Blogs

How To Start A Moving Company

March 12, 2021 Admin

Around 100,000 households in the UK alone look to change residence every month. America saw around 32 million people moving houses in 2018. These numbers have been on a steady incline since 1998 and will continue to do so in the years to come. In addition to this, around half of the Australian population has shifted houses as per the 2016 Census. Therefore, all these statistics prove one thing: The general population is always moving. Along with new tenants, there follows a large number of belongings needing to be carted along with them.

Therefore, it is clear that the removal or moving business is one of the most lucrative and stable businesses out there.

How much does it cost to start a moving company?

The price of beginning a company can differ according to the country in which the business will be operating. The bulk of the expenses comes from buying the equipment needed for transporting and packaging goods as well as employing a small but able workforce. The average cost, according to some estimates, can range from $90,000 and above. However, it may be subject to change depending on the clientele that one will be serving. That is to say; the clientele can range from office furniture to conventional household items as well.

Key factors to consider when starting your moving company

Before beginning the process of creating a full-fledged moving business, it is important to step aside and think about implementing the business model. Therefore, here are a few aspects that require thorough scrutiny:

1. Target Demographic: This would involve finding out what clients one would prefer to work with. A company can choose to work with common households, educational institutions, bakeries or restaurants and offices in urban areas.
2. Business Structure: One should evaluate the future of the business and determine whether they can go at this alone or with the help of a franchise.
3. Branding: This requires finding a name for the business as well as creating an outline for the marketing strategies that will be in use.
4. Sources of Funds: Be it a loan from a bank or an investor; the initial funding sources should be foolproof and stable. By doing so, one would ensure that the beginning growth of the company is not affected.
5. Insurance plans: These plans will play an irreplaceable role in providing security to employees and clients.

Step by step guide on how to start a removal company

The beginning of any business can be extremely intimidating to a business owner. The requirements, deadlines and goals can cloud one’s better judgement. Therefore, to execute the plan at hand, it is essential to prioritise the first few activities one will be carrying out as a business owner. The steps given below apply to all regions save for a few details.

Step 1: Starting Costs and Setting up

A business possesses a few basic needs to take off. The very first step would be to invest in equipment. Moving companies will look for the following:

1. Vehicles
2. Packing Material
3. Moving Contraptions
4. Ropes
5. Crates and boxes.

The choice of vehicles can vary based on the load one hopes to move. However, a large truck is a go-to option as it will provide more than enough space to carry heavy loads. Providing the client with an option to pack their belongings is a must when it comes to removal businesses. Therefore, investing in good quality packing material will help land the company in the good graces of the customer.

What are the recurring expenses that come with a moving company?

The common recurring expenses that crop up during the functioning of the company will be the fuel prices, packaging materials, maintenance of vehicles and taxes.

Step 2: Licensing the company

The process of becoming a legal company is one of the essential components. One can choose from different types of organisations. For example, a business owner can opt for sole ownership, partnership, Limited Liability company or even a corporation. One can choose to be an LLC or corporation if they prefer not to be held solely responsible for any liabilities that appear.

However, the most common business structure that is seen is the formation of partnerships. Newer moving companies prefer to partner up with the already existing franchises as they can provide monetary assistance and business advice.

Based on the structure that one chooses, the tax payable tax will differ. Therefore, one can approach a lawyer or a tax official to determine which type of structure would best suit the business.

Step 3: Creation of Business accounts and Accounting Services

The next order of business is to get the finances in shape. This will require one to first create a business account to which all the revenue will undergo accumulation. One will have to not only organise the existing funds that are present but also figure out the organisation of the incoming revenue as the business starts to take off. To do this, they will have to create a designated accounting department that will handle and records incoming and outgoing funds.

Step 4: Applications for Permits

Permits are the next requirement. It is common knowledge that ensuring that all business operations are legal will save one from paying fines and possible shut down. Therefore, one will have to approach the state transportation departments to receive the required permits. One can approach a local association aimed at helping small businesses to find out the procedure that one has to adhere to.

One can also avail the assistance of a lawyer to know the regulations that the US, UK and Australian government have put in place.

Step 5: Marketing and Website Creation

This step will directly translate into the growth of the company. One should implement a marketing campaign that is effective as well as reasonably priced. The best way to carry out the marketing of one’s company is to create a website. This method provides an unprecedented amount of exposure and will also be a portal through which potential customers can reach out to the company. In addition to this, the website will also act as a bulletin board to showcase the services of the company.

Things to keep in mind before starting a moving company

This section will essentially involve boiling down all the information given in the above steps into seven rules. Remembering these rules will be imperative to the success of the company. The rules are:

1. Equipment that will efficiently assist in the movement of goods.
2. Type of packaging that will safely transport the belongings.
3. Calculating the Budget to ensure optimal growth of the company with the funds at hand.
4. Health Insurance Plans for employees to create a safe working experience for all employees.
5. Legalities like applying for licenses and insurance.
6. Marketing services to spread awareness about the existence of the company as well as the services provided.
7. IT services that will assist in creating an online presence for the company.

Things to do to offer insured moves?

While running a company, safety is of utmost importance. To provide security to one’s employees as well as the client’s belongings, it is in good practice to attain the following insurance:

1. Employee Health Insurance
2. Vehicle insurance
3. Haulage Insurance
4. Insurance for Goods in Transit
5. Third-Party Liability Insurance
6. Liability insurance for an Employer.

By obtaining the following insurances, the client will be capable of placing their trust in the business and its services. The insurance will also help to safeguard against unnecessary loss of revenue when the time comes.

Quotations:
Once the business is up and running with all the legalities out of the way, one can finally decide on the cost of the services. As mentioned above, charges will differ based on distance, the number of employees required for the job, the landscape of the residence and the number of hours at work. Upon receiving an offer, one can visit both residences of the client to understand the gravity of the work that will be done. Only after doing so should the company offer an estimation.

Process of launching the business

Launching a business can be a tricky task as it can only officially happen a single time. Therefore, one will have to take into consideration the following aspects:

1. Creating a comprehensive budget.
2. Obtaining funds from reliable and legal sources.
3. Procuring equipment for the business processes.
4. Attaining required certification from state authorities.
5. Proper Management of finances with the help of accountants.
6. Market the business online as well as offline.

How to retain the customers for your moving company?

The retention of customers is probably one of the most important contributors to one’s revenue. It is essential to reach out to first-time customers again so that the customers may hire the services again in the future. In addition to this, keeping in contact with the customers may also result in the customers mentioning the company to other people. Thus the retention of customers involves interacting with them regularly. It also helps to be active on social media platforms and websites.

What regulations and permits do I need to start a moving company?

Depending on the country the company is based, the number of permits may differ.
America requires its movers to create a moving permit with the State Transportation Department. A moving permit in Australia requires one to reach out to the business portal here. One will be able to find all the required information to create permits. The application for haulage permits in the UK can take place online by visiting the Government website here.

What does the future demand from your moving company?

There will also be a drastic change in the way companies will market themselves. The online presence of a company will be very important to maintain. A company will be required to regularly update their website as well as have active participation on social media platforms.

Why is Logicsofts the best choice when you are starting a moving company?

Logicsofts offers its services to businesses in need of designing websites. We specialise in optimising websites for various platforms like WordPress. The company has been active since 2009 by catering to a moving company known as movemystuff. Since then, Logicsofts has worked hand in hand with dozens of moving companies from Australia, the UK and even the USA. We provide services like web marketing, lead generation and creation of user-friendly APIs. We know what it takes for a moving company to carry out a successful marketing campaign.

Advice for entrepreneurs who are starting up or planning to start their moving companies

The founder of Skinny Wimp Moving, Max Maher, began his business at 19 and saw enormous growth since then. Maher urges entrepreneurs to be patient, especially during the initial stages of the company. In addition to this, it is essential to be diligent while setting up the business. One should also avail of the innumerable benefits that come with promoting the business on social media.

FAQ’S

Are moving companies profitable?
The price of the services will differ based on factors like distance, fuel consumption, load to be moved and so on. Given the number of people that move residences, it is safe to say that moving companies have their work cut out for them.

What do movers cost per hour?
At present, movers can cost $25 to $40 per hour for each mover that is required. Australian services usually cost AUD75 to AUD300 (Australian Dollars) for each hour. It can cost £50 to £60 for an hour in England.

How much do moving leads cost?
Moving leads that can be obtained online will cost anywhere between $5.95 to $10 if it is a common lead. However, exclusive ones can go up to $40. Lead generator services can cost AUD22.99 per hour. One would have to pay £6.50 for leads in England.