Mobile Businesses, Trades

Become House Movers | Start A Moving Company Business

Moving On Up

If there is one recession-proof profession, it is a moving business. People are moving from place to place at any time, almost anywhere in the nation. And for most people, moving is a real pain. So, inviting a moving company to assist with the task is very popular. Today, hundreds of house movers exist in every city- from large mega movers specializing in moving corporate offices to the two-men affordable movers who help with family homes. A moving business is lucrative but makes no mistake; most startups find it challenging for the first few months. Most fail to anticipate the workload and or have no plan. Renting a truck and randomly asking friends and family if they need movers does not work. So if you are considering setting up a moving company, Learn how to become a smart mover. Here are some practical tips.

Moving Through The Seasons

The transportation business is subject to the seasons. Your location and time of year affect your business. If you are operating near a ski resort, there is a good chance that you will experience a peak of activity in winter! Likewise, there are more customers in a seaside resort in the summer. Therefore, you must consider these elements in your business plan.

This variation in activity level can have severe implications for your company’s cash flow. We advise you to anticipate the slower months by creating a monthly financial forecast to avoid unpleasant surprises. These forecasts are the best way to know if and when you might run out of cash.

Be Smooth Movers

Other things that are needed to start a moving business include:

Good health; moving is a tough job, and doing it every day of the year can be physically exhausting. Even though there are all types of devices to make moving furniture more comfortable, there will be times when you may have to lift items and carry them into the front of the truck.
Diligence
Remain motivated
Great interpersonal skills. You must know how to communicate with potential clients both on the phone and in person. Your interactions must be warm, comforting, and pleasant if you want the business.

Skills Required For House Movers

While you may not need a degree in economics to open a moving business, you’ll need some basic knowledge to move items carefully. One of the biggest complaints by customers is that the movers have broken their valuable items. So the key is to work for a short time with a moving company and learn the business’s practical aspects. During this internship, you will also learn the ins and outs of the business, and how to pack and safely move items. There are also weekend moving courses that provide you with practical information on the proper packing, loading, and handling of objects.

Here are a few links to some online movers’ courses

Your Vehicle, The Most Important Factor

Your fleet of vehicles will require upkeep. A healthy truck is the second essential element you must consider in your moving business plan. A new vehicle is a substantial investment depending on the type of vehicle.

Here is a list of popular auto trader websites

Leasing A Moving Truck

Leasing a vehicle will make your initial costs less substantial in the short term. It will still be necessary to consider your monthly payment on the lease, the security deposit, and if, at some point, you were to acquire the vehicle, which is the amount linked to the purchase option exercise.

Renting A Moving Truck

Renting a truck per job is an excellent option for those who don’t want to work full time; this way, you avoid having a considerable amount to pay in one go at the outset. You only have to pay the rental costs for the time it takes to get the job done. Plus, you will be responsible for rental fees such as insurance, tax, and fuel. Unfortunately, your margins will be lower than those who own their vehicles.

Moving Company Business Plan

No matter how small your moving business might be, it would help if you fully understand the profession to anticipate any issues that may come up. You should therefore include the following in your business plan.

What is the cost of my startup?
What supplies or equipment will I need?
What size truck do I want?
How will I market my business?
Who are my customers
How will I overcome the competition?
How many employees will I want?
Do I need a permit to operate my moving business?
How much should I charge for my moving services?
Is the moving business profitable?
What are the negatives of starting a moving company?

A plan will help you understand the business and help overcome any hiccups that you may face down the road.

There are some handy services available online

Moving Company Legal Entity.

You may want to consider creating a legal entity for your business. This could be a sole proprietorship, LLC, or corporation. These legal entities are relatively cheap to develop, but all need to renew each year.

Register for state and federal taxes
Apply for EIN
Open a dedicated business account and acquire a business credit card to separate your assets’ finances and make it easier to file annual taxes.
Keep an accurate account of all your business transactions and expenses.

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Moving and Transportation Permits

In most states, you will require permits to start a moving business; you should contact your local Chamber of Commerce to determine what permits are needed. You’ll need to register the truck with the Department of Transportation. They will provide you with a unique USDOT number required to operate as a moving company.

Moving Business Insurance

All who are considering starting a moving business should have an insurance policy. This policy should cover your cargo and your vehicles for vandalism, theft, and fire. Also, most US states will require worker’s compensation insurance if you employ more than two people.

You’ll need to have the minimum legal insurance coverage for your vehicle and cargo in many states. Your insurance provider will provide you with more details on how much coverage you will need.

Here are some specialist insurance companies

Here is a list of some standard insurance companies

Best Places To Get Small Business Insurance

Moving Company Contract

Having a contract that you will present to the client is vital. This contract must be crystal clear about the services, expectations, and risks of the move. You must clearly state the rate and payment to avoid legal disputes later. You can find some excellent moving contract templates online.

Try out some of these “free” contract template websites

Is A Moving Business Profitable?

The moving business is profitable if you are reliable and have a good reputation. Sadly, some movers have a terrible reputation; some have reported movers withholding property, demanding extra money outside the contract, damaging property, etc., and all have lost future business. The key to profitability includes knowing the following:

Know your market
Be reliable
Always be honest
Do not hold customers, hostage
Treat customer’s property with care
When in doubt, give the benefit of the doubt to your customer

Is Joining a Moving Franchise a Good Idea?

If you do not want to deal with the hassles of starting a business from scratch, joining a reputable moving franchise might be a good idea. While the franchise will take care of some of the overhead expenses, marketing, and promoting the brand, you will have less control over the business. Plus, moving franchises are not cheap and can cost anywhere from $50K- to $150K

Here is a list of some popular moving franchise operations

How Much Do Moving Businesses Make?

The majority of small moving companies charge $40 per hour per mover. Thus, if there are two movers, the rate is $80 an hour. To move an apartment locally can take roughly 6-8 hours for two movers. So this amounts to $400-$500 just for the labor. If the move is long-distance, you must factor in gas and insurance costs. Most big movers charge anywhere from $80-$120 per hour. However, if you are starting out and want to develop an extensive list of clients, $40 per hour per mover is reasonable. Most moving companies will add in the mileage fee as an extra.

How Much Will My Moving Business Make in a Month?

If you stay busy working 2-3 times a week and charge $80 per hour (two men crew), you can easily earn anywhere from $1800-$2400 if you put in 20-30 hours a week. If you increase your working hours, you can double that amount. If you own the truck, your only expenses are gas and food. However, you should always set aside $300-$400 for unexpected truck and supplies costs.

What Are Some Difficulties With Opening A Moving Company?

As a newer business, you will always face some hurdles, which include the following:

Too much competition
Not many clients- during a bad economy, fewer people moving
People deciding to do their own moving

To overcome these problems, you should also visit furniture stores and junkyard hauling companies and offer your services for any moves that they may have.

Moving Company Marketing

Here are some ways you can market your moving business:

Create a website and keep it active. Show some fun images of your moves and add reviews from clients
Make flyers and distribute them in stores, malls, and apartment buildings
Leave your business card with furniture stores
Participate in social media sites and interact positively with everyone
Place an ad on craigslist

Try these marketing companies

Branding: Affordable Movers – Hot Tub Movers

It is essential to give your company a unique name. You want to be easily recognized by the public. At the same time, invest in a logo on your truck and all your stationery. Create a company folder and a moving kit that you give to all potential clients

How Can I Make My Moving Business More Profitable?

To make your moving business even more profitable, you can offer the following additional services:

Unpacking
Packing
Assist with setting up your client’s homes

Many movers also offer storage services as part of their moving business. Many customers will want to have their furniture stored while they are looking for a new place. So consider renting out storage space.

Moving Business Equipment Costs

Your startup costs will depend on your business’s size, the number of employees, and the location. If you are starting as a two-men crew, then the following costs may apply:

Here are some handy supply company links

Here is a list of some of the equipment you will need for your business

A big truck
Storage space for furniture
Supplies like boxes, tape, markers, labels
Wheel lifts
Drapes, pads, foam, newspaper, rugs, bubble wrap, moving blankets
Floor Sliders
Forearm Forklift
Dolly Carts
4-Wheel Hand Carts
Truck Loading Ramps
Gloves, knee pads, first aid kit
Shoe covers
Dividers to protect items
Insurance
Gas

If you have a minimal budget for equipment, at least buy a dolly, which will suffice for most moves.

The most significant expense is the truck. A new moving truck can cost upwards of $50,000, but if money is limited, you may want to consider renting one until business picks up.