If you’re looking to start a business that requires very little start-up costs and has the potential to offer a great return, a Grocery / Restaurant delivery business is the way to go. With the expanding use of the internet, people are searching more and more for a way to do what they simply have no time for.
The fundamental steps in beginning a Restaurant and Grocery delivery business are:
Choose an attractive business name.
Create a logo that will stick in peoples minds. Make it flashy and important. You can do this yourself with photoshop, but if you lack the artistic skills, you can expect to pay between $50 to $200 for a professional image.
DO NOT get a business license until you have established your client base a bit. The reason I say this is because taxes will burn you. The hassle that is associated with a new business can be easily avoided if you simply start small and take your time in going official. This particular business allows for that as you are providing a service that will (for a short time) go unnoticed in that respect. (BUT, you will want to eventually get your business license, especially because you WILL NOT BE ABLE TO ACCEPT CHECKS WRITTEN TO YOUR BUSINESS WITHOUT IT.)
Start by ONLY accepting cash and checks. Eventually you’ll want to include cards, but the cost of the merchant account will overwhelm you if your income is not such that you can justify it. Don’t worry, surprisingly VERY FEW people will ever have an issue with this.
Get a website. Get a website. Get a website. You can get one set up through godaddy.com for less than $70 a year
Hand out flyers, posters, business cards and free crap. The return, most likely, will not be to your expectations, but it will cost you almost nothing but your time. Between all of the above methods, you can go to Kinkos and pay about $40 for everything. The posters will account for the bulk of that estimate.
Remember: A customer is contagious. If you get one and you treat them right, they will turn into two, three and four. Word of mouth WILL ALWAYS be your greatest source of advertising.
If you can afford it get an ad placed on your car. You should be able to find a full back window ad for under $130. This price is reasonable for an ad that will go everywhere you go.
Now you have about 30 returning customers. You might think about getting that business license. While it is not completely necessary, customers will find it comforting to write a check to a business rather than just some guy. You can expect to pay about $60-$90 for the whole ordeal.
Once yo have a business license and a business bank account, you’ll want to place about $200 in the account. Order a debit card and checks. When someone places an order, pay for it with the debit card, saving two receipts. One of those receipts is left with the customer and the other goes into a file with your other purchased receipts. Keep THESE receipts separate from your account expenses (gas, etc). When you deliver the food and the customer reimburses you for the food PLUS your delivery fee, place it all back into your account. Now you have $220. (Or so, depending on what you charge for delivery)
The checks that you ordered in step 10 are for YOU. When you want to spend some of that hard earned cash simply write a check out to yourself. In this way the records are clean and it’s obvious to the IRS what is what. There IS, however, the issue of letting the IRS know what is profit and what is simply returned to the account after purchasing the items. This is explained by the receipts you’ve kept.
When filing taxes HIRE A PROFESSIONAL THE FIRST YEAR. Expect to pay about $100 for this service.
Bottom Line:
Minus tax related expenses, you can expect to pay around $500 in total expenses. The good thing is that this can be spent as you get it and you’ve got all the time in the world.
This is an easy business to start. It will take hours of your blood and sweat, but financially speaking, it is one of the cheapest, most demanded ways to go.
Different business charge different amounts depending on the location and economy. Chances are you’ll get it wrong in the beginning, but soon you’ll find that comfortable price where you AND the customer are happy.
Whatever happens, don’t get discouraged. This will take time and patience but every town needs it and chances are if there’s one near you, YOU could be doing it for cheaper and with better service and customer satisfaction.