Starting your own moving company is an exciting venture — but it’s important to make sure you consider a few key factors before taking the leap. From understanding local regulations to establishing your market, here is what you need to know before getting into the moving industry:
Insurance & Licensing Requirements: Before you start operating, make sure that you’re familiar with local laws and regulations regarding insurance and licensing requirements for moving companies in your area. It’s also important to know what type of insurance is necessary in order to cover any damages while transporting goods. You will need to insure your vehicles, employees, and customer property for each job. You also need to find out any requirements in the areas where you are thinking about offering long-distance moving services.
Understand Local Labor Laws: Make sure to educate yourself about applicable labor laws or regulations pertaining specifically to the moving industry in your area. This knowledge can come in handy if any legal issues were to arise after you start your business. Understanding how your business needs to be structured ahead of opening will set you up for success.
Equipment & Resources Needed: Moving can be hard work! Make sure that you have all the necessary equipment on hand such as trucks, dollies, and packing materials before launching your business. You should take inventory of how many of these items you already have, as well as how much it would cost to purchase necessary items. Consider the costs that will also be recuperated when clients use items, such as moving blankets, boxes, packaging tape, etc. For example, a 12-pack of moving blankets might run you $75 out of pocket initially, but this cost will be recouped by charging $10/ blanket. Not only will your expenses be repaid, but you will begin to see your potential profit margins through these calculations.
Establish Your Target Market: Do some research into who your target market is — such as students or retirees — so that you can focus on reaching this demographic effectively. In addition, it’s important to scope out the service area(s) that you are considering entering. You can do this by checking out the established competitors, the services they are currently offering, as well as the price point that they’re in.
Develop Relationships with Potential Partners: Creating relationships with partners such as storage facilities, real estate agents, cleaning services, etc. will be greatly beneficial to you in establishing yourself if you decide to open shop. Reach out to local businesses as a research method to get a feel for the need and interest for their businesses to be working with you as a referral source. In addition, finding a reliable, established lead service, such as All Local Pros, that would be happy to offer you moving lead services is another area that you should investigate ahead of time.
Starting your own moving company doesn’t have to be stressful! By following these tips, you can take some of the headache and confusion out of getting into the moving industry. Doing your research now will ensure you can get started on the road toward success right from the start!