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The Australian food delivery market is booming, with an expected annual growth rate of over 6% until 2024 according to Statista. There's never been a better time to start a venture within this niche.
But are you unsure of where to start? In this article, we'll look at everything you need to know before you start your own food delivery business.
A food delivery business is a courier service that delivers food from restaurants, cafes and grocery stores to customers. Orders are typically placed via a mobile app or website.
Before you register your new venture, you'll want to be clear on what type of business you are creating. Writing a business plan can help you focus on the business's objectives. Moreover, it can help you estimate how much the costs and what the projected revenues of the new company will be.
Your business plan doesn't need to be overly detailed. However, it should include the following for a successful set-up:
To register a business in Australia, you will need to choose a business structure and decide on a business name first.
In Australia, there are three common business structures you can choose from. These include:
Once you've chosen a business structure, you'll need to register for an Australian Business Number (ABN).
Choose a name for your food delivery business next. Check that your business name is available using the Australian Securities and Investments Commission's (ASIC) business names register search tool. If you choose a company structure, you'll also be provided with an Australian Company Number (ACN).
If your annual business turnover is $75,000 or more, you're legally required to pay goods and services tax (GST) on all sales. Pay-as-you-go (PAYG) instalments must also be made on behalf of any staff you employ.
Even if you run your new food delivery venture alone, there are still certain investments you will need to make. We've broken down the three areas to consider into equipment, software and insurance:
You won't need a lot of equipment for food delivery. What you may require are:
There's a large amount of software available to download that can help you carry out the whole delivery process. These include:
Insurance cover is essential to keeping your business safe. Consider the following types of insurance for your delivery service:
Before you can begin your food delivery business, you will need to secure certain licences. Moreover, you will need to comply with the Food Standards Code. Some of the licences you may need include:
There are certain legal agreements you can use to protect any data and your intellectual property while operating online. The key agreements include:
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
The next step is to start marketing the business, building a customer base and growing sales. There are different ways to go about attracting new customers, including:
How do I advertise my business?
You can use different social media channels to promote your business. Establish a presence on relevant social channels to find and engage with customers. You can also consider hiring a digital marketing expert to help promote your business.
How should I insure my business?
There are several types of insurance available for startups which can protect your business against the unexpected. Some insurance to consider includes vehicle insurance, Public Liability Insurance and Professional Indemnity cover.
How do I brand my business?
Good branding starts with a good name. Make sure it stands out from your competitors, that the online domain is free and it resonates with your business. To ensure your business name is exclusive in Australia, think about registering your business as a trademark.
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