Errand Service

Errand Services
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INTRODUCTION
Today, people in our society seem to be caught in the rat
race of life. They have very busy time schedules and find it
hard to perform the mundane services of their lives which
take significant proportion of the available time. For
instance in 1997 it was established that 25 hours a week
were devoted to childcare, housework or shopping by
mothers in dual earner couples by Robinson, J.P. and
Godbey, G. in their book Time for Life: The Surprising Way
Americans Use Their Time. For fathers the figure was 14.5
hours.
This in turn forced people to use their working time for
personal agendas. Ìn fact Circles, 2001 revealed that 75%
of employees take care of personal responsibilities while on
the job. Further it was also established that employees
spend an average of 1.86 hours per eight-hour workday on
something other than their jobs, not including lunch and
scheduled breaks.
On the other hand with baby boomers getting to the late
stages of their lives the whole world is experiencing the
issue of ageing population. This elderly community
becomes another customer segment of the Errands
Service businesses as they need the assistance of
somebody else but hate becoming a burden to their friends
and relatives.
As a result, today, there are many people who are more
than glad to pay for someone who offers them these errand
services. This has paved the way to a sudden emergence of
a whole range of new opportunities which has turned this
service industry a multi million dollar business.
An errand or concierge service is therefore a business
which acts the role of a personal assistant running errands
for people who either do not have the time or would rather
pay someone else to do them.
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The word "concierge¨ stems from "comte Des cierges¨ the French term which referred to the servant
who attended the whims of visiting noblemen at medieval castles. Regardless of the origin, it was
the hoteliers from around the world who first adopted the concierge idea and offered the service to
their guests.
Today an errand service may offer services such as payment of utility bills, locating quality
entertainment, picking up dry cleaning, grocery shopping, returning library books/videos, taking the
car to the mechanic, party and event planning and all the other routine tasks that a person simply
can't achieve in a day.
A guideline list of services offered by the errand services is as follows.
Personal Shopping
Pet Service
House Sitting
Meal Delivery
Post and Mail Service
Dry cleaning pick-up/delivery
Senior care
Modified house sitting
Banking
Floral Delivery
Search for tickets to concerts and special events
Transportation Services such as Airport Services
Business Referral Service
Restaurant Recommendations and Reservations
Travel and Vacation Planning
Meeting and Event Planning
About the Errand Service industry
The concierge or errand service industry does not posses a long history. Ìt is only fewdecades ago,
creative and brave businessmen started offering the essence of the hotel concierge idea to the rest
of the world. With the demands of the ever evolving hyper paced and dynamics of the challenge for
work life balance, the early 90's saw the concierge business expand to meet the needs of the time
starved employee and individual consumer. Therefore the industry underwent phenomenal growth
during this period and today the concept is tried and tested everywhere including hospitals, malls,
corporations to colleges, associations, churches and many more.
However the main reason for the exceptional success of this industry remains the busyness of
people which becomes the business of errand services. Ìn fact people are trying to squeeze 30
hours into a 24 hour day and errand services facilitate exactly that.
Technological Advancements of the industry
As in the case of many service industries, the emergence of the Ìnternet quickly revolutionized the
traditional errand services. Ìt didn't take much long for people to start talking about service platforms
that are conceptually very similar to traditional errand services. So the "electronic concierge¨ was
born as a result of the growing demand that people from all over the world expressed as far as these
services were concerned. These new developments went way beyond the traditional errand
services, offering the customers the best possible products and services with total convenience.
Some of these services include travel arrangements, dinner reservations, phone calls,
informational requests, and so much more.
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Some of these services include travel arrangements, dinner reservations, phone calls,
informational requests, and so much more.
Moving further ahead today we live in a world of mobile technology. As a result, mobile errand
services such as mobile marketing, mobile entertainment, mobile messaging have already
emerged and are expected to dominate in the future.
Starting a Home based Errand Service Businesses
With more and more people busy with their careers and complaining about having more time than
money, there is a growing market for people looking to learn howto start a errand business and real
money to be made.
An errand service in its simplest form offers services like grocery shopping, lending and returning
books, waiting around for the cable guy, etc. Therefore you do not need to posses specialist
business knowledge to start up your own errand service business. Ìn fact, you may be serious
about learning the art of the trade, then you are probably not familiar with just how easy this
business is to start up and operate.
However having the in depth knowledge will always make your chances higher and speed up your
way towards the success. Obviously there is a no better way to learn other than this step by step
guide on "Starting and Running a Home-Based Errand Service Business by bizymoms.
Every person in this world is gifted with 1440 minutes when they start their day. Ìsn't that super? Ì'm
sure many will say no. Why? Because they simply believe there should be more. So time has
become worth more than even money for many individuals and they want to spend their valuable
time wisely. With Americans having an ever increasing load of tasks and errands that need to be
done, it seems as if they are trying to squeeze every last minute into the day by multi-tasking. So
today it is common to see people who are trying to drive while eating breakfast, putting on their
shoes, talking to the customers on the phone, reading notes for the morning meeting, and making
sure his or her hair is in place.
So how do people spend their time wisely when there is a ceiling of 1,440 minutes and they cannot
store any extra time for another day? The answer is simple. They buy more time from errand and
concierge services. Ìn today's fast paced and busy world, they would gladly pay someone else to
make arrangements and take care of personal errands for them. Unless it is hard to balance a
career with the personal responsibilities many of them have. This shows us why an errand service is
one of the fastest growing home businesses around the globe.
The corporate world has recognized the need of their employees for assistance to manage day to
day mundane activities amidst the ever increasing pressure for work-life balance. As a result, blue
chip companies like Brooktrout Technologies, Hewlett-Packard, Ì-Cube, Lockheed Martin,
Microsoft, Motorola and Sun already offer their employees so called "convenience services.¨ Most
of them offer a handful of amenities, such as dry cleaning or meal preparation while some have
gone to the extent of contracting a concierge service provider to handle just about any errand,
whether it's shopping for a gift, taking the car to be repaired or planning a family vacation.
Who Needs This Service?
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Ìmagine coming to work, logging on to a web site, inputting your personal to-do list, then having
someone else perform the tasks. This is one of the latest perks aimed at attracting and retaining
best and the brightest talent and surely going to be the norm of the corporate world in times to come.
Apart from the ones starving for time, there are another special group of people who often need
someone else to complete their errands. Ìt could be due to a new child, disability, illness or age,
simply there are thousands of individuals who cannot complete the simplest tasks outside their
residence. Ìn fact it was established in 2003 that more than one quarter (26.6%) of the adult
population has provided care for a chronically ill, disabled or aged family member or friend during
the year. Based on census data available at that time, it translated into more than 50 million people.
For instance elderly men and women often need errands run or things picked up. But, they are rarely
in a position to go themselves, and hate depending on friends or relatives. Particularly various
studies conducted reveal most elderly don't mind paying for this unique service. They don't feel they
are putting their loved ones out, it costs them way less than it would if they had to pay for a taxi there
and back, and they do not have to waste their energy running errands that they will be more than
happy to pay you. Similarly disabled or sick people and mothers who recently gave birth to a child
may need somebody to help them manage their day to day activities.
As a result, errand/concierge services businesses today, have become a fast growing industry with
highly lucrative profits. The industry is so diverse and equipped to cater ever changing range of
needs of the human beings. So let someone be a time pressured professional or else a help seeking
senior citizen, there will be many service offerings within his/her area to cater the exact needs of
him/her. As time goes on the industry experts forecasts further growth, making it an ideal industry for
someone who start up his/her own business.
Do people need errand Services?
A recent report by the U.S. Bureau of Labor Statistics indicates that there are over 16 million two
income families in the country. What does this imply? Ìf everybody's out in the workplace, who's left
at home to take care of all those routine activities that take up so much of a day.
Not only there are many two income families, most of the people seem to be working longer hours
spending more than 44 hours a week on the job. Ìn fact with the ever increasing demands of
corporate world, some of them are already putting in 10 to12 hour days. So anything that makes
their lives easier will be greatly welcomed by them.
While time pressured individuals are find themselves searching for personal concierges, corporate
clients are even more willing hire them to help their busy employees and motivate them to work for
their organizations. As a result consulting firms, high-tech companies, accounting firms, advertising
agencies, law firms, hospitals and other businesses where employees work long hours, provide
plenty of opportunities for corporate concierge services.
Market overview and competitive environment
According to Sara Ann Kasner, the president and founder of the National Concierge Association in
Chicago, "The concierge business is exploding right now. There has been tremendous growth.
We've had requests on how to start a concierge business from as far away as London and Brazil.¨
Ìndustry analysts predict there is plenty of room for even more growth.
AnaIyzing the Competitive environment
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Currently there is no exact evidence on how many personal concierge services exists, but
according to Kasner, the NCA's membership has quintupled in the past year and is now more than
100. Of course the actual number of personal errand services should count much more if non-
members were also considered. On the other hand the membership in the National Association of
Professional Organizers, which includes some professionals who provide concierge services,
swelled from a fewhundred when founded in 1985 to more than 1,100 members by the late 1990s.
Since the market is in its growth stage, the level of competition is still low. However it is increasing
and can expect to intensify as the market moves in to maturity. The lowlevel of competition and wide
degree of differentiation has enabled errand services to enjoy high margins. Apart from super
profitability, relatively lower start-up costs required has made this industry very attractive to people
like you who want to start-up their own businesses.
Average Rates
The total income of an errand service comes normally from two sources, i.e. membership fees and
incremental charges on hourly or per service basis. Some services allow its membership, a certain
number of requests each month for one annual fee. Generally these annual fees might start at
around $1,000 to $1,500 while charges might turn out to be anywhere from $25 to $125 an hour,
depending on the particular task.
For corporations, membership fees will vary widely depending on the size of the company and how
many requests each employee is allowed. Obviously they are charged much higher fees because
they require more services per month. So a corporate client with many employees who are each
allowed multiple requests each month could start at around $5,000. More employees and a greater
number of requests will result in much higher fee.
The industry average figures reveal us that annual income for an errand service may range from
$50,000 to $125,000. However this could be much more depending on the type of business,
location, the services offered and other factors.
Differentiation
Errand service industry offers you a wide range of opportunities to select your specialization. For
instance, you can specialize in helping corporate clients of office complexes, or you can
concentrate on the homeowner who's not at home. Or else you might specialize in obtaining event
tickets if you live in an area where there's lots of entertainment. Likewise, the opportunities are
endless, it is up to you to decide what suits you best. What you need is the courage and creativity to
create or grab the opportunities from both hands.
Why do you want to start an errand service business in the first place? Most probably, as a bizymom
you may no longer be in a position to balance the corporate career with your family life. But before
you start up, you need to look at many things.
Is an Errand Service Business Right For You?
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What are the advantages of a home based errand service?, Have you considered the
disadvantages?, What is your plan?, How to finance the money?, Who are your customers?, What
entrepreneurial qualities do you bring to make a success of your own business?. You should find
answers to all these questions before you progress with your decision. Ìn a nutshell you need to
assess whether errand service business is right for you?
Aconcierge or errand service is a relatively easier business. Ìt involves performing routine errands
for clients, such as picking up dry cleaning, buying the dinosaur cake for the little child, and so on.
However, an errand service or an concierge service can have both corporate and individual clients,
thus conducting an errand service business may include a large range of responsibilities. So if you
like working with people, doing something different each day, and going places, an
errand/concierge service is a business that may be ideal for you.

Apart from flexibility, even creativity is critical to establish a successful concierge business. You
need to have strong affinity with people and a lot of imagination to make routine things seem so
special. Creativity plays a big role in achieving something like magically obtaining tickets to a sold
out concert that your client yearns for.
Further you must be a master of resources, efficiency and organized beyond belief. Of course you
should only start your own errand service if only you can manage tasks and duties properly in your
own life. Time management and resourcefulness will guide you to success.
This is a kind of business which provides you great flexibility in terms of hours you work. You can
work as much or as little as you choose. At the beginning, you may want to start with only a client or
two, and see how many hours are involved. Once you get yourself established, you may probably
want to add more clients. So depending on you time schedule you may decide to take it as a part
time and full time endeavor.

Furthermore, you may find that more than one client's needs may overlap in such a way that you are
able to get multiple jobs done at the same time. As a result on a given day, a trip to your local mall
might get you paid by more than one client.
Therefore, an errand service can be a great fit moms who are home with young children, as most of
your work can be done with kids in tow. Ìf you are organized and plan carefully, you might even be
able to get your own errands done while you are taking care of your client's needs.
So you are committed to start your own business and have decided to get in to errand services
industry. Of course you need to know the art of trade to succeed in any business and the business
you have chosen is no exception.
QuaIities
First and foremost, to be a successful errand service provider you need to have certain qualities.
Although you may succeed in this business without any special training on the concierge industry
the chances are remote if you do not posses the following skills, qualities and competencies.
Learning the art of trade
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Ìn essence you need good interpersonal skills, organization, and a knack for getting things done.
Further confidentiality with regard to your customers will also help you immensely to win the trust of
your customers.
On the other hand the experts emphasizes the importance of technological know-how today, such
as internet research skills , since more and more requests take the form of planning an affordable
romantic weekend on Martha's Vineyard in the middle of summer or locating the best dog walker in a
particular town.
Training
As we mentioned earlier you can start many errand services without a special training. For instance
say you want to start your business offering grocery shopping services. Ìn that case you may not
require any training.
However if it's apparent that you need specialized training, there are fewplaces one can go to learn
the trade. This is particularly so because the industry is so young. Therefore one of the popular
approaches is to learn the ropes from talking to other concierges. So if you can have access to
training especially from a person such as a local businessman who is already performing this
service for a small fee or as an apprentice to learn the skills, you should never let go the opportunity.
Organized communities within the industry such as National Concierge Association (NCA) are ideal
for newbusinessmen to build up such industrial links.
FinaIizing your offer
What you offer the customer decides your destiny. So it is essential that you make your offer as
attractive as possible. First you need to create an appealing business name which announces and
defines your unique identity.
At this stage, you need to take your business idea and survey your niche market and your
competition. Ìf you have competition, can you be better? Say your market is dominated by a few
well-established businessmen and you really don't bring anything newor different to the table, then
the competition is probably going to be too stiff. On the other hand, if that competition is focused on
the high end of the market leaving the lower end largely neglected then this could well be an
excellent niche for you.
The bottom line is to identify your best competition in your niche and decide whether you can be
better. Only if you believe you can be the best in your niche should you proceed. Ìf not, keep looking
until you find a niche perfectly suited to your particular blend of experience, interests and
competencies in which you can be the absolute best.
Then you may communicate your offering in terms of services you intend to provide targeting the
focus group. You may use appropriate marketing techniques to achieve this objective.
For instance corporate accounts can be attained through contacting human resource directors. You
will have to present a professional image to attract this type of clientele including a professionally
designed brochure, specific services pricing etc. where as small business accounts can be
acquired through joining networking groups and local business organizations, or even going door to
door.
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Resource Requirement
Although the exact resource requirement may vary depending on the type of errand service you
wish to offer, you may still need all the basic resources which are essential to start a business. A
list of what you'll need to get your business off to a roaring start is as follows.
Dependable computer with ancillary hardware devices such as a modem, printer and
Ìnternet access
Basic software such as a word processor, spread sheet including software for accounting
and contact management
A Phone with voice mail
A fax machine
A cellular phone
Office supplies and stationery
Preferably a vehicle if your service include transportation of goods
A Website or a blog
Ìnsurance, Advertising and Legal services
Obstacles you may meet along the road
Believe me your journey is not going to be a bed of roses. You will definitely come across many
obstacles. For example the location of your a personal concierge business will play a significant role
in determining the success of your business. So unless you are situated in or near an urban area
where both individuals and businesses have disposable income you might it find it difficult to get
your business off the ground.
So my advice for you is to always expect the worst case and be ready for it.
Maybe now you've identified your niche and surveyed your competitive market environment.
Further you are reasonably confident that you can be at least as good as your best competitor. Ìf so
it's time to go ahead and start the real work. Writing up the business plan normally falls first in this
stage. Of course this is where you consider your business idea and shape it into an action plan.
Do you actually need a business plan?
Forget about Errand Services for a while, setting up any business for that matter involves allocation
of significant amount of resources including financial, manpower, time, etc. So you cannot afford
to let your resources go waste. Acarefully thought out plan will not only reduce the burden but also
provides you a set of firm guidelines even in case of an unforeseen event.
Just as a builder uses a blueprint to ensure that a building will be structurally sound, the process of
creating and writing the blueprint for your business is called business planning. Ìt will help you
determine whether your business has a strong foundation. Ìn fact, without a business plan you leave
far too many things to chance.
Why do you need a business pIan?
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Ìn your business plan one important thing you do is assessing the feasibility of your venture. This
involves estimating future revenues and costs defining your market share to determine the ability of
your business to make profits in a given time frame. Further it provides an estimate of your start up
costs and consequent cash flow projections so that you know how much you'll need to invest or
finance at what time. Ìt will also help you decide whether your business is worth starting, or if you
need to rethink some of your key assumptions.
Ìn other words, a good business plan will convince you that you're doing the right thing or not.
Ìn fact, should you need to raise funds for your errand service business, obviously you are
compelled to write a solid, formal business plan. Your potential lenders or investors will want to
understand as much as possible about how your business will work, before deciding whether to
back it financially. As a result not only the financial feasibility, your plan should also convey the
business goals and strategies you expect to use to meet them. Further it should also forecast the
potential problems that may confront your business and ways to solve them. Ìn addition you should
also include the operational details such as the organizational structure including job titles and
responsibilities to give a comprehensive picture to your lenders. Ìn a summary business owners
who want to borrow money or attract investors will be successful only if they have well researched
and written business plans.
Sure, predicting and planning your business finances can show potential investors that your
business idea will fly, but still preparing financial forecasts is not a bad idea even if you don't need to
raise start-up money.
Unfortunately some people do not see the importance of a business plan. Just because you think
you know where to take your businesses, it doesn't mean you shouldn't put it down in writing. After
all, a business plan is just a written description of your business's future. Ìt is a document that
describes what you plan to do and how you plan to do it. Ìf you jot down a paragraph on the back of
an envelope describing your business strategy, you've written a plan, or at least the germ of a plan.
Why business plans?
Ìn the previous article we analyzed the importance of a sound business plan in starting up your
errand service business. Ìn a summary we identified the following as reasons for writing a business
plan.
Define a new business
Define agreements between partners
Define and fix objectives and programs to achieve those objectives
Evaluate the feasibility of these business objectives ( financial and otherwise)
Raise equity funding
Support a loan application
Create a platform for regular business review and course correction
Set a value on a business for sale or legal purposes
DeveIoping a Business PIan
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Contents of a business plan
Having understood the need of a business plan, nowyou need to knowhowto develop one. First we
shall look at what constitutes a business plan
Executive Summary: This features the highlights of your plan and sells your idea in two
pages or less. Since it explains about the rest of the business plan, it should be written to
completely cover every aspect of it. A good way to think about it is that this is the only part
of the whole plan that gets read, so it should sell your business idea.
Table of Contents: This is similar to a list of headings in its order which you have included
in your plan. Make sure that you do not elaborate. Keep it short and up to the point. You g e t
your chance to explain later.
Company Summary: This is a factual description of your company and the ownership. Thi s
will also describe your offering and how it stand out from competitive errand service
businesses.
Market Analysis: This is where you prove that you have done your marketing research. Y o u
should explain about the industry, including target markets, market size, and
expected market growth. Explain your competitive landscape and compare your business
to them. Explain your marketing strategies and plans.
Strategy and Ìmplementation: You have to describe how you intend to put your plan into
action, and establish milestones. For instance this should include the forecast capital
requirement and its usage. Similarly you will need to state if applicable how many
employees are needed, how you will pay them and what you will pay them. Also explain
the personnel organizational structure in that case.
Financial Plan: This contains a comprehensive picture of the expected financial
performance including sales, cash flow, and profits.
Appendices: Any resumes, references, copies of studies done or any evidence to back up
information in the business plan for that matter should be included here.
athering information
You may have realized by now that you need plenty of data, facts and information to develop your
business plan. Let us now look at the ways in which you may gather information for your plan. A
common problem people encounter when writing their business plan is finding information about
their business industry and competitive companies. Thanks to the rapid development Ìnformation
Technology, today the entrepreneurs find information gathering simple and easy. But still,
sometimes the best information is found much closer to home, with real people, in real time.
On the other hand you can always take a look at other businesses similar to your one, as a very good
first step. So you can always study errand service businesses you already know. Talk with the
owners, tell your purpose frankly and get a glimpse of the business and industry knowledge you
require for your business plan. Even if some of their businesses are not similar to your business, you
can still learn a lot by studying them.
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However you will have a clear understanding of certain areas of your business only if you get
information from someone who is running the exact errand service you intend to offer.
One approach would be to find an exact match far enough away that you won't compete. Or else you
can scan local newspapers for people selling a similar business. Contact the broker and ask for as
much information as possible being in the shoes of a prospective buyer. You will have to find out the
why the owner selling to see whether there is something wrong with the business. You can probably
get detailed financial information in this way.

On the other hand you can always shop the competition. Contact a similar service provider and
become his/her client for a while. You will definitely gain some valuable information you require.

All in all it takes a little hard work. However by using the Ìnternet and doing some research at local
businesses, you should be able to gather all the information necessary for your business plan.
Potential Mistakes
Hiding Weaknesses: One of the more difficult aspects of writing a good business plan is
effectively dealing with problems or weaknesses. But in truth every business has them. This
could be suicidal if you particularly wish to obtain outside finance. Ìf there is a weakness in
your service offering, the chances are the savvy investor will find it. Once your deception is
uncovered and it is obvious to everyone that you haven't been straightforward, the next
logical question is "what else haven't you told us?". When you've lost this element of trust,
you've lost the opportunity. Therefore the best way of properly handling problems and
weaknesses is to get them out in the open and to have a detailed and well thought out action
plan that effectively addresses each problem.
Competitive Analysis: Listing the name and address of your competitors is of course not a
competitive analysis although many people believe so. The investor is interested in knowing
what you knowand expect to see from your competitors in the short run and long run. So you
need to asses their strategic direction, core competencies and analyze what makes them
tick. Simply why do customers go for them. Knowing little or nothing about your competition is
evidence that you haven't done your homework. While it may not be a fatal blow as the
previous one, it certainly doesn't help your cause.
Assessment of Risks: Risks are different than weaknesses in that they deal with the future
and are normally outside the control of your business. Are there market forces that could
prevent your plan from being successful and if so, what are they? Some common sense
should lead you through this exercise. For instance, the possible impact of new technology,
e-commerce, new employment trends such as home-working and a variety of other issues
that could negatively impact your business. So it is essential that you identify such risks at the
planning stage and get yourself prepared to face the music when it is on air.
Lack of evidence to support your arguments: This is particularly applicable for financial
forecasts. There is a very strong correlation between the amount of research data that you
have to support your projections and the likelihood of success in securing funding. This
doesn't necessarily mean that you need to spend months and thousands of dollars on focus
groups, surveys and market research. What it does mean is that you should have and be able
to provide convincing rationale for howyour projections were put together.
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Need additional assistance?
Looks Daunting, doesn't it? Sitting down looking at a blank computer screen as you prepare to start
your business plan can be daunting. But you can always look at some alternatives that will make the
process a bit easier.
One easy option for you is to hire a professional. Aconsultant will create the business plan for you,
but you may still have to be prepared to think through your business and understand the underlying
concepts in your business idea. You will have to work closely with the consultant to ensure that he or
she develops a good plan that accurately represents your business or business idea, not his.
Ìf you do not believe in the services of a professional or simply if you cannot afford it, you can still do it
on your own with the assistance of a business planning software or a book. A good business
planning software package will provide you with an outline for a well-developed, objective-based
and professional business plan. Software packages will remove the problem of starting from
scratch by structuring your plan for you. The software should ask you the right questions that will pull
out the most important underlying concepts within your business idea. On the other hand there are
many good books on the market which help you to develop your business plan step by step.
Any business venture should obey the legal framework of its environment. So you cannot neglect
the legal requirements imposed upon you in starting up and continuing your business. The objective
of this article is to discuss some of the general requirements you must meet before you start up.
However the exact legal requirements may vary from state to state. As a result, obviously you need
to consult a specialist such as an attorney. Ìn addition, the town clerk's office and your state's
Department of Revenue will assist you to find out what paperwork or licenses you'd need prior to
setting up your business.
First and foremost you should register your business name with your state. As Ì mentioned earlier
the exact method of executing this will vary from state to state but in general you simply need to fill
out a form and pay a fee. You should be able to get this done at your county court house. Upon your
registration you will be informed to publish your business information in a local paper several times.
One thing you need to understand here is that this is merely a legal requirement and not an
advertisement. So find the cheapest paper you can publish in and don't pay any more than you need
to.
Once you have registered your business name with the county, they will notify the ÌRS and your
state income tax board, if you have one. Ìn case you want help with dealing with these agencies, you
can log on to the Ìnternet and browse for tax information for new businesses in the website of ÌRS
and many other state tax boards.
After you have registered your company's name the next step is to get a business license. Business
licenses are a prime source of revenue for the city or town you live in so never assume that you can
get through without one if it is required.
Ìn addition, depending on your business, sometimes there may be special permits that need to be
obtained. For instance in a catering service since you will be dealing with food. So you shall be required
to get license from your health department to ensure safety of your food. They might even check your
kitchen premises to see if it complies with their regulations in terms of safety.
LegaI Requirements and Insurance
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Ìmagine you are running a catering errand for instance and one of your clients gets food poisoning
and sues you or else it can be an elderly customer who died because of allergies in the ingredients
you prepared. More often than not you will have to pay a large sum as compensation. But what if you
do not have the money? This is where the value of a good business insurance policy comes in to
play.
Ìn fact business insurance is not a question of what you think your business is worth, but it is more
accurately what you think the largest amount someone could sue you. Ìt would be unrealistic to think
this could never happen and it is always better to be prepared. Business insurance is extremely
valuable in running an errand service business because of the high amount of liability. To cover
yourself, you need business insurance because without it they can take your personal assets.
Now you are ready to start your business, but wait a minute, where are the customers? You may
have already convinced one or two. But is it enough? Surely not. You need to spread the word
among the others and make people aware to attract more customers to your business. This effort
you put in to make your presence felt to everyone else is called Marketing in business terminology.
Marketing is essential not only when you start-up but also till your business exist. Some people
make the big mistake of discontinuing their marketing effort when they feel the security of a small
customer base. More often than not their argument is there is no time for marketing amidst the
growing number of customers and subsequent orders. However there might come a day when the
usual clients are not there and it can extend to an ordinary month during which the phone doesn't
ring. Then you are in trouble, but this is not the time to begin marketing, the time to market is now.

Today's businessmen enjoy the luxury of many marketing techniques. Ìn fact the emergence of e-
commerce paved the way for many new communication channels which helped to reach new
heights in marketing. Let us now look at some of the marketing techniques available for you to
market your errand service business.
Networking and Network marketing
Networking is all about building links with people. These links will subsequently become clients of
your business or direct referrals. You can start networking from today itself by attending some
casual business functions. For instance your local chamber of commerce, Rotary Club or
Toastmasters group may provide excellent opportunities for you. Hand out your business cards to
everyone you meet and talk to them about your newbusiness and ensure they are fully aware when
you depart. Although this may be a relatively cheap method it is very effective indeed.
On the other hand you may network with local spas, surgeons, recreation centers such as country
clubs or golf courses to make them refer their clients to you at a commission. For instance often
when a surgeon sends home a patient with orders for complete and total bed rest, they need the
assistance of someone else to attend the matters of the diseased and the his/her family. So you can
offer 1 or 2 hour errand gift certificates which the surgeon can give to his/her patients who are
recovering from a surgery. At the end of the day you will find your client desperate to get you back
provided you offer your services with due care and diligence.
Marketing Techniques
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Similarly you can join with your local golf course and offer your services as a part of one of their
membership packages. For instance how about a golf package which lets a client gives you his to-
do list and when he reaches the 18th hole, his errands are done and in the trunk of his car, ready to
be picked up. Wow, isn't it great!
Conventional Advertising and Promotions
You may put ads in local newspapers, magazines and business journals or get listed in the Yellow
Pages, but that option is relatively expensive. Posting fliers on bulletin boards in community
centers, doctors' offices, dental clinics or in break rooms and cafeterias of large companies on the
other hand will be more economical. You can also send sales letters to potential clients.
There are many other ways you can get the word out. You can send informative brochures about
your services to the human resources departments of large corporations in your area or deliver
brochures to smaller offices. You might also join a mailing service and send your sales letters and
other materials to people on mailing lists. But when you are selecting mailing lists, make sure you
focus on dual-income families and successful entrepreneurs which are two groups that are more
likely to need concierge services.
Telemarketing
The telephone always provides you the option of cold calling. This is where you phone your
prospective clients and offer them your services. But you may dare do it because of the fear of
rejection. Of course you need patience since 10 people in a row may say no to your offer. But if you
stick with it, may be it's that 11th call which brings you lots of newbusiness.
Putting advertisements in the radio or television may be an option but it would cost you heavens. So
it may not be financially feasible for you at this stage. Don't worry the door is not at all closed for you
Have you ever thought of becoming a guest on the radio and television talk shows or interviewtype
programs?
This is an excellent opportunity for your to market your business for a wide ranging audience. Do
you think it is impossible? Ìt is not. Ìn fact this is much easier to make happen than many people
believe. Write a letter to the producers of such programs and follow up with an in-person visits or
telephone calls. Once you get the opportunity, you need to tactfully plan the program such that the
first impression emphasizes your services would be of interest to the listeners or viewers of the
program or perhaps even saving them time or money.
E-mail and Online Marketing
E-mail marketing is another marketing technique which is becoming increasingly popular these
days. You can create a mailing list and send your newsletter every month. You may use this to
communicate new service offers, promotions, reduced rates or any relevant information for that
matter. You need to stay in front of someone at least 10 times before they will respond to you. So
don't forget that persistence is the key for successful marketing.
address and your Website address if applicable.
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On the other and most email software allowyou to put an automatic signature at the bottom of your
emails. Those few lines of contact information at the bottom of an email prove to be vital in making
information easy to find, which is a necessity these days. So the next time you send an e-mail,
include your contact details in the signature file such as your name, title, company name and your
company tagline including your address, phone, cell phone, fax number, e-mail address and your
Website address if applicable.
Create your own webpage will enable thousands of people to find about you and your new service
quickly and easily. However unless you optimize the ranking of your website primarily through
Search Engine Optimization (SEO) techniques, the chances of your website being successful are
remote. On the other hand developing your own website and maintaining it may not be feasible to
many of you at this juncture. Ìf that is the case you can always create your Blog for free. Please bear
it on your mind to keep it updated so that it becomes informative to your readers.
Nowyou have learnt many marketing techniques which can be quite handful in spreading the word
about your business. But one thing you need to understand clearly is that the suitability of these
techniques may differ from one business to another. So a technique which is highly effective for one
business may not necessarily bring success to another sometimes even if both of them offer the
same services. As a result you must asses the suitability and feasibility of any technique prior to
selecting it for marketing purposes.
What is customer service?
Customer service is all about treating the clients as you would like to be treated yourself. Ìn other
words excellent customer service is the ability of your business to constantly and consistently
exceed customer expectations.
Ì know this is easier said than done. But customer service is essential for the long term success or
sometimes even survival of your business. Let us look at why.
It protects your customer base:
Excellent customer service can prevent your competitors taking your customers away. Ìn fact there
are many ways to be the preferred player in the market place and kill the competition, but the best
way is to give great customer service and allow your customers to decide who becomes number
one.
Ìf you consider a business many customers who are no longer with it should have had a bad
experience with customer service and rather than telling the company about it they will inform many
of their friends about the poor customer service they received.
Adds more business:
Most business owners believe, if you want more business you must do more advertising and
marketing. Even though this might be true, the truth is if you treat your current customers with
excellence and great customer service, they are 10 times more likely to spend more money with you
than a brand newcustomer.
Customer Service
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Ìn the Errand Service industry, the "trust¨ factor also plays a pivotal role. Therefore the relationship
you develop with the customer always matters. "Ìt's kind of a business where they have to trust me¨
says Debbie Pekary who is the owner of "Errands 4 You¨. "Ì think if someone just saw an ad in a
magazine, they might not call me as quickly because they need to know they can trust me in their
home¨ she adds further.
Apart from that the historical statistics shows us that grabbing a newcustomer is 5 times expensive
than retaining an existing one.
All this points lead us to the conclusion that it is more important to retain the existing customers
rather than to find new ones. But how can your retain your clients if they are dissatisfied with your
service.
Howto serve your customer better?
Many entrepreneurs who run their own business like you believe that they have the greatest
customer service and yet if they were to survey their customers they might find out the truth about
exactly howhappy their customers actually are.
Well, the trick is to get inside your customer's head and see your business from their perspective.
And the best way to be sure you are indeed looking at the business from the customer's perspective
is to do surveys and asked the customer exactly what they think.
So if you truly want to knowhowyour customer service rates ask your clients. Send an email or pick
up the phone and ask the following questions.
Ìs there anything you would like me to STARTdoing?
Ìs there anything you would like me to STOPdoing?
What would you like me to CONTÌNUEdoing?
Ì'm sure you will be astonished to hear the replies. Ìt is amazing the little things you can do to improve
your customer service, which will change the customer's view. Sometimes it is merely a smile on
your face which makes the difference.
On the other hand you need to focus on the competitors as well. Ìs your customer service beating
the competition? Ì hope it is, but if it is not, then you need to find out why. You need to see how you
can improve customer service and ensure that you never stop trying to improve.
This is easier said than done. Why? Because your competitors also improve and lift the bar, so it is
important to find out where the bar is being set. Therefore it is recommended to shop at your
competition and then perhaps interview a few of their customers if possible to find out how you can
improve your offering.
Conclusion:
Does great customer service guarantee that the customers will come back and buy more from you
in the future? Ìn other words will it solve all the issues?
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Not always, but the chances are if you give great customer service and the customer has an
ongoing need for your services, they will come back for more and if not the chances of them telling
their friends and creating a wave of word of mouth advertising is more than likely.
Ìn the most basic terms, a definition for business ethics comes down to knowing the difference
between right and wrong and choosing to do what is right. So business ethics can be defined as
written and unwritten codes of principles and values that govern decisions and actions within your
business. Ìn the business world, the organization's culture sets standards for determining the
difference between good and bad decision making and behavior. Ìn a home based business, a lot
will depend on the moral values of the owner. Ìn other words your culture, values and the attitudes
will significantly influence the ethical/unethical behavior of your business.
Why ethical behavior is important to your business success?
Ìf you are a person who wish to thrive long term, you must adopt sound ethical decision making
practices. Over the years it is identified that the businesses which behave in a socially responsible
manner are much more likely to enjoy ultimate success than those whose actions are motivated
solely by short term profits. As Ì explained earlier, knowing the difference between right and wrong
and choosing what is right is the foundation for ethical decision making. Ìn many cases, doing the
right thing often leads to the greatest financial, social, and personal rewards in the long run.
Identifying what is ethical and what is not
Many of the ethical issues we may face are not clearly black or white. Different people have different
beliefs about what constitutes ethical behavior. The law defines what is legal and illegal, but the
distinctions between moral right and wrong are not always so clear. Ìn many situations lines
between right and wrong are blurred. Such situations can lead to ethical dilemmas. Ìn fact, two
people faced with the same issue could quite possible make contrary decisions, while believing they
each have made the best ethical decision. Why? Because ethical decisions are based upon one's
moral character. When it comes to moral behavior, we each march to the sound of different
drummers and therefore will make different decisions on similar issues.
The following guideline developed by Kenneth Blanchard and the authors of
"The Power of Ethical Management¨, may help you whenever you are faced with an ethical
dilemma. They insist of analyzing the outcomes of a decision to verify whether its ethical by finding
answers to the following questions. The questions include
Ethics for a SmaII Business
Norman Vincent Peale
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Ìs it legal?
Ìn essence, would you be violating any criminal laws, civil laws or company policies by
engaging in this activity?
Ìs it balanced?
Ìs it fair to all parties concerned both in the short term as well as the long term? Ìs this a
win-win situation for those directly as well as indirectly involved?
Ìs it right?
Most of us knowthe difference between right and wrong, but when push comes to shove, how
does this decision make you feel about yourself? Are you proud of yourself for making this
decision? Would you like others to knowyou made the decision you did?
What should you do?
As a business owner you must set the bar on ethical behavior. Make integrity a core value, be
honest with your customers and employees, always follow the rules, never compromise your
principles, and remember that the right thing is not always the opposite of the wrong thing. Do these
things and your customers will respect you and your employees will remain loyal, which are
considered the essential ingredients to a successful business.
You may have held on to your idea of starting up a business for so long due to insufficient funds. Ìf so,
you must be reminded that there were many lowcost home based business ideas lying around you
all the time. Don't worry see the positive side of it. At least nowyou have picked just one of them. May
be it is good that you delayed it for while as there has never been a better time for home business
start-ups.
The recent years saw the number of independently owned concierge companies skyrocketing due
to lesser start up costs and lower barriers to entry which make this business quite feasible and
attractive for many entrepreneurs. Although the start-up costs are less, still you need an idea of this
figure to move ahead.
But determining the startup costs of a business is never an easy job since your investment will vary
from business to business based on factors such as equipment, transportation, licensing and
permits, operating location, working capital and initial marketing and advertising budgets.
However you must also remember that a successful entrepreneur is one who carefully researches
and plans every aspect of a new business venture, including the financial investment needed to
start the business and the working capital required to achieve expected positive cash flow.
Start-Up Costs
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Let us nowlook at some of the requirements you may have to full-fill before you start up. As long as
you have a necessary business license, reliable transportation, a cell phone and some basic office
supplies such as a computer to help track business expenses, generate invoices, and perform
general bookkeeping duties, you already have most of the essential supplies needed to own an
errand business. Other than that, learning how to start an errand business might involve some
"seed money¨ in the beginning to cover miscellaneous expenses required to complete errands.
Further you may need to put up a strong marketing effort to make people aware of your business.
For instance you can create a simple marketing brochure explaining the services you provide along
with your contact information. The brochures can then be pinned to community bulletin boards,
hand-delivered to homes and businesses and distributed with the local newspaper. A few
promotional items such as pens and memo pads emblazoned with your company logo, name and
telephone number given out to potential customers will go a long way as a daily reminder of your
fast, reliable and affordable errand services.
You may also need to talk with your insurance agent to make sure that your car and business are
insured for normal business risks including accidents, theft, mishap.etc.
But the bottom line is, to put up all these facilities in place, you need money. So your start-up costs
can range from $500 to $2,500, depending on the equipment you already have. For instance if you
do not posses a car your figure may exceed $2500.

Abreakdown of your start-up cost could be as follows. As Ì mentioned this is only a guideline which
allows you to get a glimpse of the scale of your business, the applicable figures may slightly vary
depending on your requirement.
Item Cost
Remarks
Computer
Letter Quality Printer
Land Line
Flyers, brochures and business cards
Mobile
Business insurance
Automobile
$525 - $1250
$ 75
$250 - $550
$ 65
$20 - $300
-
-
Used ones will be cheap
Monthly Charge
Monthly Charge
Varies by area
Depends on you
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Home-Equity loans
Generally you may be allowed to borrowup to 80% or 90% of the equity value of your home. Further
interest on these loans is generally tax-deductible
However these loans do require that you are reasonably credit worthy. Further this means you will
be diverting funds from a relatively safe investment to a high risk one and if you default, you put your
house at risk of foreclosure. So the advice for this option would be "thinks before you leap¨.
Whole-Life insurance
Whole life policies accumulate tax deferred cash value that is allowed to be tapped for your
business. However the only way you can tap this cash without paying taxes is to borrowagainst your
policy. So this means as long as you keep your policy intact and pay premiums when due, loans
remain tax free.
Just as in the case of Home-Equity loans, the major disadvantage is that it will be converting a low
risk investment into a high one. So if you decide to terminate your policy or if you default on repaying
your loan, taxes will be due on all cash value accumulated under the policy. Further if you die before
your loan is repaid, any distributions to your beneficiaries will be reduced by the amount of your
outstanding loan.
Personal Credit or Credit Cards
More often than not a start-up business person will find themselves more or less applying for a
personal loan. However this can be a very risky endeavor since it involves mixing business finance
with personal finance. Yet sometimes it is the only available means for first time business owners.
The main advantage is the convenience. Further you can borrowand re-borrowup to the line limit as
and when needed. However this would be highly expensive as you have to pay considerably high
interest rates which may range from 12% to over 18%.
Bank loans
Bank loans are just about 2 percent above the prime. So this may be the least expensive route to
raising capital in terms of commercial borrowing. Further depending on your credit worthiness you
may be offered a secured or non secured loan facility.
So this means if you do not have assets or clean credit history your chance of getting a bank loan
could be remote. Ìn addition, some banks may require established businesses to provide one third
of the equity injection and start-ups up to 50 percent or more.
As Ì explained in my previous article "Why do you need a business plan¨ you will also need to
present a sound business plan with adequate evidence demonstrating a projected cash flow that
will enable you to repay the loan with interest on time.
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Lease
Leasing can be an ideal financing alternative especially if you are seeking funding to obtain
business equipment. Ìn your case it would be applicable to your vehicle. Banks tend to consider
their total exposure when lending to small businesses. As a result if you have obtained lease
financing through a third party, they are more likely to lend you funds than if all of your borrowing
needs have been met through them. This is very important if you have a relatively small business,
because most banks expect you to use them exclusively for traditional lending but may not care if
you use a non-bank source for lease financing.
Important aspects to consider
Research
One of the essential tools needed to decide on what type of business loan your company needs, is
research. Researching the different types of loans available to you and your company can save you
money or sometimes even getting into lawsuits. Call your local banks and investment companies
regarding the business loans they have for you.
EvaIuate
Each of these methods has it own advantages, risks and disadvantages. Therefore before you
proceed with one of these financing methods mare sure you carefully consider the potential
benefits, risks and consequences. Whatever you decide, it helps to know the options right under
your nose.
Business Credit
After starting off, one of the first things, personal business owners need to do is to establish
business credit. Business credit can help you get a business only loan without using your personal
credit at least in the future. Establishing business credit may be achieved by either opening up a
business credit card account and paying it in full or buying supplies from companies that will report
good standing to the business credit bureaus or having a sound business plan with potential
earnings, letters of intent, and any type of customer contracts already laid out.
Ìn one of the previously we examined the potential start-up costs of an errand service business. So
in this article let us asses the potential income and profitability of this business.
While you may have earlier considered running an errand service as a viable means of earning
some extra income, the fact remains that this is a growing field with unlimited income potential. So
an errand service can be highly profitable. For instance even a part-time errand runner starts
making around $10,000 a year. Obviously the income will highly depend on the amount of time you
put into running this business and the amount of clients that you obtain. So you can expect to earn
gross annual revenues ranging from $50,000 to $75,000 and even more, depending on the services
you provide and the clients you target. Simply the more effort and time you put into finding new
customers, the more money you will be making.
Income and Profits
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May be it's a good idea to start off by offering your services to friends and family for little to no charge.
Ìt will help you gain experience and build goodwill to establish your business. Ìt pays in the long run
as you can then use these people to bring referrals and thereby more business.
On the safer side, you may consider starting your errand service as a part-time venture and turn into
your full-time profession once you establish yourself, allowing you the freedom and financial
independence never possible when working for other people.
Pricing your services may become quite challenging for you, especially at the inception. Ìn the
industry the charges are generally based on per hour or service. While the vast majority of errand
running service providers charge by hour some charge a variety of membership fees based on the
nature of service and number of requests per month, etc.As things get complicated you will also
have to charge for family or individual membership, a corporate membership for companies to give
their employees, and a one-time service fee.
Ìn fact the fee you should charge depends on the type of errand being completed. For example if you
are running multiple errands for one individual then you may want to charge them by the hour but if
an errand requires you to travel a longer distance, you may want to charge a set mileage rate.
However when setting your fees, you should take into account your time and other expenses such
as gas, car wear, etc... Therefore the important thing is to ensure that you ascertain the total cost of
resources to accomplish the task and factor an appropriate rate for your time. Also remember that
whatever you purchase for your clients are billed to them.
To make life easy for your clients you may want to set up a website where they can pay online. So
create a service list on offer and then have the client pick and choose what they need and have it
modified by the client if they want to cancel or modify.
As Ì explained earlier depending on your offering you should decide the charges, rates or fees of
your business but having said that, you may also like to know that it is not uncommon for an
established errand business to command anywhere from 15 to 100 dollars an hour for their
services.
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