It’s not an easy task to move. Many American families and companies hire moving companies to assist them. You’re in the right place if you are interested in starting a moving company. The national moving industry is worth $14 billion. Americans move approximately every five years.
You can break down residential, commercial, and structural moving services into different categories. These movers are responsible for moving entire buildings. Fun fact: In 1985, San Antonio’s Fairmont Hotel moved to a new site. This is the largest structural move ever recorded It took six days for the 1600-ton structure to be moved half a mile.
What is the point? All types of moving companies are needed. This guide will help you map your path, no matter what type of moving company you want to start.
Benefits of Opening A Moving Company
About 10% of Americans moved to their new homes or offices in 2019, which is 31 million. A stable career can lead to job security and stability if there is a constant demand.
Recession-proofing can also be possible for a moving company. People move to larger homes and offices when the economy is strong. People downsize to smaller offices and condos when the economy is bad.
Startup requirements are also very low. You don’t require an advanced degree, much experience, or a large storefront to start your own moving business. A website, basic moving equipment, and moving trucks are all you need to get started.
How to Start A Moving Company
You can start a Moving company by understanding the path of your startup to success. The startup checklist below will help you get your business started.
1. Make a business plan
A business plan is essential for any moving company. Your business plan is a brief document that explains how your company will operate and grow. It can be as short as one page. This is a critical step for new business owners. It will help you avoid making costly mistakes and guide you to success.
Consider the following information when writing a business plan:
- Description of the company: Describe the services that your moving company offers and set SMART goals to track progress.
- Market analysis: Describe the supply and demand in your area, as well as opportunities and trends.
- Competitive analysis: Who are your competitors and what will they do to differentiate you?
- Management overview: Describe who will be responsible for overall operations, daily moving jobs, and business growth.
- Services and products: List the services that your company can provide such as packing, unpacking, or appliance preparation. Are you charging per hour, per person, or per package?
- Marketing plan: Who are your target markets? Families? Companies? Local? Interstate? International?
- Service strategy and sales: Do you have a sales staff? How will they sell your services? How will you provide customer service to make clients happy?
- Financial projections: Take the money you have, what you need and how much you anticipate making. You can also consider how far ahead you can forecast, such as for one year, three, or five years.
2. Select a business structure
You need to choose how you want to structure your new moving company when you start it. In the moving industry, business owners often choose between a sole proprietorship and a limited liability company (LLC).
3. Calculate your business costs
Depending on the truck’s size and condition, costs for purchasing and maintaining a moving truck can run into the thousands. You may also need to purchase durable or consumable supplies.
Payroll expenses, payroll taxes, as well as insurances such as health insurance, vehicle insurance, and liability insurance are some of the ongoing costs. Budget for website design and marketing such as running ads or printing business cards.
How can you fund your startup costs?
Bank loans usually require a business plan, collateral, credit checks, and other financial paperwork.
Friends and family may lend money to you to get your startup off the ground if they believe in your abilities. To ensure everyone is on the same page and avoid bad blood, back up your trust by signing written contracts.
Business credit cards are available to give you immediate purchasing power. However, be aware of the interest rates.
Federal loans via the Small Business Administration (SBA). Although it is a long process, they can provide a solid route for startup capital.
4. Name your business
Have you thought of a business name? Moving companies can be named simply like Flatrate Moving or Two Men and a Truck. How do you name your LLC? Names for LLCs must contain the words “Limited Liability Company” (or “LLC”) in the title. No other company may use the name. All your marketing materials can be printed LLC with a DBA as the name for your moving company.
5. Register your business and open financial accounts
After you have chosen the name of your moving company, register your business structure with the state. This involves filing the LLC formation documents and paying any filing fee. This can be done by a business formation service.
Visit the IRS website to request an employer identification number. You will need your EIN to open bank accounts, request a loan, pay taxes, or pay employees.
Moving companies often require liability insurance and auto coverage. Cargo insurance is also required by some companies. To get the best coverage, you might consider working with a local agent.
You can keep your business and personal finances separate by opening business bank accounts. You might also consider hiring an attorney to help you draft a standard service contract for your customers.
Many moving companies register their domain name at this stage so that they can create a business website. You can also set up accounts if you use social media platforms like Facebook and LinkedIn to market your company.
6. Buy Equipment for Your Moving Company
Your new moving company might have the following equipment:
- Transporting vans and/or truck
- Moving blankets and dollies
- Furniture belts
- Packaging supplies and boxes
- Tie downs and ratchet straps
- Pallet jacks
Talk to other employees or owners of moving companies to find out about essential gear before you purchase equipment. Start with the essentials and stick to your budget. Olympia Moving has a list of the equipment professional movers use.
7. Market your moving company
A Marketing plan can help you get potential customers and move your startup toward success.
It is a smart move, to begin with, a Wix or Weebly site. These prepackaged options can be very affordable, simple to maintain, and give your website a professional look.
Post useful content to your social media accounts. Include pictures of current jobs as well as testimonials from satisfied clients. Mooresville offers a great article on writing moving company social networking posts to increase traffic and build a client list.
You can also help more people find your local mover company by joining online directories like YellowPages and Google My Business. Word of mouth is the best form of advertising. Ask your customers to refer you — and be sure to reward them.
There are many types of moving company businesses that you can start
When it comes to your moving company, there are many types of moving businesses you can start, as well as niches that you could specialize in depending on the opportunities.
- Residential movers
- Corporate movers
- Movers who are small-scale and only move apartments or condos
- Structural Movers (relocation of large buildings)
- Premium movers are experts in the secure transportation of high-value goods
- International Movers
- You can move company franchises, where you create the business model and work alongside others who pay franchise fees to run a business under your brand.
A Moving company is a business type that is easy to start. It’s easy to get started, there are no startup costs, and moving services are in high demand. it can be difficult to start a new business. but with some patience, the opportunity to grow a successful moving company.