Getting Started

How to Launch Your Errand Running Business

An errand running business is one of the fastest businesses to launch because it requires minimal startup capital, no physical storefront, and no inventory. You’re selling your time and reliability to busy professionals, families, and seniors who need help with shopping, bill payments, appointment scheduling, and daily tasks. Most errand runners start generating income within the first two weeks.

The key to success is starting small with a tight geographic radius, delivering exceptional service to your first customers, and earning referrals before you expand.

Your Step-by-Step Launch Plan

1. Choose your business structure: Decide between operating as a sole proprietorship or forming an LLC. A sole proprietorship is simpler to start but offers no liability protection. An LLC costs $50–$150 to file in most states and protects your personal assets if something goes wrong. Most errand runners choose sole proprietorship initially and upgrade later as their client base grows.
2. Register your business name: Check your state’s business database to ensure your name is available. If you’re using a name other than your legal name, you’ll need to file a DBA (Doing Business As) form. This typically costs $25–$75 and takes 1–2 weeks to process.
3. Get your EIN: Apply for an Employer Identification Number from the IRS at irs.gov. This is free and takes 15 minutes online. You’ll need it for tax purposes and to open a business bank account.
4. Open a business bank account: Use your EIN to open a separate checking account for your errand business. This keeps your finances clean for tax time and makes tracking income and expenses automatic. Most banks charge $0–$15 per month for small business accounts.
5. Get insurance and licenses: Check with your city and county about any required licenses for service businesses. Some areas require a general business license ($25–$100). Get general liability insurance ($300–$500 per year) to cover accidents or property damage while running errands. Visit your local city clerk’s office or check online; most information is available on your county’s website.
6. Set your service area and pricing: Decide which neighborhoods you’ll serve—aim for 3–5 miles initially. Price your services at $25–$50 per hour plus reimbursement for any purchases. Many successful errand runners also charge a $5–$10 delivery fee per errand, plus mileage or a flat trip fee. Research local pricing by checking competitors on TaskRabbit, Rover, or Care.com.
7. Create a simple online presence: Build a one-page website using Wix, Squarespace, or Google Sites ($0–$12/month). Include your services, service area, rates, and contact information. Set up a Google Business Profile (free) so customers can find you when searching for errand services nearby. Create social media accounts on Facebook and Instagram.
8. Launch your first marketing push: Tell everyone you know. Post in local Facebook groups, Nextdoor, and community bulletin boards. Offer your first 3–5 customers a 10% discount in exchange for online reviews. Ask satisfied customers for referrals explicitly—offer $10–$15 off their next errand for every friend they refer.

Your First Week

• Register your business name and file your DBA if needed
• Apply for your EIN online
• Visit city hall to ask about required licenses and pick up application forms
• Open a business bank account
• Get general liability insurance quotes from 3 providers; purchase the best option
• Decide your service area (create a map if possible)
• Set your hourly rate and per-errand fees
• Create a simple one-page website or Google Business Profile
• Write a 2–3 sentence service description for social media
• Post your launch announcement in 5–10 local Facebook groups and Nextdoor

Your First Month

Focus entirely on landing your first 10 customers and delivering flawless service. Don’t worry about scaling yet. Take every job that fits your service area, even if you’re slightly underbidding your rates. Every completed errand is an opportunity for a five-star review, a referral, or a repeat customer. Use this month to refine your processes—figure out the best route planning, how to communicate with customers, and how to handle payment.

Aim to complete 15–20 errands by the end of month one. Collect at least 5 written reviews or testimonials. Set up a simple system to track which customers might be recurring (weekly grocery shopping, monthly bill payments, etc.) and reach out to offer regular service.

Your First 3 Months

By month three, aim to have 15–25 active customers and generate $1,500–$3,500 in monthly revenue (10–15 hours per week at your rates). You should have enough reviews and referrals that most new customers are coming through word-of-mouth, not paid advertising. Use this period to identify your most profitable services—you may discover that seniors in your area are willing to pay premium rates for weekly shopping and bill-pay assistance, or that busy professionals pay well for appointment coordination.

By the end of month three, decide whether you want to stay solo or begin thinking about hiring. If you’re at capacity (20+ hours per week) and still getting inquiries, you have a growth opportunity. If you’re at 15 hours per week and happy with your income, you’ve found a sustainable part-time business.

Legal Basics

An errand running business is straightforward legally. You can operate as a sole proprietorship from day one—no filing required beyond a DBA if you use a business name. This is how most errand runners start. However, an LLC provides liability protection if a customer is injured or property is damaged while you’re working for them. The cost is low ($50–$150 to form), so many runners upgrade to an LLC once they have their first few paying customers. See our legal guide for your state-specific steps.

Licenses vary by location. Many cities require a general business license (sometimes called an occupational license), which costs $25–$100 and takes 1–2 weeks. Some areas don’t require anything beyond an EIN. Call your city clerk or check your municipality’s website—they’ll tell you exactly what you need. If you plan to handle financial transactions for clients (paying bills on their behalf), ask whether you need any specific authorization or bonding.

Insurance is essential. General liability insurance ($300–$500 per year) covers accidents, property damage, or injury that happens while you’re working. Some clients will ask for proof of insurance before hiring you. Don’t skip this step—one accident could cost you far more than a year of insurance premiums.

Common Launch Mistakes

• Starting too broad: Trying to serve a 20-mile radius before you have systems in place burns gas money and time. Stay within 5 miles until you’re running 20+ errands per week.
• Underpricing to land customers: Charging $15/hour to seem competitive damages your profitability and sets expectations you can’t sustain. Start at $25–$30/hour even if it means fewer early clients.
• No written agreements: Handshake deals lead to scope creep and payment disputes. Send a simple text or email confirming the errand, time, and cost before you start.
• Skipping insurance: One incident—a car accident, damaged property, or customer injury—can wipe out your entire business. Insurance is non-negotiable.
• No tracking system: Using cash only and forgetting to log income makes taxes and bookkeeping a nightmare. Use a simple spreadsheet or app like Square Cash to document every transaction.
• Not asking for referrals: Most errand runners grow through word-of-mouth, but only if you ask. After a successful job, say: “I’d love to help your friends and family too. If you know anyone who could use my help, I’ll give you both $15 off.”
• Ignoring follow-ups: A customer who used you once and never hears from you again is a lost repeat customer. Send a text after each errand asking if everything was satisfactory.

Your errand running business can be profitable within weeks, but success depends on execution, not hype. Focus on delivering reliable service to a small area, building your reputation, and systematically expanding once you have consistent demand. For a deeper roadmap, review our business plan template, and for guidance on setting up your online presence, see launching your business online.