Starting any new business in 2018 and the following years might look scary and risky, but if you have the right business plan, a solid marketing strategy, and a positive outlook to situations, you can become a successful owner in just a year.
Starting your own business means becoming financially independent and secure. One of the profitable businesses that you can start small, in case you are planning to be an entrepreneur is a Moving Company. Yes, you heard it right! You can start a moving company small and easy. If you are under the impression that you need commercial sized trucks and two dozen or more staff to run this business, you are mistaken. Today, we will take you through the ins and outs of starting a moving company that is sizable and your own.
If you own a truck, a van, or a matador, and you know how to drive it, you can start a moving business as an add-on to your income. You will be surprised to see just by working at the weekends how much money you can earn. All you need to do is haul furniture and household appliances around the town.
Did you know, 80% of the moving companies pack and move small items and furniture pieces? Although the bigger moving businesses are profitable when it comes to shifting an entire house or office, most often customers prefer calling small movers, locally owned if they need to shift just a piece of furniture or two. This is because big movers aren’t ready to work for a minimal fee, which small companies readily oblige to and still offer quality service.
Starting a Moving Company All By Yourself
Like we said earlier, you won’t need huge trucks or rent a house to start the business. You can (and should) start as a local, small moving company, such as in-house moving help that only requires manpower and transportation to move a few pieces of furniture from one house to another.
Hence, you can start your company with a smaller van. Since most customers prefer small moving companies for quality service, it does not mean you will not make any profit. Of course, you will and a great one at that.
You can focus on one type of moving service from the various types in the industry. We suggest you start by offering local moving services that work within a specific area. You can either stick with just moving labor service or go for a comprehensive coast-to-coast service type. The choice is yours and based on your choice you will be developing your business plan.
A Solid Business Plan is Must
A solid business planning is indeed the backbone for success. You cannot start a business tomorrow if you decide today. No, seriously! You need to invest at least a few weeks in planning your business from scratch to few years down the line.
No matter the size of your moving company, you will need a plan based on which you will take action. Your every process should lean towards your idea. You have to forecast your business development by determining the resource allocation, your operational costs, your marketing strategies, your niche market, and your key selling points.
It is always better to offer a variety of services or offer something new as a key differentiator. Moving is a hard and demanding work, and it will definitely be appreciated. You can enrich your services offered by including the following add-ons:
- Packing supplies services
- Storage services
- Cleaning services
- Garbage removal services
- Repair person services etc.
Check out the current moving business trends in and around your city. You can also go through the latest updates on the moving industry to get accustomed to the new updates, to improve what you have, and to prepare for the unknown.
Part of your business plan should be conducting a SWOT analysis of your industry and then coming up with a variety of actions to resolve the threats and enhance the opportunities.
Get Your Licenses and Permits
Before you get your license and permits, choose a business name. Your business name will represent your service, so think wise, and think twice. Once you have found your name, consider your business in legal terms. Get yourself a lawyer and ask him the type of business best suitable for you. Moving on, register your business as a legal entity. After gaining a business license, you’ll have to apply for certain permits depending on the type of moving company.
You will be able to obtain first-hand information from your local state regulatory authority or the department of transportation. Registering, Licensing and Applying for Permits should be your first few steps after drafting your business plan.
However, depending upon your country and state, legal requirements for moving company will vary. The mode of operation and local transportation laws will also change. Make sure you are aware of each rule and regulation before taking the business forward.
Buying Your Equipment
When laying down the foundation, it is always better to start small. The bigger you aim, the more cost you’ll incur. As a start-up, you can purchase a small moving truck, which would cost you around $80 to $200. If you already have a pick-up truck or a van, well then you already have started your business by saving decent money.
Although renting or leasing a truck is another option, we always suggest that you own a brand new one and save yourself from unnecessary repair and maintenance work. Moving on, some of the initial expenses you would incur will include fuel costs, and minor tools and gadgets, such as Dollies, Furniture Belts, Ropes, Packing and Wrapping Materials, Stickers and Labels, Moving Pads and Blankets, Few Rugs, and a Laptop or Computer to record your business entries.
Also, you will have to heavily invest in cardboard boxes of different sizes to pack household and office items. None of these would cost you more than $200.
Now that you have an idea of the basic figures, you should probably also know that if you seriously want to make this business your only source of income and turn this into a successful venture, you should consider investing in a small truck with a moving body.
Keep Your Insurances Ready
When you purchase something or build something, you definitely should ensure it so that you can peacefully sleep knowing you have a financial back up lest something goes wrong. Commercial vehicle insurance, liability insurance, and cargo insurance are three types of insurances you need to obtain. Plenty of insurance companies provide policies for your kind of business. Contact with an insurance agent and obtain a reasonable insurance coverage for accidents, damages, and liabilities.
Expenses That You Will Incur
Each start-up company’s expenses differ. As we discussed previously, if you already own a truck or van, the start-up expense for your moving business will not cross $200. Your monthly revenue will not be fixed. It will vary depending upon your clients, service type, and the time you spend for each moving project. Typically, small sized moving companies charge between $50 and $200 to move furniture. The price is fixed based on the number of items and destination. Your profit should easily fall between $800 and $1100 per month.
The only recurring expenses will be the fuel cost and mileage, and in case you hire a driver, then the driver’s salary. You can (and should) cover your fuel and mileage cost in your fee. Other recurring expenses that you may bear are phone and internet bills. Incorporate a pricing structure that would cover your gas and mileage. This way your monthly income will not be affected, except for small bills.
However, as your truck gets old, it will require repair and maintenance. We suggest you save some amount from your profit for your vehicle’s future repair and maintenance charges.
You can break even your start-up cost within one week or with 2-3 hauling jobs, valued $100 and more.
Marketing and Promoting New Business
Whether it is a start-up or an establishing business, marketing and promotion can never cease. It is a continuous, rigorous process. Just the tactics and methods will change over time.
As a start-up, you should develop a lasting brand with a unique selling point. Here are few tips on marketing your moving business:
- Design a logo that can be readable in the smallest of sizes.
- Start a website.
- Label your equipment, truck, supplies, and packing materials. Your staff should also wear and promote your company logo.
- Go to IKEA and furniture stores in and around and discuss how you can deliver their furniture to their customers.
- Design flyers and send it across all furniture stores and relevant businesses, such as electronics and appliances.
- Promote your business on social media; link your website to your posts.
- Start a blog and come out as an authority in the niche.
- Contact with a diligent digital marketing team (if you have the money) to strategize internet marketing solutions for your business.
- Update your business information on Google Business to boost rank in SERPs.
We have tried to cover all the essential steps involving a moving business start-up. Hopefully, our post takes you through the process effortlessly. If you have doubts, please mention it in the comments below.