Before getting into the moving business, you should know that the competition is fierce in the industry these days. Unless you know a location where one or two companies have the monopoly, which is rare, you will have to put in a lot of effort to get up and be successful.
Having an idea about the things you want to do with your company is great, but you need many things to bring it to reality. Let’s go over some of the things you will need to start a moving company. You should go through the list and determine your initial startup costs and how much it takes to keep the company running for at least a few months.
1. Planning and Research
The idea you have about your company is a good place to start. Look into the competition and find out the differences. If you can offer something that the others don’t and think it can be your strong suit, let’s go further.
Look into the prices and services your competitors are offering. If your fees are higher, but you think the way you do business makes up for it, try to lower the rates. Offering competitive prices is crucial for being a newbie.
Think about the services as well. Try to offer what your targeted consumer base needs. If you can think of something that no one is providing, then great. If you can’t, then try your best to offer the most of the basic services along with moving.
2. Legal Documents and Other Essentials
Businesses can’t start without proper registration. So, that would be your starting point.
Then, you will also need to register your company for taxes. This would include the state and the federal taxes. Applying for an EIN (employer identification number) is a simple process, and it usually doesn’t cost a thing.
The next thing you might need to do is open up a business bank account. While you are doing that, you should also look into setting up business accounting.
To offer your moving services, you will need to get some permits and licenses. If you will offering other services as well, make sure you have the legal right to do so.
Then, you will need to look into the arbitration program dot. That is essential for most of the moving companies. This is basically for resolving disputes, and it’s necessary for your business.
You will also need to get insurance. This would be for your offices, vehicles, storage space, the goods you move, and maybe even the equipment, if possible.
3. Moving Equipment and Vehicles
For your moving business to carry out a project, you will require plenty of equipment. But most of all, you need at least one vehicle, depending on the size of your company.
If you don’t already have a box truck, you should start looking into the options. While getting financing for a brand new truck might make sense, don’t be too quick to disregard used options. They can be more affordable and good when you are starting the company.
You will need to purchase two types of equipment. The perishables that you can charge directly to a job, like a tape, boxes, packaging, and other similar items. Then, you will have to purchase things that will be used in every job, so the cost and depreciation will be allocated accordingly.
4. Advertising Your Company
Finally, you will need to tell your target consumers that you exist. Unless you are opening up your office in a location easily visible to many people, advertising is a key aspect of starting a company.
While there are some regions that mostly have moved on to technology, some parts of the country still like their old ways. You should first identify whether you are in either one of the extremes or somewhere in the middle.
Mostly, it’s somewhere in the middle. This way, you will need to start working on a great website and hire a digital marketing expert. You will also need to begin contacting the newspapers and magazines that you think your consumer base reads and ask them for their charges.
You can also download MoreBusiness.com’s free marketing plan example and use it to create a plan to start a moving business.
Once you have all the costs ready, you can look into financing your business and start the company.