Meal Delivery Business
The business that I intend to start is a food delivery business. What motivates me to start this enterprise is because it is inexpensive and easy to operate. My main task will be the delivery of restaurant and gourmet chef-prepared meals. From my research, I have established that meal delivery businesses are usually successful in metropolitan areas. Accordingly, there is a high likelihood that my business will succeed in Los Angeles, due to the many potential buyers that are located in this area.
The first step in the establishment of a meal delivery business is conducting online research of the list and location of restaurants in my area. This study will provide me with valuable information of where I will source the meals that will be ordered by my customers. Additionally, the research will help me to identify the meals that I will sell through my meal delivery business. I will also seek the services of a local chef, who will prepare various dishes for my customers. Having established ways of getting various dishes, I will use a website and the social media to advertise my business. Finally, I will hire three individuals whose work will be delivering meals to customers.
Customer Needs To Be Satisfied
Most of the customers that I will serve will be individuals who are too engaged in their duties to prepare a meal or go to a restaurant. Also, I will serve individuals that are either too sick or too old and weak to go to a restaurant. In this regard, my services will enable my customers to access the meals of their choice from the comfort of their seats, which will make them save time and the cost of going to a restaurant or a hotel.
Unique Selling Point
One of the ways that my business will satisfy customers better and more effectively than similar enterprises is that customers will have the opportunity of purchasing meals from different restaurants at no additional costs. Most meal delivery services require customers to only order meals from one restaurant, an issue that limits the variety of dishes that individuals can order. Additionally, my business will sell healthy dishes and cuisines from different countries and not only fast foods that are offered by most food delivery companies. Finally, customers will be able to download an application that will enable them to easily and seamlessly order meals using their smartphones. This application will allow customers to place advance orders, which will earn them reward points.
My business will be located in the South Bay area of Los Angeles, which will enable me to access a large market. Most of my customers will be those who are in formal employment, and I will mostly deliver the meals to their offices. However, I will still make some home deliveries. Given the vibrant economy in the South Bay area, I expect to serve 150 customers daily. On the average, each customer will spend $35 per order. I also expect each customer to place 20 orders a month, which will translate to $700 a month and $8,400 a year. Since I will always make a profit margin of 15% from every sale, I will earn $1,260 from each customer annually. With 150 customers, the business will make $189,000 in the first year.
|Meal Delivery Business|
|Average Customers Served||150|
|Customers’ Expenditure per Order||$35|
|Average Daily Sales||$5,250|
|Number of Orders per Month||20|
|Total Sales a Month||$105,000|
|Total Sales Annually||$1,260,000|
|Margin per order||15%|
|Gross Profit Margins Annually||$189,000|
|Three Delivery Individuals||$15,000|
|Services of Local Chef||$15,000|
|Advertisement cost on Social Media and Online||$3,000|