Everyday there is someone packing up boxes and moving out of their home or office to a different location/area. If you have ever moved yourself or helped your neighbours, friends or family to move, then you know the hassle that comes with this transition.
Moving is a daunting task. It takes up your time, energy and resources. Which is why, moving companies are sought after to help people to move out of their homes. Something about this being done by professionals makes it seamless, efficient and stress free. Before you start a moving company, you first need to know what’s in it for you. Is starting a moving company profitable? Is there good money in a moving company? What is a good profit margin for a moving company?
Once you have established this, you have to develop your moving company business plan, prepare your business licence, get your moving company equipment and start operations
Here are the steps you need to follow to start a successful moving company in 2023:
1. Figure out your market
Conducting market research will let you know what to expect before you start your moving company. This is a critical step and should not be overlooked. Start looking at what other moving companies are doing and learn from them.
Research on every key factor that is going to be important in your business. For example, how do they carry out moving activities, who are their customers, what pricing range do they use and how do they stay above competition?
When you know this, you can come up with a good business strategy that will create value to clients, give a competitive edge, get more clients and maximise profits. Your competitors should set the base for you.
Next, you need to know who you want to serve. What type of customers do you want to offer moving services to? Is it for people in residential houses, offices or storage spaces? Where are your preferred clients located and how much are they willing to pay for moving services?
As you look into this, don’t forget to look out for any opportunities and threats while starting a moving company. Seize opportunities and work around threats.
2. Have a moving company business plan
Successful businesses usually start with a business plan. It is a key ingredient to success. A business plan will clearly show you where you want to go and what you can do to get there.
A moving company business plan must have basic information about your moving company. This includes the purpose for starting your business, your market, competitor and customer analysis, your management team, your financial analysis and financial projection and your marketing and operational plan.
Be very detailed and specific as you list the items in each of these elements. Do not just think of writing a sketch of a business plan here. Remember, you will come back to this document for reference or to make any changes where need be.
Make sure that you tailor your business plan to meet the needs of the different stakeholders in your moving company, i.e investors, bankers, strategic partners, large customers (who want company loyalty to serve them in the long term) and key employees.
A good business plan will speak for your company.
3. Get training
As an owner of a moving company, your main task will be to help move people’s belongings. That and also arranging movement of items, packing and unpacking boxes as well as loading and unloading the moved packages. To do this, you need skill.
You cannot just wake up one day and think you can efficiently handle people’s fragile items without any accidents. The reason people trust you with this process is that you are able to reduce liability and pay for any damages caused, depending on the agreement.
Some of the skills you need to have to succeed with your moving company are time management skills, organisation and planning skills and excellent communication skills.
A good way to equip yourself with these skills is to watch what others are doing or get on-the-job training, before you branch out and start your own moving company. Listening to what your clients say is also a good way to hone the skills needed to run a successful moving company.
4. Know your startup costs
Startup costs will decide whether you want to follow through with this business idea or not. They are the deal breaker in any business. Knowing how much money you need to start a moving company will help you write up a clear financial plan.
Here is a list of some of the expenses you should expect to incur when you start a moving company.
- •Cost of moving equipment
- •Vehicle for transportation; you might have to buy a van or a moving truck depending on the type of clients you have
- •Fuel expenses
- •Licensing and insurance costs i.e for the moving truck
- •Staffing fees
- •Rent/ storage space fees
- •Marketing expenses e.g website expenses etc.
While you can save on startup costs by making do with what you have, if you are ever stuck with your finances, do not give up hope. Look for different ways to finance your startup. You can ask friends to partner with you, look for inverters or seek loans from banks.
If this does not augur well with you, you can buy an existing moving company or decide to franchise. These two options are better than starting your own moving company from scratch, because you will have an already established clientele and will benefit from the moving company’s established reputation.
5. Moving company equipment
One of the must-have equipment that you need to have to start a moving company is a van or a truck. It will cover most of your startup costs. Your vehicle of choice should be in good condition and properly insured. This will not only ensure ease of movement but also safety from loss arising from risk.
Your truck/van is going to carry the name of your moving company so think about branding here. A good business name will attract the customers you want for your business. You can have a good logo and also don’t forget about leaving your company details on the van so that people can contact you for your moving company services.
Other items that must also be in your moving company equipment include:
Furniture belts
Moving blankets/moving pads
Wrapping dollies
Moving materials
Packing materials e.g boxes of different sizes
Tie downs and ramps for your truck.
You can find these equipment at a local hardware store. If you have a dealer or supplier for them, make sure that they are reputable and can provide you with these moving equipment on a good deal.
6. Find a suitable location
Even with a moving company, you’ll still need to find a location. Something like a storage space or a warehouse where you can keep your van/truck and hold the items you are moving.
For starters, you need to look at the accessibility of the area you have chosen. Is it near roads and motorways? What about parking access? Can you safely park your moving truck(s) without fear of theft or vandalism? Is the area crime-free?
Are you legally allowed to set up your moving company location there? What are the zoning regulations, if any? What are the business rates there and how much should you expect to pay as rent and utility bills? Is the location near your target audience?
Location will make or break your business so you must strategies and find a good place. One which is comfortable enough and allows you to efficiently operate to and from your client’s location.
7. Moving company business licence
Do I need a licence to start a moving company? It’s always wise to start a business on the right side with the government. For a moving company, this means getting all your licences and permits in order before you think about operations. Doing this first protects your business from being shut down.
With a moving company, you will have to be in your clients house/office to pack up their belongings and move them. Since you don’t want to risk being arrested for trespassing or theft, you have to show proof that you are licensed and authorised to do what you are doing.
You’ll need a moving company licence/permit to prove this. This will cost you around Ksh. 3,000. Also, you must have a tax certificate and a fire clearance certificate to show that you have understood the safety precautionary measures against fire accidents.
You also have to register your moving company as an LLC or partnership, depending on the business structure you choose. This will cost you around Ksh. 1,000 if you are in Kenya.
You must also insure your moving company for liability and cargo insurance. Cost will depend on the insurance company you choose.
8. Hire employees
For your moving company to be successful, you need employees. This is one job you can not do on your own. You need to have all hands on deck to get things moving.
As you look for your employees/staff, there are certain things you need to look at. For example age, body composition and gender. Be very specific about what it is you want and what roles you think would suit any given employee.
You should train your employee and ensure they have the skills needed to get the job done. Teach them how to offer excellent customer service skills and handle sales. They should take care not to be rude to clients or mishandle their property. The client must be listened to.
Also, it is important to note that your employees will carry the name of your moving company. You can make uniforms with a good colour and branding logo to attract more clients to seek services from your moving company. This is a good marketing strategy that will encourage lead generation.
9. Plan out your marketing
Following on, your target audience for a moving company is anyone in an apartment or an office building. Once you have established this, you must make an effort to get their attention.
One way to do this is through establishing a strong online presence. This includes having a strong moving company website and engaging your audience across the social media networks. You have to make sure that your moving company website has details of your company; who you are, where you are located and what it is you do.
Using sponsored ads/posters and social media can also help attract clients.
You can also give discounts and ask for referrals from satisfied clients.
Business cards, flyers, posters and good signage will spread word about your business.
Don’t forget about TV/news/radio publications to promote your moving company, especially if you can afford it.
FAQs on Starting a Moving Company
Q. Where do movers make the most money?
Moving companies are likely to make the most money in handling high end clients. When moving companies charge high for these types of clients, they seem superior, hence are more likely to be trusted as fit for the job.
Q. How do moving companies calculate costs?
Moving companies will look at the number of its employees it would take to complete a certain job and the location it will be moving to; i.e how far it is. Some jobs are more complex or will require more materials and transportation costs. Before you charge customers, you have to make sure that your pricing is fair, but still profitable to you. On average, small moving companies tend to charge about Ksh.3,000 to Ksh. 6,000 for a single move.
Q. Moving company owner salary?
The average amount of money you can make with a moving company is approximately Ksh. 20,000 or more in a month as profit. This is a moving company owner’s salary.
Conclusion
One of the biggest advantages of starting a moving company is that you can start small. You can start moving items for your next door neighbours or friends in your minivan before your moving company picks up pace and you decide to take things a notch higher. It is also very easy to get referrals in this business, especially if clients are satisfied with your moving services.
If you love travelling, this is your chance to move from one destination to the next as you move your clients items. A moving company has unlimited income potential and this is good for any entrepreneur who wants to earn a living out of it. You just have to be able to brave the long hours of working and be ready to do heavy physical work of moving to stay in business.
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