Errand Service FAQ
An errand service can be a good part-time or full-time business for you to start. It can allow you to get outside, interact with many different kinds of people and it can help you to develop a network of business contacts that you can grow as your business grows. As you start your errand business you may have questions about how some of the administrative tasks are handled or you may be wondering about your marketing plans. The best way to grow any business is to do your research first and then learn by experience.
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Can I Just Use My Own Car?
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Yes. You can use your personal vehicle for your errand business. However you will need to discuss your auto insurance coverage with your agent. Some states will not allow you to use your personal vehicle as a business vehicle without the proper business insurance. If you were to get in an accident while working for your errand service and you did not have the proper insurance in place, you would be personally liable for all damages.
What Other Insurance Would I Need?
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Since you will be dealing with the public and handling other people's property, it is wise to get business liability insurance. With business liability insurance, if you damage someone's property while transporting it, your insurance company would handle any claims.
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How Do I Get Customers?
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Choose a target group to start and then market your services directly to them. For example, one potential group of customers is small business owners that have few or no employees. Go around with your business cards to the various small businesses and introduce your service. Some of those overworked entrepreneurs may be happy to see you. Other groups you can try to market directly to are elderly people who cannot get around, single parents with multiple children or people who cannot leave their home due to illness or injury.
What Should I Charge?
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Your rates should vary depending on the task you are asked to perform, the distance you will have to travel and the expenses you may incur. The best way to charge is by the hour. Determine how much you would like to make for yourself hourly and then add expenses such as gas and your cellular phone bill to set a final rate. Be careful not to set your price too high, especially if your target audience is older or on a fixed income. A good rate to pay yourself may be in the range of $15 an hour. From there you can figure in the cost of a gallon of gas and an hour on your cellular phone and come up with a final number. For your larger customers you will want to develop customized pricing plans that give them discounts for giving you recurring business.
Do I Need to Register My Business?
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In most states you need to register your business with the city or county business office in order to conduct business, receive payments, open a bank account, take out insurance in the company name and file company taxes. Consult with an attorney about how to properly file a business certificate for your area.
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