From large pieces of furniture to clothing and essentials, many people require the help of a professional moving company to get their belongings from point A to point B. If you want to start a moving company of your own, it’s a great business model that’s always in demand. Quality moving companies offer a great service to their customers while garnering a decent profit.
From coming up with a business plan to setting goals and funding your new company, this guide has everything you need to become successful in your moving company endeavors.
Start with a business plan
As you think about how to start a moving company, drafting a business plan should be your first step. Your business plan provides a layout and a step-by-step guideline to help you develop your company from start to finish. Here are some key components of a solid business plan:
● Come up with a mission statement that defines who you are as a company and your business goals.
● Determine what business structure you’ll use, whether it’s an LLC, a sole proprietorship, or a corporation.
● Develop a good marketing strategy and research your competition so you can stand apart from the crowd.
● List your key objectives and goals, so you have something to strive for as you go.
● Determine how you’ll get financing and what you’ll charge your customers for your moving services.
● Make accurate and realistic financial projections about where you see your business financially in the next one, two, and five years.
Do your research
Before you start moving furniture state to state, you’ll need to do some market research to test out the viability of your services with potential customers. The key is to determine who your target market is and who will want to pay for your moving services. For example, if you live near a military base, you could cater to military families that move often. If you’re located near a college, you’d want to do some market research to find out how many students use moving companies.
Conduct market research yourself or hire an outside firm. The goal is to get authentic customer feedback to ensure you’re doing things the right way. Consider asking customers to submit surveys, leave reviews, or simply let you know how you did to help you perfect your craft. Take what you learn from your market research to help come up with an effective advertising and marketing strategy.
Be S.M.A.R.T. about it
When you start a moving company, consider using S.M.A.R.T. goals to help you reach different milestones. This acronym stands for Specific, Measurable, Achievable, Realistic, and Timely goals.
First, make sure your goals are clear and well-defined so you know exactly what you want and expect from your business. Next, take measurable steps using criteria that help you keep track of your progress as you move toward your goals. Remember to keep your goals achievable, realistic, and within your grasp. Finally, come up with a specific timeline that includes a start date and a final target date so that you’re focusing on the timely aspect of your S.M.A.R.T. goal plan.
Financially prepare
Both large and small moving companies must be financially savvy and prepared. When you plan ahead, you’ll be able to get the funding you need and allocate the right amount of money toward things like marketing and paying for employees. Consider hiring a professional accountant who can help you keep track of your expenses and income.
It’s important to create a separate bank account for your business. This makes everything much easier when it’s time to file your taxes at the end of the year.
Funding your business
There are many steps to moving, but there’s also a lot to consider when obtaining funding for your moving business. With startup funds, you’ll be able to start obtaining moving trucks, pay for marketing and advertising, and get everything else you need to run your business smoothly. If you already have the cash, you can self-fund your business using savings and other sources.
However, many companies look for investors to help fund their startup businesses. This option is also called venture capital, and it’s typically reserved for high-growth businesses, so participants see a quick, healthy return on their investments.
Another good way to get funding quickly is to apply for a small business loan. These loans are typically offered at a lower rate than a personal loan. Get the money you need to start running your business right away and pay it back as you go. Before you apply, make sure you have your business plan, a detailed expense sheet, and your projected profits ready to show the lender.
Hire the right people
If you’re going to start a moving company, it’s vital to have the best team possible to help you accomplish your goals. Look for reliable people who are interested in helping provide a valuable service to others. Even if the people you hire don’t have past moving experience, they should still be excited and passionate about learning the business.
Most reputable companies are only as good as the team who works for them. Take your time when looking for new employees, check references thoroughly, and make sure each person you hire is someone you’d want to help you run your business, even when you’re not around. Come up with a list of interview questions that are important to you. Use these questions and answers to help you determine which people will be a great fit for your new moving company.
Once you’ve decided to start a moving company, you can begin working on a plan to see your dreams come to life. Remember to start with a detailed, solid business plan that includes crucial information like your mission statement, financials, and growth plans. Do plenty of market research to ensure you’re hitting the right target market and decide the best way to come up with financing for your company. Finally, hire a great team of people who will help you achieve your moving business goals.
