Today, every fifth person you meet in India is an entrepreneur. The other four are engineers who are trying to become anything apart from an engineer. It might sound funny, but the numbers are too high when it comes to engineering graduates and entrepreneurs. Hundreds of start-ups crop up every now and then. Now here’s the question: how many of them do actually succeed? The answer is very few! Fortunately, opportunities and business ideas are vast.
Before we discuss the to-do’s, pros and cons of delivery service from home, let us come to clarity on what exactly this business model is. Amongst the many available models, one of the best suitable types of model is bricks and clicks—i.e., you will be having both an online presence and an offline presence. A home delivery business involves a low budget and is easy to start. Any business that involves manufacturing at home and selling it either online or offline can be called a home delivery business. Let us dig a little deeper to understand this business.
How To Start Your Own Home Delivery Business?
To do any type of business, it is essential to formulate a business plan. This can be either done manually or if you’re new to the entrepreneurship world you can seek any managing consulting firms. Once your plan is ready you must evaluate the feasibility of your plan. What are the opportunities for the success of your business? Your market potential? This can again be done manually through surveys or you can always find a good market research company for that matter.
A market research company basically gives you a thorough analysis of the feasibility of your home delivery business idea, your competition, the apt geography, and viable business strategies. The very next step to do is to find the right audience for your business. It is very important to choose the right target audience. Next comes your financial planning. Frame a budget. Be very clear with the funding sources either institutional or your relatives and friends. The smarter your financial plan is, the better your business.
So Far, So Good
Moving on, the next part is something you need to be very crucial. This is when you need to weigh your choices—whether you want your business to be a “bricks and clicks” or an aggregator model. As mentioned earlier, the bricks and clicks business model is one in which your company will be making a comparatively lesser revenue and you’re going to be present both online and offline. An aggregator type of business model is one in which you don’t manufacture any product as such. The business model collects information from all the service providers of one or more brands and sells them under their banner. They usually sign contracts with the other brands making them their partners and thus they earn revenue through the commission. For example Swiggy, Oyo, and Ola.
For A Bricks And Clicks Business
By this stage, you must be sure of what product you are going to sell. Still not sure? Better choose one before you continue to read. Today, business ideas in India are extensive. There is a consumer for every product. Let us consider an imaginary business model. The owner of the business has decided to sell burgers from home. The following are the things he must be doing:
Once after narrowing that the product is a burger, start providing variety. Finalize the menu and then, you’re going to zero down the channel of your sales. You can either partner up with existing food delivery apps or you can receive orders personally (phone, online orders, WhatsApp, etc). In this type of business, it is very essential to have a strong online presence. You must have a good digital marketing strategy. A well-built website is imperative. You can also be smart by having a good base on Instagram or Facebook.
For An Aggregator Business Model
The backbone of this business model is to have a huge network. If you don’t have one, it is highly recommended not to opt for this model. In this business model, you should be very specific in concentrating on selling one product/service (e.g. Ola—taxi service) or multiple products (like Flipkart—one-stop marketplace). Then you need to create your own website wherein you are going to display your products. Having a solid CRM (Customer Relationship Management) software is imperative here. Plan your commission wisely at the beginning.
If planned properly, a home delivery business idea can become successful. You need to decide whether you’re going to manufacture your product or you’re going to sell someone else’s product with a commission.
Starting a business is a wonderful journey, where you will get to discover yourself. A lot of businesses fail today only because of the fact that they are not really sure of their goals, business plan, and financial model. Sadly, this is the same for a lot of established companies too. If you’re an aspiring entrepreneur it’s always advisable to start small rather than burning your pockets. With proper planning and a strong determination, you can make your venture a success! All the best!