Starting a new business is, first of all, quite scary, especially if you plan to approach a market that you don’t know very well. Still, doing so is not impossible and can be really successful if you know what you are doing!
If you plan to start a moving services company, then you will have to take into account more than just the services that your future company is going to offer. You have to look into statistics, as well as into how the rest of the market is treating these moving companies.
This is why, in the following lines, we’ll talk a bit more about the idea of starting a successful moving company business in 2020! Let’s begin!
First of all, before you start planning your business, you have to keep in mind that roughly 47% of the moving companies employ no more than 5 people. On the other hand, only 9% of companies employ more than 100 people.
This is great news for those who want to become affordable home movers, as fewer staff members give them the opportunity to save money and focus their costs and funds on their business!
Lastly, the moving company industry features an annual payroll of well over $3 billion. All of the companies that contribute to this payroll are known to be mostly small businesses.
The First Steps
You will start your company by drafting a business plan and then, if everything goes to plan, you’ll deal with your moving and transportation permits.
The business plan will be your business’ Terms and Conditions because it will help you predict the development of your business, allocate markets and resources, keep your focus on opportunities and key points, as well as prepare you for any potential issues.
On the other hand, permits are required to make your business work. Depending on what type of moving company you want, you will need to apply for certain permits. For more information about this, you can contact the US Department of Transportation or your local state regulatory authority.
The Important Steps
Now, let’s take a look at the costs that come with starting a moving company business. Naturally, if you want to be successful, you’ll have to deal with every single one of the following:
- Professional Fees – the costs of registering your business, its incorporation, as well as of obtaining all the necessary licenses.
- Administrative Costs – remember to set some money aside for paying the staff or fueling your vehicles, especially in the first couple of months.
- Technology Costs – these will cover all the equipment that your company needs to work, such as boxes, containers, trucks, and so on.
- Insurance Costs – it goes without saying that you cannot run a successful moving company business if you don’t have proper insurance. Keep in mind that you will be dealing with items that are valuable for people and will be held responsible in case of damages. Proper insurance ensures that, if something goes wrong, you won’t have to cover the costs of replacing any items.
- Sales and Marketing Costs – obviously, you do have to promote your business! If required, you’ll invest some money in increasing your brand awareness and advertising your business. It is clear that marketing is essential for any type of business!
Naturally, if you want to be successful, you must conduct a feasibility study search. In short, you have to determine whether the market you want to work in has the room for yet another moving company.
The results of the study will also show you how much money you’d earn with your business. The most important part of a feasibility study search is that it will show you whether your future business is sustainable or not in the current competition.
Of course, you may have a rock-solid business plan, all your permits in order, and cover all of the aforementioned expenses – but if you don’t know how your company would manage in a real-life scenario, then you may be a bit short of success, so to say.
The Bottom Line
In the end, you have to keep in mind that success is not provided by a business plan or by enough funds to last you a couple of years.
You make a company successful by properly assessing its position within the industry long before you even come up with a name for it. Everything boils down to be fully prepared, especially when it comes to moving company businesses.
On top of that, remember that people won’t usually trust new moving companies and they’ll prefer using one with more reputation in order to prevent their items from getting damaged. Therefore, you will also have to come with a plan meant to earn their trust!