Starting a moving company is a viable business idea simply because there are just so many people who find it necessary to move locations every other day of the year. Here we are talking about people making both domestic and commercial moves. As with any other sort of business, it is wise to start a moving company from the bottom up; starting small is the best way to develop a startup into a mega venture.
This particular business need not be so expensive to start if you can identify the key equipment you require and get the same at affordable rates. More and more people are opting to use small moving companies to move their relatively small payloads as opposed to using the services of larger establishments which are, of course, dearer. Doing so certainly makes much more sense financially if you just need to move a single office desk or a new couch for your lounge. You, therefore, can start a moving business quite easily if you already have a van or truck in your possession.
1Prerequisites for Starting a Moving Company
For starters, you need to be in trim physical condition so that you can execute all of the lifting, bending and hauling required of you. The same is also desired of your backup team just in case you need extra hands for a particularly demanding assignment. Having a moving vehicle, either a van or a truck, is the next necessity. You can start off with a medium-sized vehicle; it need not be so large but it must be very reliable and well maintained.
Depending on the area scope you intend to provide your services to, you need to have a prior knowledge of the road network and indeed the distance to the various locations in your jurisdiction. This is the only way you can give prospective clients accurate estimates of your delivery times having factored in all the logistical issues including rests and stops.
Two skills are also essential when starting a moving company: you must have astute planning skills such that you’ll be able to manage your time and resources in the best way possible, and you must also have the know-how required to take apart and refit different pieces of furniture (e.g., beds) and how to properly pack a truck.
2Permits, Rules and Regulations
Depending on the part of the country you want to start your moving company in, there are some legal aspects you have to fulfill. You first have to obtain a moving business permit but prior to getting this document you will have to produce proof that you have the required insurance coverage and worker’s compensation insurance. Remember that modern-day clients are pretty discerning and will seldom show intent to work with you if you cannot assure them of their property’s safety courtesy of an appropriate insurance cover. Examples of different state requirements are provided via www.gaebler.com.
3The Required Equipment
Assuming that you already have a spacious truck or van, you will be required to prepare it to handle the job at hand. Arrangements will have to be made to fit the truck/van with a ramp and tie downs. You will also have to invest in allied accessories including packing blankets, straps and dollies. A first-aid box is something that you just can’t afford to ignore. The cost of the required equipment can be estimated at $100-$150.
4Finding Clients for Your Moving Company
There are a lot of big players in the market already – your startup cannot possibly pose a challenge to these firms; you need to find a suitable target market and focus on it. A moving company that is based near a college town can decide to focus on the students who move out of the college facilities. Similarly, a moving company startup that is based near an apartment-type residential area can serve people who are moving to small homes both locally and far off.
As you start your moving company it is prudent to begin quite low-key so that you can explore different market opportunities and then focus on those that seem most promising. It is these niche markets that you can gradually develop and make helpful contacts in the process, contacts that will act as your source for referrals.
5Marketing Your Moving Company
The best way to market a startup is without doubt word-of-mouth. Keep all your initial customers satisfied and they’ll surely market you to other people who need the service. Websites like Craigslist are great advertising platforms because you can use them for free. Another great strategy is to design and print attractive flyers that you can then distribute to local furniture stores, especially those that don’t offer transport services. You can negotiate suitable arrangements with such, maybe to come up with a complete package for the customers’ convenience.
6Does the Business Make Financial Sense?
Market research indicates that small moving companies that work for up to 20 hours weekly and charge between $50-$200 per item of furniture (rates dependent on size and distance) can make between $700 and $1000 monthly. The monthly expenses of mileage and gas can be estimated at $200 and this sum can be incorporated into the customer’s fee. The other expense that you can then expect to settle is the repair costs that come with mileage. With proper marketing and job execution you should not have a problem breaking even and making some good money out of the effort every month.
