People are constantly moving. It doesn’t matter the season, many are moving across the city, some out of the state, while Others are moving out of the country and that suggests there’s always an opportunity to start your own moving business.
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The smartest thing about it is that you work for yourself. You choose when to take on customers and you determine when you work, which means that if your truck is your business, it is possible to just work part time on weekends as a way of making extra income.
If you are trying to figure out how to start a successful moving business, as soon as you finish reading this post, you’ll be ready with owning a moving company.
Step 1: Study How a Moving Business Works
Operating a moving business is much more than just picking up and delivering items. You have to look at its different aspects: how do you market a moving company? How often would you have customers? Do you have a location where you can park your trucks? Do you need internet for truckers or for any other staff? As you assess and learn your way through, track everything and be sure to understand the concept. Know in advance the length of time it would take you to get from one point to another and the overall costs.
Generally, you will need a plan. And the most convenient way to build a plan is to work for another person for a short time. Also as an employer, you’ll need to pay taxes and require an Employer ID Number.
You can research all you want, but nothing is better than rolling up your sleeves and doing the actual work for a seasoned industry veteran. This would help you pick up priceless tips from someone who has been doing this for years.
Step 2: Create a Plan
Moving businesses are slightly different from other businesses. It’s unlike your traditional retail shop where customers walk in, shop around, approach a cheerful employee, pay and leave. But one important thing the moving companies have in common with other businesses is planning.
The moving industry requires a great deal of planning. You should have an overall picture of the structuring and sales projections of your company. You can’t accomplish anything meaningful without a detailed plan.
Step 3: Discover Earning Potential
One important question everyone asks is “how much can I make with a moving business?’’
The industry consists of 7,000 businesses with 13,900 locations in the U.S., hiring over 122,600 people. According to the American Moving and Storage Association, IBIS World, also reported that the industry generates approximately $16 billion dollars annually.
The fact is 21st-century families moving at all times. The millennial employee no longer thinks of settling down and in a single job at the same company all through their lives. And with more people opting to rent houses than buy, it’s not surprising that hundreds of thousands move each and every year.
Step 4: Set a Budget
Setting up a budget makes it possible to know how low you will set your rates and the profit potential.
So how much would it cost to open a trucking company?
- Down Payment for Truck: $7,000
- Fuel: $11,000
- Insurance: $6,000
- Legal: $500
- Stationery: $300
- Licenses and Permits: $1,000
Total: $32,000
But the best part is that you don’t need to have everything on ground to start. There are a variety of financing options available to you as a trucker. It is possible to finance your truck, which is your biggest startup expense. Or you could lease it. You could finance operations and even fuel costs.
Step 5: Choose Which Products/Service to Offer
Regardless of what happens, you have to pay attention to meeting deadlines. No excuses. With regards to deciding on what services to offer, that depends on you and your truck(s).
Moving companies have various services to offer. They might focus on completely different areas such as: selling moving materials, goods and equipment in your neighborhood, as well as commercial and residential moves with smaller trucks and vans. Here are some of the known brands on the trucking industry. Take note how their services vary, and check what product/service you want to offer instead:
- Elite Truck Rentals – Fleet Transportation Services
- MTR Movers and Storage – Moving and Cartage
- Paramount Truck Sales – More on selling trucks and other inventory items.
Which kind of service are you willing to offer? Take note that if you live in the US, there are states that require auto dealer bonds to operate a dealership. If you’re planning to operate an auto dealership to sell trucks and other parts to moving companies, it’s best to consult a bond professional if you want to determine if you need an auto dealer bond.
Step 6: Decide on a Location
One more thing concerning the moving industry is that you don’t need to have an expensive storefront or polished office like a lot of other companies. But you need a business office or perhaps a place to park your truck(s). This depends on if you’re working alone, or if you have drivers working for you. If you’re alone, you could rent a space to park your truck. With lots of parking for your vehicles, look for access to water to keep the trucks clean and space to perform maintenance and repairs. Here’s a guide from Entrepreneur.com on 10 Things to Consider When Choosing a Location for Your Business if you need more help.
Step 7: Find Suppliers
Moving companies require totally different equipment compared to traditional businesses. And you’ll need to find and purchase the appropriate equipment before you get moving. If you are running on a limited budget, start with a single truck. Or start with several small trucks and do small nearby moves, until you can scale up and buy bigger and much better trucks.
Step 8: Create a Staffing Plan
Professionally, you could start a moving company by yourself with your legs, a hand cart, and a truck. But if you intend to grow your business, then you’ll have to recruit workers.
Look at CDL certification schools for new faces you can employ. This will save you the cost and time of hiring movers and then pay and wait for their certifications. Determine the number of drivers you would like to bring and ensure the number suits your budget.
The Bottom Line
Starting a moving company is a great deal of work. But if you do it right, it’s an awesome task.
You’ll be your own boss. You are going to help take out the stress and frustration of the moving experience for all your customers.