How to Start a Moving Truck Rental Business

A moving rental company is a business that rents or leases moving trucks to customers. There is an option of renting a moving truck for two-way trips or one-way trips. One-way moving truck rental is simple and economical due to the many locations that moving truck rental firms offer across the United States.

The price of a one-way rental is usually determined by the supply and demand of the company’s several branches, each of which requires vehicles in various areas.

Data shows that the truck rental market is expected to generate $31.2 billion in sales, with an average annual growth rate of 3.6 percent in the US between 2017 and the end of 2022. The industry is projected to be worth $214.19 billion by 2030 and registering a CAGR of 10.32 percent.

Steps on How to Start a Moving Truck Rental Business

1. Conduct Market Research

The first stage in conducting market research for a moving truck rental company should be to create a market-based research question that is consistent with your goals and objectives.

You should look for information that will help you maximize your business, and also provide you with insight into what your potential market will be seeking in a moving truck rental company. The research will provide you with  information that will help you run the business with less stress.

a. Who is the Target Market for a Moving Truck Rental Business?

• Warehouse operators
• Goods distributors
• Charity organizations and Churches
• Corporate organizations
• Event planners
• The residents in the city where you operate.

b. Is the Moving Truck Rental a Profitable Business?

Yes, the moving truck rental business is a profitable business. As a matter of fact, the industry is projected to grow by 6 percent.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the moving truck rental business.

d. Who are the Major Competitors?

• Penske Truck Rental
• Elite Truck Rental
• Ryder Truck Rental
• Enterprise Truck Rental
• U-Haul of Chelsea
• Budget Truck Rental
• Fairmount Car and Truck Rentals
• 5 Star Truck Rental.

e. Are There County or State Regulations or Zoning Laws for Moving Truck Rental Business?

No, there are no county or state regulations or zoning laws for moving companies, but players in this industry are expected to work with the laws governing similar businesses in the county where their business is domiciled.

Note that truck drivers are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so.

f. Is There a Franchise for Moving Truck Rental Business?

Yes, there are franchise opportunities for moving truck rental business, and here are some of them;

• Penske Truck Rental
• Ryder Truck Rental
• Budget Truck Rental
• U-Haul.

g. What Do You Need to Start a Moving Truck Rental Business?

• A feasibility report
• Business plans
• Business licenses and permits
• Moving trucks
• Commercial driver’s license (at least a Class B CDL)
• Insurance policy
• EIN (Employer Identification Number)/Federal Tax ID Number
• A corporate bank account
• Employees.

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a moving truck rental business are;

Creative Moving Truck Renta;l Business Name ideas

• Capps Morgan© Moving Truck Rental Company, Inc.
• Go Fleet® Moving Truck Rental Company, LLC
• Tyler Gregory© Moving Truck Rental Company, Inc.
• Andrew James® Moving Truck Rental Company, Inc.
• Harris Logan™ Luxury Car Rental Company, Inc.
• Celestine Peters™ Moving Truck Rental Company, LLC.
• The Movers© Moving Truck Rental Company, LLC
• George Philips® Moving Truck Rental Company, Inc.
• Soares Pedro© Moving Truck Rental Company, Inc.
• Justin Jones© Moving Truck Rental Company, Inc.
• Your Choice® Moving Truck Rental Company, LLC
• Larry Page® Moving Truck Rental Company, LLC
• West Coast™ Moving Truck Rental Company, LLC
• Donavan Williams© Moving Truck Rental Company, Inc.
• Simon Laborious® Moving Truck Rental Company, Inc.
• Orlando Julius™ Moving Truck Rental Company, Inc.
• Hakim Mohammed™ Moving Truck Rental Company, Inc.
• Pro Rent© Moving Truck Rental Company, Inc.
• Julius Chamberlin® Moving Truck Rental Company, LLC
• Bellingham Sterlin™ Moving Truck Rental Company, Inc.

3. Register Your Business

a. What Type of Business Structure is Best for the Moving Truck Rental Business?

There are several options for structure, as it relates to a moving truck rental business, which includes sole proprietorship, partnership, limited liability company (LLC), and corporation, but an LLC is the one the majority of companies in this considered best. Every company will want to form an LLC in order to defend itself against lawsuits.

b. Steps to Form an LLC

• Choose a name for your LLC
• File articles of organization
• Choose a registered agent
• Decide on member vs. manager management
• Create an LLC operating agreement
• Comply with other tax and regulatory requirements
• File annual reports.

c. What Type of License is Needed to Open a Moving Truck Rental Company?

• General Business License
• Commercial Driver’s License (at least a Class B CDL)
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections for parking.

d. What Type of Certification is Needed to start a Moving Truck Rental Business?

You don’t need any certifications to start a moving truck rental business, it is a business that is open to all and sundry as long as you have the finance and business expertise.

e. What Documents are Needed to Open a Moving Truck Rental Business?

These are legal documents that are required if you want to run a moving truck rental business in the United States of America;

• DBA
• EIN
• Business and Liability Insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Commercial Driver’s License (at least a Class B CDL)
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Contract Document
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

Registering a brand or intellectual property, protection is not always necessary if you are starting a moving truck rental company. The nature of the business allows you to manage the business without having any reason to sue anyone for using your intellectual property unlawfully.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Moving Truck Rental Business?

The startup cost for a moving truck rental is not usually fixed, it will cost from $400,000 – $2 million to start. Note that it can possibly go higher, depending on your business goals and objectives.

b. What are the Cost Involved in Starting a Moving Truck Rental Business

• The total fee for registering the business in the United States – $750
• Expenses for obtaining licenses and permits as well as the accounting services totaling – $5,200
• The cost of hiring a business consultant – $4,500
• Insurance (general liability, workers’ compensation, and auto in surance) coverage at a total premium – $15,400
• The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
• The cost of leasing a facility – $65,600
• The cost of facility remodeling and installations – $20,000
• The cost of the purchase of trucks –  $1.2 million
• Other start-up expenses including stationery – $500
• Phone and utility deposits will cost – $2,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
• The cost of launching an official website – $600
• Miscellaneous – $5,000.

c. What Factors Determine the Costs of Opening a Moving Truck Rental Business?

• The size of the moving truck rental business (the number of moving trucks to start the business with)
• The choice of location
• The required licenses and permits
• The cost of hiring and paying a business consultant
• The cost of branding, promotion, and marketing of the moving truck rental business
• The cost of equipping the moving truck rental business
• The cost of the insurance policy covers
• The cost of registering the business
• The cost of recruiting and training staff
• The cost of the purchase and customizing of uniforms, shoes, and caps for employees
• The cost of the grand opening of the moving truck rental business.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for a moving truck rental business, but if you have the required finance, it will pay you to build your own parking facility and administrative office. The building or reconstruction of a facility will help you to come up with a facility that will fit into your business vision.

e. What are the Ongoing Expenses of a Moving Truck Rental Business?

• Gas and lubricants
• Utility bills (phone bills, signage, software renewal fees et al)
• Salaries of employees
• Maintenance and repairs
• Insurance
• Marketing costs.

f. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – $68,000
• Admin/HR Manager – $48,000
• Fleet Manager $48,000
• Accountant – $38,000
• Drivers – $36,800
• Customer Service Officer (Call Center Executives) – $26,100
• Truck Detailers -$24,000 Per year.

g. How Do You Get Funding to Start a Moving Truck Rental Business?

• Raising money from personal savings
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank
• Source for soft loans from your family members and friends.

5. Write a Business Plan

a. Executive Summary

Go Fleet™ Moving Truck Rental, Inc. is a registered company that will be based in Silver Spring, Maryland. We are in business to rent and lease moving trucks to customers for a short period of time, which is usually 30 days or less, or for a longer period of time, like 12 months or more for leasing purposes.

Go Fleet™ Moving Truck Rental Company, Inc. has acquired all relevant licenses and permits to operate throughout the United States. We will ensure that we abide by the rules and regulations guiding the truck rental service industry.

b. Services

• Renting and leasing.

c. Mission Statement

Go Fleet™ Moving Truck Rental Company, Inc. is in the industry with a mission to make available some of the latest moving trucks for rent and lease to customers at all times.

Vision Statement

Our vision is to be listed as one of the top 5 moving truck rental companies in the United States.

d. Goals and Objectives

The goals and objectives of a moving truck rental are to make available moving trucks for use to people and organizations who may not have the finance to purchase them.

e. Organizational Structure

• Chief Operating Officer (Owner)
• Admin/HR Manager
• Fleet Manager
• Accountant
• Truck Drivers
• Customer Service Officer (Call Center Executives)
• Truck Detailers.

Marketing Plan

a. SWOT Analysis

Strength:

• Excellent operational history
• Availability of the latest moving trucks
• Accurate estimates with no hidden costs
• Experience and trained professional drivers
• Excellent customer testimonials.

Weakness:

• Not enough existing clientele to run at full capacity immediately
• Will need a loan to build our parking facility and to purchase the latest moving trucks
• The owner is currently running the business solo and will need to build the business
• Lack of economies of scale.

Opportunities:

• Build upon existing clientele
• Online market, services, technology, and the opening of new markets.

Threat:

• Loans diminish profitability until they are paid off
• The first year of operation may be financially tight while we gain customers and pay off loans
• Competition in the area could increase
• Management of employees requires time, money, and efforts
• The transport department could change its regulatory status and decide to enforce laws that can strangulate new businesses.

b. How Do Moving Truck Rental Companies Make Money?

Moving truck rental businesses make money by renting and leasing moving trucks.

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer.

d. Sales and Advertising Strategies

• Introduce your moving truck rental business by sending introductory letters alongside your brochure to corporate organizations, warehouse operators, charity and religious organizations, suppliers and distributors, households, and key stakeholders in your city.
• Print out fliers and business cards, and strategically drop them in offices, libraries, public facilities, train stations et al.
• Use friends and family to spread the information about your business.
• Post information about your company and the services you offer on bulletin boards in places like schools, libraries, and local coffee shops et al.
• Place an advertisement in the newspaper, or local publication about your company and the services you offer.
• Advertise your business in relevant magazines, newspapers, tv, and radio stations.
• Engage in a direct marketing approach.
• Join local chambers of commerce and industry to market your services.

Financial Projection

a. How Much Should You Charge for your Service?

The size of the truck, the number of days you will need it, and the distance you plan to drive will determine the cost of renting a moving truck. You should budget between $150 and $200 for a move that is local and takes place within a 50-mile radius. While a long-distance transfer might cost up to $2,000 one way.

b. How Much Profit Do Moving Truck Rental Business Owners Make a Year?

The profit a moving truck rental business owner can make on average, is approximately $175,000 and above annually.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the moving truck rental business (the number of moving trucks owned)
• The moving truck makes and model, location, dates, times, vehicle availability, and length of rental
• The location moving truck rental business is covering
• The management style of the moving truck rental business
• The business approach of the moving truck rental
• The advertising and marketing strategies adopted by the moving truck rental business
• The number of years the moving truck rental has been in business.

d. What is the Profit Margin of a moving Truck Rental Service?

The profit margin of a moving truck rental is not usually fixed. It could range from 5 percent to 15 percent depending on the distance covered and other relevant factors.

e. What is the Sales Forecast?

• First Fiscal Year: $520,000
• Second Fiscal Year:  $1.2 million
• Third Fiscal Year: $2 million.

6. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Moving Truck Rental Business?

• The demography of the location
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of moving truck rental businesses in the location
• The local laws and regulations in the community/state
• Traffic, parking, and security et al.

b. What State and City are Best to Open a Moving Truck Rental Business?

• Los Angeles, California
• Columbus, Ohio
• Oklahoma City, Oklahoma
• Las Vegas Nevada
• Miami Florida
• Washington DC
• New York City, New York
• Dallas, Texas
• Chicago, Illinois
• Boston, Massachusetts.

c. What Equipment is Needed to Operate a Moving Truck Rental Business?

• GPRS tracker
• Booking software
• Dash Cam

7. Hire Employees

When hiring employees for a moving truck rental business, you should hire a competent chief executive officer (you can occupy this position), admin/HR manager, fleet manager, accountant, drivers, truck detailers, and customer service officer (call center executives).

8. Launch the Business Proper

No moving truck rental business opens without first organizing an opening party to launch the business officially. You can do a soft opening party if you are operating on a low budget or you can go for a grand opening party for all and sundry in the location where your business will be located. With a proper launching, you will officially inform people in the city that your moving truck rental is open for services.

a. What Makes a Moving Truck Rental Business Successful?

• Choose a good location and the latest moving trucks to start the business
• Hire competent, hardworking, and reliable staff
• Be deliberate with your marketing approach
• Encourage the use of word of mouth to promote your business
• Leverage all available online and offline platforms to promote your moving truck rental business.

b. What Happens During a Typical Day at a Moving Truck Rental Business?

• The business is open for the day’s work
• The moving trucks are washed, cleaned, and ready for work
• Customers’ requests to rent and lease moving trucks are attended to
• Schedule maintenance of the moving trucks is carried out
• Marketing/website upkeep
• Supplying
• Administrative duties
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Moving Truck Rental Business?

• Business management skills
• Customer services skills
• Interpersonal skill
• Logistics and material handling skills
• Good driving skills
• Bargaining skill
• Work experience in a moving truck rental services industry
• Experience in managing people
• Experience in business administration
• Experience in handling logistics and transportation software.