Moving services are making big money as an $18 billion-industry. Projections for this type of business is also rosy, with IBISWorld seeing moving companies going strong in the next four years. Yearly growth is seen at 3 percent, and with the average American moving 11.7 times in their lifetime, starting a moving company could be a moneymaker for you.
Now just because moving companies are profitable, it doesn’t mean your business is going to be one as well. It can’t make money if it doesn’t have a good business structure (e.g., sole proprietorship, LLC or partnership) and a good plan.
Here are some business tips to start you off.
1. Do your research
Before you start your business, it’s important to do your research and figure out what the competition is like. What are their rates? What services do they offer? How do they market themselves? Knowing this information will help you determine how to price your services and differentiate yourself from the competition. You want to make sure your business is successful, so it’s important to find a niche and target your marketing efforts.
2. Create a business plan
Creating a business plan is essential for any new business. This document will help you map out your goals and strategies, and it will also help you get the funding you need. It should also identify what type of moving company you want to run: a local moving service, an automotive transportation company or an international moving services.
Your plan must also specify your business structure, clarify your goals, define a target market and detail your strategies for marketing.
Make sure your business plan is realistic and includes a detailed financial analysis. Businesses without a plan are more likely to fail, so this is an important step.
3. Get licensed and insured
Moving companies typically deal with property damage and lawsuits. No matter how careful your employees are or how well run your business is, the risks will be inevitable. So you must have protection through appropriate insurance, such as liability insurance. General liability covers your moving company for property damage, bodily injury, legal defense and judgment, among others.
Other insurance coverage to look into are commercial property insurance, worker’s compensation insurance and commercial umbrella insurance.
In addition to insurance, make sure your business has the proper licenses to operate.
4. Plan and purchase your equipment
You’ll need a truck or van, and you’ll also need some moving supplies, like trolleys, hand trucks and moving supplies. Some moving companies also purchase box trailers for their business.
Whatever equipment you need, make sure you have it before you start taking on clients. You can either purchase your equipment or lease it, depending on your budget. It’s important to have reliable equipment so that you can provide a good service to your clients.
You may also want to look into technology that’ll improve your business.
5. Market your business
No matter how good your services are, if you don’t market them, nobody will know about them. Use all of your resources to market your business, including online marketing tools, print advertising and word-of-mouth marketing.
Make sure you have a strong website and an effective SEO strategy. You should also consider offering discounts or coupons to attract new customers.
The pandemic has also resulted in creative marketing strategies. Even though movements were limited, people had to stay at home, an innovative business can identify opportunities to market.
6. Train your employees
A well-trained workforce will boost any business. For moving services, properly trained movers and drivers give way to good customer service, efficient as well as safe moving jobs.
Before hiring employees, make sure to have a training program in place. The program will depend on the type of moving company you’ve established. If it provides international moving services, consider enrolling employees in external training courses that teach best practices in the global arena.
Providing industry know-how, equipment training, customer service, packing and loading training are just some of the courses your employees must undergo.
7. Offer excellent customer service
Your goal should be to provide the best possible service to your clients. This means being on time, being organized, and being respectful of their belongings. If you can exceed your customers’ expectations, they’ll be sure to use your services again in the future. Try to always go the extra mile to make sure your clients are happy.
8. Stay organized
One of the most important things you can do for your business is to stay organized. This includes keeping track of your appointments, being timely with your estimates, and maintaining accurate records. If you’re organized, your business will run more smoothly and you’ll be less likely to make mistakes.
9. Reinvest in your business
As your business grows, you’ll want to reinvest some of your profits back into the business. This can help you purchase new equipment, hire additional staff, or open new locations. Reinvesting in your business will help it grow and become more successful.
10. Review and update your business plan
As your business grows and changes, it’s important to review and update your business plan. This document should be a living document that you regularly revise. Make sure your goals and strategies are still realistic and make any necessary changes to your plan. Having a well-defined business plan will help your business stay on track and achieve success.
11. Stay up to date on industry news and trends
It’s important to stay up to date on industry news and trends so that you can make changes to your business as needed. This can help you stay ahead of the competition and make sure your business is always evolving. Keep an eye on your industry, as well as the global economy, so that you can make changes to your business as needed.
12. Manage your finances
Finally, ensure visibility on your revenue and expenses with the proper accounting process. Your accounting system must make tracking of financial activities in your moving services easy. You must be able to monitor your invoices, business-related purchases, estimates for services and other essential documentation.
Run a Successful Moving Company
The moving business can be a lucrative way to be your own boss and make a good income. With hard work, dedication and a well-detailed plan, you can be successful in this profitable industry.
The right trucks and people are not the only factors to ensuring a successful moving service. You must be certain you have adequate funding, that you know the kind of moving company you want to run and who you want to serve. Because even as the moving industry is lucrative, a poorly developed company will fail to make the most of opportunities.