In this guide, we show you how to start a non-CDL business business delivery service.
As you read through, you’ll find details on a non-CDL business delivery, why location counts, and the average startup costs needed.
Also, you’ll need to choose your legal entity, pick a niche, meet all non-CDL driver requirements, get a non-CDL delivery vehicle(s), market your business, set your pricing structure, and write a business plan.
How to Start a Non-CDL Trucking Company
Same-day delivery businesses are critical to any economy. This is made even more important due to the rising popularity of online shopping.
You won’t need a commercial driver’s license to set up your operation here.
About Non-CDL Business Delivery Services
Despite rising energy prices, same-day delivery has remained popular due to growing demand.
The need to speed up the supply chain has created clear opportunities for persons looking to establish their independent delivery businesses.
This time-sensitive light trucking niche has led to the creation of quite many successful businesses.
With demand in local delivery expected to grow, it’s an opportunity to be leveraged. You can explore this ever-increasing industry to work independently without additional training and certification.
What more? The obvious benefit, of course, is the good money you’ll earn for each successful delivery. Sounds interesting, right? Let’s show you how to start one.
Why Location Counts
Location plays a critical role in the success of non-cdl businesses. You only need to look at the demand to understand why this is so.
Some states are known to be hotspots for this type of business, while others shouldn’t be considered ideal locations. A few locations where more significant opportunities abound include Illinois, Minnesota, and Vermont.
Location counts for demand. Now, it’s common knowledge that demand translates to sales. So, to establish a non-CDL delivery service, you strongly need to consider where there’s apparent demand.
If you don’t live in any of the states mentioned, you might want to further examine or research about your state.
Pick a Niche
The trucking industry in the United States is vast in that it serves various other sectors.
To establish a successful non-CDL business delivery service, you must have a clear direction or client category whose delivery needs you wish to fill.
Now, small business owners form the bulk of potential clients. So, researching the nature of their demand or needs will help you identify a niche to serve.
Assess Average Startup Costs
Before taking concrete steps towards actualizing your delivery business, you must determine how much it costs to set up.
Here, you’re looking at the total expenses involved, such as the insurance, business cards & brochures, business name and corporation, licenses & permits, website, vehicle(s), and dollies or straps.
A ballpark range in costs will be around $4,000 to $15,000.
Choose your Legal Entity
Every business needs a legal entity as it’s vital for personal liability protection, business taxes, business registrations, and others. The type you choose will depend on what you need.
Legal entities to pick from include sole proprietorships, partnerships, limited liability companies (LLCs), S corp, and C corp. Each of these entities serves a purpose.
Write a Business Plan
Your non-CDL business delivery service will need a detailed plan for its successful takeoff. Such a plan must be well-written to include all relevant sections.
Also, it shouldn’t be rushed, as the success of your operations depends on it. If you have doubts about doing a good job, contact a business consultant to write one.
Besides having a solid plan, strategic implementation is essential to its usefulness.
Your non-CDL business delivery service plan should include the executive summary, company description, products & services, and market analysis.
Others include the strategy and implementation, organization and management team, and the financial plan and projections sections.
Meet All Non-CDL Driver Requirements
For a successful takeoff of operations, your non-delivery business must meet all driver requirements.
The United States Department of Transport (DOT) has a set of regulations that include a license, USDOT number, a motor vehicle record (MVR), medical screening, gross combined weight rating (GCWR), DQF, and delivery vehicle type.
Ge your Non-CDL Delivery Vehicle(s)
Your most significant investment will be financing a van or truck for your operations. It’s essential to invest in good vehicles as these would help ensure the business runs smoothly.
The type of vehicle you go for will be determined by the niche or service you provide. For smaller items like documents, smaller vehicles will serve. More oversized items will require box trucks or cargo vans.
Set a Pricing Structure
Setting your pricing structure is crucial to starting a non-CDL delivery service. You must understand that this industry is competitive, with companies competing for customers.
Pricing is one area where these businesses try to win clients’ patronage. Your pricing structure must secure a good profit margin while meeting customer expectations.
Hire Your Team
Competent and experienced hands are needed to run your non-CDL delivery service. At the onset, you may be the sole employee of your business.
However, as the business expands, you may have to hire drivers, dispatchers, an accountant, general manager, and and marketing lead.
Each of these will serve essential functions that contribute to the growth of the business.
Market your Business
However good your services are, your business needs effective marketing to be profitable. This requires looking at the best way to reach your target market.
Thankfully, several strategies include networking, in-person sales, testimonials, and sponsoring paid ads on social media.
Others include email marketing, pay-per-click marketing, and starting a blog.
Finance your Operations
Starting a non-CDL delivery business is capital-intensive and requires sufficient funding to take off successfully. There are several ways to finance your operations, including personal savings and bank loans.
You can also raise funding through government grants, crowdfunding, SBA loans, and business loans from family and friends.
These are the ways to start a non-CDL business delivery service. You must understand that the process can be challenging from the start. However, it’s rewarding when done right.
The processes outlined above will help with that. It’s necessary to research further on your own and seek expert guidance on achieving the best possible outcomes.