What licenses, permits or requirements are needed to start a moving company? Is a moving company a good business to start? These are usually the questions i get daily with respect to a starting a moving company successfully.
A moving company also known as removalist is a company that is involved with transportation of items from one place to another. This is just an aspect of haulage and logistics but the item hauled are usually goods or personal properties such as furniture and other household items.
While some moving companies make use of large motor vehicles known as moving vans to transport goods, others make use of specially constructed shipping containers especially where international moving is concerned.
Starting a Moving Company – Sample Business Plan Template
Have you ever had to move from one house to another or from one business office to another? How easy was it for you to transport your property from place to place? Okay, let’s say you handled it yourself and moved the items little by little in your small vehicle, how many broken or damaged items did you end up with?
I bet at the end of the day, you wished you engaged the services of an expert mover to transport your items for you in a safe and secure manner that would be less expensive for you; both financial and material wise.
There are a lot of people out there looking for ways to move their goods or property in the safest and secure means possible. Moving companies are trained to handle such services. They are trained to carefully wrap, prepare and protect your property during relocation.
As a moving company owner, there will be lots of business opportunities for you both as a private (residential) mover who helps people move from one house to another or as a commercial mover who focuses on moving goods and merchandize for business owners.
Types of Moving Companies to Start
There are several types of moving companies of which I would only discuss the three most popular ones that are easy to start. You could choose any of the following types of moving companies:
- Local moving services-: Local moving companies only operate within a short specified distance mostly within the same town.
- Long distance moving services-: Long distance movers move goods over a farther distance usually inter-state or sometimes by air or sea.
- Commercial Relocation Services-: Commercial movers help business owners to relocate from one place to another. They earn far more than other types of movers because of the technicalities involved. Sometimes, they may be required to relocate a whole factory or a very large office.
Costs of starting a Moving Company
The estimated costs of starting a moving company is between $10,000 and $50,000 depending on how big or small you want to start. The most important costs you would incur are:
- Professional Fees-: These are costs of registering your business, incorporation and obtaining all necessary licenses.
- Technology costs-: Costs of purchasing all the equipment needed for the business such as trucks, containers, boxes etc.
- Administrative Costs-: You would also need to set aside some money for administrative costs such as fuelling the vehicles and paying off staff.
- Sales and marketing costs-: These are costs you would incur in advertising and promoting your business in so as to increase awareness for your business.
- Insurance costs -: This is one very important cost you cannot do without in the business. As a mover, people would entrust a lot of their property to you and sometimes as a result of circumstances beyond your control, some of these items get damaged or lost. If you have insurance in place, the insurance company will take charge of the costs of replacing these items but if you do not have, one of such occurrences may cripple your business and run you into debt.
How much would you earn from a moving business?
The amount you can earn from your moving company business depends on how often you can get jobs and the type of jobs you get. When you get jobs, you need to know how much to charge. Your charges would largely depend on a number of factors:
- Type of moving service required-: The longer the distance, the higher your charges.
- The size of the items to be transported
- Storage-: You would have to charge extra if you will be required to store the goods in a warehouse before or after moving.
When you have carefully accessed the factors above, you can now add a little extra for your efforts and send a quotation to the prospective client. You should ensure that your prices are competitive and attractive.
How to Start a Moving Business Without Money
Starting a moving company without morning is no big deal. The big question is: do you know what you are doing? Yes, knowledge and competence are key requisite for building a successful moving company. Now the first step to knowledgeably starting a moving company is to conduct a feasibility study research.
Is there a market for such services in your area? If yes, how much are they willing to pay? And how sustainable is the business? What is the level of competition in your geographical target area? All these are questions you need to answer to increase your knowledge base about a moving business.
After conducting your research, the next step is to compile your research findings and write a business plan for your moving company. This is important as it will force your brain to think up marketing strategies, financial projections and estimates, survival tactics and execution strategies.
Okay, so you are interested in starting a moving business but cannot shell out the $10,000 minimum start up costs, all hope is not lost. You can start your moving business without a dime. What you will do is to market your business very well on the internet or to people around you and then when you get a contract, you simply approach companies who hire out equipment to moving companies.
If you have something to use as collateral pending the time you get paid by your client, you can use it but if you do not have, you can talk to your bank and have them act as guarantors on your behalf. However, you will need to have a good relationship with your bank to be able to pull this off.
To be able to succeed in your moving company business, it is advisable that you undergo some training because of the technicalities involved in moving items from place to place.