Have you been thinking of making an extra income on the side or even a full income? Why not start a moving company? All you need to start a moving service business like the High Stream Moving company is a bit of physical strength and a vehicle that you can convert into a moving truck.
However, just like any other business, you need some start-up capital plus a high level of commitment to make it work. It will take hard work, but the rewards will be worth it. Also, before you get started, you will need to do a lot of research to understand the industry.
Part 1: Prepare a financial plan
Photo by Scott Graham on Unsplash
Price out equipment
Do your research and make a list of equipment you need for the business. Then find out their prices and make a budget. The most important is a moving vehicle, but you might also need the following if you plan to be a full-service moving company that includes packing services:
- Ramp
- Moving straps
- Pads and blankets
- Tarps, Etc.
Determine how many employees you will need
Even if you possess a set of strong arms, you will likely not be able to do all the work yourself. So you will need to contract a few strong, reliable employees. That means you also need to be an effective brain of the operations to be able to lead the team.
Shop around for insurance coverage
For a moving company, insurance is a basic need. It covers you from any potential loss. You will need:
- Vehicle: commercial insurance cover
- Business: liability insurance
- Client property: third party cover
- Employees: worker’s compensation cover
Develop a pricing model
Develop a pricing model by taking into consideration all the expenses that contribute to the revenue. These might include fuel, employee compensation, packaging material, advertising costs, etc.
Create a business plan
Now with the information from your research, develop a business plan. This is a critical document that will give your business direction, and you can also present it to people willing to invest in your business – lenders or partners.
Apply for a loan
If you need to borrow money for the business, it is now time to start.
Part 2: Dealing With Legal Requirements
Before you start your moving company, you will need to do the following:
Find out the license requirements and apply
Check the license requirements in your state. If you plan to do local moving as well as long-distance moving, you might need to register with the U.S. Department of Transportation.
Incorporate your business
Check your state’s business incorporation requirements on your state’s Secretary of State’s website.
Register with the IRS
In addition to business incorporation, you need to get an Employer Identification Number (EIN) from the IRS.
Prepare a customer contract
You will need a detailed contract that you can present to a potential customer before you start work. If you are not sure where to start, talk to a lawyer for guidance.
Prepare bookkeeping requirements
If you plan to do bookkeeping in-house, prepare your spreadsheets or accounting software. Alternatively, you can outsource to an accountant.
Part 3: Start Marketing and Finding Customers
In order to start generating revenue, you need customers. So it is now time to start bringing them in.
Create a company website
Create a business website where customers can reach out if need be. Include details about the services you offer, your history, contact information, and quoting process.
Contact friends and family
Market your business to the people you already know and ask for referrals.
Create business cards and flyers
Prepare professional-looking marketing materials and distribute them in your locality.
Network
Another great way to spread the word about your business is to mingle. Make yourself visible by visiting local events and participating in the community.
Take advantage of free advertising opportunities
Utilize social media and free sites like craigslist to advertise your movers services.
Invest in paid advertisement
If you have the budget, consider tv or radio commercials, direct mail flyers, newspaper adverts, etc.
Make a good reputation
Make a great impression on your customers and then ask them for reviews to build your reputation.
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