How to start a moving company from scratch
Nowadays starting a new business is a big gamble. But, as we all know, if you don’t take any risks, you can’t be rewarded. Moving companies are a bit specific and can be done. There will always be a demand for more and more movers. Whether you start off your company as local movers or interstate movers, you’re bound to find people who need your services. The truth of the matter is that you need to start where you are with what you have. There’s no need to have 50 trucks and a huge warehouse. These things will come naturally as your company gains traction! Let us at Master Moving Guide share some tips on how to start a moving company from scratch.
Create a realistic financial plan
First off, to start a moving company from scratch, you will need some moving equipment. Obviously, the main necessity is a moving van that can fit a lot of items inside. Seeing how these vans aren’t too cost-effective, it’s best to start by acquiring just one. We’re sure you already have an idea in your mind of what kind of moving processes you’d do. Make sure that your vehicle matches the needs of these projects. You should also make sure that your van can withstand harsh weather. You can even consult some storage tips to help out with your future storage issues. Businesses grow much faster than people expect. Moving happens in spite of the weather, so it’s best to be prepared.
- Moving van – An amazing way to save money when buying a moving van is to buy it second-hand. You can contact any large moving company and ask them if they have vans up for sale. Be persistent though! Many companies won’t be selling, but you can always find that one that is. Local dealerships can help you out as well as online forums where people tend to sell used items. Be creative, and check out all of your options.
- Paint the van – Branding is very important in today’s age. Prepare some money for a nice logo or name of your company on the side of the vehicle.
- Rent vans when necessary – If buying a van is still too pricey, there are many companies that rent out vans and trucks. You can rent out a van whenever you have a customer, just make sure it pays off and adjust your prices accordingly.
- Dollies, moving straps, blankets, tarps, etc.
Decide on the number of employees
To be regarded as reliable movers is the goal! Not many reliable moving companies have one employee. Obviously, you will hire as many people as you can financially, or you will work alone until acceptable people come along. We would urge you to truly pay attention to who you’re hiring. Just a couple of reliable and physically strong employees will make all the difference.
In the beginning, you might just need another pair of hands to help out. As your business grows, you will naturally hire more people. Now, depending on your needs and possibilities, you can choose what kind of workers you hire. It can be full-time if you’re receiving many moving projects. On the other hand, you can choose part-time employees, seasonal employees, or independent contractors. A good way to reach people would be via Craigslists. But, there’s the book-keeping to think of. You might need at least one employee to keep track of each task that gets done, and to answer the phone. Keep in mind that hiring employees brings new taxes to your company. This is, of course, completely normal and it should be this way, but just be prepared.
Insurance is a MUST
Insurance is an inescapable part when trying to start a moving company from scratch. If things go awry during your relocation, you need to have the resources to pay for any damage. Be sure to take a look at various insurance options. Insurance for your vehicle, insurance for your business, and insurance for the items you’re carrying are top of the list. You want to make sure your potential customers can hire movers without getting scammed. Make sure to be as honest as you can, and an honest, transparent insurance policy is one of the best ways to go about this.
Develop a pricing plan
Before you start any projects or advertising, you need to make some decisions. Take some time to research the market and see what are the usual prices for various services. Your pricing depends on a lot of circumstances. How far are you relocating? How many hours will it take? Are there a lot of items or just a few? All of this needs to be taken into consideration.
- Think of your personal expenses – When you decide what is a fair price, you need to think of how much money you’re spending before the move even begins. Your price needs to cover the fuel, maintenance of your vehicle, packing materials, wages for your employees, and much more. Maybe you’d even add the cost of your van so you can earn it back in a few moving projects.
- Decide on the services you offer – Apart from moving, will your company offer any other services? Usually, companies offer packing and unpacking services, as well as storage services. This might be too much for the beginning, but think it through.
- Try to aim for a lower price in the beginning – You need to make your company known before you can create high prices. By offering more affordable moving services, everything will go along much smoother.
- Check your state’s restrictions – Certain states restrict how much you can charge for a moving process. Check with your state’s Department of Transportation, and don’t forget to ask them about licensing!
Now that we’ve shared how to start a moving company from scratch, what are you waiting for? Go and start that business!