How to Make a Business of Running Errands

In today’s world there are a lot of homebound individuals. People living well longer wish to remain home instead of going into a nursing home. An increase in the number of individuals who suffer from diabetes or other diseases also adds to homebound numbers. While many of these individuals are somewhat self sufficient, there are oftentimes tasks that they can not or do not wish to perform. This opens the door for those who might wish to open a business running errands.

Instructions

1. Decide on the target audience for your business. Identify who your typical customers are-- the elderly, the infirm or the disabled. However, they could also include working mothers, single fathers or others who are in need of errand-related assistance. They might even include other businesses.

2. Determine the types of errands you will perform. Buying groceries, doing personal shopping, picking up medications or delivering meals are common tasks. However, that may not be all you are willing ands able to do. Narrow down the types of errands to very specific components. For example, you may be willing to do personal shopping for standard clothing but not intimate wear. You might be willing to pick up kids from school and bring them home, but not take them to and from after-school activities. Establish specific perimeters within which the business will operate.

3. Decide how the business will be run. This type of business doesn’t require separate office space. It can be run out of your home. However, you may have to establish a space within the home for your equipment, supplies and materials. For example, a computer system may be needed to keep track of both customers and errands. You might require a separate phone with an answering machine so customers can leave messages any time of the day. Allot space for each and every business need.

4. Set the days and hours of business operation. These hours may have a major impact on your potential customer base. For example, errand businesses that operate only in the evening or on the weekend automatically eliminate potential customers who require assistance during the day, Monday through Friday.

5. Arrange for a vehicle that will meet all of your business requirements. A simple car may not be sufficient for certain types of pickup and/or delivery. Additionally, a car that isn’t in good condition could render you unable to meet all of your responsibilities.

6. Obtain any equipment, supplies and/or materials you need to operate the business. If you intend to offer help buying groceries, you may wish to invest in recycling cloth bags. Delivering certain types of equipment may require built-in vehicle racks. Errand-runners who pick up and deliver children must make sure their vehicles meet seating standards.

7. Decide how many employees (if any) you will need. This decision will affect the number of customers and/or errands you can take on. That will, of course, have an effect on the company’s profit margin.

8. Determine local, state, and federal licensing requirements (if any). Each locality and state has slightly different licensing requirements. Some are much more stringent than others. The business should follow the most stringent set of guidelines established.

9. Identify business liability. The transferring of people or things from one location to another automatically establishes a business' vehicle liability for that merchandise. If the items are stored somewhere on the business site, there is a building liability issue. There are many possible liability issues related to such a business, and each must be identified and dealt with.

10. Figure out how much startup capital you need. While this type of business may not require a large amount of cash, it will call for some up-front money until payment is received on the back end.

11. Develop a set of guidelines you can give to each customer to expplain what the business will and will not do.

12. Decide how customers will be charged. For example, they could be billed by time spent, by each errand, or according to a flat cost. That decision remains within the business; however, you must establish a cost base. Also decide when customers will be billed. You may charge a flat fee at a certain time every month. Or you can set a per-service charge that is due immediately upon completion of the service. Whatever your choice, the customer must understand when she must pay the bill.

Tips & Warnings

• Be sure to consider overhead expenses and include a reasonable percentage of that amount in each bill.

• Allow room for growth and expansion, if desired. Conversely, figure out where to draw the line in terms of the number of customers and/or errands you can realistically handle.

• Increase charges each year to at least keep pace with the cost of living and account for increases in business expenses.

• Purchase good-quality used equipment at first, and upgrade only when the company can afford it.

• Treat customers courteously and fairly, and the positive word of mouth will spread quickly.

• Market the company's services via brochures, radio and cable television.

• Treat the business as a business, not a hobby. Have a business card, a brochure and other marketing pieces that feature your company logo.

• Develop a business plan. It will force you to consider all of the ins and outs of running a business.

• Follow employment laws to the letter when hiring and maintaining employees.

• Establish employee guidelines and stick to them.

• Don't short-change the business in terms of starting cash.

• Don't inflate service charges.

• Don't mistreat customers. Be fair and honest at all times.