Tips on how to start moving companies
According to statistics, individuals aged 18 expect to move at least 9.1 more times in their remaining lifetime, while those who reach 45 expect to move only 2.7 times more. Although the frequency decreases as people age, one thing is certain — people move several times.
Turn this status quo into a business venture by starting a moving company. This is a lucrative business idea as it stems from a practical need: people who move from one location to another need all the help they can get to make the process easier, faster, and more hassle-free.
Consider these tips as a roadmap for starting a moving company:
1. Pick a niche
You can offer all moving services imaginable, but over time, this route can be difficult to navigate. This is especially true if you’re still a neophyte. Instead of trying to offer too many services, choose a niche and focus your resources on being an expert.
Decide if your moving company will offer local, long-distance, automotive transportation, residential, or commercial moving services. Choosing a niche is an important decision as it dictates how much you should invest, what equipment you need, and which legal aspects apply to your business. Take your time when deciding, and never make hasty decisions.
2. Define business goals
Besides wanting to earn, what else do you want to accomplish with your moving company? Will you run it as a side hustle forever or full-time once it becomes profitable? Are you going to sell the company to an investor after a couple of years?
Consider these questions when setting personal and professional goals as a moving company owner. Don’t forget to establish key performance indicators or KPIs early, as it can help you determine the progress your moving company is making.
3. Complete legal and tax documents
When starting a moving company, check with your local or state offices to determine the required documents. In general, you need to obtain specific licenses before your company can legally operate. Make sure to file this documentation before looking for customers to avoid fees.
It’s also important to establish your federal tax status. The process includes securing an employer identification number or EIN from the IRS. If you’re going to offer long-distance services, comply with the requirements of the U.S. Department of Transportation. Specific registration and paperwork are required for moving companies that cross state lines.
4. Research the competition
The demand for moving services around the world is increasing, so don’t get surprised if you see several companies offering similar services. While you shouldn’t be concerned about every moving company operating in or near your area, you should be aware of your direct competitors.
Conducting market research is a must as it gives you a better insight into how you can better promote your moving company to your target audience. It’ll also provide data on how you should price your services and what you can offer to stand out.
5. Make business-related purchases
You’ll need to make initial investments before your moving company starts to operate. Fortunately, if your moving company starts small, you don’t need to spend millions.
Here are some business-related purchases essential for a new moving company:
- Basic moving equipment, like carts, gloves, and hand trucks
- Moving blankets and packing materials
- Personal safety equipment
- Vehicle and gas
Besides intangible items, it’s also important to purchase the right software. Technology can become your greatest ally to stand out from the competition and offer the best services.
If you want to use all-in-one software to easily manage all aspects of the business, choose software for moving companies, like Supermove. Supermove has different features: billing and invoicing, communication management, employee management, and many others.
You can also use different software for different areas of the business, such as accounting software, project management software, and customer relationship management software.
6. Advertise your moving company
Before launching your moving company, market it first. A robust marketing campaign makes customers aware that your company exists and helps them come up with a buying decision.
It’s best to get creative when advertising to make your brand look more fun and improve customers’ brand recall. Here are common tactics to advertise your moving company:
- Run paid ads on Google and social media platforms
- Drive organic traffic through Search Engine Optimization or SEO
- Encourage personal referrals
Knowledge is power
Starting a business isn’t a walk in the park. Fortunately, you’ll be ready to handle challenges along the way now that you have foundational knowledge on starting a moving company.