certain general business regulations and local ordinances may apply.
Errand service businesses in the United States may need to consider certain policies, regulations, and zoning laws, although these are often related to general business operations rather than specific to the errand industry.
Errand service businesses must comply with federal, state, and local tax regulations, including income tax, sales tax, and payroll tax if they have employees.
If the business collects and stores client information, it may need to adhere to data protection laws and regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) if dealing with healthcare clients.
Errand service providers should have clear and legally sound contracts in place with clients, outlining services, fees, and terms.
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Marketing Plan
a. Who Is Your Target Audience?
i. Age Range: Primarily adults aged 25 and above, as individuals and organizations seeking errand services typically have a level of maturity and established goals.
ii. Level of Education: Varied educational backgrounds, with a focus on those with at least a high school diploma.
iii. Industry or Sector: Diverse industries and sectors, with a specific focus on professionals, entrepreneurs, and individuals with busy lifestyles.
iv. Ethnicity: Our services will be available to a diverse clientele, so ethnicity is not a primary factor in targeting our audience. We will be inclusive and accessible to individuals and organizations from various ethnic backgrounds.
v. Language: Our services are best offered in the predominant languages of the region we serve, which include English and potentially other languages depending on our client’s geographical location.
vi. Geographical Location: Initially targeting Fort Wayne, Indiana, with plans for gradual expansion to neighboring urban areas.
vii. Lifestyle: Busy professionals, working parents, and individuals with active lifestyles seeking convenience and time-saving solutions. Emphasis on those valuing work-life balance
b. Advertising and Promotion Strategies
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Develop Your Business Directory Profiles
- Build Relationships with Other Businesses in our Area
i. Traditional Marketing Strategies
- Broadcast Marketing -Television & Radio Channels.
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Out-of-Home” marketing (OOH marketing) – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
- Including direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Pay-per-click (PPC).
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- Start using chatbots.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
Our pricing strategy at Leonardo McKenzie® Errand Service, Inc. aligns with our business goals, competitive landscape, and the value we provide to our clients, and they are as follows:
- Cost-Plus Pricing
- Value-Based Pricing
- Competitive Pricing
- Dynamic Pricing
- Bundle Pricing
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Sales and Distribution Plan
a. Sales Channels
Leonardo McKenzie® Errand Service, Inc. employs a multi-faceted sales approach to reach our target audience effectively.
Our primary sales channels include a user-friendly online platform, allowing clients to easily request and manage services.
Strategic digital marketing campaigns enhance our online presence, attracting busy professionals and individuals seeking convenience.
Additionally, we establish partnerships with local businesses, creating collaborative opportunities for mutual benefit and expanding our reach. Word-of-mouth referrals play a crucial role, driven by our commitment to professionalism and reliability.
b. Inventory Strategy
As a non-traditional service business, our “inventory” primarily consists of digital assets, including our online platform and task management tools. We maintain a flexible approach, allowing us to scale resources in response to fluctuating demand for services.
By investing in technological advancements rather than physical inventory, we ensure efficiency and cost-effectiveness, aligning with our commitment to delivering top-notch, personalized errand services to our clientele.
c. Payment Options for Customers
- Online Payment Portal
- Credit and Debit Cards
- ACH Bank Transfers
- Electronic Funds Transfer (EFT)
- Check Payments
- Wire Transfers
- Mobile Payment Apps.
d. Return Policy, Incentives and Guarantees
Return Policy:
Leonardo McKenzie® Errand Service, Inc. is committed to client satisfaction. While our services are inherently non-returnable, we guarantee the quality and professionalism of every task.
In the rare event of dissatisfaction, clients are encouraged to contact us promptly, and we will assess the situation on a case-by-case basis to find a satisfactory resolution.
Incentives:
To express our gratitude for your continued loyalty, we offer a rewards program. Clients accrue points with each completed task, redeemable for discounts or complimentary services.
Additionally, we periodically introduce promotions and special offers, providing added value and appreciation for choosing Leonardo McKenzie® Errand Service, Inc.
Guarantees:
We guarantee the reliability and professionalism of our services. Tasks will be completed accurately and within agreed-upon timelines. In the event of unforeseen issues, we are committed to prompt communication and resolution.
e. Customer Support Strategy
We will provide multiple communication channels for customers to reach out, including phone, email, and a dedicated customer support portal on our website. We will maintain extended business hours to accommodate customer inquiries and concerns outside regular working hours.
Train our customer support team to be knowledgeable about errand services, local regulations, and our company’s services. Emphasize empathy and active listening skills to address customer needs and concerns effectively.
Strive for prompt response times to customer inquiries, aiming to acknowledge and address their concerns within a reasonable timeframe.
Implement a ticketing system to track and prioritize customer requests efficiently. Develop and maintain a comprehensive FAQ section on our website to provide answers to common customer questions.
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Operational Plan
Leonardo McKenzie® Errand Service, Inc. executes a comprehensive operational plan to ensure seamless service delivery.
Our agile approach combines cutting-edge technology with a commitment to professionalism. The core of our operation is a user-friendly online platform, allowing clients to effortlessly request and manage tasks.
Task allocation and tracking utilize advanced digital tools, optimizing efficiency. Strategic partnerships with local businesses enhance our reach and service offerings.
Our cybersecurity protocols prioritize data protection, instilling trust in our clients. We prioritize continuous improvement, regularly updating our technology infrastructure.
a. What Happens During a Typical Day at an Errand Service Business?
On a typical day at Leonardo McKenzie® Errand Service, Inc., our team orchestrates a choreographed blend of digital coordination and personal assistance.
Mornings commence with task scheduling and allocation through our online platform. Errand runners efficiently carry out assignments, from grocery shopping to event planning, guided by client preferences.
Concurrently, strategic partnerships are nurtured, enhancing service breadth. Continuous communication ensures real-time updates for clients.
Afternoons involve client inquiries, troubleshooting, and refining operational protocols. Cybersecurity measures are consistently upheld.
Evenings see a review of the day’s performance and technology updates. This daily rhythm reflects our commitment to professionalism, reliability, and meeting the diverse needs of our clientele.
b. Production Process
There is no production process.
c. Service Procedure
At Leonardo McKenzie® Errand Service, Inc., our service procedure is designed for optimal efficiency and client satisfaction. Clients initiate tasks through our user-friendly online platform, specifying requirements and preferences.
Our system promptly allocates tasks to dedicated errand runners based on proximity and expertise. Runners execute assignments with precision, adhering to agreed timelines.
Real-time updates are provided to clients, ensuring transparency and communication. Quality control measures are implemented, and client feedback is actively sought. Payment processing is seamless through our secure platform.
Our commitment to professionalism and reliability defines every step, creating a seamless and personalized experience for clients as we navigate the intricacies of daily errands with dedication and precision.
d. The Supply Chain
Our primary ‘supply’ involves technology infrastructure, ensuring a robust online platform for task management. Task allocation is dynamic, utilizing algorithms that consider proximity, expertise, and real-time demand.
Our ‘inventory’ is intangible, comprising digital assets and cybersecurity measures to safeguard client data. Regular updates and maintenance ensure optimal performance.
This digitized supply chain minimizes physical dependencies, allowing us to scale efficiently, adapt to demand fluctuations, and deliver reliable, personalized errand services with precision and professionalism.
e. Sources of Income
Leonardo McKenzie® Errand Service, Inc. generates income through diverse channels. Clients pay for services rendered.
Strategic partnerships with local businesses provide additional revenue streams. Promotional campaigns and referral incentives drive customer acquisition.
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Financial Plan
a. Amount Needed to Start Your Errand Service Company Business?
Leonardo McKenzie® Errand Service, Inc. would need an estimate of $120,000 to successfully set up our errand service company in the United States of America. Note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $2,300.
- Marketing, Branding, and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $2,400.
- Rent/Lease – $50,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Leonardo McKenzie® Errand Service, Inc. will not build a new facility for our errand service company.
d. What are the Ongoing Expenses for Running an Errand Service Business?
- Salaries or wages for errand runners and staff managing day-to-day operations.
- Maintenance and upgrades for the online platform, task management tools, and cybersecurity measures.
- Ongoing expenses for digital marketing campaigns, promotions, and advertising to attract and retain clients.
- Liability insurance and other coverage to protect against unforeseen incidents.
- Fuel, maintenance, and potentially leasing costs for vehicles used in service delivery.
- Rent, utilities, and other overhead costs for office space or a centralized operations center.
- Expenses related to supplies needed for specific errands, such as packaging materials or cleaning supplies.
- Investment in ongoing training programs to enhance the skills of errand runners and staff.
- Costs associated with providing excellent customer support, including personnel and communication tools.
- Contingency funds for unexpected expenses, licenses and permits, legal fees, and other miscellaneous costs that may arise in the course of business.
e. What is the Average Salary of Your Staff?
- Founder/CEO/Owner – $55,000 Per Year
- Manager – $42,000 Per Year
- Accountant – $40,000 Per Year
- Errand Officers – $35,000 Per Year
- Sales and Marketing Officer – $35,000 Per Year
- Customer Service Representative – $34,000 Per Year
f. How Do You Get Funding to Start an Errand Service 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
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
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Financial Projection
a. How Much Should You Charge for your Product/Service?
We offer flexible pricing models, including per-task rates, hourly rates, and subscription-based plans. This ensures that our services are accessible to a wide range of clients while providing them the flexibility to choose a payment structure that aligns with their needs.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $400,000
c. Estimated Profit You Will Make a Year?
Leonardo McKenzie® Errand Service, Inc. is projecting to make;
- First Fiscal Year (FY1): (10% of revenue generated)
- Second Fiscal Year (FY2): (15% of revenue generated)
- Third Fiscal Year (FY3): (20% of revenue generated)
d. Profit Margin of an Errand service Company Business
The profit margin of an errand service company business is not fixed. It could range from 5 percent to 20 percent depending on some unique factors.
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Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
As we establish our presence in Fort Wayne, our vision includes expanding our services and geographic reach. Leonardo McKenzie® Errand Service, Inc. is committed to continuous innovation, exploring strategic partnerships, and staying attuned to market trends to enhance our offerings and meet the evolving needs of our clientele.
b. Where do you intend to expand to and why?
Leonardo McKenzie® Errand Service, Inc. plans to expand to;
- Austin, Texas
- Boise, Idaho
- Raleigh, North Carolina
- Phoenix, Arizona
- Nashville, Tennessee
- Tampa, Florida
- Denver, Colorado
- Atlanta, Georgia
- Seattle, Washington
- Charlotte, North Carolina.
Internationally, we plan to expand to Canada.
The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have a growing errand services market, making them potentially attractive markets for errand service businesses.
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Exit Plan
The founder of Leonardo McKenzie® Errand Service, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties.
This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.